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Shoes retailer Accent Group Ltd (ASX: AX1) seems to have defied the odds in 2020. While other brick and mortar discretionary retailers have struggled in the face of government-imposed lockdowns this year, the company’s revenues have instead grown steadily.

In the process, the Accent share price has also risen by 27% during the year.

Let’s take a look at how the company has been able to achieve this feat.

Strong financial results

For the FY20 full year, Accent reported an earnings before interest, tax, depreciation, and amortisation (EBITDA) of $121.6 million. This was an increase of almost 12% compared to the previous year.

The company then followed this up with a strong first 5 months of FY21, saying that its sales were ahead of expectations.

More importantly, Accent reported that its digital sales were up by 129% on prior year.

This pivot to digital platform seems to have been the company’s savings grace during the pandemic lockdown when some of its retail stores had to be closed temporarily.

Investment in digital platform

In June, at the height of the lockdown, Accent’s online sales surged more than 150%, and accounted for 23% of all sales.

At the time, the company said that its strong digital sales have been well ahead of expectations, with 18 websites performing and capitalising on the the online trend.

The pivot to online has not been done overnight. The company has in fact been building its digital infrastructure over the last three years.

In the company’s annual general meeting (AGM) in November, Accent said it delivered across all digital metrics.

It said that the conversion rates on its website platforms remain strong, up 36% on prior year, and driven by improved marketing and website capability.

It also reported that the average order value growth across all its websites has accelerated.

The company said it was targeting 30% sales to come from its digital platforms overtime, with the objective to grow its online customer base to 10 million.

Accent also said it was investing heavily on its digital platforms to improve the online experience for customers. This, the company hopes, will drive incremental sales through increased conversion rates, average order value and repeat customers.

More about the Accent Group

Accent is a footwear retailer that holds the license for some hugely popular shoe brands such as Dr Martens, Saucony, Skechers, Timberland, and Vans among others. It also owns the Athlete’s Foot, Platypus and Hype DC retail outlets.

Despite the pandemic, Accent is on track to open approximately 80 new stores in FY2021. This includes new concept stores, such as Stylerunner.

About the Accent share price

As mentioned, the Accent share price has risen by almost 27%. This is despite the share price plummeting by 60% in March at the height of the pandemic. 

At the time of writing, the Accent share price is currently trading 2.61% higher for the session at $2.36. At the current share price, the company commands a market cap of $1.25 billion.

More reading

• Why Afterpay (ASX:APT) and these ASX shares just hit 52-week highs or better
• These are the 7 best ASX retail shares in 2020
• 2 ASX dividend shares with attractive yields
• ASX retail shares gear up for Christmas boom
• Forget term deposits and buy these ASX dividend shares

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. 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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Making a passive income from cheap dividend stocks could be a neat solution to a challenging problem currently facing many investors.

The income returns on other mainstream assets, such as cash and bonds, are relatively low. By contrast, many dividend shares offer high yields, as well as long track records of reliable shareholder payouts.

Furthermore, the high yields on offer from dividend stocks suggest that they are cheap. This may mean they provide scope for capital growth in the coming years.

Making a passive income from cheap dividend stocks

Cheap dividend stocks provide a simple means of obtaining a relatively high passive income in 2021 and in the coming years. The 2020 stock market crash has left investors feeling downbeat towards a number of sectors. As a result, companies in industries such as financial services, defence and oil and gas currently have yields that are significantly higher than their historic averages. This could mean that an investor is able to enjoy a high income return simply from owning a diverse range of shares.

Of course, some companies with high dividend yields may face uncertain financial outlooks in the short run. This may mean that their dividends fail to grow at a rapid pace. However, those companies that have very affordable shareholder payouts alongside their high yields may offer attractive risk/reward opportunities. Investors may have factored in the risks they face through cheaper share prices, while their high dividend yields may be sufficient reward for higher risks.

A reliable track record of dividend growth

Cheap dividend stocks could also offer a worthwhile passive income because of their solid track records of shareholder payouts. As mentioned, some sectors are facing difficult near-term outlooks. However, some of the companies operating within them have good form when it comes to maintaining dividend payouts amid uncertain operating environments. In some cases, they may even have been able to raise dividends in the past despite tough sales and profit prospects.

Such companies may, therefore, offer a more resilient income outlook than investors are currently pricing in. The end result could be that they are undervalued at today’s price levels. This may mean that they are able to offer a high, and dependable, passive income stream in the coming years.

Cheap dividend stocks offer capital growth

Cheap dividend stocks may offer much more than just a passive income over the long run. Their high yields may mean that they offer wide margins of safety that equate to scope for capital growth in future. Therefore, a strategy that seeks to buy and hold them over the long run could deliver attractive total returns that are significantly ahead of other mainstream assets. The end result could be a positive impact on investor portfolios in 2021 and in the coming years.

More reading

• Why did the Accent (ASX:AX1) share price defy the odds in 2020?
• The ASX tech shares to buy in 2021
• Leading brokers name 3 ASX shares to sell today
• Why these 3 ASX shares smashed it in 2020
• 2020 wrapped: Is Spotify stock a buy?

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

The post Why I’d buy and hold cheap dividend stocks to make a passive income appeared first on The Motley Fool Australia.

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Are you interested in gaining exposure to the tech sector in 2021? While there are a good number of quality options to choose from, two of the best could be listed below.

Here’s what you need to know about these tech shares:

Altium Limited (ASX: ALU)

The first ASX tech share to look at is Altium. It is an award-winning printed circuit board (PCB) design software provider. Over the last few years, Altium has earned itself a leading position in a growing electronic design market. But management certainly isn’t resting on its laurels and is now aiming to dominate this market with its cloud-based Altium 365 product.

At the end of FY 2020, Altium had a total 51,006 subscriptions and was generating revenue of US$189.1 million. Looking ahead, management appears confident this strong demand will continue and is aiming to double its subscriptions to 100,000 and grow its revenue by 164% to US$500 million by FY 2025/26.

Credit Suisse is positive on the company and recently initiated coverage on Altium with an outperform rating and $42.00 price target.

Pushpay Holdings Group Ltd (ASX: PPH)

Pushpay is a donor management and community engagement provider to the church market. It has been an impressive performer during 2020, thanks partly to favourable tailwinds from the COVID-19 pandemic.

These tailwinds underpinned a very strong result in FY 2020 and an even stronger result during the first half of FY 2021. Pushpay’s half year results revealed a 53% increase in operating revenue to US$85.6 million and an even more impressive 177% jump in EBITDAF to US$26.7 million.

The good news is that management appears confident this growth can continue and has set itself bold long term targets. This includes winning a 50% share of the U.S. medium to large church market, which is estimated to be worth US$1 billion a year.

One of the keys to achieving this will be the recent launch of ChurchStaq. It is the combination of its Pushpay and Church Community Builder software. It brings together digital giving, donor development, church apps, and ChMS to deliver a fully integrated engagement platform.

Goldman Sachs is a big fan of Pushpay. The broker has a conviction buy rating and $2.59 price target on its shares.

More reading

• ASX 200 down 0.8%: Big four banks and tech shares drag the market lower
• Leading brokers name 3 ASX shares to buy today
• 3 of the best ASX shares to buy in January
• 2 rapidly growing ASX tech shares to buy
• 2 ASX 200 shares to buy in January

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 Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia has recommended 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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With most brokers taking a well-earned break over the holiday period, research notes are few and far between right now.

In light of this, I thought I would take a look at a few that have been released over the last few weeks that remain very relevant today.

Three sell ratings that you might want to pay attention to are listed below:

Commonwealth Bank of Australia (ASX: CBA)

According to a note out of Morgan Stanley, its analysts have retained their underweight rating and $68.50 price target on this banking giant’s shares. The broker notes that Commonwealth Bank has been given Chinese regulatory approval to sell its stake in BoCommLife to MS&AD Insurance Group. Although it acknowledges that this sale will give its CET1 ratio a boost, it doesn’t expect it to support a share buyback anytime soon. In light of this and its current valuation, the broker is holding firm with its underweight rating. The CBA share price is trading at $83.22 on Wednesday.

Estia Health Ltd (ASX: EHE)

Another note out of Morgan Stanley reveals that its analysts have downgraded this aged care operator’s shares to an underweight rating and cut the price target on them to $1.50. According to the note, the broker made the move after reducing its earnings estimates for Estia Health. Its analysts believe that the company’s earnings will be under pressure until the Royal Commission into the aged care sector is finalised. The Estia Health share price is trading at $1.83 today.

Qantas Airways Limited (ASX: QAN)

Analysts at Credit Suisse have retained their underperform rating and $3.00 price target on this airline operator’s shares. According to the note, the broker has concerns over the company’s prospects in the domestic market due to rising competition. It believes that Virgin Australia will be a strong competitor and notes the impending entry of Regional Express Holdings Ltd (ASX: REX) into the market. The Qantas share price is trading at $4.92 on Wednesday afternoon.

More reading

• ASX 200 shares hardest hit by COVID-19 in 2020
• Smile! 2021 will be an awesome year
• ASX 200 up 0.65%: Big four banks rise, tech shares charge higher, Flight Centre jumps
• 2 star stocks for your ASX retirement portfolio
• 8 issues that will impact investors in 2021: experts

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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In a year where the S&P/ASX 200 Index (ASX: XJO) just broke even, it’s worth having a look at shares that outperformed, and outperformed strongly.

These 3 ASX shares have smashed it out of the park this year, and here’s why.

Xero Limited (ASX: XRO)

One of Australia’s ASX darlings, Xero has steadily climbed its way from $80 a share at the end of 2019, to $145.63 at the time of writing — an impressive 82% return for the year.

Back in March, the workforce collectively gave up the daily commute for a short walk to their new home desk. Many businesses were forced to adopt a cloud-based environment. For many companies, it meant expanding upon their existing licenses for cloud-based software.

Xero was well placed for this shift, with the company now commanding a 2.453 million subscriber strong base (adding 396,000 new subscribers, year over year).

As reported in the company’s first half FY21 results, annualised monthly recurring revenue grew by 15% to $877.6 million, earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 86% to $120.8 million, and net profit after tax skyrocketed to $34.486 million from $1.366 million the previous year.

Xero’s market capitalisation is $21.36 billion at the time of writing.

Mineral Resources Limited (ASX: MIN)

Not quite the size of Fortescue Metals Group Limited (ASX: FMG), Mineral Resources is often forgotten. Yet, the company has had a remarkable run of its own this year. The Mineral Resources share price has rocketed from $16.50 at the end of 2019 to $36.65 at the time of writing — that’s a 122% return.

Iron ore prices this year have marched forward with no reprieve. This is reflected in Mineral Resources’ reported revenue of $2.1 billion, up 41% on FY19. Where the numbers really start to shine in its annual report to shareholders is the net profit after tax – up from $165 million in 2019 to $1,002 million this year.

A couple of weeks ago UBS also initiated coverage on Mineral Resources with a “buy” recommendation, stating “MIN offers exposure to a growing mining services business and attractive commodities exposure to iron ore and lithium.”

Mineral Resources’ market capitalisation is currently $6.91 billion, while Fortescue Metals Group is $73.83 billion.

Lynas Rare Earths Ltd (ASX: LYC)

Passed up by Wesfarmers Ltd (ASX: WES) late last year (after the conglomerate originally offered a takeover bid of $1.5 billion), the Lynas share price lost its lustre and began to fall in early 2020. After kicking the year off at $2.29 a share, the Lynas share price fell as low as $1.065 in March. However, it has clawed its way back. Today Lynas shares are trading for $3.95 – a 71.88% return for the year.

The strong rally this year could be attributed to the ongoing trade tensions with China. Given Lynas is a rare earths supplier outside of China, it has positioned itself as an alternative.

Despite the company’s falling revenue and EBITDA, a 16% and 40.6% decline, respectively, the market appears to be focused on the long-term trend towards a higher demand for rare earth metals.

However, Lynas was recently downgraded to a “neutral” by UBS, which believes the rising electric vehicle market has already been priced into the current Lynas share price

More reading

• The top 5 performing ASX SaaS shares of 2020
• The Xero (ASX:XRO) share price is up 82% in 2020
• 2 ASX tech shares to buy and hold until 2030
• 3 unstoppable ASX shares to buy
• 2 rapidly growing ASX tech shares to buy

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

The post Why these 3 ASX shares smashed it in 2020 appeared first on The Motley Fool Australia.

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

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

Spotify Technology (NYSE: SPOT)‘s business hasn’t skipped a beat amid the COVID-19 pandemic. Its stock price has more than doubled year to date as investors catch on to how meaningfully its podcast investments could pay off over time. 

Let’s recap 2020, dive into what’s to come, and then determine whether the stock is still a buy.

2020 wrapped

Spotify has had a phenomenal year despite the pandemic. The company’s total monthly active users (MAUs) were 29% higher at the end of September versus the prior-year quarter, and the midpoint of management’s fourth-quarter guidance suggests more than 26% MAU growth for the year. Within that figure, management expects Premium subscribers to grow 23%.

One of the big stories of the past year has been the company’s massive push into podcasting, specifically original and exclusive podcast content. This push began in earnest when Spotify spent 357 million euros ($436 million) to acquire the podcasting businesses Gimlet, Anchor, and Parcast in 2019.

But Spotify took that to another level this year with the acquisition of The Ringer, a podcast and media company started by Bill Simmons. It later signed Joe Rogan’s wildly popular program The Joe Rogan Experience to a multiyear deal that went exclusive with Spotify earlier this month. Kim Kardashian West and Michelle Obama were two other huge names that joined the platform in exclusive deals.

This hasn’t gone unnoticed by podcast listeners. In 2020, Spotify has overtaken Apple as the most widely-used podcasting platform, according to MIDiA Research. This rapid success has undoubtedly contributed to increasing investor enthusiasm toward the stock.

What’s to come

As we look forward to next year, we can probably count on more of the same out of Spotify. That should mean continued MAU and Premium subscriber growth as streaming audio adoption continues in the company’s 92 existing markets — and the service launches in new ones.

For example, Spotify launched in Russia and 12 other European regions last July. And the company just announced this month that the service will be launching in South Korea during the first half of 2021. For Spotify, South Korea is a large untapped market — one of the last major ones remaining.

In addition, we should expect more original and exclusive podcasting content. As Spotify’s user base continues to swell, and a growing percentage of users engage with its shows, the company is also going to have more ad inventory to sell to advertisers. On top of that, its Streaming Ad Insertion technology has the potential to meaningfully increase the value of podcast advertisements, which would boost the company’s revenue and profitability.

Yet another opportunity is the potential for price increases in select markets, which management has been telegraphing lately. On the company’s third-quarter earnings call, founder and CEO Daniel Ek said users have responded well to price increases in test markets. He went on to state, “So as a result, you’ll see us further expand price increases, especially in places where we’re well positioned against the competition, and our value per hour is high.”

Spotify hasn’t traditionally been thought of as a company with pricing power due to the existence of competing platforms like Apple Music, Amazon Music, and others. To the extent that view among investors changes, the company — and the stock — should benefit.

Is Spotify a buy?

Spotify stock has had a tremendous run in 2020, beginning the year at $150 per share and closing at $317 as of this writing.

Many investors would look at those gains and conclude they ‘missed out’, but Spotify still has a tremendous amount of growth ahead of it, both on the top and bottom lines. The podcast advertising initiative can pay off long term thanks to the high profit margins on each incremental ad impression sold. And investors shouldn’t overlook the company’s opportunity to sell more promotional services to artists and labels. Some of those revenue streams have “software-type margins,” according to Ek, which are far higher than the margins in the company’s core business.

With a huge global addressable market, margin-enhancing opportunities, and strong prospects for price increases, there’s a lot to like at Spotify over the next decade. Investors should still consider the stock a buy despite its triple-digit rally this year.

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

More reading

• The top streaming stocks to buy in 2021

Andrew Tseng owns shares of Amazon and Spotify Technology. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon, Apple, and Spotify Technology 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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Fintech is a broad term that refers to any company that applies technology to the world of finance.

Some of the products and services offered by these types of companies include payment processing, online and mobile banking and online financial services, to name a few.

As you may already be aware, there is one particular sub-category of the fintech sector that’s taken the ASX by storm in 2020 – and that’s buy now, pay later (BNPL).

In fact, the top 6 best performing ASX fintech shares in 2020 are dominated by these BNPL players.

Let’s take a look at each one of these top performing fintech shares, and find out why they fared so well in 2020.

ASX fintech share	1-year share price performance	Share price (at the time of writing)	Market capitalisation
1. Afterpay Ltd (ASX: APT)	295%	$118.77	$33.8 billion
2. Sezzle Inc (ASX: SZL)	200%	$6.23	$0.6 billion
3. Splitit Ltd (ASX: SPT)	79%	$1.22	$0.5 billion
4. Pushpay Holdings Ltd (ASX: PPH)	72%	$1.72	$1.9 billion
5. Zip Co Ltd (ASX: Z1P)	46%	$5.30	$2.9 billion
6. Douugh Ltd (ASX: DOU)	467%	$0.17	$0.1 billion

1. Afterpay

No need for introductions here. The Afterpay share price has returned almost 300% for investors over the year.

But if you haven’t followed this market darling closely, you might not be aware it achieved this feat the hard way, with Afterpay shares plummeting as low as around $8 back in March. If you had purchased Afterpay shares in March and held on to them until today, your return would have been a staggering 1,400%!

So how did the company do it? 

Afterpay transacted a whopping $11.1 billion for the FY20 full year, an increase of 112% year on year. The company followed this up with a strong first quarter of FY21 with underlying sales growth of 115% to $4.1 billion. Its active customers also grew globally, rising 98% to 11.2 million within the year.

According to Afterpay , its customer base – which consists mainly of Gen Z and Millennials – provides it with a strong tailwind going forward. Afterpay revealed that Gen Z and Millennials represent 36% of the total retail spend in Australia. By 2030, that is expected to grow to 48% as more of Gen Z enter the workforce. In the US, that share of retail spend will also increase from 32% to 48%.

The company has also been actively expanding globally. In 2020, Afterpay launched its services in Canada, followed by the acquisition of Pagantis – a European BNPL player which will open the company’s path to Spain, France, and Italy. Furthermore, Afterpay recently established an office in Singapore, paving the way for its entrance into Asia.

2. Sezzle

Sezzle is another BNPL player that has seen a meteoric rise in its share price in 2020. The Sezzle share price has risen by around 200% over the year.

How does Sezzle work? A shopper who chooses Sezzle instead of a credit card at checkout pays one quarter of the purchase price immediately. The shopper then pays the remainder across three interest-free installments. Sezzle makes money not from the shopper, but from the retailer, which pays the company a fee for each transaction. 

November represented the highest monthly underlying merchant sales (UMS) performance since the company’s inception. Sezzle reported UMS of US$113 million for the month, which represents an increase of 188.5% compared to the prior corresponding period. 

The company also said it has added 1 million new customers since February, with its total active customers now surpassing the 2 million mark.

Sezzle believes payment instalments will be a megatrend going forward. The company expects that in the United States, at some point in 10 years, “we’re going to go shopping and see instalment prices on the shelf”.

3. Splitit

The Splitit share price has gained almost 80% over the year.

The company’s business model deviates slightly from the traditional BNPL model. It enables customers to pay for purchases with an existing credit card by splitting the cost into interest and fee-free monthly payments, without additional registrations or applications.

Unlike Afterpay, which has a reasonably modest average order size, Splitit is being used for higher value items. Management notes that its average order value remains above $1,000.

Splitit achieved record merchant sales volume (MSV) during the Black Friday and Cyber Monday promotional period in late November. Over that holiday shopping event, the company reported MSV of US$15.3 million. This was an increase of 216% on the same period a year earlier.

This led to gross revenue for the quarter of US$2.4 million, which was up 318% on the prior corresponding period.

Splitit has recently announced a partnership with Quickfee, an Australian company that provides payments services to accountants and legal firms. The company said this partnership could grow its addressable market by 650,000 accounting and law firms in the US alone.

4. Pushpay

At the time of writing, the Pushpay share price is up by around 72% over the year.

Pushpay is a donor management platform provider that has been growing its share of the US church market at a rapid rate over the last few years. It also sells the Church Community Builder software, a subscription-based church management platform that enables management of various church activities.

Pushpay is therefore doing business in a very niche market. You may initially think of this as a small niche, but the market size in donation giving reached US$124 billion for 2018 in the US alone.

This has led to the company delivering stellar revenue and operating earnings growth.

At the end of the first half of FY21, Pushpay increased its earnings guidance for the year ending 31 March 2021 to between US$54 million and US$58 million. This will be more than 115% higher than FY 2020’s earnings before interest, tax, depreciation, and ammortisation (EBITDA) of US$25.1 million.

Broker Goldman Sachs is also positive on the ASX fintech share and believes it is well-positioned for growth. The broker has a conviction buy rating and $10.35 price target (now $2.59 after Pushpay’s 4 for 1 share split) on its shares.

5. Zip

The Zip share price has not seen the triple digit rise achieved by its competitor Afterpay, but it has risen by a very respectable 46% over the year.

In FY20, the BNPL player delivered an impressive 175% jump in revenue to $253 million.

The company has continued that strong form, announcing recently that it continues to deliver record results across all regions. Zip said its transaction value of $577.1 million in November was a record, which is up more than 100% year on year. Based on this, Zip’s transaction value is now annualising at almost $7 billion.

Its US brand, Quadpay, also saw significant transactions growth in November, and total customers have now reached 5.3 million.

In December, Zip successfully completed a $120 million capital raising to fuel its growth in existing countries, explore new markets and further product expansion. 

6. Douugh

With the smallest market capitalisation of the 6 companies, I’ve put Douugh last on the list. This is despite this ASX share producing a superior share price return of over 467% since its initial public offering (IPO) in early October.

Douugh listed at an oversubscribed IPO share price of 3 cents. 

The company believes the current business model operated by banks and neo-banks is outdated, and aims to disrupt the status quo with a radically new banking model.

Douugh’s core product is its AI-powered smart phone app and bank account that allows its customers to take control of their financial wellness. Significantly, the company entered into a global partnership with Mastercard Inc in 2019.

In November, Douugh announced its official launch in the US after a successful 18-month beta trial. Its go-to-market growth strategy will be its utilisation of Google’s AI-powered ad bidding platform to target customers. 

More reading

• Why Afterpay, DEXUS, Integrated Research, & Regis Healthcare are dropping lower
• ASX 200 down 0.8%: Big four banks and tech shares drag the market lower
• What’s in store for the Afterpay (ASX:APT) share price in 2021? 
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 rises 0.5%

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. 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 Alphabet (A shares), Alphabet (C shares), and Mastercard. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Mastercard, PUSHPAY FPO NZX, and Sezzle 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 Euro Manganese Inc. (ASX: EMN) share price looks like it will ring in 2021 over 180% higher than 12 months ago. At the time of writing, the yearly gains are posted at 182%.

The small Canadian mining endeavour has set out to mine manganese in the Czech Republic via its Chvaletice Manganese Project. According to management’s latest discussion and analysis, “The company’s goal is to produce high-purity manganese products in an economically, socially and environmentally-sound manner.”

So how come the Euro Manganese share price shot up over 180% this year?

First of all, what’s a high-purity manganese product?

Our journey begins with the growing popularity of electric vehicles. Electric cars need batteries. There are two big battery players in the market. Lithium manganese cobalt oxide batteries (abbreviated NMC) that run off of mainly nickel, manganese and cobalt. Then there are lithium iron phosphate (LFP) batteries, which tend to run cheaper. That’s why Tesla likes them.

As mentioned in management’s commentary, Euro Manganese is particularly focused on high-performance NMC Li-ion batteries claiming that high purity sources of manganese and other battery raw materials ensure that the batteries meet increasingly demanding performance, safety and durability standards.

What are analysts saying about the Euro Manganese share price?

In a research report released earlier this week, Morningstar calculated the Euro Manganese share price to be fairly valued, rating the company three out of five possible stars. However, the report also includes a ‘very high uncertainty’ rating which isn’t going to please some potential investors.

With a market cap of around $72.5 million, Euro Manganese is a microcap company. A lot of analysts don’t care about companies so small, which limits the coverage. However, if the share price continues marching upward like it has been, analysts are more likely to take notice.

What’s the final word? 

Mining can be quite a risky game, especially for the little guys. This is often associated with amount of work that has to go into mapping, feasibility studies, government negotiations and other road blocks. Land acquisitions and environmental impact assessments can also slow things up. The list goes on, really. 

Investors seem to be happy with the progress Euro Manganese is making, otherwise the share price wouldn’t have seen such a sweet 12 months. Going into 2021, the company will be tested to see if this momentum can continue. 

The current Euro Manganese share price is trading at 39.5 cents, down 2.47%.

More reading

• The top 6 ASX fintech shares of 2020
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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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In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to give back yesterday’s gains. At the time of writing, the benchmark index is down 0.8% to 6,645 points.

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

Afterpay Ltd (ASX: APT)

The Afterpay share price is down 3% to $118.58. This decline appears to be a combination of weakness in the tech sector and profit taking after some strong gains. Despite today’s decline, the Afterpay share price is still up a whopping 286% since the start of the year.

DEXUS Property Group (ASX: DXS)

The DEXUS share price has fallen 3% to $9.46. The majority of this decline is attributable to the property company’s shares trading ex-dividend this morning for its interim dividend. Eligible shareholders can now look forward to receiving this 28.8 cents per share unfranked dividend in their accounts on 26 February. A number of other property companies are trading lower for the same reason on Wednesday.

Integrated Research Limited (ASX: IRI)

The Integrated Research share price has crashed 13% lower to $2.62. Investors have been selling the performance management solutions company’s shares after it downgraded its guidance just 12 days after giving it. Integrated Research now expects first half revenue to be in the range of $34 million to $37 million and first half profit to be in the range of breakeven to $2 million. On the top line, this will mean a decline of 30.5% to 36% compared to the first half of FY 2020. Whereas on the bottom line, this will be an 83% to 100% decline on the prior corresponding period.

Regis Healthcare Ltd (ASX: REG)

The Regis Healthcare share price has dropped 4.5% to $1.89. This is despite there being no news out of the aged care operator on Wednesday. However, this decline has merely reversed all of Tuesday’s gains, which also occurred on the back of no news.

More reading

• ASX 200 down 0.8%: Big four banks and tech shares drag the market lower
• Why the Integrated Research (ASX:IRI) share price crashed 9% lower
• What’s in store for the Afterpay (ASX:APT) share price in 2021? 
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 rises 0.5%

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 Integrated Research Limited. 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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It has been a disappointing day for the S&P/ASX 200 Index (ASX: XJO) on Wednesday. In afternoon trade, the benchmark index is down 0.8% to 6,648.5 points.

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

AVZ Minerals Ltd (ASX: AVZ)

The AVZ Minerals share price has jumped 18% to 16.5 cents. Investors have been buying the lithium-focused mineral exploration company’s shares since the release of an announcement last week. That announcement revealed that AVZ Minerals has signed a strategic, long-term offtake partnership with China’s largest lithium compounds producer, Ganfeng Lithium. The deal is for 30% of the company’s Manono Project’s initial saleable yearly tonnage.

Immutep Ltd (ASX: IMM)

The Immutep share price has risen almost 8% to 42 cents. This morning the biotech company revealed that it has been granted a patent in the United States relating to combined preparations comprising its lead active immunotherapy candidate eftilagimod alpha (efti) and a PD-1 pathway inhibitor. This US patent follows the grant of the corresponding European patent in November 2018.

Kogan.com Ltd (ASX: KGN)

The Kogan share price is up over 2% to $19.37. This is despite there being no news out of the online retailer today. However, with the COVID-19 outbreak in New South Wales continuing to spread, investors may believe more and more people in the state will be forced to shop online during the peak retail season.

Strategic Elements Ltd (ASX: SOR)

The Strategic Elements share price has rocketed 45% higher to 24 cents. Investors have been buying the company’s shares following the release of an announcement relating to its printable Nanocube Memory technology. According to the release, testing has confirmed that the technology has potential as printable brain-inspired (neuromorphic) computing hardware. The University of New South Wales confirmed that the Nanocube Memory structure and operation allows it to combine computing and memory in one place in a way similar to how biological neurons operate.

More reading

• Why the Strategic Elements (ASX:SOR) share price rocketed 39% higher today
• Why the Immutep (ASX:IMM) share price jumped 9% higher today
• 2 explosive ASX growth shares to buy for 2021
• Why these ASX shares have smashed the market in 2020
• 3 ASX growth shares to buy this week

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. 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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