Tag: Motley Fool

Australia’s top brokers have been busy adjusting their estimates and recommendations again, leading to the release of a number of broker notes.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Accent Group Ltd (ASX: AX1)

According to a note out of Citi, its analysts have retained their buy rating and lifted the price target on this footwear retailer’s shares to $2.60. The broker lifted its price target after upgrading its earnings estimates to account for Accent’s positive trading update. The broker believes there could be more of the same in the future and suspects that its stronger profit margins could be sustained. The Accent share price was trading at $2.44 on Friday.

ARB Corporation Limited (ASX: ARB)

Another note out of Citi reveals that its analysts have upgraded this 4×4 parts company’s shares to a buy rating with a $34.25 price target. The broker made the move on the belief that ARB will benefit from robust car sales in Australia. In addition to this, the recent strengthening of the Australian dollar bodes well for its manufacturing costs in Thailand. The ARB share price ended the week at $31.37.

Atomos Ltd (ASX: AMS)

Analysts at Morgans have retained their add rating and $1.32 price target on this video technology company’s shares following its trading update. According to the note, the broker was pleased with its better than expected sales during the first half. Atomos reported sales of $32.6 million, compared to prior guidance of $28 million. And while it notes that management didn’t provide any earnings guidance, it did say that it expects to generate positive operating earnings for the first half. The Atomos share price ended the week at $1.04.

More reading

• Brokers just upgraded the Sonic (ASX:SHL) share price and this other ASX stock to “buy”
• Why Atomos, Corporate Travel Management, Fortescue, & Nick Scali are dropping lower
• Why Accent, Afterpay, Creso Pharma, & Thorn shares are charging higher
• Why the Accent (ASX:AX1) share price will be on watch this morning
• Why the Atomos (ASX:AMS) share price is shooting the lights out

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 Atomos Ltd. The Motley Fool Australia has recommended Accent Group, ARB Limited, and Atomos 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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As the first trading week of 2021 nears its end, the new year continues in the path of the old — delivering new global share market highs.

Despite the extraordinary turmoil on display in Washington DC, where rioters stormed the US Capitol Building to protest Joe Biden’s confirmation as president, every major US share index closed at new records yesterday (overnight Aussie time).

The S&P 500 Index (SP: .INX) gained 1.5%, while the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) again led the charge, closing the day up 2.6%. That puts the Nasdaq up more than 43% since this time last year.

Gold shares dip, tech shares rally

In late afternoon trading, the S&P/ASX 200 Index (ASX: XJO) is following the US lead higher.

The ASX 200 is up 0.5% today, for a gain of 2.4% since the closing bell on 31 December. That’s still 5.8% below its own all-time high, set on 20 February last year. But the upward trend since the 23 March trough remains in place.

While most gold shares are trending lower today, ASX tech shares are supporting the broader rally. The S&P/ASX All Technology Index (ASX: XTX) is up 1.6% in intraday trading.

But it’s important to remember these are just daily moves. Unless you’re day trading (good luck!), you may be wondering which ASX shares could be best placed to outperform through 2021.

As you’re likely aware, 2020 saw both well positioned gold and tech shares deliver outsized gains. Today we look at why they could have another good year ahead of them.

But first…

What’s a little insurrection between friends?

For the past two months, as you may recall, analysts the world over have been tripping over themselves to explain why a divided US Congress would be best for share markets.

In that scenario Joe Biden and the Democrats would have held the White House and the House of Representatives, while the Republicans would have had the majority in the Senate. That would have enabled the Republicans to keep a stronger check on some of the Democrats more ambitious programs.

It all came down to the runoff Senate election in Georgia this week. But that election ended up effectively handing control to the Democrats. With the Senate now equally divided (50-50) between the two parties, Vice President-elect Kamala Harris can cast any tie breaking votes.

The result?

While Biden still needs a two-thirds majority in the Senate for many policy changes, the US can expect more funding on green energy, infrastructure and fiscal stimulus spending.

Given the performance of the US markets yesterday, it appears investors’ animal spirits were stirred by a lifting of the uncertainty and the promise of more easy money. (Though this may all come with higher taxes and regulations down the road.)

After all, what’s a little insurrection between friends when the economic outlook remains strong?

Here’s what Nick Colas, co-founder of DataTrek Research wrote in a note (from Bloomberg):

Markets (rightly, in our view) see the U.S. government as ultimately a stable-enough set of institutions even if things occasionally go pear-shaped. Politics play second fiddle to economic and corporate fundamentals when it comes to setting asset prices. The country’s economic future coming out of the pandemic remains promising.

Looking ahead, Janus Henderson head of multi-asset Paul O’Connor said (from the Australian Financial Review):

Financial markets will likely focus on the prospects of more fiscal stimulus in the US in the short term, and higher taxes later on. Beyond fiscal policy, investor attention will now shift towards other areas of the Democrat policy agenda such as infrastructure spending, minimum wage increases and greater regulatory intervention across key industries.

Still, given that implementing legislation in many of the areas will still require 60 votes to pass in the Senate, it seems right to expect a ‘light blue’ version of the Democrat policy program, rather than the most radical version.

And Andrew Husby, a Bloomberg economist, writes:

We think additional near-term pandemic relief and accompanying stimulus could stretch into the $600 billion to $800 billion range. Subject to details and the course of the pandemic, the high end could be sufficient to lift growth by roughly 1.7 percentage points in 2021, to 5.2% year-over-year, with a faster pace continuing into 2022.

The case for ASX gold shares

With the US government potentially pumping out US$800 billion (AU$1 trillion) more stimulus spending than had been widely expected, gold may well shine on through 2021.

Here’s an excerpt from this morning’s Australian Financial Review (AFR):

“The strategic case for gold remains strong in our view,” say analysts at Goldman Sachs, who believe it could hit $US2300.

“If I was to say the gold price is to rise close to infinity you would think, ‘Macleod is a lunatic’,” says Alasdair Macleod, head of research for Goldmoney, the Canadian-listed precious metals custodian.

“If on the other hand, I was to suggest that the purchasing power of the pound or the dollar is likely to collapse to almost nothing you can then understand the argument better.”

We’ll leave off the near infinite gold price scenario for now. But if the Goldman Sachs analysts are correct, gold (currently trading for US$1,910 per ounce) could gain more than 20%.

That would prove a boon for some of 2020’s best performing ASX 200 gold shares.

Like Evolution Mining Ltd (ASX: EVN), which has seen its share price rise 28% since this time last year.

Or Saracen Mineral Holdings Limited (ASX: SAR), which enjoyed a 37% share price surge over the past 12 months.

ASX tech shares for 2021

Justin Braitling, chief investment officer at Watermark Funds Management, remains bullish on some of the best-known tech shares on the ASX. According to Braitling (quoted by the AFR):

Short term I think we’ll see a little bit of a correction, before the underlying reflation trade resumes – that being a weaker US dollar, stronger commodities, stronger risk assets, weaker bonds. Those are the four aspects of the reflation trade.

Braitling lists 4 traditional Aussie internet shares where he believes investors should “stay long”.

First, there’s Domain Holdings Australia Ltd (ASX: DHG). The Domain share price is up 21% since 8 January 2020.

Second, there’s SEEK Limited (ASX: SEK). Seek’s share price is up 21% over the past year.

Third, we have Carsales.Com Ltd (ASX: CAR). The Carsales share price gained 13% in the past 12 months.

And fourth, there’s REA Group Limited (ASX: REA). REA Group shareholders enjoyed a 39% share price gain since this time last year.

So if you’ve been struggling with whether to invest in gold shares or tech shares in 2021, the answer may be to do both.

More reading

• 5 things to watch on the ASX 200 on Friday
• Is the “Blue Wave” of US Democrats good or bad for ASX investors?
• 5 things to watch on the ASX 200 on Thursday
• How ASX shares in the automotive sector outperformed the market in 2020
• Are heads in the clouds with these sky high P/E ratios?

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has recommended carsales.com Limited, REA Group Limited, and SEEK 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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Australian Ethical Investment Limited (ASX: AEF) shares were cruising higher today despite no price sensitive announcements out of the company. By the market’s close, the Australian Ethical share price was trading at $5.05, up 8.84% from yesterday’s close.

The rise in the Australian Ethical share price comes as the Democrats sit on the verge of taking control of the United States Senate. But more on that in a moment.

What Australian Ethical does

Australian Ethical is a funds management company that specialises in environmentally and socially responsible investments. Its business is divided into two key segments in the form of managed funds and superannuation. 

Australian Ethical’s managed funds business comprises eight different investment options and allows investors to invest from as little as $500.

The company’s superannuation arm aims to assist investors to “change the world through a retirement plan that performs well but also benefits humanity.”

So why is the Australian Ethical share price soaring?

One possible explanation for the impressive performance of the Australian Ethical share price today could be found in this article from The Wall Street Journal. It suggested that Joe Biden’s election win would likely result in greater impetus for green energy, in which Australian Ethical is a big investor.

For example, some of Australian Ethical’s renewable energy holdings include First Solar Inc (NASDAQ: FSLR) and Ormat Technologies Inc (NYSE: ORA). These shares saw rises of 6% and 7% respectively last night (our time).

Earnings update

Australian Ethical updated its earnings guidance in late December. The company advised that underlying net profit after tax was expected to be between $4.6 and $5.1 million. This represents an 11% increase on the 6 months ended 31 December 2019.

Australian Ethical also reported at the time that strong growth in funds under management was partially offset by the impact of superannuation fee reductions, including those implemented in the second half of FY20.

What now?

John McMurdo, CEO of Australian Ethical, provided an outlook of what’s to come:

We have seen excellent momentum in the first half of this financial year as a growing number of Australians seek to do good and do well with their money. Buoyed by excellent investment performance, we expect this strong growth in net inflows to continue.

He went on to say…

Financials in the second half of the financial year compared to the first half will be impacted by higher operating expenses, as well as increased investment in strategic and regulatory initiatives as we position our business for continued success.

More reading

• ASX 200 falls 1.2% on Friday
• 3 reasons why Australian Ethical (ASX:AEF) shares could be worth buying
• Got cash to invest? Here are 3 ASX growth shares to buy

Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Australian Ethical Investment Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends First Solar. The Motley Fool Australia has recommended Australian Ethical Investment 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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The KGL Resources Ltd (ASX: KGL) share price is soaring again today, continuing the strong gains seen throughout the week.

This meteoric rise in the company’s shares comes off the back of yesterday’s announcement that it received a mining management plan approval, which saw its share price rise by 24.53% in one day.

So far today, the miner’s shares have risen another 12.12% to 37 cents. This reflects a significant increase in the KGL share price of more than 37% since the start of the week.

Why has the KGL share price accelerated?

Yesterday, KGL announced the Northern Territory government has given the green light for a mining management plan for the company’s Jervois copper project.

A primary objective of a mining management plan is to formalise mining developments that will be carried out on site. The plan ensures that the environment is impacted at a minimum over the course of the mine life.

The approval was a key requirement in developing the Jervois project as a low-cost copper mine. The company estimates the site to have 9.4 million tonnes of copper at a high grade of 2.41%. This comes as the world is seeing a decrease in quality of the base metal, thus highlighting the superiority of the Jervois mine.

KGL believes that demand for copper will surge as the market moves to using more green energy and electric vehicles. In addition, demand from traditional applications that use copper such as construction, electricity transmission, communication and consumer goods is also expected to rise.

Following the approval, Kentor Minerals (owned by KGL) will seek to develop the mine, which will include processing and production of a copper concentrate and lead/zinc concentrate.

What did KGL management say?

KGL chair Mr Denis Wood commented on the pleasing outcome, saying:

The recently announced Pre-Feasibility Study (PFS) results show that the high-grade Jervois deposit will support a robust initial 7.5-year mining operation. We are confident the drilling about to start in the new year will improve the quality and size of the resource.

The new information will be fed into the full Feasibility Study (FS) which now has the Company’s highest priority. Work is already well advanced on the FS which we expect will improve the economics of Jervois even further.

With the PFS completed and the authority to mine now in place, discussions have begun on project financing and the marketing of the mine’s concentrate.

About the KGL share price

Looking back to the last 12 months, the KGL share price has risen over 60%. The miner’s shares suffered a dip during the March crash where investors were able to pick up its shares for 9.4 cents, but shares have since rebounded strongly.

On current prices, KGL has a market capitalisation of $110.79 million.

More reading

• The KGL (ASX:KGL) share price has surged 11% today. Here’s why.

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 BrainChip Holdings Ltd (ASX: BRN) share price has been among the best performers on the ASX on Friday.

At one stage today the artificial intelligence company’s shares were up as much as 15% to 56.5 cents.

This latest gain means the BrainChip share price is up over 55% since this time last month.

Why is the BrainChip share price zooming higher?

While there hasn’t been any news out of the company this week, investors appear to be still responding to a couple of major announcements released at the end of December.

The first announcement the company released was in relation to its agreement with NASA in the United States.

According to the release, BrainChip has received an order for its Akida Early Access Evaluation Kit from NASA. The space agency will use the evaluation kit within its shared service centre at the NASA/Ames research centre (ARC) in California.

This is expected to allow NASA to evaluate the Akida technology for potential use in programs with a neuromorphic processor that meet spaceflight requirements.

Management believes the processor is suitable for spaceflight and aerospace applications due to the device being a complete neural processor. This means it does not require an external CPU, memory, or Deep Learning Accelerator.

Given that reducing component count, size, and power consumption is a big concern in spaceflight and aerospace applications, this is a big positive.

However, it is worth noting that there’s no guarantee that NASA will take things further once it has evaluated the technology. Furthermore, there are other companies with deep pockets with similar technologies.

What was the second announcement?

The other announcement that got investors excited was an agreement with global semiconductor manufacturer Renesas Electronics America. It specialises in microcontroller and automotive system-on-chip products.

This agreement will see BrainChip deliver its Akida technology for use as a system-on-chip licensed product and includes a single-use design license, implementation support services, royalty payments per unit, and software maintenance services for two years.

Management believes the technology is also well suited for advanced driver assistance systems (ADAS), autonomous vehicles, drones, vision-guided robotics, surveillance, and machine vision systems. These are areas which Renesas has a specialty in.

More reading

• This is the latest speculative ASX tech buy from Citigroup
• Why the BrainChip (ASX:BRN) share price rocketed 57% higher
• Why AVZ Minerals, BrainChip, BSA, & Credit Corp shares are storming higher
• BrainChip (ASX:BRN) share price on watch following major announcements
• Why Brainchip Holdings (ASX:BRN) shares are in a trading halt

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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As well as being home to countless blue chip shares, the Australian share market is home to a good number of promising small caps.

Two small cap shares that could be deserving of a spot on your watchlist are listed below. Here’s what you need to know about them:

IntelliHR Ltd (ASX: IHR)

The first small cap to look at is IntelliHR. It is a cloud-based human resources and people management platform provider.

IntelliHR has been growing at a very strong rate this year. During the first five months of FY 2021, the company delivered a sizeable 148% increase in subscriber numbers to over 30,000 contracted subscribers.

This strong customer growth has translated into strong recurring revenue growth so far in FY 2021. As of its last update, IntelliHR’s contracted annual recurring revenue (ARR) was up 81.3% to $2.8 million.

Management appears confident there will be more of the same in future thanks to its quality software, international expansion, and favourable industry trends. It notes that the company is well-placed in a high growth global market being disrupted by the Working-from-Home trend.

Volpara Health Technologies Ltd (ASX: VHT)

Another small cap to look at is Volpara. It is the New Zealand-based healthcare technology company behind the VolparaEnterprise software solution.

This product is a cost-effective, mission-critical tool that helps clinics deliver the highest-quality breast imaging services. In addition to this, the company has a growing number of add-on solutions that work with VolparaEnterprise.

These add-ons are expected to drive material average revenue per user (ARPU) growth in the future. At the end of the first half, the company’s ARPU stood at US$1.16. However, management is aiming to grow this to US$10 in the future through its full product suite.

One broker that is a fan of Volpara is Morgans. It currently has an add rating and $1.71 price target on its shares.

More reading

• 3 quality SaaS ASX shares to buy
• The top 5 performing ASX SaaS shares of 2020
• 3 exciting small cap ASX shares to buy
• 5 exciting small cap ASX shares to watch in 2021
• Top brokers name 3 ASX shares to buy today

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 VOLPARA FPO NZ. The Motley Fool Australia has recommended VOLPARA FPO NZ. 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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Energy Resources of Australia Limited (ASX: ERA) on Friday will end all uranium mining and processing at the mine completely surrounded by Kakadu National Park.

The move comes 40 years after mining within the Northern Territory’s famous region started amid controversy.

Uranium is used as fuel for nuclear power generation. The site of ERA’s Ranger mine had long been known to Indigenous peoples as a place that would cause radiation sickness.

The fierce public debate in the 1970s over extracting such a sensitive material from an environmentally and culturally significant area triggered many downstream impacts.

Among those was the very creation of the Kakadu National Park itself in 1979 in an attempt to protect the remaining area. Uranium mining started in 1980.

Since then ERA has produced more than 132,000 tonnes of uranium oxide from the Ranger mine.

Majority shareholder Rio Tinto Limited (ASX: RIO), which has endured its own controversy this year after the destruction of Juukan Gorge, withdrew its backing for mining at Ranger a few years ago.

Actual mining ceased 8 years ago, but ERA had still been processing already-extracted material up until this week.

The cessation of uranium activities this week was required by federal law via the Ranger Authority.

‘A truly historic milestone’

ERA chief Paul Arnold announced the end of uranium production was “a truly historic milestone”.

“Ranger has been a major supplier to global energy markets as well as being a key contributor to the Kakadu region and the Northern Territory,” he said.

“We would like to thank the many generations of ERA employees who devoted their skills and expertise throughout the life of this mine.”

Arnold said his company would remain in the area to rehabilitate the mine site.

“I look forward to the continued support and expertise of our team as we now wholly focus on delivering on our legacy of the comprehensive rehabilitation of the Ranger Project Area.”

ERA controversially raised $476 million of capital on the ASX last year to pay for the rehab.

This diluted minority shareholder’s stakes while Rio avoided paying for a non-productive cost.

ERA has 5 years to finish the rehabilitation work.

Australian Conservation Foundation nuclear-free campaigner Dave Sweeney said last month the remediation was no easy task.

“The community and environment of Kakadu need certainty and a comprehensive clean up,” he said.

“This work is a key test of the commitment and capacity of Rio Tinto, as well as the Northern Territory and federal governments.”

More reading

• The Energy Resources (ASX:ERA) share price is falling. Here’s why.
• 5 things to watch on the ASX 200 on Friday
• ASX 200 rose 1.6%
• Here’s why the Rio Tinto (ASX:RIO) share price jumped 9% to a record high today
• BHP (ASX:BHP) share price storms to new high

Motley Fool contributor Tony Yoo 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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Horticultural producer Costa Group Holdings Ltd (ASX: CGC) has had a good run over the last twelve months. During this period, the Costa share price has risen by 73.58%, despite the challenges presented by the COVID-19 pandemic.

Let’s take a closer look at what’s been driving the Costa share price.

Rundown of 2020 results

The company produced relatively solid results in 2020, despite the market downturn.

In the company’s last announcement on its financials for calendar-year 2020 (CY20), Costa reported that its earnings before interest, tax, depreciation and ammortisation (EBITDA) for the half-year was $93.7 million. This represented a 13.7% increase on CY19’s EBITDA.

Those earnings translated to a bottom line net profit after tax (NPAT) of $45.8 million, which was 12% higher than 2019.

Costa reported that the solid numbers were underpinned by strong retail mushroom demand in Australia, along with the full commissioning of its Monarto mushrooms facility in South Australia.

About Costa’s operations

The Australian fresh produce market is fragmented, and Costa is the largest player in this space.

The company has roughly 15% overall share of Australia’s fresh produce market but for certain categories, like berries, it commands up 60% of the market.

Only a fraction of Australian fresh produce is imported, reflecting the stringent biosecurity measures on imported products.

This has helped to protect Costa’s Australian business from encroaching international competition, however the company is still exposed to local competition in the form of around 18,000 small businesses operating across the Australian supply chain.

Overseas, Costa operates farms in Morocco and China. The company’s Moroccan operations license the export of blueberries to the United Kingdom and Europe. In China, Costa’s berries are farmed and sold locally. According to Costa, its international segment performed strongly in 2020, as well as in previous years.

Costa’s customer base is highly concentrated. According to the company, around 70% of its Australian sales are to just four large supermarket customers – Woolworths Group Ltd (ASX: WOW), Coles Group Ltd (ASX: COL), Aldi, and Metcash Limited (ASX: MTS).

How about the Costa share price?

As mentioned, the Costa share price has risen by nearly 75% over the last 12 months. In fact, in the last 6 months alone, the company’s shares have risen by around 40%.

At the time of writing, the Costa share price is trading 2.1% lower for the day so far at $4.27.

Based on current levels, the company commands a market capitalisation of $1.72 billion.

More reading

• Is it better to buy 2020’s best or worst ASX shares?
• Why Costa, Galaxy, Oil Search, & Ramelius shares are pushing higher
• The Costa (ASX:CGC) share price is slipping lower today. Here’s why
• Which ASX shares will China ‘punish’ next?

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths 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 Costa (ASX:CGC) share price has surged 70% in a year appeared first on The Motley Fool Australia.

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The Doctor Care Anywhere Ltd (ASX: DOC) share price has been a strong performer on Friday.

In afternoon trade the UK-based telehealth company’s shares are up almost 7% to a record high of $1.45.

When the Doctor Care Anywhere share price reached that level, it meant it was up an impressive 81% since listing on the ASX late last year.

Why is the Doctor Care Anywhere share price on fire?

There have been a couple of catalysts for the strong gain by the Doctor Care Anywhere share price.

One is the belief that the company is well-placed for growth over the short and long term thanks to industry tailwinds which are being brought forward by the pandemic.

Doctor Care Anywhere is a growing UK-based telehealth company aiming to deliver high-quality, effective, and efficient care to its patients, whilst reducing the overall cost of providing clinical services.

With the UK in lockdown, demand for telehealth services is expected to be strong in the country. This could lead to a better than expected result from the company in FY 2021.

Another catalyst for this strong share price gain was an announcement in December of a major agreement with one of the world’s largest insurance and assistance companies, Allianz.

The new channel agreement with Allianz Partners will see Doctor Care Anywhere provide the insurer’s international private medical insurance policyholders and their dependents based in Europe access to digital health services.

What’s next for Doctor Care Anywhere?

The company’s founder and CEO, Dr Bayju Thakar, is positive on the future and has bold aspirations to become a global industry leader.

Commenting on its IPO, Dr Thakar said: “Whilst today marks an important milestone in Doctor Care Anywhere’s journey, we believe it is only the beginning as we look to become a leader in digital health, not just in the UK but globally, by delivering a joined-up and simple patient journey.”

“The capital we’ve raised via the IPO will allow us to better serve our current patients with a broader range of services and to execute on our clear and ambitious growth plans,” he concluded.

More reading

• 2 newly listed ASX shares to watch in 2021
• Why a2 Milk, Doctor Care Anywhere, McPherson’s, & Volpara are pushing higher
• Why the Doctor Care Anywhere (ASX:DOC) share price is surging 11% higher

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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Silex Systems Ltd (ASX: SLX) shares are on fire today after the company provided an update on its investment in GE-Hitachi Global Laser Enrichment (GLE).

At the time of writing, the Silex share price is trading at $1.45, a new multi-year high for the company.  

What’s driving the Silex share price?

The Silex share price is on the run after the company updated the market on a United States Government decision regarding the restructure of GLE. 

According to the update, the US Nuclear Regulatory Commission (NRC) will provide “stand-alone Facility Clearance” for GLE. This will effectively enable GLE to operate under new ownership as a foreign-owned entity.

The approval is subject to the closure of Silex’s Membership Interest Purchase Agreement (MIPA) that was executed in December 2019. The joint agreement was signed between Silex, Cameco Corp and GE-Hitachi Nuclear Energy. 

Should all go to plan, the agreement will result in Silex and Cameco owning 51% and 49% stakes respectively in GLE. 

Assuming continued positive outcomes regarding the US Government’s approvals over the coming weeks, the transaction is expected to be completed early this year.

Words from the CEO

Silex CEO Dr Michael Goldsworthy commented on the milestone, stating:

The granting of the GLE Facility Clearance is the key step in gaining full US Government approvals for the transaction.

We anticipate the remainder of this process to be concluded in the coming weeks, as recently disclosed. The GLE restructure has been a lengthy and challenging process, but we are now cautiously excited to be within reach of the finish line.

Silex share price performance

Over the past twelve months, the Silex share price has risen by more than 250%, significantly outperforming the broader ASX market.

In March, Silex shares dipped to a 52-week low of 17.5 cents, before reaching their multi-year high today.

At the present Silex share price, the company commands a market capitalisation of $231.5 million.

More reading

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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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