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Due to a number of favourable tailwinds such as ageing populations, better technologies and treatments, and increasing chronic disease burden, demand for healthcare services is expected to increase strongly over the next few decades.

In light of this, the healthcare sector has been tipped as an area of the market to consider long term investments. But which shares should you buy? Two healthcare shares that are highly rated are listed below:

Mach7 Technologies Ltd (ASX: M7T)

Mach7 is a medical imaging data management solutions provider which uses software to create a clear and complete view of the patient.

Its software helps inform diagnosis, reduce care delivery delays and costs, and ultimately improves patient outcomes. The company has also expanded its offering this year with the acquisition of leading provider of an enterprise image viewing technology, Client Outlook. This acquisition increases Mach7’s total addressable market from US$0.75 billion to US$2.75 billion.

Analysts at Morgans are bullish on the company and have an add rating and $1.49 price target on the company’s shares. They have been pleased with the acquisition and integration of Client Outlook and believe the company’s solutions are well-placed in the current environment where demand for telehealth is growing fast.

Pro Medicus Limited (ASX: PME)

Pro Medicus is healthcare technology company that provides radiology information systems (RIS), picture archiving and communication systems (PACS), and advanced visualisation solutions to healthcare organisations across the globe.

It has been growing at a consistently strong rate over the last few years thanks to the quality of its software, its sizeable market opportunity, and the shift away from legacy systems.

Pleasingly, Pro Medicus has been tipped to continue this positive form over the coming years by analysts at Morgans. The broker currently has an add rating and $35.02 price target on the company’s shares. It was pleased with the recent signing of a five-year contract with MedStar Health worth a total of A$18 million. Morgans notes that this completely cloud-based contract showcases the flexibility of its technology.

More reading

• Top brokers name 3 ASX shares to buy today
• Are heads in the clouds with these sky high P/E ratios?
• Which ASX 200 healthcare shares delivered the top returns in 2020?
• ASX 200 up 0.8%: CBA storms higher, Link sinks, tech shares rise
• Sonic Healthcare (ASX:SHL) share price gets fresh COVID boost

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends MACH7 FPO and Pro Medicus Ltd. The Motley Fool Australia has recommended MACH7 FPO and Pro Medicus 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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Most weeks, the Commonwealth Bank of Australia (ASX: CBA) CommSec brokering platform tells us the international shares (which are almost always American shares) that are the most popular with its customers. We’ve already looked at the most popular ASX shares today.

CommSec is one of the largest online brokers in the country. As such, this data can be a useful ‘finger on the pulse’ of general investing trends in the Aussie market. This week’s data covers 4-8 January.

So here are the top 10 United States shares CommSec customers were buying last week:

Most traded US shares on the ASX

1. Tesla Inc (NASDAQ: TSLA) – representing 7.1% of total trades with a 78%/22% buy-to-sell ratio.
2. Nio Inc (NYSE: NIO) – representing 3.7% of total trades with an 80%/20% buy-to-sell ratio.
3. Apple Inc (NASDAQ: AAPL) – representing 2.3% of total trades with a 78%/22% buy-to-sell ratio.
4. BioNano Genomics Inc (NASDAQ: BNGO) – representing 2.3% of total trades with a 71%/29% buy-to-sell ratio.
5. Alibaba Group Holding Ltd (NYSE: BABA) – representing 2.4% of total trades with a 50%/50% buy-to-sell ratio.
6. ARK Genomic Revolution ETF (BATS: ARKG)
7. ARK Innovation ETF (NYSE: ARKK)
8. Microsoft Corporation (NASDAQ: MSFT)
9. Quantumscape Corp (NYSE: QS)
10. Amazon.com Inc (NASDAQ: AMZN)

What can we learn from these trades?

We have some interesting developments in this data. But first, it’s interesting to note that electric car/battery makers Tesla and Nio retain their long-held positions at the top of this list that they dominated across most of 2020.

Excitement over Tesla and Nio is reaching fever pitch. Tesla alone is up 673% over the past 12 months, including almost 100% since 16 November. It has, just in the past week, printed a new all-time high of US$884.49 a share. As a result, Tesla CEO Elon Musk has also recently become the world’s richest person, surpassing Amazon’s Jeff Bezos.

The China-based Nio is fairing even better. Its shares are up more than 20% over the past 5 days, and up an extraordinary 1,600% over the past 12 months. No wonder ASX investors can’t leave these companies alone. However, it is worth noting that roughly 1-in-5 investors are on the selling side of these trades too.

Apple remains ever-popular, but interesting inclusions this week are the biopharma company BioNano, and the Chinese e-commerce giant Alibaba.

BioNano shares caught investors’ eye when it spiked more than 1,200% between 22 December and 4 January.

Alibaba has been in the news recently as the US government contemplates a forced-delisting of certain Chinese companies from US stock exchanges. Interest has also recently been growing over the whereabouts of Alibaba’s founder Jack Ma, who hasn’t been seen in public since October last year, despite being China’s second-richest person. These narratives are possibly what is behind the 50/50 split between buyers and sellers.

We also have a rare appearance of a couple of exchange-traded funds (ETFs) as well. ARKK and ARKG are both run by the popular ARK Invest firm, which is headed by Cathie Wood. Ms Wood has made a name for herself and ARK with an ultra-bullish, tech-driven, growth investing style in recent years, which included some well-timed entries into Tesla stock, incidentally.

Overall, we see a lot of interest in companies that might be described as ‘speculative’. It will be interesting to note how long this trend will carry into 2021.

More reading

• Angry Tyro (ASX:TYR) customers jump ship
• 3 top ASX share picks for 2021
• 4 reasons why the CBA (ASX:CBA) share price could be a buy
• Elon Musk is now world’s wealthiest person
• Better buy: Amazon vs Costco

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alibaba Group Holding Ltd., Amazon, Apple, Microsoft, and Tesla and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon and 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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It was an unimpressive day for the ASX today with the All Ordinaries Index (ASX: XAO) sagging 0.2% at the market’s close. 

Regardless of this lacklustre result, these three ASX shares each had a ripper session, with their share prices all vaulting higher than 9%.

Australian Strategic Materials (ASX: ASM)

Australian Strategic Materials finished the day a massive 15.6% higher to close at $5.47.

The company’s cornerstone Dubbo Project is a long-term, sustainable and secure source of rare earths, zirconium, niobium and hafnium. Products requiring these materials include electric vehicles, medical imaging technology, along with wind turbines and control systems for solar panel arrays and robotics. Subject to financing, the Dubbo Project is ready for construction. 

According to the company’s latest presentation, Australia Strategic Materials is currently focussing on objectives that include complete optimisation and financing progression for the Dubbo Project.  

Avita Medical Inc. (ASX: AVH)

The Avita Medical share price closed 15.3% higher at $5.59. The company’s share price first started climbing today after it reported a 57% increase in revenue via its preliminary fiscal second-quarter results.  

The Avita RECELL technology that’s presently in development will be used to treat acute thermal burn wounds. The company recently enrolled nine additional patients in an important study that’s further assessing the use of the RECELL system to treat stable vitiligo. Furthermore, Avita added seven new accounts in the second quarter of 2021 bringing its current accounts total to 93.

Novonix Ltd (ASX: NVX)

The Novonix share price powered up 9.4% today to finish off at $1.68. Novonix is a Brisbane-based company with its sights set on improving batteries for electric vehicles, phones, laptops, cordless equipment and renewable energy storage. 

In its latest corporate update, Novonix provided details associated with the company’s planned delivery schedule for the contract to supply Samsung SDI with 500 tons of PUREgraphite synthetic anode material for use in lithium-ion batteries. 

Novonix is an integrated developer and supplier of high-performance materials, equipment and services for the global lithium-ion battery industry with operations in the USA and Canada and sales in more than 14 countries. 

More reading

• Why the Avita Medical (ASX:AVH) share price is rising this morning
• 2 small cap ASX shares growing at a rapid rate
• Leading broker names the ASX healthcare shares to buy in 2021
• Why did the Avita (ASX:AVH) share price dive 60% in 2020?
• Why AVITA, IDP Education, Over the Wire, & Viva Energy shares are dropping lower

Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Avita Medical Limited. The Motley Fool Australia has recommended Avita Medical Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If the direction of oil and gas prices is anything to go by, you may want to top off your vehicles this week. And perhaps revisit some of the leading ASX energy shares.

Oil and gas (LNG) prices both fell off a cliff in 2020. That came as domestic and international travel ground to a halt amid global lockdowns aimed at stemming the spread of COVID-19.

On 3 January last year, Brent crude oil was trading for US$68.60 per barrel. By 21 April the price had cratered to US$19.33. Though the price falls were not quite as dramatic, LNG prices sank as well.

By the end of April energy prices began to battle back. Slowly. As recently as 30 October, Brent was still selling for US$37.36 per barrel.

Then came the announcements of multiple effective coronavirus vaccines. While these are still in the early stages of rollout – Australia won’t begin mass vaccinations until March – energy demand is picking up as the world emerges from its self-imposed cocoon.

Together with lower supplies, thanks in large part to unilateral cuts from OPEC powerhouse Saudi Arabia, Brent crude is trading at US$55.63 (AU$72.25) today. That’s up 49% just since the end of October.

And spot prices for LNG in Asia are at record highs, currently over US$20 per million British thermal units (MBTU).

Leading ASX energy shares rocketing higher

With the price of the commodities they pump from the earth soaring, leading ASX energy companies have seen their share prices rocketing higher. Not that they’ve recovered their pre-pandemic levels yet, mind you.

But since 1 November the Oil Search Ltd (ASX: OSH) share price is up 65%.

The Beach Energy Ltd (ASX: BPT) share price is also up 65%.

As for the Santos Ltd (ASX: STO) share price? It’s up 54% since the first trading day of November.

Woodside Petroleum Limited (ASX: WPL) trails this pack with a share price gain since 1 November of ‘only’ 45%.

What’s next for global energy markets?

That’s a peek in the rearview mirror. The pressing question for investors now is what to expect from energy prices, and ASX energy shares, in 2021.

As reported by the Australian Financial Review, Wall Street research firm Bernstein “expects a significant recovery in oil demand in the second half this year”.

That forecast is based on the virus being reined in and unleashing pent-up demand for travel. And Bernstein doesn’t believe the push towards green energy negates this bullish view.

According to Bernstein’s chief oil and gas analyst in Asia, Neil Beveridge:

We still expect another cycle in oil given the under-investment in the industry and demand recovery. You can believe in net zero and still be bullish on oil stocks and oil price in our view.

Eric Streitberg, executive chairman of Buru Energy Limited (ASX: BRU), agrees that the shift to renewable energy sources won’t negate the strong demand for oil and gas anytime soon:

Although there is an inexorable and necessary shift to renewables, the world still needs oil and gas in large quantities and will do so for decades to come. On the supply side, investment in the industry has collapsed and this can only mean production is unlikely to keep up with demand, which will inevitably lead to higher prices.

Buru’s share price, by the way, has also rocketed alongside the soaring energy prices, with Buru shares up 45% since 1 November.

Then there’s Carlos Slim, the world’s 21st-richest person.

According to Bloomberg, Slim and his family business own shares worth US$230 million in oil refiner PBF Energy Inc (NYSE: PBF) and pipeline operator PBF Logistics LP (NYSE: PBFX). And they’ve kept adding to their holdings when share prices were tumbling.

Arturo Elias, Slim’s spokesman, said:

The world still needs refining for planes, ships, cars and these companies were punished because consumption fell due to the pandemic.

ASX oil and gas company CEOs cautiously optimistic

Making hay while the sun shines is good policy if, well, you’re making hay. But the CEOs of some of Australia’s top energy shares prefer to err on the conservative side (quoted by the AFR).

Oil Search CEO Keiran Wulff says:

LNG and oil prices have had a strong start to the year and there is cautious optimism pricing will continue to be supported through the year… Regardless of the improved pricing outlook, Oil Search will continue to run the business conservatively as we focus on costs, production and break-even to enhance resilience and position the company for greater upside in the event of longer-term stronger pricing than our current planning forecast.

Beach Energy’s CEO Matt Kay acknowledges the difficulty in making forecasts in the current environment. He says, “All of us are hopeful that 2021 will be a year of greater stability, but if we learnt anything in the last 12 months, it’s to expect the unexpected.”

And Santos’ CEO Kevin Gallagher points out that energy companies, and investors, should expect some volatility in energy prices and act accordingly.

No-one should be surprised when gas prices go up or down – that’s the nature of our business. Certainly, we have seen a significant recovery in prices over the past months but energy companies get into trouble when they run their business based on prices at the top of the cycle.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Broker thinks these 6 ASX energy shares could go higher
• Leading brokers name 3 ASX shares to buy today
• ASX 200 down 0.4%: Afterpay tumbles, bank shares lower, gold miners crash
• Why PointsBet, Santos, Sayona, & Splitit shares are charging higher today

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 S&P/ASX 200 Index (ASX: XJO) dropped by 0.30% to 6,679 points today.

Here are some of the highlights from the ASX:

ARB Corporation Limited (ASX: ARB)

Four-wheel drive accessory company ARB gave a market update today regarding its FY21 first half revenue and profit expectations.

It said that its sales revenue for the first half was $284 million, which represents growth of 21.6% compared to the prior corresponding period.

The revenue growth has led to profit before tax guidance of a range of between $70 million to $72 million, including $9.8 million of one-off government benefits.

ARB said that investors shouldn’t read too much into the result because of the uncertain climate, but it has a positive short-term outlook based on a strong customer order book and another record sales month in December 2020.

It was one of the top performing ASX 200 shares, rising by 6.5% today.

Pushpay Holdings Ltd (ASX: PPH)

Another business to rise on the back of an update was Pushpay, the electronic donation business gave a profit update for FY21 and also announced a new CEO. The Pushpay share price rose 2.7%. 

The new CEO will be Molly Matthews, who is currently the company’s chief customer officer. She will become the CEO on 1 March 2021.

In terms of FY21 profit guidance, the company said that the month of December 2020 was better than expected. Its processing volume achieved in December 2020 combined with continued operating leverage improvements supported a guidance update.

Pushpay upgraded its earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) guidance from a range of US$54 million to US$58 million, to a range of US$56 million to US$60 million.

Polynovo Ltd (ASX: PNV)  

The Polynovo share price fell around 12% after giving the market an update.

It said that the FY21 first half revenue was up 31% compared to the corresponding period. There was “strong” sales growth of 75% in the first quarter of FY21, however, sales were then slower than expected in October and November.

In the US, first quarter sales were up 70% and second quarter sales grew 16%, leading to first half sales rising by 41%.

Polynovo Chair David Williams said: “While we have experienced a few bumps from COVID-19, we have built a significant base of new customers which holds us in a strong position. We will continue to expand our customer base which will enhance our success as the pandemic eases.”

Altium Limited (ASX: ALU)

The Altium share price dropped 2% today after the technology business gave another update.

Altium reported that its total first half revenue was down 3% to US$89.6 million because of COVID-19 conditions in the US and Europe, as well as challenging economic conditions in China for licence compliance activities.

The company said that the Americas underperformed with a decline of 10% in revenue for the half as the unprecedented levels of COVID-19 negatively impacted the sales performance.

NEXUS recorded a decline in growth of 14% for the half due to the timing of deals with a significant pipeline in the second half.

Altium said China underperformed with a decline of 15% in revenue for the half as licence compliance activities have become more challenging at the low end of the market due to uncertain economic conditions after COVID-19 in China.

However, Altium did share some positives. It said that board and systems revenue was stronger in the second quarter relative to the first quarter. The first quarter revenue was down 11% year on year, but improved to be flat year on year in the second quarter. This was notwithstanding the significant restructuring undertaken in Altium’s sales organisation to enable the company’s pivot to the cloud.

Electronic manufacturing has rebounded with Octopart benefiting from this recovery and achieving 19% revenue growth for the half. Management said this was a positive leading indicator for PCB design growth that should drive Altium Designer sales in the second half.

There was also strong growth in term-based licences over the first half, up 166%.

More reading

• Objective (ASX:OCL) share price continues its rise in 2021 after doubling last year
• 3 highly rated ASX growth shares to buy now
• Are the recent US elections turbocharging the ASX 200?
• Here’s why the Fortescue (ASX:FMG) share price is up 12% in a month
• 3 ASX shares to buy that fund managers love

Tristan Harrison owns shares of Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of POLYNOVO FPO and PUSHPAY FPO NZX. The Motley Fool Australia has recommended ARB Limited and PUSHPAY FPO NZX. 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 Alderan Resources Ltd (ASX: AL8) share price is lifting today after the mineral explorer announced it has kicked off its exploration drilling program for 2021.

At the time of writing, the Alderan share price is up 4.7% to 11 cents.

What’s pushing the Alderan share price up?

The Alderan share price is pushing higher on news the company has started its first-pass drilling at Black Rock, Utah, in the United States.

The Black Rock target forms part of the Valley-Crossroads Project where Alderan is earning up to a 70% interest through a deal with another mining company, Tamra Mining.

The maiden drill program comes off the back of positive results received from its geological mapping and rock chip sampling. Mainly targeting copper and gold deposits, the company has begun drilling 3 holes with a depth of 1000m to be completed by next Monday.

Previous surface sampling and geological mapping indicated strong mineral and metals results. Most notably, chemical tests conducted recorded up to 4.6 g/t of gold, 10.15% of copper, 125 ppm of molybdenum, 522 ppm cobalt, and 4.3 ppm of tellurium.

In other news, the company said that assay results from a drilling program at the Detroit Project is due to be finished within 2 weeks. Alderan will plan for additional drilling at the project as well as start operations at its White Mountain epithermal gold project. The latter is expected to be concluded sometime during the March quarter.

Management commentary

Alderan managing director Peter Williams, hailed the new maiden drill program, saying:

Our initial surface work at Black Rock has demonstrated the target’s potential to host copper-gold mineralisation. The interpretation of the depth potential, and in particular the thickening of the magnetic body with depth is compelling and we are looking forward to seeing what our initial drill program will deliver.

Our initial results will give us a better understanding of the target and help us plan more focused drilling over the coming months.

How has the Alderan share price performed?

Listing at 2.5 cents this time last year, the Alderan share price has achieved a 340% gain.

While the company’s shares did tumble momentarily to 1.3 cents in April, the months following saw a strong rebound. In June, the Alderan share price reached a multi-year high of 21 cents ahead of its quarterly activities report.

More reading

• With energy prices roaring back will these ASX energy shares keep booming?
• ASX 200 drops lower
• Objective (ASX:OCL) share price continues its rise in 2021 after doubling last year
• Why the Pure Foods (ASX:PFT) share price popped today
• Why the Calidus (ASX:CAI) share price is dipping 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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The Objective Corporation Limited (ASX: OCL) share price wasted no time in 2021 proving that its performance last year wasn’t just a one-off aberration.

Since the start of trading in 2021, the Objective share price has risen by more than 12%. This occurred after the share price doubling in 2020, which put it into the list of top performers in the ASX SaaS shares sector.

Shares in this $1.2 billion software company have continued to outperform its peers in 2021. In comparison, the Altium Limited (ASX: ALU) share price is down by 12% on a year-to-date (YTD) basis, while the TechnologyOne Limited (ASX: TNE) share price has dropped 5% YTD.

So what’s been boosting the Objective share price?

Solid sales performance

During FY20, the company saw fast growth for its product, the Objective GOV365. This is a governance product for Microsoft Teams, which grew from 20 million to 75 million daily users in 2020.

As a result, for the 12 months ending 30 June 2020, the company reported revenue growth of 13% to $70 million – with 75% of this revenue classed as recurring.

The company followed up by issuing an upbeat guidance for FY21. At its annual general meeting (AGM) in November, Objective said it expected material growth in revenue and profitability in FY21. It did not, however, provide any figures.

The company also said it planned to do this by making efforts to target a broader customer base with cross-sell opportunities, as well as transitioning customers into subscription-based contracts.

The company also outlined its long term strategy of investing 20% or more of its revenue into research and development and expanding its global footprint by executing the right acquisition opportunities in 2021.

Why the strong demand for its products

The company’s products are tailored towards the use by government agencies. Recently, they benefitted from the COVID-19 pandemic, which forced governments to spend on governance-related software to control the transition into online work.

Objective also owns a suite of software that streamlines efficiencies across work activities. Its core offerings include the Objective ECM (Enterprise Content Management), Objective GOV365, Objective Perform, and Objective Trapeze.

All these products help government organisations to transition away from paper-based work into doing things digitally.

For example, Objective Trapeze helps surveyors approve digital plans, and Objective Connect helps government officials to share files securely across other departments.

At the time of writing, the Objective share price is down by 1.76% to $12.87.

More reading

• ASX 200 drops lower
• ASX 200 up 0.4%: Altium disappoints, ARB impresses, Mesoblast charges higher
• Why Altium, Clover, PolyNovo, & Tyro shares are dropping lower
• Altium (ASX:ALU) share price slips following trading update
• 3 fantastic ASX shares to buy today

Eddy Sunarto 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 Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Objective 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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The Pure Foods Tasmania Ltd (ASX: PFT) share price is up 2.08% at the time of writing, trading at 98 cents. 

While the Pure Foods share price has fallen over 11% during the past month, the company has rocketed up over 300% since its April 2020 initial public offering (IPO).

So what’s sending the share price higher today?

Expansion of Woodbridge Smokehouse distribution

Earlier this morning, Pure Foods announced that food manufacturer Monde Nissin Australia (MNA) will be adding the Pure Foods brand Woodbridge Smokehouse (WBSH) to its national portfolio of products. 

The strategic partnership will see WBSH products available to an additional 1,400 independent stores across Victoria, New South Wales, ACT and Western Australia. The four products that will be initially offered by MNA are cold smoked salmon and ocean trout in 100g and 200g packs.

Based on the distribution expansion, Pure Foods expects WBSH revenue to increase by at least 50% during the 2021 financial year compared to the 2020 financial year. Pure Foods further expects revenue to increase across the company as a whole by 15% during financial year 2021 compared to financial year 2020. 

Speaking about the deal with MNA and looking ahead to future plans, Pure Foods Managing Director Michael Cooper commented:

With this extended distribution network PFT now services all major retail and majority of the IGA/ Independent channels in Australia. Along with our e-commerce platform, we are providing all Australian consumers access to our brands. We look forward to continuing to grow in FY21 as we develop and acquire ‘Better for You’ food & beverage brands.

A growth strategy to acquire new business and advance organically

In the company’s latest investor presentation, Pure Foods cited the company’s intention ‘to acquire, grow and develop premium food businesses in Tasmania’. Achievements during the 2021 financial year included acquiring Daly Potato Co., launching the plant-based New Pastures product range as well as launching the company’s premium Homestead Pate into 850 Woolworths Group Ltd (ASX: WOW) stores nationally.  

Pure Foods has also shared an ambitious e-commerce strategy and expressed its interest to tap into the Singapore market. 

At the time of writing, the Pure Foods share price is sitting at 98 cents per share, giving the company a market capitalisation of $50.96 million.

More reading

• How to invest in ASX shares in a post-COVID world 
• 5 ways to lose your money forever
• 2020 ASX recap of the year we’ll never forget
• 2 high quality ASX shares to buy for your retirement portfolio
• ASX 200 Weekly Wrap: ASX hits new post-March high

Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths 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 Calidus Resources Ltd (ASX: CAI) share price has slipped lower today. This comes after the company purchased Warrawoona profit royalty in a bid to free up cash flow for the life of the gold mine.

At the time of writing, the Calidus share price is 1.04% lower to 47.5 cents. In comparison, the S&P/ASX 200 Materials Index (ASX: XMJ) is following a similar fate, down 0.6% to 16,401 points.

What did Calidus announce?

Calidus told the market today it has bought a 1.25% profit royalty over two tenements located in the Warrawoona Gold Project.

The company paid $45,000 and issued 750,000 Calidus shares to the executors of the estate for life of mine royalty.

Calidus said there remained one other 1.25% profit royalty over the tenements. This is the only non-statutory royalty on granted mining leases at Warrawoona.

More on the Warrawoona Gold Project

Situated in the East Pilbara district of the Pilbara goldfield region of Western Australia, the project has been marred historically with disjointed ownership.

Now controlled by Calidus, the entire Warrawoona Greenstone Belt covers a total of 780sq km. The project itself is regarded as one of the highest margins and significant gold projects within Australia.

Callidus managing director Dave Reeves, welcomed the purchase decision, saying:

The purchase of this life of mine royalty not only generates additional cash flow for the company but reduces the amount of time required to administer the royalty, allowing more focus on the core aspects of production.

The parties associated with the royalty have a long association with Warrawoona and we welcome them as shareholders to Calidus.

Calidus share price snapshot

The Calidus share price has climbed higher since the beginning of last year, reflecting gains of more than 90%.

The company’s shares reached a multi-year low of 17 cents in March in the COVID-19 fallout. However, moving in small peaks and troughs, the Calidus share price gradually regained ground to hit a high of 73 cents in mid-October.

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The Acrux Limited (ASX: ACR) share price is soaring today, up 36.36% at the time of writing to 22 cents a share.

Acrux shares closed at 16 cents a share yesterday but opened at 28 cents a share this morning before soaring all the way up to a high of 32 cents soon after. Even though Acrux has somewhat cooled off since, these new heights represent a 52-week high for the company.

So who is Acrux? And why are Acrux shares so convincingly on the march today?

An introduction

Acrux is a pharmaceutical company that describes itself as “dedicated to developing and commercialising topical pharmaceuticals”. It was incorporated in 1998. Ever since, it has developed and commercialised a number of topically applied pharmaceutical products in the US and Europe.

Today, Acrux aims to develop a “range of topical and dermatological generic products for the US market”. The company has three products approved for sale in the US, as well as a portfolio of topical products in development.

However, the company has had something of a rough trot over the past few years. Acrux no longer markets its flagship product Axiron (a testosterone replacement therapy) in the US after it lost patent protection. It withdrew it from sale back in 2017 due to competition from generic versions of this drug. It is still marketed outside the US, however. That is possibly why Acrux shares are, to this day, down 69% from the share price highs we saw back in 2016.

Even so, today Acrux has 14 generic products in its pipeline and has three products that have been submitted to the US Food and Drug Administration (FDA) for review. It also has an Evamist estradiol product, used in the treatment of menopause, available in the US market.

Why is the Acrux share price going gangbusters today?

Today’s extraordinary performance in the Acrux share price can largely be attributed to a market release the company announced this morning just before open. In this release, Acrux informed investors that the FDA has approved a generic testosterone product. This product is based on Perrigo’s Testosterone Topical Solution, which has a concentration of 30mg/1.5mL.

This news comes less than a week after Acrux announced the commencement of a new share purchase plan for existing retail shareholders. This plan was announced on 8 January and will run until 29 January. Shareholders can subscribe for up to $30,000 in new Acrux shares for a price of 15.7 cents a share.

But turning back to the FDA approval, the company had reportedly submitted an application for this product back in August 2018 that is a “generic equivalent” to the Perrigo product. Acrux is now able to manufacture and market this drug. The company was keen to point out that the Perrigo’s product that Acrux’s generic product mimics generated sales that “exceeded US$25 million” in the 12 months to September 2020.

Acrux had already entered into an exclusive sales, marketing and distribution agreement with another company – Dash Pharmaceuticals. Dash will apparently be responsible for “the commercialisation of the product in the United States”. This will include the “coordination of commercial manufacturing and management of marketing and distribution”.

Acrux CEO and managing director Michael Kotsanis had this to say on this news:

FDA approval is a major milestone for Acrux and its generic strategy. It is a testament to the hard work and dedication of the product development and regulatory team. We are excited to partner with Dash Pharmaceuticals to bring this product to market in the current financial year.

At the time of writing, the Acrux share price is sitting at 22 cents per share, giving the company a market capitalisation of $34.81 million.

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Motley Fool contributor Sebastian Bowen 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 ASX stock of the day: Acrux (ASX:ACR) shares soar 36% on FDA approval appeared first on The Motley Fool Australia.

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