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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.

Moderna Inc (NASDAQ: MRNA) announced evidence that its COVID-19 vaccine is protective against all variants of the SARS-CoV-2 virus detected to date, including two strains first detected in the United Kingdom and South Africa. The level of protective antibodies against the UK strain, B.1.1.7, was equivalent to those against earlier variants. But while the antibodies to B.1.351, the South African strain, were believed to be sufficient to be protective against the disease, they were reduced, leading the company to move ahead with testing a new version of the vaccine aimed at that variant.

Moderna’s study was conducted in the laboratory by exposing blood serum from eight clinical trial participants aged 18 to 55 who had received the two-dose regimen of its mRNA-1273 vaccine and from two nonhuman primates to all key emerging variants of SARS-CoV-2. The level of neutralizing antibodies to all the variants were judged to be protective, but antibodies to the South African variant were reduced six-fold compared with the response to earlier variants.

Moderna CEO Stephane Bancel said, “Out of an abundance of caution and leveraging the flexibility of our mRNA platform, we are advancing an emerging variant booster candidate against the variant first identified in the Republic of South Africa into the clinic to determine if it will be more effective to boost titers against this and potentially future variants.” The biotech company expects the booster could be given in combination with any of the leading vaccine candidates.

The new booster vaccine candidate, dubbed mRNA-1273.351, will be advanced into a preclinical study and a phase 1 trial in the United States. Moderna will also test the effectiveness of a third dose of its standard vaccine as a booster against emerging strains of COVID-19. 

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

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

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The 4DMedical Ltd (ASX:4DX) share price is soaring higher today despite the broader All Ordinaries Index (ASX: XAO) tumbling lower. This, after the company announced it has started its first clinical trial for its XV Lung Ventilation Analysis Software (XV LVAS).

During early morning trade, the 4DMedical share price is up 6.6% to $2.41. In contrast, the All Ords is slightly down 0.37% to 7,096 points.

What did 4DMedical announce?

The 4DMedical share price is on the move after the company reported its progressing with the commercialisation of XV LVAS.

4DMedical advised that its first XV LVAS clinical pilot program will be undertaken at St Joseph Hospital in Orange County, California. St Joseph Hospital is one of 51 hospitals owned by the third largest non-profit health system within the United States, Providence Health & Services.

According to this morning’s release, XV LVAS will be used to assist in the screening for lung diseases. This includes diagnosing and monitoring patients with health problems such as asthma, emphysema, pulmonary fibrosis, lung cancer and COVID-19.

The respiratory imaging platform will be tested over the coming months by St Joseph Hospital medical professionals. If successful, it’s anticipated that the company will roll-out XV LVAS as the standard practise for inpatient and outpatient settings.

XV software and its addressable market

4DMedical’s proprietary XV LVAS technology converts X-ray images into a four-dimensional data package using mathematical models and algorithms. The platform then provides physicians with information about a patient’s lung motion and air flow. This enables the detection and monitoring of various lung diseases, which can be managed or treated if possible.

4DMedical noted that the respiratory diagnosis industry is worth an estimated US$31 billion per annum world-wide. In the United States, the largest healthcare market, this represents an annual opportunity of US$13.7 billion.

Management commentary

4DMedical founder & CEO Andreas Fouras hailed the milestone, saying:

We are extremely pleased to announce the commencement of the clinical pilot in collaboration with St Joseph Hospital as it signifies the commencement of our commercialisation phase in the US. We believe that XV LVAS is a unique tool that can assist physicians in diagnosing and managing patients with various lung diseases, including COVID-19, as it provides physicians with a unique picture of how air moves in the lungs.

We have been extremely pleased with the feedback received from leading hospitals and clinics in the US, our priority market, and remain focused on continuing to progress the commercial rollout of XV LVAS.

About the 4DMedical share price

Since listing in August, the 4DMedical share price has gained more than 42% for investors in that time. The company’s shares hit a low of $1.25 in the opening month, before accelerating higher to $2.98 in October.

Based on the current share price, 4DMedical commands a market capitalisation of around $400 million.

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

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The Booktopia Group Ltd (ASX: BKG) share price has returned from the public holiday in style.

In morning trade the online book retailer’s shares were up a massive 15% to a record high of $3.06.

When the Booktopia share price hit that level, it meant it was up 33% from its December IPO price of $2.30.

Why is the Booktopia share price rocketing higher?

Investors have been buying Booktopia’s shares today following the release of an update on its first half performance.

According to the release, Booktopia continued to experience strong demand for its products throughout the Christmas period.

And thanks partly to its recent investment in additional automation and the increased capacity of its distribution centre, it delivered a record month in December and a record half year performance.

The first stage of its $20 million expansion and automation project at the Lidcombe Distribution Centre in Sydney was completed in November. It increased Booktopia’s outbound capacity from 30,000 units to 60,000 units per day.

This allowed the company to ship a record 728,000 units during the final month of the year, bringing its total shipments to 4.2 million units for the half. This is a 40% increase on the same period last year.

This underpinned a 52% increase in unaudited half year revenue to $113 million and a 506% increase in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to $8 million.

Outlook

Management notes that the increase in trading volumes compared to the previous year is consistent with other online retailers and a continuation of the shift towards online shopping experienced throughout 2020 because of the pandemic.

In light of this and the ongoing uncertainty around COVID-19, it has warned that its first half performance should not be seen as an indication of the potential full year result.

However, Booktopia’s CEO, Tony Nash, remains very positive on the future.

He commented: “The Christmas period saw strong demand from customers. Our investment in additional capacity and automation allowed us to meet customer orders in a timely fashion and ensured we were able to have the biggest December in the history of the company.”

“We are confident the momentum and growth we experienced in 2020 should continue throughout the year and beyond and as a result the business is on track to meet forecasts provided in the company’s prospectus,” he added.

More reading

• 3 mammoth IPOs of 2020

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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The Nitro Software Ltd (ASX: NTO) share price has been a very strong performer on Wednesday morning.

In early trade, the document productivity software company’s shares are up 7% to $3.27.

Why is the Nitro share price surging higher?

Investors have been buying the company’s shares following the release of its fourth quarter update this morning.

According to the release, the company completed the fourth quarter and FY 2020 with annualised recurring revenue (ARR), subscription revenue, and cash receipts above its prospectus forecasts.

In respect to its ARR, Nitro finished the year with ARR of US$27.7 million, which was up 64% on the prior corresponding period. This also compares favourably to its previously upgraded guidance of US$26 million to US$27 million.

Nitro also revealed that its subscription revenue has now increased to approximately 58% of total revenue and comprised approximately 78% of revenue across the dominant Business sales channel. It notes that this reflects strong progress in Nitro’s transition to a subscription revenue model.

The company now serves 11,700 business customers, including 68% of the Fortune 500, and saw over 1 million Nitro Sign eSignature requests sent during the year. Key expanding and renewing accounts in the period included Lufthansa, Swiss Mobiliar, Pike Corporation, PPD, USI Insurance, and Citco.

What about its full year results?

In respect to its full year results, Nitro expects to report total FY 2020 revenue in line with its prospectus forecast of $40.5 million.

Management also advised that it expects to post an operating loss (excluding share-based payments and FX) within the range of $2.1 million to $2.6 million. This compares to its prospectus forecast of a $4 million operating loss. This better than expected performance was due to the slower pace of planned hiring and lower required marketing investment to achieve its sales goals.

At the end of the period, the company had a cash balance of US$43.7 million and no debt. Management believes this provides it with a strong financial position to pursue growth opportunities.

Nitro’s CEO and Co-Founder, Sam Chandler said: “We achieved a very strong finish to 2020 as the transition to digital workflows and productivity anywhere remains a priority for organisations of all sizes. Our results are testament to the quality of our products and the incredible efforts of the Nitro team in delivering continued acceleration in subscription sales and revenue. As the world navigates the ongoing disruption caused by the COVID-19 pandemic, we will continue to provide our customers with best-in-class solutions for remote work and digital productivity.”

“We’re honoured to serve 11,700 Business customers, including 68% of the Fortune 500, and we look forward to continuing to drive digital transformation around the world in 2021 and beyond,” he concluded.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Nitro Software 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 Syrah Resources Ltd (ASX: SYR) share price slumped 6.9% lower on Monday as the Aussie graphite miner closed its share purchase plan (SPP) at a steep discount.

In early trading today, Syrah shares have gained slightly, up 0.57% at $1.22 at the time of writing.

Why did the Syrah share price fall 7%?

Syrah announced the results of its SPP, which closed on Wednesday 20 January. Syrah’s SPP targeted raising $12 million in new equity at a price of $0.90 per share.

The SPP was “heavily oversubscribed” with the Aussie miner receiving $63.7 million of valid applications. Applications for the SPP came at the same price as the recently completed $56 million share placement.

As a result of the oversubscription, Syrah’s board of directors decided to accept a total of $18 million from the SPP. The new shares are set to be issued on Thursday with scale back on a pro-rata basis.

Syrah managing director Shaun Verner welcomed the shareholder support. The funds will be used to progress Syrah’s natural graphite active anode material (AAM) facility in Louisiana, USA. The company is working towards a final investment decision in the second half of 2020 for the construction of a 10 kilotonnes per annum facility.

The Syrah share price slumped lower on Monday following the update on the SPP. It’s worth noting the $0.90 offer price is a steep discount to the closing Syrah share price on January 20.

Shares in the Aussie graphite miner closed at $1.19 per share last Wednesday before climbing to a new 52-week high of $1.34 per share on Thursday.

How did the graphite miner’s shares perform in 2020?

The Syrah share price rebounded strongly in 2020 after years of lacklustre performance. From late January 2016 to January 2020, shares in the Aussie graphite miner fell 86.1% lower.

2020 represented a turning point of sorts with the Syrah share price climbing 134.6% higher in the last 12 months.

The Aussie graphite miner boasts a market capitalisation of $582.1 million as at Monday’s close of trade.

More reading

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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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The Asaleo Care Ltd (ASX: AHY) share price has come under pressure on Wednesday.

At the time of writing, the personal care products company’s shares are down 1% to $1.27.

Why is the Asaleo Care share price dropping lower?

Investors have been selling the company’s shares this morning following the release of an update on both its performance in FY 2020 and a recent takeover approach.

In respect to FY 2020, Asaleo Care reported unaudited full year revenue of $419.2 million, which represents a 2.3% year on year increase.

This was driven by a strong performance in all retail segments and the B2B Incontinence Healthcare segment, which were collectively up 6.7%. Offsetting some of this growth was a 4% decline in B2B Professional Hygiene, which was impacted by COVID-19 restrictions on “away from home” activity.

Asaleo Care’s underlying earnings before interest, tax, depreciation and amortisation (EBITDA) came in at $87.2 million for the 12 months. This was ahead of its previous guidance of the upper end of $84 million to $87 million. Excluding discontinued businesses (Baby NZ), underlying EBITDA was up 6.3% to $89.2 million.

At the end of the period, the company’s net debt had reduced from $139.3 million to $94.9 million. It believes this gives it the balance sheet flexibility to fund dividends and accommodate accretive bolt-on acquisitions.

FY 2021 and FY 2022 Guidance

Management believes the company is well-placed to deliver continued revenue growth in FY 2021 and margin expansion from FY 2022.

In light of this, in FY 2021 it is targeting revenue growth of 5% to 7% and EBITDA of $90 million to $93 million.

After which, in FY 2022 is aiming for mid-single digit revenue growth and EBITDA growth of 10%+.

Takeover update

The Independent Board Committee has responded to December’s unsolicited, indicative, conditional and non-binding proposal from Essity Aktiebolag to acquire all the shares in the company for $1.26 per share.

According to the release, after careful review, the committee considers that the proposal fundamentally undervalues Asaleo Care and is materially inadequate.

Asaleo Care’s Chairman, Harry Boon, commented: “The Independent Board Committee, after careful review, considers that the Proposal fundamentally undervalues Asaleo Care, is materially inadequate and does not reflect the strategic value of the company to Essity. However, the Committee remains open to further engagement.”

More reading

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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.

The post Why the Asaleo Care (ASX:AHY) share price is dropping lower today appeared first on The Motley Fool Australia.

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The Doctor Care Anywhere Ltd (ASX: DOC) share price is on the move on Wednesday following the release of an update.

At the time of writing, the telehealth company’s shares are up 6% to $1.46.

How is Doctor Care Anywhere performing?

Doctor Care Anywhere was on form during the fourth quarter and revealed a 151% increase in revenue to 3.8 million pounds.

This led to the company’s unaudited full year revenue increasing 102% year on year to 11.6 million pounds.

This was driven by a 186% increase in the oddly named “Eligible Lives” metric to 2.2 million. This metric represents the total number of patients who have an entitlement to use its services.

Also growing strongly was the number of consultations via its platform. The company reported a 333% increase during the fourth quarter to 74,300. This was comfortably ahead of its guidance.

Pleasingly, its growth looks set to be given a boost in FY 2021 thanks to a recent channel agreement with Allianz Partners. This agreement will see the insurance giant embed Doctor Care Anywhere’s service into Allianz UK and European international private medical insurance policies from 1 January 2021.

At the end of the period, the company was in a strong financial position with cash of 38.4 million pounds.

Management commentary

Doctor Care Anywhere’s CEO, Bayju Thakar, commented: “We continue to see robust growth in consultation volumes across all channel partners, as new and existing patients become accustomed to adopting digital healthcare into their everyday lives.”

“Consultations have grown over 300% on the prior corresponding period and this demand has helped deliver positive financial outcomes for DOC while demonstrating that we are providing a much-needed service to patients across the UK and Ireland.”

The CEO notes that the COVID-19 pandemic has helped drive the digitisation of the healthcare industry, which has been supportive of its growth.

He explained: “During the last 12 months we’ve seen a structural shift in the way in which patients seek to be treated. The COVID-19 pandemic has placed massive strain on healthcare systems globally, accelerating the adoption curve of telehealth as patients and clinicians become increasingly comfortable using technology to access convenient, cost effective and world class healthcare.”

“We look forward to continuing to execute on our growth strategy to become a leader in digital health globally by providing the best healthcare service to our patients, with clinical excellence at its core,” he concluded.

More reading

• Why the Doctor Care Anywhere (ASX:DOC) share price surged to a record high
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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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The Alcidion Group Ltd (ASX: ALC) share price is racing higher today following the release of its second quarter update.

In early trade, the healthcare technology company’s shares are up 7% to 22.5 cents.

How did Alcidion perform in the second quarter?

For the three months ended 31 December, Alcidion added $12.6 million of revenue. This was up 163% on the first quarter and 260% on the prior corresponding period.

In light of this, with six months still remaining in the financial year, the company has revenue of $21.7 million that is able to be recognised in FY 2021. This is already 17% higher than the entire revenue the company generated in the whole of FY 2020.

In addition to this, management notes that a further $23 million of sold revenue is to be recognised out to FY 2026.

One of the key drivers of this revenue growth has been an $11.3 million five-year deal with South Tees Hospitals NHS Foundation Trust. This deal was signed during the second quarter and is for Alcidion’s full suite of products and services. This includes Miya Precision and Better’s OPENeP.

At the end of the quarter the company had a cash balance of $12.5 million. Though, this has been boosted since then by the receipt of a $3 million payment in January relating to the South Tees contract.

“Significant quarter of sales”

Alcidion’s Managing Director, Kate Quirke, was delighted with the company’s performance in the second quarter.

She said: “Building on an already strong start to the financial year, I am delighted to present a significant quarter of sales that was one of Alcidion’s best to-date. Our milestone contract and extension with South Tees NHS Trust is an important validation of our market-leading value proposition and full service approach in the UK, supporting the NHS’ digital transformation.”

“We have made further headway in the UK in Q2 with our Miya Precision products continuing to gain traction with existing and potential customers, along with our ability to resell NextGate solutions as part of our portfolio of reseller products in the UK and Ireland.”

Looking ahead, Quirke believes the company is well-positioned to build on its strong second quarter performance.

She commented: “We have entered the second half of FY2021 in an advantageous position and look forward to building on the sales momentum of the first half. While we are carefully monitoring the COVID-19 situation in all markets – particularly the UK – we remain confident that with hospital protocols now in place at NHS hospitals, health IT procurement will continue close to normal. Furthermore, the situation continues to present an opportunity for Alcidion to implement our smart health IT solutions and drive a new standard of better, more efficient and safer care.”

More reading

• Why the Asaleo Care (ASX:AHY) share price is dropping lower today
• Why the Doctor Care Anywhere (ASX:DOC) share price is shooting 6% higher
• What to expect from the Telstra (ASX:TLS) first half result
• 3 reasons to sell a share
• Is Airbnb stock a buy now?

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 Alcidion Group Ltd. The Motley Fool Australia has recommended Alcidion Group 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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With earnings season on the horizon, I thought I would take a look at what is expected from some of Australia’s most popular companies.

On this occasion, I’m going to take a look at telco giant Telstra Corporation Ltd (ASX: TLS).

What is expected from Telstra in the first half of FY 2021?

According to a note out of Goldman Sachs, it believes 2021 will be a pivotal year for the ANZ telecom sector.

It notes that mobile revenue and earnings growth are set to return in the second half, supported by ongoing rationality. It is expecting further price rises from Optus by July.

In addition, following the completion of the NBN in December, Goldman believes industry fixed earnings will begin to stabilise late in the year.

The broker expects the improving fixed and mobile earnings’ outlook to drive a re-rating in the sector and support shareholder returns. This will be supplemented by an attractive dividend yield, with further upside potential through asset sales such as Telstra’s TowerCo.

In respect to its half year update, Goldman Sachs is expecting Telstra to report an 8% decline in revenue to $12,318 million.

Things will be a little softer on the earnings front. The broker is forecasting a 15% decline in earnings before interest, tax, depreciation and amortisation (EBITDA) to $3,971 million and a 26% reduction in net profit after tax to $941 million.

From this, its analysts are expecting Telstra to pay out an 8 cents per share fully franked dividend.

What about the full year?

Goldman will also have its eyes on its guidance for the full year.

At present, the broker is estimating headline EBITDA of $7,672 million versus guidance of $7,200 million to $8,000 million. This compares to the consensus estimate of $7,655 million.

It is also forecasting underlying EBITDA of A$6,809 million versus guidance of $6,500 million to $7,000 million and capex (excluding spectrum) of $2,947 million versus guidance of $2,800 million to $3,200 million.

Finally, a 16 cents per share fully franked dividend is expected for FY 2021. Based on the latest Telstra share price, this represents a 5% dividend yield.

Goldman Sachs has a buy rating and $3.80 price target on the company’s shares.

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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If you have money to invest, it’s never been easier to buy shares.

Compared to years gone by, we have so much information about public companies available free via the internet.

It was only a couple of decades ago that potential investors had to pay a fee to get hard copy books of company financials delivered to them.

And with smartphone apps lowering the cost and minimum transaction thresholds, pretty much anyone can join the market now.

But selling is a much more difficult proposition. It always has been, and remains so.

How do you know when to sell a stock? Do you sell when it has returned a certain percentage? Do you sell if the price goes down, to save yourself from further losses?

SG Hiscock portfolio manager Hamish Tadgell this week gave some advice on selling for The Motley Fool readers. 

His fund is a high conviction fund, which means it goes hard on a small set of companies it really believes in. So saying goodbye to one is a massive decision.

Tadgell has 3 criteria that are triggers to sell:

Can risk-return improve?

Risk-return is the quantification of the old investment axiom that dictates higher potential returns await those who are willing to put up with more risk.

If a company has become more risky without the returns proportionally rising, or its returns deteriorate, it might time to rethink its risk-return. Is it better or worse than when you bought it?

“That often comes down to a valuation argument, or it might be that there’s a better competing idea to put in the portfolio,” said Tadgell.

Impairment of earnings power

Whether it’s due to an internal or external shock, it could be time to sell if a company’s ability to rake in earnings is impaired.

“Has there been a loss of competitive position or a decline in the earnings predictability for some reason?” Tadgell said.

“Or a regulatory change or something like that, which is impairing the potential earnings power?”

An example might be computer chip maker Intel Corporation (NASDAQ: INTC). For many decades it dominated the world with both PC and Apple Inc (NASDAQ: AAPL) computers using its processors.

Then smartphones rose to prominence 14 years ago, allowing smaller rivals like Advanced Micro Devices Inc (NASDAQ: AMD) and NVIDIA Corporation (NASDAQ: NVDA) to gain a new edge. 

Intel was slow to realise the power of mobile computing and even lost the Apple account in recent years.

“AMD is a lot smaller and more nimbler, and the share price has been on a tear,” Nucleus Wealth head of investments Damien Klassen told The Motley Fool in November. 

“Whereas the Intel price has been going in the opposite direction.”

Loss of confidence in leadership

Getting blindsided by a company decision can turn the stomachs of many shareholders.

Public companies by definition are supposed to be transparent, so a rude surprise would have to raise the question of selling.

“Have we lost confidence in management’s ability to build value?” asked Tadgell.

“Management change or if management does something which is out of character with their strategy or that they’ve suggested to us they’ll do — then that will change us to consider selling.”

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Tony Yoo 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 Apple and NVIDIA. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Intel. The Motley Fool Australia has recommended Apple and NVIDIA. 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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