The past twelve months has been a tumultuous time for ASX shares. The COVID-19-induced bear market in February/March 2020 saw most ASX shares shed significant value. Whilst many ASX listed companies have since gone on to recoup those losses, the S&P/ASX 200 Index (ASX: XJO) is still trading more than 4% lower than this time last year.

Some ASX shares, however, have managed to firmly outperform the wider market during this period. Here we take a look at 3 such companies that have experienced significant growth over the last year.

Jindalee Resources Limited (ASX: JRL)

At the close of trade today, Jindalee Resources shares were trading 5.5% lower at $1.37. Over the past twelve months, however, the Jindalee share price is up nearly 400%. Jindalee Resources is an exploration company focused on lithium, gold, iron ore, base and strategic metals, uranium and magnesite.

In a shareholder update provided on 14 January, Jindalee announced positive results pertaining to its McDermitt lithium project. Summarising the highlights, the company stated: “Metallurgical testwork to date has been very encouraging, indicating high lithium recoveries from conventional sulphuric acid leaching at low temperature and atmospheric pressure.”

The company also advised it is exploring further options regarding the possible listing of its lithium assets on a North American stock exchange. 

Jindalee currently has two lithium projects in the United States: the McDermitt flagship project in Oregon and the pre-exploration Clayton North project in Nevada.

The company believes that the demand for lithium-ion batteries will increase significantly as the adoption of electric vehicles continues to accelerate.

Openpay Group Ltd (ASX: OPY) 

The Openpay share price gained more than 3% on Friday in contrast to the wider market, which was trending lower. Openpay shares have also increased an impressive 118% over the past twelve months. 

Openpay offers ‘no interest’ payment services to customers and competes alongside big-name players, such as Zip Co Ltd (ASX: Z1P) and Afterpay Ltd (ASX: APT), in the buy now, pay later (BNPL) industry.

The company refers to itself as “a fast-growing and highly differentiated player in the global ‘buy now pay later’ payment solutions market.” Openpay operates in Australia, New Zealand, the United Kingdowm and, as of December 2020, the US. Openpay even invited investors to watch a video recording of its US launch. The Openpay share price rocketed up by more than 27% on 16 December 2020 when the company broke news of its US expansion. 

Openpay will provide a FY21 second quarter update next Thursday 28 January.

Cluey Ltd (ASX: CLU)

The Cluey share price finished Friday’s session up 2.3% and around 8% higher over the past year. Whilst this represents a much more modest gain than the abovementioned shares, Cluey has still managed to decisively outperform the wider market over the same timeframe.

Cluey defines itself as “an Australian education technology company that supports the learning growth of students by bringing together expert educators, cutting-edge technology and proprietary learning data to offer students a range of targeted learning services.”

The company posted cash and cash equivalents of around $13 million in its 30 June 2020 annual report. In a January 2021 update, Cluey advised it has forecast a 218% increase in revenue to ~$15.5 million in FY2021.

More reading

• Could this be why Afterpay (ASX:APT) and other BNPL shares are soaring today?
• 2 exciting small cap ASX shares to watch this month
• 2 more small cap ASX shares to watch in 2021
• ASX sector of the year: BNPL goes from strength to strength

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

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The Painchek Ltd (ASX: PCK) share price climbed today after the company provided the market with a positive quarterly update for December 2020.

Shares in the small cap healthcare company were trading 4.2% higher at 7.4 cents on close of trade today.

What is driving the Painchek share price

In today’s release, the company reported continued growth in its aged care and initial entry into the hospital, home care and disability markets during the quarter ended 31 December.

In its core aged care market segment, Painchek delivered sales growth of 7% from the prior quarter. And with its global licences covering 71,318 beds, year on year (YoY) growth is up 123%. The company reported its domestic sales now reflect more than 30% of Australia’s domestic aged care market share.

As a result, Painchek now has 884 aged care clients, up 133% YoY, and the forward looking revenue equates to more than $3 million annualised recurring revenue.

However it was not all smooth sailing for the company, with several large provider agreements delayed as a result of COVID-19 disruptions. Paincheck said these discussions have since been resumed in January.

Management comments

Painchek CEO Philip Daffas welcomed the update, saying:

While 2020 was challenging for many businesses, we successfully continued to deliver with significant sales growth. This included pivoting to a fully digital sales and delivery model that met the immediate needs of our clients, as well as establishing a new cost-effective global go-to-market model.

About the company

PainChek develops and commercialises medical device applications. This is aimed specifically at automating intelligent pain assessment of individuals who are unable to communicate their pain with carers (such as people in aged care facilities).

In particular, the company is involved in the provision of pain management and better medication for residents living with dementia and other communication difficulties. Painchek has already obtained regulatory clearance in Australia and Europe.

More reading

• ASX 200 drops 0.3%
• Why the latest jobs data is making everyone happy
• 5 lithium shares that are fast-charging up in 2021
• 2 fantastic ASX growth shares to buy this month
• Leading broker tips Super Retail (ASX:SUL) share price to rocket higher

Motley Fool contributor Daniel Ewing 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 S&P/ASX 200 Index (ASX: XJO) fell by 0.3% today to 6,800 points.

Here are some of the highlights from the ASX:

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas share price was the best performer within the ASX 200 today, rising by more than 13% after making an announcement about a rare earth facility in the US.

Lynas said that it has entered into an agreement with the United States government to build a commercial light rare earths separation plant in the US. This agreement is in collaboration with the US Department of Defence.

The project is scheduled to be completed in accordance with the Department of Defense timetable and as part of the Lynas 2025 plan. Detailed costings are still being finalised, though it’s expected that the Department of Defence funding will be capped at approximately US$30 million. Lynas is expected to contribute a similar number.

The ASX 200 share’s plant is expected to be located in Texas. Once operational, the plant is expected to produce approximately 5,000 tonnes per annum of rare earths products. It will be able to receive material directly from the cracking and leaching plant that Lynas is developing in Kalgoorlie, Western Australia.

The Texas facility could end up housing both heavy rare earths and light rare earths processing facilities. The facilities will serve both the Defence Industrial Base (DIB) and the growing commercial market, including electric vehicles and green technologies made in the US as well as in global markets.

Amanda Lacaze, the Lynas CEO and managing director, said: “As the only non-Chinese commercial producer of separated rare earths products to the global marketplace, Lynas is delighted by the opportunity to develop a light rare earth separation facility in the US.

“Rare earth materials are critical inputs to many industrial supply chains…This agreement is consistent with the US government’s commitment to rebuild the domestic industrial base, while working effectively with partner nations. The Texas plant will ensure the US has a secure domestic source of high quality separated rare earth materials. This secure supply will provide the essential foundation for the renewal of downstream speciality metal making and permanent magnet manufacturing in North America.”

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)

The Fisher & Paykel Healthcare share price was another of today’s top performers after giving a trading update.

The ASX 200 company said that operating revenue for the nine months ended 31 December 2020 was up 73% in constant currency.

In the hospital product division, which includes products used in acute and chronic respiratory care and surgery, operating revenue grew 113% over the first nine months of the previous financial year in constant currency. Hospital hardware grew 446% and hospital consumables grew 54%.

Fisher & Paykel Healthcare also reported that in the homecare product group, which includes products used in the treatment of obstructive sleep apnea and respiratory support in the home, operating revenue grew 6% over the nine months to 31 December 2020.

The company said that it expects revenue and net profit after tax for FY21 to be higher than implied by previous assumptions.

Aussie Broadband Ltd (ASX: ABB)

The Aussie Broadband share price rose by 7.7% after giving a trading update.

The telco said that it’s expecting its earnings before interest, tax, depreciation and amortisation (EBITDA) to be in a range of $6.9 million to $7.4 million for the FY21 half-year. Excluding IPO costs, EBITDA is expected to be in a range of $8 million to $8.5 million for the half-year.

Total broadband connections have gone up 31% over the last six months and 88% over the last 12 months to 342,634. Over the past six months, residential broadband connections saw 30% growth to 313,193 connections and business broadband connections saw 49% growth to 29,441.

More reading

• Why the Aussie Broadband (ASX:ABB) share price rocketed 20% higher today
• ASX 200 down 0.2%: Zip shares drop, Lynas rockets, Fisher & Paykel Healthcare impresses
• Why Aussie Broadband, Fisher & Paykel Healthcare, Lynas, & Megaport are charging higher
• Here’s why the Lynas (ASX:LYC) share price jumped 7% higher today
• Why the Fisher & Paykel Healthcare (ASX:FPH) share price could jump higher today

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Aussie Broadband 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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A better than expected unemployment rate is the big takeaway from the December 2020 jobs data.

Released by the Australian Bureau of Statistics (ABS) yesterday, the data shows the jobless rate for December was 6.6%. This is down from 6.8% in November last year.

General feedback from market analysts is that the latest jobs data is positive and the improvements imply that the economy is recovering more quickly than initially expected.

Let’s take a closer look at information included in the report, and what people have been saying about it.

The labour participation rate

The Reserve Bank of Australia (RBA) notes the relevance of the labour participation rate as an important economic indicator, in addition to the unemployment rate.

The ABS data shows the labour participation rate for December 2020 came in at 62.1%. That’s a record, as pointed out on the front page of today’s Australian by economic editor Adam Creighton.

What does it mean?

When the participation rate moves around, it’s not as straight forward as the jobless number. While unemployment measures the number of people who are not working in paid employment, the participation rate endeavours to look closer into why.

Tracking the fluctuations of the labour participation rate can offer deeper insight into the reasons why people may choose not to participate in the job force. 

The RBA further mentions that the job participation rate can be impacted by a number of factors. These include job seekers becoming discouraged so they quit searching, people who have been laid off with significant redundancy packages, or young people who elect education pursuits opposed to a regular job.

Experts consider a record high workforce participation rate as a good sign of a strong economy.

Educated guesses, forecasts and hype

Part of what makes today’s unemployment numbers so welcome is the comparison of real data to forecasts that have turned out to be incorrect.

According the Australian, economic conditions are improving faster than the RBA had predicted, which in turn can impact current quantitative easing decisions. 

The dominos effect that labour force data can have on the rest of the economy is what makes it a valuable indicator. The in-between area of forecasts produced by economists paired with what actually takes place in a month can offer unique insights about the financial health of the country.

Any closing thoughts from the analysts?

UBS chief economist George Tharenou said that the falling unemployment number “edges up our already above-consensus GDP forecast for 2021 to 4.3% year-on-year”.

Analysts seem to agree that the latest jobs numbers signify a strong, resilient economy that is rebounding from COVID-19 faster than anticipated, for now.

More reading

• 5 Lithium shares that are fast-charging up in 2021
• 2 fantastic ASX growth shares to buy this month
• Leading broker tips Super Retail (ASX:SUL) share price to rocket higher
• Here’s why the Funtastic (ASX:FUN) share price is sinking today
• 3 reasons the BHP (ASX:BHP) share price could be in the buy zone

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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If there has been one sector that has been grabbing a lot of attention so far in 2021, it is lithium. After surviving a treacherous couple of years with low prices for the battery focused commodity, these lithium shares are now flourishing.

Electric vehicle demand lifting lithium shares

The growth story stems from an undeniable boom in electric vehicles (EV), with beneficiaries being the likes of Tesla Inc (NASDAQ: TSLA), Nio Inc (NYSE: NIO), and Xpeng Inc (NYSE: XPEV). As governments and regulatory bodies step up measures to reduce emissions, EVs are gaining traction.

The explosion in demand is shown by the International Energy Agency report in 2020. Reportedly, EVs on our roads have gone from 17,000 to 7.2 million in the space of a decade. McKinsey & Company noted that in 2019 EVs only made up 2.5% of global vehicle sales. Demonstrating the capacity for growth in the market.

IEA estimated, depending on sustainability policies, annual lithium demand for electric vehicles alone could increase by between 120% to 350% by 2030. So, the question posed is, where are we going to get all this lithium from?

Have you seen these #lithium demand forecasts for #EV #batteries 🔋 from the IEA #batterytwitter @sdmoores @VivasVK7 ? Interestingly incl error bars for dif chemistries but is even in high demand scenario at <20% of BMI 2030 projection 🤔 https://t.co/6dfc5iLeye pic.twitter.com/Bs6Glxy3zj

— Martin Beuse (@mart_di_be) September 19, 2020

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Here are 5 ASX listed lithium suppliers taking on the task of future-proofing supply, with big share price rallies to boot.

Lithium shares exploding this year 

Pilbara Minerals Ltd (ASX: PLS)

Pilbara Minerals is most notable for owning the world’s largest, independent hard-rock lithium operation. Unlike some miners in the space, Pilbara Minerals is solely a lithium miner. The company’s Pilgangoora Project in Western Australia produces both spodumene and tantalite concentrate, supplied to its global offtake partners.

Recently, Pilbara Minerals completed its $201 million acquisition of neighbouring lithium operation, Altura Mining Limited. In the miner’s equity raising presentation, Pilbara outlined the benefits of its acquisition – these include the opportunity to remove duplicate services and infrastructure; dual open-pit mines offering flexibility, common logistics chains.

The Pilbara share price has been on a tear in the last few months, gaining 240%. Remarkably, shares reached a 52-week low of 13.5 cents during the COVID-19 crash. Since then, the share price has rallied strongly to a 52-week high of $1.47. A 294% return in 12 months certainly is nothing to turn the nose up at.

At the time of writing, the Pilbara share price has plummeted 15.7% to $1.15 as trading nears the close today. 

Lithium Australia NL (ASX: LIT)

Lithium Australia aims to address the increasing lithium demand a little differently. Although Lithium Australia does own lithium assets, the company has been undertaking a rationalisation of its portfolio and redirecting some of its focus onto battery recycling technology. Through the use of its SiLeach and LieNa lithium extraction processes, Lithium Australia aims to convert lithium silicates from a low-value state (mine waste, unused fines) to a high-value state.

This strategy has been evident recently with the company divesting 80% of its interest in the Greenbushes South Lithium Project in Western Australia to Gulan Lithium Limited (ASX: GLN). Lithium Australia remains onboard of the project, with the new structuring represented by a joint venture (JV) between the two.

Furthermore, earlier in the week, Lithium Australia announced that VSPC was granted a patent for its nano-powder production process. This process reportedly is a simpler solution than traditional methods for producing complex metal-oxide nanoparticles used in lithium-ion batteries.

Clearly, this vertically integrated approach is resonating with investors. Lithium Australia shares have climbed 234% in the last few months. Shares at currently trading hands at 17 cents, giving the company a $135 million market capitalisation.

Orocobre Limited (ASX: ORE)

Orocobre is mostly known for its Olaroz lithium facility in Argentina. The facility had been maintained through the low lithium price period by diligent cost control measures by management. In the fourth quarter of FY20, costs were down 22% on Q1 costs. This enabled the $2 billion producer to deliver positive cash flow. However, we are now in a different scenario with lithium prices lifting.

The company is priming for the demand uptick with its stage 2 expansion of Olaroz. The annual general meeting in November last year indicated this is 44% complete at that time. At completion, stage 2 is expected to increase production capacity by nearly 170% to a minimum of 40ktpa.

Additionally, Orocobre is nearing completion of the Naraha lithium hydroxide plant, of which it has a 75% invested interest in Naraha will be utilised to produce battery-grade lithium from non-battery grade lithium carbonate. The output will be supplied to Toyota Motor Corp and Panasonic Corporation’s JV, Planet Energy & Solutions.

Shares in Orocobre have jumped 118% in 3 months to their current price of $5.90, notching up a 65% gain for the last 12 months.

Vulcan Energy Resources Limited (ASX: VUL)

The biggest gainer on this list, Vulcan Energy and its share price. This lithium share has gone from a tiny mineral explorer, trading at 21 cents a year ago; to a beastly $7.87 per share miner with reportedly the largest Joint Ore Reserves Committee (JORC) compliant lithium resource in Europe.

Vulcan aims to be a ‘zero carbon lithium producer’ with its Upper Rhine Valley resource in Germany. The company is still undergoing assessments and studies to comprehensively understand the economics and potential of harnessing geothermal energy in the brine recovery process for its site.

The pre feasibility study has been completed, subsequently, the definitive feasibility study is expected to come next. As the name suggests, this study should provide a definitive and conclusive answer to the potential for the development of its Zero Carbon Project dream.

The Vulcan share price has returned a miraculous 565% in 3 months. Even more awestriking, the 1-year return for this share is now 3480% – unbelievable!

Piedmont Lithium Ltd (ASX: PLL)

Piedmont finds itself in an exclusive club, a supplier to Tesla. With the lithium producer being situated in North Carolina, United States, it presents itself as a logistical opportunity for US-based demand.

In order to meet the expanding lithium demand, Piedmont recently announced a strategic partnership with Sayona Mining Ltd (ASX: SYA). This agreement will see the acceleration of Sayona’s lithium projects in Quebec, Canada. Piedmont takes an initial 9.9% invested interest in Sayona as a part of the partnership.

The deal is advantageous for Piedmont, as the conditions include lower and upper bounds for the delivered spodumene concentrate from Sayona – a minimum of US$500 per tonne and a maximum of US$900 per tonne.

The Piedmont share price has returned a respectable 54% in the last 3 months. However, far more impressively, the 1-year return is 373%. Piedmont shares are trading hands at 61 cents at the time of writing.

More reading

• Why the Ioneer (ASX:INR) share price is up 16% this week
• Here’s why the AVZ Minerals (ASX:AVZ) share price is surging higher today
• Why Cleanaway, Crown, Pro Medicus, & Vulcan shares are tumbling lower
• 3 ASX shares powering the electric car revolution
• Why Vulcan (ASX:VUL) and these ASX shares are smashing the market in 2021

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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Are you looking to add a growth share or two to your portfolio this month? Then take a look at the two ASX shares listed below.

Here’s why they could be growth shares to buy right now:

Kogan.com Ltd (ASX: KGN)

The first growth share to look at is this ecommerce company. It has been a very strong performer over the last 12 months thanks to the accelerating shift to online shopping. With shops shutting at the height of the pandemic and people being locked down, millions of consumers went online for their shopping. This gave Kogan’s performance a major boost, leading to explosive growth in FY 2020.

Pleasingly, although life is getting back to normal, consumers are still flocking online for shopping. This has led to Kogan’s strong growth continuing in FY 2021. For example, during the first four months of FY 2021, Kogan’s sales were up 99.8% and its operating earnings were up 268.8% over the same period last year.

In addition to this, the company has acquired online retailer Mighty Ape for NZ$120 million and furniture retailer Matt Blatt for $4.4 million. These additions look set to give its second half performance a boost.

Canaccord Genuity is a fan of Kogan and has a buy rating and $25.00 price target on its shares.

ResMed Inc. (ASX: RMD)

Another growth share to look at is ResMed. Its is a medical device company with a focus on the fast-growing sleep treatment market.

ResMed also manufactures ventilators, which have been in high demand during the pandemic. In fact, demand has been so strong, it offset softness in the sleep treatment side of the business and underpinned a very strong result in FY 2020 and stellar growth in the first quarter of the new financial year.

While COVID is likely to stifle the growth of the sleep treatment business in the near term, as fewer people are diagnosed with sleep apnoea, it has been tipped to accelerate its growth once trading conditions improve.

Analysts at Morgans are positive on the company. This week the broker retained its add rating and $30.99 price target on ResMed’s shares. While it acknowledges that it could be facing some headwinds, it believes its future remains bright thanks to its new product pipeline and growing digital business.

More reading

• The latest ASX broker “buy” ideas that got a valuation upgrade
• Why Cleanaway, Crown, Pro Medicus, & Vulcan shares are tumbling lower
• 2 star ASX shares to buy this week
• Kogan (ASX:KGN) pays price for illegal emails
• 2 top ASX tech shares to buy that are growing rapidly

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com ltd and ResMed Inc. 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 Super Retail Group Ltd (ASX: SUL) share price has been a strong performer over the last six months.

During this period, the retail conglomerate’s shares have charged an impressive 42% higher.

Can the Super Retail share price go even higher?

If you missed out on the stellar gains made by the Super Retail share price over the last six months, don’t worry. This is because one leading broker believes they can go a lot higher from here.

In response to its impressive trading update earlier this week, Goldman Sachs has reiterated its buy rating and lifted the price target on Super Retail’s shares to $14.80.

Based on the current Super Retail share price, this price target implies potential upside of 29% for its shares over the next 12 months. This potential return increases to almost 36% when you include the generous dividends the broker is expecting the company to pay.

Goldman Sachs has forecast a fully franked dividend of 78 cents per share in FY 2021. This equates to a 6.8% dividend yield at present.

Why is Goldman Sachs bullish on Super Retail?

The broker believes Super Retail is perfectly positioned to benefit from the current trading environment. It explained:

“SUL has continued to position itself extremely well to capture the unique trading environment we have seen over much of 2020, and in particular has made the most of the reopening of the Australian economy as households have increasingly shifted to outdoor activities and road travel over the summer period.”

“As we have noted before, while much of the consumer spending patterns seen over 2020 are unlikely to be sustained, we expect the international travel restrictions associated with the pandemic to provide a medium-term tailwind to SUL. Furthermore, the weakness experienced by SUL during the post bushfire period in 2H20 is likely to provide an easy base to cycle.”

In respect to its expectation for a big dividend this year, the broker commented:

“We forecast strong cash generation conditions to continue through 1H21, bringing forecast net cash to A$119mn in 1H21 and A$171mn in FY21. We forecast a recovery in dividend payout ratio to ~60% over FY21, translating to a forecast FY21 dividend of A$0.78 per share, implying a 6.7% [at the time] fully franked dividend before contemplating capital management.”

All in all, this appears to make the Super Retail share price one to watch in 2021.

More reading

• 2021 has its worries… even for an optimist
• ASX 200 drops 0.8%
• ASX 200 down 0.5%: JB Hi-Fi guidance impresses, Super Retail update, Ramsay surges
• Why the Super Retail (ASX:SUL) share price is surging higher today
• Why ARB, Mesoblast, Pushpay, & Super Retail shares are racing higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Funtastic Limited (ASX: FUN) share price is falling today after the company announced the sale of its confectionery business.

At the time of writing, the Funtastic share price is down 7.6% to 12 cents.

What’s lowering the Funtastic share price?

The Funtastic share price is dropping lower after investors took note of the company’s change in strategic direction.

In today’s release, Funtastic advised it is seeking to bring new products to market, expand e-commerce operations, and explore growth opportunities.

Based on management’s decision to overhaul the company’s existing portfolio, the company has sold off its confectionery business to Sweet Season Pty Ltd.

This follows its recent acquisition of Hobby Warehouse Group, which includes e-commerce businesses Hobby Warehouse, Toys’R’Us and Babies’R’Us.

The agreed sale of its candy business along with current inventory, went for the price of $1.05 million.

The company said that at the end of July 2020, the confectionery business recorded $4.2 million in revenue for the entire financial year. This accounted for 17.1% of total group revenue before the acquisition of Hobby Warehouse Group.

Net assets from the confectionery business amounted to $195,000 at the end of the same period. This represented just 4% of the total assets held by Funtastic.

What did management say?

Commenting on the divestment, Funtastic CEO and managing director Louis Mittoni said:

The sale of the confectionery business is part of the ongoing strategic review of all product ranges, customer segments and operations.

It accelerates materialisation of value for part of the business and will allow investment to build scale and to right-size the business, aligned with the planned growth and focus of the company to deliver our mission of encouraging children to engage with as many forms of play as possible and assist people to explore, create and live life more fully.

Funtastic share price snapshot

Over the past 12 months, the Funtastic share price has zoomed higher, reflecting gains of more than 470%.

The company’s shares took a dive during the March COVID-19 meltdown and were priced at just 0.7 cents per share. However, trading conditions improved, which saw its shares reach a 52-week high of 19.5 cents in October.

Based on the current share price, Funtastic commands a market capitalisation of around $101 million.

More reading

• 3 reasons the BHP (ASX:BHP) share price could be in the buy zone
• Why the Carbon Revolution (ASX:CBR) share price zoomed 8% higher
• Why the Botanix (ASX:BOT) share price is flying 6%
• These ASX shares are falling after being hit by broker downgrades today
• Here’s why the Redflex (ASX:RDF) share price rocketed 122% higher 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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In afternoon trade the BHP Group Ltd (ASX: BHP) share price is on course to end the week with a decline.

At the time of writing, the mining giant’s shares are down 2% to $45.96.

Despite this decline, the BHP share price is up an impressive 34% over the last six months.

Is it too late to buy BHP shares?

While it is unlikely the BHP share price will be generating another 34% gain over the next six months, one leading broker still sees enough value in its shares to recommend it as a buy.

According to a note out of Goldman Sachs, the broker has retained its buy rating and put a price target of $47.90 on the company’s shares.

This price target implies potential upside of 4.2% excluding dividends and 9.2% including them.

Why does Goldman rate BHP?

There are three key reasons why Goldman Sachs has held firm with its buy rating on the BHP share price.

It explained that one of these is its strong earnings and free cash flow.

“(1) Strong earnings growth and FCF: we forecast a c. 20% increase in EBITDA and c. 50% increase in FCF in FY21, equating to a c. 9% FCF yield, driven partly by a fall in capex to US$7bn as major minerals projects are completed, and lower unit costs, but mostly due to our positive view on met coal, copper and oil prices in CY 2021.”

Goldman also likes BHP for its strong production growth potential. Particularly with copper and oil.

“(2) Strong production growth: BHP’s group Cu Eq production should increase by 4-5% in FY22 and FY23, driven by a 250kt lift in copper volumes from Spence and Escondida, 4Mt of met coal with rebounding demand, and 10MMboe of oil volumes with new production from Mad Dog II and Atlantis Phase 3, and the recent 28% acquisition of Shenzi. BHP will likely also see a significant margin kicker in the Pilbara from the high grade South Flank deposit. Longer term, we have a positive view on BHP’s organic growth options, particularly in oil where we see possible 50% volume growth to +150MMboe driven by Trion, T&T North and Scarborough.”

And finally, another reason to be positive is its portfolio reshuffle.

“(3) Benefits from portfolio optimisation: ongoing with the announcement to divest thermal coal and Bass Strait gas.”

All in all, the broker expects this to underpin strong earnings over the next three years.

As a result, it is forecasting dividend yields of approximately 5% per annum through to FY 2023. Which could be very attractive for income investors in this low interest rate environment.

More reading

• These ASX shares are falling after being hit by broker downgrades today
• What a dramatic day in the US could mean for ASX shares in 2021
• ASX 200 rises 0.4%
• 4 ASX shares picked for returns in 2021 by brokers and fundies
• ASX 200 up 0.5%: BHP’s update, PolyNovo jumps, Ansell impresses

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 3 reasons the BHP (ASX:BHP) share price could be in the buy zone appeared first on The Motley Fool Australia.

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The Carbon Revolution Ltd (ASX: CBR) share price is on course to end the week with a strong gain.

In afternoon trade the carbon fibre wheels-focused advanced manufacturing company’s shares are up 8% to $2.96.

Why is the Carbon Revolution share price storming higher?

The catalyst for the strong gain by the Carbon Revolution share price on Friday was the release of its second quarter update this morning.

According to the release, as expected by management, Carbon Revolution’s sales continued to be impacted by COVID-19 headwinds during the second quarter. The quarter was also subject to manufacturing seasonality on another key customer program.

This led to the company reporting quarterly revenue of $5.6 million. This was down 52.8% on its first quarter revenue and 48.1% on the prior corresponding period.

Quarterly wheels sold were 1,972 for the three months, a decrease of 55.4% from the first quarter and 43.1% from the same period last year.

However, management’s commentary in relation to the second half appears to be the reason the Carbon Revolution share price is heading higher today. It advised that it expects wheel sales growth to return in the second half of FY 2021.

Outlook

Management is positive on the second half. It explained: “The business continues to monitor the local and global impacts and risks related to COVID-19. There remain uncertainties arising from the ongoing impacts of COVID-19 and the automotive industry’s response in the near-term. On the basis of all currently available information, the Company expects to deliver strong sales growth in FY21.”

Supporting its growth will be the company’s investment in its Mega-line manufacturing process. This process is expected to lower costs, increase capacity, and help the company secure larger programs.

Management commented: “The design of the Mega-line manufacturing process has progressed significantly and is now ready to proceed once new programs are awarded. The Company expects that significant new programs will be secured in the next 6 months and these new programs will underpin the decision to invest in the first mega line. This demand for Megaline capacity is anticipated to come from both existing and new customers.”

More reading

• Bell Potter names the ASX industrials shares to buy in 2021

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 Carbon Revolution Limited. The Motley Fool Australia has recommended Carbon Revolution Limited. 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 Carbon Revolution (ASX:CBR) share price zoomed 8% higher appeared first on The Motley Fool Australia.

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