Tag: Motley Fool

It has been a very disappointing day of trade for the S&P/ASX 200 Index (ASX: XJO) on Thursday. In afternoon trade the benchmark index is down 1.95% to 6,649.2 points.

Four ASX shares that have not let that hold them back today are listed below. Here’s why they are storming higher:

Bigtincan Holdings Ltd (ASX: BTH)

The Bigtincan share price has climbed 4% to $1.11 following the release of its second quarter update. Bigtincan continued its strong form during the quarter and delivered annualised recurring revenue (ARR) of $48.4 million. This represents growth of 50% over the prior corresponding period. Management revealed that this comprised organic ARR of $40 million (up 42.9%) and ARR of $8.4 million from recently completed acquisitions.

Bubs Australia Ltd (ASX: BUB)

The Bubs share price is up 7.5% to 65 cents after reporting an improvement in its performance during the second quarter. For the three months ended 31 December, Bubs reported gross revenue to $12.8 million. While this was a 12% reduction on the prior corresponding period, it was up 36% on its first quarter gross revenue. Bubs also revealed improvements in the corporate daigou channel during the quarter.

LiveTiles Ltd (ASX: LVT)

The LiveTiles share price has jumped 5% to 22 cents following the release of its second quarter update. According to the release, as of the end of December, LiveTiles’ ARR had increased 10.2% year on year to $58.1 million. In constant currency, LiveTiles’ ARR would have grown 23% year on year to $64.7 million. This was driven by customer additions and an increase in average ARR per customer.

Treasury Wine Estates Ltd (ASX: TWE)

The Treasury Wine share price is up 5% to $9.74 despite there being no news out of the wine company. However, a sharp pullback in the Australian dollar may have given its shares a boost. A weaker currency could give its wine exports a lift.

More reading

• Why the LiveTiles (ASX:LVT) share price is avoiding the market selloff
• Here’s why the Bubs (ASX:BUB) share price is surging 10% higher
• Why the Bigtincan (ASX:BTH) share price is jumping higher today
• Will Joe Biden’s election help an Australia-China reset?
• 4 growing small cap ASX shares to watch

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 LIVETILES FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends BIGTINCAN FPO. The Motley Fool Australia owns shares of and has recommended BIGTINCAN FPO, BUBS AUST FPO, and Treasury Wine Estates Limited. The Motley Fool Australia has recommended LIVETILES 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 Atomo Diagnostics Ltd (ASX:AT1) share price dipped yesterday and has remained flat today after the medical device company released its quarterly activity report for the period ended 31 December 2020.

Atomo designs blood-based rapid diagnostic test (RDT) devices. Through the company’s device portfolio, it aims to provide technology that simplifies the blood testing process and reduces errors. The company offers options for both medical professionals as well as for people who require self-testing to manage their health.

Quarterly activity report highlights

According to yesterday’s quarterly activity report, the company brought in a total of $5.8 million in cash receipts for the first half of the FY21. This includes $2.8 million gained during the second quarter, up a whopping 709% from $346,000 in the previous corresponding period.

Sales for the second quarter of FY21 (unaudited) came in around $2.0 million. The company also advised that an additional 259,200 units shipped to one of its US-based customers, Access Bio, aren’t reflected in revenue to date but will be booked as revenue in the third quarter FY21.

Across North America, Europe and Australia, Atomo continues to progress its rapid testing coronavirus technology. This involves activities like pursuing sales opportunities, finalising submissions and gaining associated approvals.

Additionally, the company continues to progress supply agreements pertaining to its HIV tests. New business is expected in the emerging global health market moving forward.

Positioning for growth

According to Atomo’s co-founder and managing director John Kelly, the company is positioning itself for growth. Mr Kelly believes that the current need for coronavirus tests around the world presents significant opportunity for Atomo.

During the quarter, Atomo launched its TGA-approved AtomoRapid COVID-19 antibody test for sale in the Australian market. Total sales for the product were $394,000 across a range of professional testing and corporate channels.

Mr Kelly goes on to note the Biden administration’s recent $50 billion commitment to fund testing across the US. As a result of this, Mr Kelly expects the coronavirus will continue to play an important part of Atomo’s business “for a number of years”.

Atomo share price snapshot

At the time of writing, the Atomo share price is sitting at 29.5 cents per share, giving the company a current market capitalisation of $166.4 million. The Atomo share price has stayed relatively flat in 2021 so far, and is down 24.36% on this time last year. 

More reading

• Up 400% in 2021, why the Hawkstone (ASX:HWK) share price is rocketing 28% higher
• Why the Amcor (ASX:AMC) share price is having a rough start to 2021
• Brokers list the latest ASX shares to buy in this market meltdown
• Gamestop on the ASX? Why GME Resources (ASX:GME) share price rocketed 28% today
• Why IOOF, Kogan, Openpay, & Woodside shares are dropping lower

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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The Hawkstone Mining Ltd (ASX: HWK) share price is going ballistic. Shares are up 28.2% in early afternoon trading, putting the Hawkstone share price gains so far in 2021 at more than 400%.

To put that in some kind of perspective, the broader All Ordinaries Index (ASX: XAO) is down 2.4% today and down 0.8% for the calendar year.

Today’s leap for the Hawkstone share price follows the company’s latest lithium mining results.

What did Hawkstone Mining report to send its shares flying?

In an ASX announcement this morning, the United States-focused diversified minerals explorer reported that initial results from metallurgical testing at its Big Sandy project in Arizona revealed lithium recoveries of 90%. Hawkstone reported it was able to remove iron, aluminium and magnesium, with minimal losses of recovered lithium values from leach solution produced from the mineralised material.

The company said its current test work is now focussed on removing sodium and calcium from the leach solution. If successful, this will produce a pure and concentrated lithium sulphate, opening the way to final processing and battery grade lithium carbonate.

Hawkstone engaged Hazen Research to complete the test work, using a 50kg sample of mineralised drill core from the 2019 Big Sandy drill campaign. Final results are expected by the end of February.

Commenting on today’s update, Hawkstone Mining managing director, Paul Lloyd said:

The company is pleased to announce the positive steps being made by Hazen Research in the completion of bench scale testing of the Big Sandy lithium mineralisation, with the aim of producing battery grade lithium and in the process developing a preliminary process flow sheet. With drill approval imminent at Big Sandy, the company will rapidly progress development of the project to realise its full economic potential.

Hawkstone share price snapshot

Just 2 weeks ago, on 14 January, you could have picked up shares of Hawkstone Mining for 1.0 cent each. Today, those same shares are trading for 5.0 cents. Or a gain of more than 380%.

Of course, that’s all water under the bridge now. But offering somewhat of an explanation for its recent impressive run higher, Hawkstone notes, “With Joe Biden now inaugurated as President of the USA, the global investment community has awoken to the potential value of ‘battery metals’.”

More reading

• Why the Amcor (ASX:AMC) share price is having a rough start to 2021
• Brokers list the latest ASX shares to buy in this market meltdown
• Gamestop on the ASX? Why GME Resources (ASX:GME) share price rocketed 28% today
• Why IOOF, Kogan, Openpay, & Woodside shares are dropping lower
• Robust iPhone 12 sales help Apple deliver a record-setting quarter

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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The Amcor CDI (ASX: AMC) share price is having a rough start to 2021. At the time of writing, Amcor shares are trading at $14.39, up 0.56% for the day. Even so, that means that Amcor is a good 5.5% below where it started 2021 at when its share price was $15.16.

Until yesterday, the S&P/ASX 200 Index (ASX: XJO) was up around 1.4% for the year. Even on today’s levels, the ASX 200 is down 0.9% year to date.

That means that Amcor is significantly underperforming the broader market, whichever way you look at it. So what’s going on with Amcor share price in 2021 so far?

Who is Amcor?

Amcor is a packaging company best known for manufacturing boxes and other packaging for goods such as food and tobacco, home and healthcare products, and industrial goods.

It listed on the ASX way back in 1969. Today, it is a global company with operations on every continent around the world (except Antarctica of course). It’s even dual-listed on the New York Stock Exchange under Amcor plc (NYSE: AMCR). The company is also a component of the S&P 500 Index (INDEXSP: .INX).

Looking at the Amcor share price, we can see it is a highly cyclical company. If an investor had held Amcor shares since March 2009, they would be sitting on a very respectable return of roughly 324%. However, anyone who held shares since early 2016 would have seen their shares go essentially nowhere.

Despite this, the Amcor share price is still up more than 42% since it reached a 7 year low of $9.87 in March last year.

Why is the Amcor share price having a rough start to the year?

As we touched on earlier, Amcor shares have not joined the party in 2021, falling where the broader market has been mostly rising.

There is no obvious reason why this is the case. The company has made no market-sensitive announcements this year, apart from some standard director forms and regulatory paperwork.

A likely explanation is the rise of the Australian dollar. Since Amcor is an internationally-based company, it is affected by fluctuations of the Australian dollar in foreign exchange markets.

Between 28 December and 26 January, the Aussie dollar has appreciated by more than 2% against the US dollar. That directly impacts a company like Amcor because they get less bang for their buck when swapping US dollars back to Aussie dollars.

 Many investors like to pursue companies like Amcor because they are relatively stable and reliable dividend income payers. Individuals, businesses, and governments need boxes and packaging all of the time. That makes this company useful to investors who favour reliability of earnings. Amcor (unlike most ASX shares) also pays a dividend every quarter.

On current pricing, Amcor is offering a trailing yield of 2.63%. Government bond yields have also been rising over the past month or so, particularly over in the US. That reduces the appeal of dividend shares like Amcor because bonds are simply a safer alternative. This could also be playing a role.

It’s probably a combination of these reasons that explains why we are seeing Amcor sell off over the first month of the year so far.

More reading

• Brokers list the latest ASX shares to buy in this market meltdown
• Why the IGO (ASX:IGO) share price is tanking today
• ASX 200 down 2.3%: Bank shares tumble, InvoCare jumps, IOOF disappoints
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 falls 0.6%

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Amcor 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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ASX shares are in a free fall but this could be just the time to buy stocks that top brokers are recommending.

Stocks on the S&P/ASX 200 Index (Index:^AXJO) lost $55 billion in value as the index slumped 2.3% during lunch time trade.

This is the sell-off I’ve been waiting for when I suggested a little over two weeks ago to start building a war chest.

ASX sell-off a buying opportunity

This was particularly so for investors, who like me, were fully invested in shares. It pays to have some firepower in reserve for opportunities – and I see this market sell-off as such an event.

Of course, no one knows where the bottom is and the ASX could fall further. But there are stocks already trading in bargain territory and these are the latest picks by leading brokers.

The broker recommendation that’s staying in the fast lane

One stock to watch is the Eagers Automotive Ltd (ASX: APE) share price. Shares in the car dealership crashed 2.7% to $13.06 at the time of writing.

This is despite management issuing a profit upgrade. But Morgan Stanley doesn’t think you should let the dip go to waste as it reiterated its “overweight” (buy) recommendation on the stock.

“APE positively surprised, upgrading 2020 underlying PBT [profit before tax] to A$209.4m,up from A$195-205m PBT guidance in mid-Dec 2020,” said the broker.

“We recently highlighted APE as a key pick into Feb, offering the best potential for raising expectations in 2021.”

The broker’s 12-month price target on the APE share price is $17 a share.

Conviction buy a golden opportunity

The St Barbara Ltd (ASX: SBM) could be another to put on your shopping list. The SBM share price collapsed 4.2% to $2.18 during lunch time trade.

This implies an 84% upside to Goldman Sach’s 12-month price target of $4 a share as the broker reminded investors that the gold miner is on its “conviction list” of ASX stocks to buy.

While St Barbara’s December quarterly production missed expectations by 5% (at 90,000 ounces of gold), Goldman is still convinced the stock is a buy.

The miner’s all-in sustaining cost (AISC) was better than forecast and production at its Gwalia mine is recovering strongly.

“Guidance was unchanged, with the company tracking below the production and above the AISC guidance ranges so far,” said Goldman.

“Improved volumes and grade at Gwalia should drive a stronger 2H [second half].”

This broker buy is a turnaround opportunity for 2021

Meanwhile, the Nufarm Ltd (ASX: NUF) share price is bucking today’s downtrend. The NUF share price jumped 2.4% to $4.77, but UBS says there’s still room for the stock to outperform.

The broker upgraded its price target on the agribusiness to $5.50 from $5.30 a share and restated its “buy” recommendation on this ASX stock.

A better-than-expected recovery in global agriculture conditions is the primary driver for the upgrade. Nufarm is tipped to grow its earnings before interest, tax, depreciation and amortisation by a whopping 38% this financial year.

“After a difficult FY20 agriculture season, it appears global planting conditions in Nufarm’s key regions have turned favourable,” said UBS.

“The improved agriculture conditions have also coincided with a significant increase in key soft commodity prices which together have driven a rapid improvement in farmer sentiment.”

More reading

• Why the Amcor (ASX:AMC) share price is having a rough start to 2021
• Why the IGO (ASX:IGO) share price is tanking today
• ASX 200 down 2.3%: Bank shares tumble, InvoCare jumps, IOOF disappoints
• Why the Eagers Automotive (ASX:APE) share price is on watch today
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Brendon Lau owns shares of Nufarm Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Over the last week, the world has watched on in astonishment as the Reddit crew on WallStreetBets coordinate an almighty short squeeze on GameStop Corp (NYSE: GME).

The share price for GameStop has skyrocketed 790% in the last week alone. Now ASX-listed GME Resources Ltd (ASX: GME) has surged 28% on no news – Did someone get the wrong GME?

GameStop share price, mob mentality

The massive rally in GameStop comes after the future of the bricks and mortar gaming retailer looked shaky. Short positions (a way of profiting on price decrease) grew, as fund managers looked to capitalise on a collapse – then the antics of WallStreetBets stepped in.

One user devised that if investors bought and held, shorters would be forced to keep bidding higher to exit their increasingly losing short positions. The result, insane share price increases in an otherwise unextraordinary company.

This dramatic rise was only exacerbated when Tesla Inc (NASDAQ: TSLA) founder, Elon Musk, tweeted out about GameStop.

Gamestonk!! https://t.co/RZtkDzAewJ

— Elon Musk (@elonmusk) January 26, 2021

https://platform.twitter.com/widgets.js

The world’s richest person was then joined by venture capital titan, Chamath Palihapitiya. Chamath also tweeted that he was jumping in on the rise:

Lots of $GME talk soooooo….

We bought Feb $115 calls on $GME this morning.

Let’s gooooooo!!!!!!!!

GME on the ASX

So now we are potentially experiencing this hype on the ASX, with GME Resources. A case of mistaken identity hasn’t been uncommon recently. A US-listed company recently pumped more than 6000% after Elon Musk tweeted about the Signal messaging app, with no ties between the two.

GME Resources has no news out today, so its possible that this price increase is indeed another mishap.

Obviously, there aren’t any similarities between the 2 GMEs. One is a games retailer, the other is a minerals exploration company in Western Australia.

GME share price performance

With today’s price jump, the GME Resources share price is up 70% in the last 12 months. The company’s market capitalisation now resides around $40 million. If you were interested, GME Resource’s new long lost cousin, GameStop, has a market cap of $25 billion.

More reading

• Tesla earnings: 5 must-see metrics highlight strong execution
• Here’s why GameStop stock skyrocketed more than 100% on Wednesday — and why it could be on the verge of collapse
• Here are the US shares ASX investors are buying
• Chamath Palihapitiya jumps on the GameStop bandwagon
• Will the blue sweep boost Tesla? Don’t count on it

Mitchell Lawler owns shares of Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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In afternoon trade the S&P/ASX 200 Index (ASX: XJO) has followed the lead of U.S. markets and is sinking lower. At the time of writing, the benchmark index is down 2.4% to 6,620.2 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping lower:

IOOF Holdings Limited (ASX: IFL)

The IOOF share price has dropped 10% to $3.23 following the release of its second quarter update. That update revealed that IOOF’s Funds Under Management, Advice and Administration (FUMA) fell $0.4 billion to $202.4 billion during the quarter. While IOOF achieved positive market movements of $12.7 billion, this was offset by significant outflows.

Kogan.com Ltd (ASX: KGN)

The Kogan share price is down almost 7% to $19.50. Investors have been selling Kogan and other tech shares on Thursday following the broad market selloff and weakness on the tech-focused Nasdaq index overnight. At the time of writing, the S&P/ASX All Technology Index (ASX: XTX) is down 3.5%. The Nasdaq index fell 2.6% on Wednesday night.

Openpay Group Ltd (ASX: OPY)

The Openpay share price has crashed 10% lower to $2.61. This follows the release of the buy now pay later provider’s second quarter update. Although Openpay delivered strong plan and customer growth during the quarter, margin weakness appears to have spooked investors. Openpay’s gross revenue yield as a percentage of total transaction value was 7.5% for the second quarter, down from 9.1% in the first quarter and 9.3% a year earlier. A similar decline was seen with its net transaction margin.

Woodside Petroleum Limited (ASX: WPL)

The Woodside share price has fallen 3% to $24.88. This appears to have been driven by a broker note out of UBS this morning. According to the note, the broker has downgraded the energy producer’s shares to a neutral rating with a price target of $26.10. It feels its shares are fully valued at the current level.

More reading

• ASX 200 down 2.3%: Bank shares tumble, InvoCare jumps, IOOF disappoints
• Why the Openpay (ASX:OPY) share price is crashing 13% lower
• IOOF (ASX:IFL) share price on watch after second quarter update
• ASX property stocks are likely to beat property investments in 2021
• 3 of the best ASX shares you can buy today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool 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.

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

Apple Inc (NASDAQ: AAPL) reported the results for its fiscal first quarter (ended 26 December 2020). To say it was a blowout wouldn’t be hyperbole. Revenue grew 21% year over year to a record $111 billion. That growth resulted in earnings per share (EPS) of $1.68, an increase of 35% that also set a new high-water mark. 

Analysts’ consensus estimates were for revenue of $103 billion and EPS of $1.42. 

Record performances by several segments helped fuel the results. Apple reported that the iPhone, wearables, and services segments each delivered record sales.

iPhone sales of nearly $66 billion led to the blockbuster results. That figure was $5 billion more than expected and constituted 59% of Apple’s total revenue. Services growth also rose 24% year over year to $15.76 billion, while handily topping expectations of $14.89 billion. The company also generated record cash flow of $38.8 billion.

While Apple generated robust growth across its geographic segments, it was sales in Greater China that stole the show. Revenue in the region soared 57% year over year as Chinese consumers snapped up the new iPhone 12 models, the first to feature next-generation 5G capability.

“Our December quarter business performance was fueled by double-digit growth in each product category, which drove all-time revenue records in each of our geographic segments and an all-time high for our installed base of active devices,” said Luca Maestri, Apple’s CFO.

On the heels of a bullish call earlier this week, analyst Daniel Ives of Wedbush Securities called the results a “jaw-dropper” and a “kick-start to the 5G super-cycle,” exceeding even the most bullish expectations. He went on to say that “[Apple CEO Tim] Cook & Co. have the stage set for a renaissance of growth … which looks like it should eclipse the previous iPhone record set in [fiscal year 2015].” 

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

More reading

• Here are the US shares ASX investors are buying
• 3 reasons to sell a share
• These 2 Nasdaq Giants Are at All-Time Record Highs — and They’re Not Slowing Down
• Amazon’s ad business will dominate the 2020s
• Does Netflix have a competitive advantage?

Danny Vena owns shares of Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple. The Motley Fool Australia has recommended Apple. 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 IGO Ltd (ASX: IGO) share price went into a meltdown after it released it latest quarter report today.

The IGO share price tumbled 3.5% in morning trade to $6.56 – it’s lowest level in 2021. In contrast, the S&P/ASX 200 Index (Index:^AXJO) lose 2.5% while other miners are also in the hole.

The Fortescue Metals Group Limited (ASX: FMG) share price lost 3.5% to $22.85, BHP Group Ltd (ASX: BHP) shed 1.8% to $44.22 and OZ Minerals Limited (ASX: OZL) share price gave up 4% to $18.38 at the time of writing.

IGO share price dragged lower by sentiment

This tells me that the sell-off in the IGO share price is probably more to do with market sentiment than its quarterly, although there were a few black spots in its report.

For one, production at its flagship Nova mine was down. Nickel output dipped to 7,024 tonnes in the December quarter compared to 7,276 tons in the previous quarter.

Copper at the mine was also weaker at 3,171 tonnes vs. 3,278 tonnes in the three months to end September 2020.

Underlying earnings before interest and tax (EBITDA) was also a little weaker at $120.9 million in 2QFY21 compared to $121.4 million in preceding three months.

Bad news not that bad

However, the earnings dip is largely due to exchange rates and hedging. If anything, cash from operating activities improved 20% to $132 million. This is largely a result of increased revenue receipts from Nova and its Tropicana joint venture gold mine.

Management also pointed out that Nova’s cash costs fell 15 cents to $2.10 a pound of nickel in the latest quarter.

Meanwhile, gold output at Tropicana was up 5% to 112,050 ounces with all-in sustaining costs (AISC) staying largely flat at $1,537 an ounce.

Bigger driver for the IGO share price

But the production figures are really a sideshow in many respects. The recent surge in the IGO share price is due to its deal to buy a stake in Tianqi Lithium Corporation’s lithium mine and processing plant.

In case you haven’t heard, the global electrification of vehicles is a real thing. With the latest transaction, IGO now owns a quarter of the Greenbushes Lithium Operation in Western Australia. Greenbushes is the largest and lowest cost hard rock lithium mine in the world.

IGO also picked up a 49% interest in the Kwinana Lithium Hydroxide Plant.

Profit takers delight

The miner undertook a $766 million capital raising to help fund the transaction. Today’s sell-off in the IGO may also have something to do with the fact that management priced the new shares at $4.60 a pop.

This leaves a lot of room for profit taking, and I see today’s share price weakness as nothing more sinister than that.

More reading

• ASX 200 down 2.3%: Bank shares tumble, InvoCare jumps, IOOF disappoints
• 5 things to watch on the ASX 200 on Thursday
• Investment specialist: ASX to buckle in for the commodity bull market of a lifetime
• ASX 200 falls 0.6%
• Why Beach, Fortescue, Iluka, & Temple & Webster shares are dropping lower

Motley Fool contributor Brendon Lau owns shares of BHP Billiton Limited and OZ Minerals Limited. Connect with me on Twitter @brenlau.

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 4DMedical Ltd (ASX: 4DX) share price is slipping to the downside this morning after the company released its activity report for the second quarter of FY2021.

At the time of writing, the 4DMedical share price is trading hands at $2.20, down 2.22%.

Let’s take a look at a few of the details highlighted in the company’s quarterly report.

Quarterly highlights

Clinical and commercial progress

The medical imaging company highlighted its continued steps forward for commercialisation of its proprietary XV Technology. On 18 December 2020, 4DMedical delivered its first commercial use case of its XV Lung Ventilation Analysis Software (XV LVAS) with its scan of a patient in Victoria. Following this, the company will be rolling out the XV LVAS software to hospitals and imaging centres nationwide.

Efforts in the US rollout have been delayed due to the impacts of COVID-19. However, 4DMedical noted in the update that during this time the company has built a significant pipeline of pilot programs with hospitals.

Currently, 4DMedical is partnered with the University of Miami Health System through a research program in the US. The quarterly updated that a number of studies are expected to commence in the coming months.  

More recently, 4DMedical announced its first US pilot program for its XV LVAS software. The clinical study will be carried out in partnership with St Joseph Hospital in Orange County, California. XV LVAS will reportedly be used to screen for a variety of lung issues, including COVID-19.

By the numbers

4DMedical reported $101,000 in cash receipts from customers during the quarter. This revenue stemmed from the preclinical software use. In addition to this, the company received $80,000 in government subsidies.

The company had a net cash outflow of $4.64 million during the quarter, leaving the company’s cash balance at $43.04 million at 31 December 2020.

Other highlights

4DMedical were approved for the Australian R&D tax incentive scheme for overseas findings during the quarter. This will enable the company to receive credits for up to 43.5% of eligible overseas R&D expenditure.

Late in December, (ASX: 4DX) was also added to the S&P/ASX All Technology Index (ASX: XTX)

4DMedical share price snapshot

The 4DMedical share price is now down roughly 10% year to date (YTD). Comparatively, the S&P/ASX 200 Index (ASX: XJO) is down 1.3% YTD.

Including today’s movement in the 4DMedical share price, the company’s market capitalisation is now $582 million.

More reading

• Why the 4DMedical (ASX:4DS) share price is soaring higher
• Singular Health IPO, another medical imaging contender?
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Motley Fool contributor Mitchell Lawler 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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