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The Andromeda Metals Ltd (ASX: ADN) share price is surging higher today, up 6.3% in afternoon trading.

That brings Andromeda’s share price gains to 34.2% over the past month and a stellar 410% year to date.

By comparison the All Ordinaries Index (ASX: XAO) is up 6.1% over the past month and up a slender 0.8% since 2 January.

What does Andromeda Metals do?

Andromeda Metals is an emerging industrial minerals producer. The company’s primary focus is its Great White halloysite-kaolin deposit, which it is working to bring into production. If you’re not familiar with halloysite, it adds whiteness and strength during the manufacture of porcelain, among its other uses.

Andromeda Metals is also involved in a joint venture (JV) with Cobra Resources in the Eyre Peninsula Gold Project in South Australia.

Why is the Andromeda share price surging higher today?

Today’s 6.3% gains for the Andromeda share price look to be driven by a positive drilling announcement from its JV partner, Cobra Resources.

Andromeda reported that Cobra has intersected significant high-grade gold at its Wudinna Gold Project in South Australia. The substantial intersection is now a high priority target for an additional joint venture drilling program

Of the 41 reverse circulation (RC) holes drilled since September, 80% are still awaiting the assay results.

According to the release, one of the drill holes returned significant gold results of 31 metres at 3.06 grams per tonne (g/t) gold from 69 metres, “including a high grade intercept of 15 metres at 5.25 g/t gold from 83 metres.”

The final results are expected to support Cobra’s goal of expanding the current mineral resource of 211,000 ounces towards its initial target of 1 million ounces across the project area.

A more than 5% rise in the price of gold so far in December has also come as welcome news to investors in Andromeda and other ASX gold shares.

Having hit all time highs above US$2,063 per ounce on 6 August this year, the yellow metal slid through to the end of November, before finally hitting a low of US$1,776 per ounce on the final day of the month.

With Andromeda Metals still awaiting the assay results of most of the drill holes, it will be interesting to see how the company’s share price performs once these are released.

More reading

• ASX stock of the day: Linius (ASX:LNU) share price blasts up 30% on product debut
• Leading brokers name 3 ASX shares to sell today
• Iron ore exports unlikely to slow down amid Australia–China trade tension: experts
• Why the MSM (ASX:MSM) share price is soaring 12% today
• These 2 FAANG leaders will drive the Nasdaq in 2021

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 Linius Technologies Ltd (ASX: LNU) share price is having a top day today. Linius shares are trading at 7.4 cents a share at the time of writing, up 29.82% today.

The Linius share price closed at 5.7 cents yesterday and opened at 5.8 cents this morning, before shooting past the 7.5 cent market shortly after lunchtime for a brief period. At the current share price, this company has a market capitalisation of ~$110 million.

So what is Linius Technologies? And why is this company’s share price going bananas today?

What is Linius Tech?

Linius Technologies is in the business of writing video editing software. The company tells us that it has “cracked the code that makes hyper-personalised video possible”. It was founded back in 2011, and (unfortunately for shareholders), has never quite reached its initial public offering (IPO) price of 20 cents since.

The company’s stated purpose is “transforming cumbersome, static video files into dynamic virtual files that can be easily manipulated on-the-fly, delivering an enhanced, custom experience for content creators, distributors and consumers”.

Linius sees itself as a disrupter of “multi-billion-dollar markets” with its video technology. It is seeking to commercialise this technology across 6 “core markets”, which are:

• News & Media,
• Sports Broadcasters & Rights Holders
• Education
• Corporate Communications
• Security & Defense
• Sports Betting

The company aims to do this through 2 primary product offerings: a Video Search Solution powered by the patented Video Virtualisation Engine; and a software-as-a-service (SaaS) platform, Linius Video Services.

The Video Search Solution reportedly helps users instantly search for any object, across any number of video sources, and instantly play back the content that matches the search results. It also can “automatically push search results into existing workflows”, as well as deliver “an infinite number of streams” to individuals in a tailored manner based on “existing consumption preferences or behaviour”.

Linius sees these products as having specific use in the news media landscape, enabling “hyper-personalised news-as-a-service”. With sports, it wants to “provide every viewer with a hyper-personalised video feed of the sporting moments that matter to them”. It sees security and defense applications for the service as being able to “detect suspicious activities and intervene before an incident occurs”.

Why is the Linius share price rocketing today?

The stellar performance of the Linius share price today appears to be heavily connected to an ASX announcement the company released to the markets this morning before open.

This announcement concerned the Whizzard product that Linius first announced on 25 November. Back then, the company revealed that Whizzard would be a “unique product”. It promises to allow users to “immediately search, assemble and share video content from within recorded meetings”.

It was announced that Whizzard would be immediately available to users of Zoom Video Comminications Inc‘s (NASDAQ: ZM) Zoom, Microsoft Corporation‘s (NASDAQ: MSFT) Teams and Cisco Systems Inc‘s (NASDAQ: CSCO) Webex products. This combination represents 55% of the world’s video conferencing market, according to Linius.

Amazon’s magic touch

Importantly, Linius noted then that, “[Amazon.com Inc‘s (NASDAQ: AMZN)] Amazon Web Services (AWS) hosts the WHIZZARD platform, underpins its AI services and is providing funding support for the product’s marketing efforts”.

This is important because the only update Linius gave to that announcement today was the following:

Linius is an AWS Partner Network (APN) Technology Partner, and like other businesses within the APN, can unlock funding support for training, new product and solution development, and go-to-market activities.

Linius has been approved by AWS for funding support for the WHIZZARD go-to-market activities. Whilst Linius does not consider the level of funding itself as material, the collaboration and hosting of WHIZZARD on AWS is material as it demonstrates a deepening of Linius’ relationship with AWS and opportunities for co-marketing of the WHIZZARD product suite.

So it appears that the market today is reacting to this “deepening” relationship that Linius has with Amazon. Amazon is a highly popular company for investors around the world due to its breathtaking growth over the past 2 decades, which has seen it grow into a US$1.58 trillion company today. 

More reading

• Here’s how world’s 10 richest made $1.5 trillion from COVID-19
• Amazon grew even more dominant in 2020
• Amazon’s holiday sales jump 60%
• Cyber Monday sales hit a record $10.8 billion
• 2 reasons Amazon will keep taking ad sales from Google

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 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 Amazon, Microsoft, and Zoom Video Communications and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool Australia has recommended Amazon and Zoom Video Communications. 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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On Monday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below.

Here’s why these brokers are bearish on these ASX shares:

Oil Search Ltd (ASX: OSH)

According to a note out of Macquarie, its analysts have downgraded this energy producer’s shares to an underperform rating and cut the price target on them to $3.40. This follows a downgrade to neutral just last month. The broker made the move on valuation grounds after a strong rally in its share price over the last few months. In addition to this, it has a few concerns over its Alaska operation. The Oil Search share price is trading at $3.75 this afternoon.

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 isn’t as confident on the company’s prospects in the domestic market as some. This is due to its belief that Virgin Australia will be a strong competitor and the impending entry of Regional Express Holdings Ltd (ASX: REX) into the market. The Qantas share price is trading notably higher than this price target at $5.40 on Tuesday.

WiseTech Global Ltd (ASX: WTC)

A note out of Citi reveals that its analysts have retained their sell rating but lifted the price target on this logistic solutions company’s shares to $27.70. The broker has concerns that it could take longer for acquisitions to integrate and for them to deliver on expected returns. It fears the market isn’t factoring this risk into its share price and appears to believe this poses meaningful downside risk to forecasts. The WiseTech share price is fetching $31.87 this afternoon.

More reading

• Will the Qantas (ASX:QAN) share price go higher with reopened borders?
• This ASX travel share is already too expensive: fundies
• 5 things to watch on the ASX 200 on Tuesday
• Here’s why the Beach Energy (ASX:BPT) share price is up more than 50% over the past month
• Regional Express (ASX:REX) share price soars to 13-year high

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of WiseTech Global. 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 reliance of Australian exports to the Chinese market has been put under the spotlight, with China imposing fresh trade restrictions across industries such as coal, wine, barley and timber.

However, a number of resource industry experts believe the country will be unable to shake off its reliance on Australia’s iron ore industry, in the short-term at least.

Demand for iron ore remains strong

In a recent ABC article, iron ore research analyst Philip Kirchlechner said despite the hostility, China’s coronavirus stimulus packages have seen the country’s demand for iron ore surge as it targets steel-intensive projects like rail, airports bridges and ports. Given the fact that Australia is currently China’s most reliable source of steel, Kirchlechner believes there is no need to panic.

Former Australian ambassador to China Geoff Raby also commented on China’s need for steel (as quoted by the Australian Financial Review):

China’s big agenda is the Belt and Road. This is China’s grand plan to provide the hard and soft infrastructure to facilitate trade between Europe and Asia. Steel is central to it.

In the same AFR article, Sydney-based iron ore analyst Andrew Gadd also pointed to the fact the domestic iron ore industry in China is shrinking. China’s current supply of iron ore only meets 20% of that required by its steel plants. For this reason, Gadd does not predict any decline in Australian export volumes to China in the near future.

Reliability and quality

There were also signs last week that Brazilian miner Vale will take longer than expected to solve the challenges curbing its iron ore output, which means China will need to continue to look elsewhere to meet its demand.

As reported by the ABC, BIS Oxford Economics chief economist Sarah Hunter is optimistic there would be no significant disruptions to iron ore exports to China over the next few years:

…Australia is very well placed as a reliable, high quality, big supplier into the Chinese market, and Chinese demand for iron ore isn’t going to diminish, as they don’t really have a good viable alternative.

While their share prices are all down slightly today, ASX iron ore shares Fortescue Metals Group Limited (ASX: FMG), BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) all enjoyed solid gains over the past week as the iron ore price continues to surge.

More reading

• The Aussie dollar just hit a new 2-year high. Here’s what that means
• This dividend share has the most franking credits on the ASX
• 2 excellent ASX dividend shares with 6%+ yields
• Top ASX shares making record all-time highs
• The BHP (ASX:BHP) share price has just hit a multi-year high

Motley Fool contributor MWUaus 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 reliance of Australian exports to the Chinese market has been put under the spotlight, with China imposing fresh trade restrictions across industries such as coal, wine, barley and timber.

However, a number of resource industry experts believe the country will be unable to shake off its reliance on Australia’s iron ore industry, in the short-term at least.

Demand for iron ore remains strong

In a recent ABC article, iron ore research analyst Philip Kirchlechner said despite the hostility, China’s coronavirus stimulus packages have seen the country’s demand for iron ore surge as it targets steel-intensive projects like rail, airports bridges and ports. Given the fact that Australia is currently China’s most reliable source of steel, Kirchlechner believes there is no need to panic.

Former Australian ambassador to China Geoff Raby also commented on China’s need for steel (as quoted by the Australian Financial Review):

China’s big agenda is the Belt and Road. This is China’s grand plan to provide the hard and soft infrastructure to facilitate trade between Europe and Asia. Steel is central to it.

In the same AFR article, Sydney-based iron ore analyst Andrew Gadd also pointed to the fact the domestic iron ore industry in China is shrinking. China’s current supply of iron ore only meets 20% of that required by its steel plants. For this reason, Gadd does not predict any decline in Australian export volumes to China in the near future.

Reliability and quality

There were also signs last week that Brazilian miner Vale will take longer than expected to solve the challenges curbing its iron ore output, which means China will need to continue to look elsewhere to meet its demand.

As reported by the ABC, BIS Oxford Economics chief economist Sarah Hunter is optimistic there would be no significant disruptions to iron ore exports to China over the next few years:

…Australia is very well placed as a reliable, high quality, big supplier into the Chinese market, and Chinese demand for iron ore isn’t going to diminish, as they don’t really have a good viable alternative.

While their share prices are all down slightly today, ASX iron ore shares Fortescue Metals Group Limited (ASX: FMG), BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) all enjoyed solid gains over the past week as the iron ore price continues to surge.

More reading

• The Aussie dollar just hit a new 2-year high. Here’s what that means
• This dividend share has the most franking credits on the ASX
• 2 excellent ASX dividend shares with 6%+ yields
• Top ASX shares making record all-time highs
• The BHP (ASX:BHP) share price has just hit a multi-year high

Motley Fool contributor MWUaus 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 MSM Corporation International Ltd (ASX: MSM) share price is soaring higher today. This comes after the company announced its strategic partner, Firefly Games Inc., has globally launched Zombie Rollerz: Pinball Heroes on Apple Arcade.

At the time of writing, the MSM share price has rocketed 12.2% to 4.6 cents after reaching as high as 5 cents earlier in the day. In comparison, the All Ordinaries Index (ASX: XAO) is down 0.05% to 6,906.6 points.

Why is the MSM share price surging?

Investors are scrambling to get a hold of MSM shares after the company revealed this milestone achievement.

According to the release, the Zombie Rollerz: Pinball Heroes game has successfully launched and it is featured on the main Apple Arcade page. The game, which was co-developed by Firefly Games and Zing Games, will now target world-wide mobile gaming audiences. 

In late November, MSM secured an equity position and first ranking, interest free-loan notes in Riva Technology and Entertainment Limited (RTE) group. RTE Group is the majority shareholder in another company which is the sole owner of Firefly Games. Thus, through its investment, MSM and Firefly Games became strategic partners.

While MSM has a priority right to be paid in profits or distributions received by RTE, it’s expected that gaming revenues will flow down into loan note repayments. This will allow MSM to meet its working capital requirements going forward.

In addition, MSM noted it may also be paid further distributions after the loan repayments have been satisfied. MSM currently has a 10% interest in RTE.

Management commentary

Chair of the Riva group and RTE director Mr Paul Roy commented on the milestone achievement. He said:

We are extremely pleased by the positive feedback to the game and especially honoured that Apple has featured the game globally on all App stores. We continue to work hard on multiple opportunities to secure new intellectual property to complement our existing suite of assets.

About the MSM share price

The MSM share price has gone gangbusters today, rising nearly 22% before pulling back to its current level. Over the year, the company’s shares have jumped 360%, representing an impressive gain for patient shareholders.

The MSM share price hit a 52-week low of half a cent in March, and an all-time high of 5.6 cents in July.

More reading

• These 2 FAANG leaders will drive the Nasdaq in 2021
• Here’s why the Abacus Property (ASX:ABP) share price is in a trading halt
• Which shares will benefit from trillions of dollars in new global stimulus?
• The ICSGlobal (ASX:ICS) share price has climbed 13% today. Here’s why.
• Why the Regional Express (ASX:REX) share price is flying higher today

Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple. The Motley Fool Australia has recommended 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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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.

No one should’ve been too terribly surprised to see major market indexes moving in different directions on Monday — especially since it was the Nasdaq Composite (NASDAQ: .IXIC) that was  on the rise even as the rest of the stock market pulled back from record levels. As at 3 p.m. EST, the Nasdaq was up by a third of a percent, putting it on pace to close at yet another all-time high.

Many investors are focusing their attention on the smaller, faster-growing companies that have come into the spotlight this year. Yet for the Nasdaq to deliver as good a performance in 2021 as it has in 2020, it will need additional contributions from its leaders. In particular, Apple Inc (NASDAQ: AAPL) and Facebook Inc (NASDAQ: FB) are working to get back their shares back to the levels they reached during the summer. If they can, it could help establish the current bull market as more than just a bounce back from the coronavirus-induced bear market.

Apple is trying to get back on top again

Shares of Apple were on the rise Monday, climbing more than 1%. The launch of the iPhone 12 series has been a big success, but the stock still hasn’t regained the levels it reached this summer immediately following its decision to do a stock split.

The iPhone 12 is a big deal because it’s the first smartphone from the tech giant that can utilize the world’s rapidly expanding 5G wireless networks. But it’s only the tip of the iceberg for Apple. In the third quarter, demand for wearable devices like the Apple Watch surged back upward. The launch of the Apple Watch Series 6 and SE products helped stoke greater consumer excitement about the line, and as many countries started to relax their COVID-19 restrictions, more people ramped up their outdoor activities. The fact that Apple Watches were available at a range of prices was also a plus.

Then there’s the company’s growing ecosystem of services. One that’s getting a lot of attention lately is the Apple TV+ video-streaming platform, which is now more than a year old and starting to gain traction both creatively and among consumers. Add that to older favorites like the App Store and new initiatives like Fitness+ and the Apple One subscription plan, and you can see why investors like what they’re seeing on the services side.

Apple soared during the past couple of years, and few would describe the stock as value-priced right now. But it’s below where it traded in early September, and that leaves it with some room to move higher even without the stock reaching new record levels.

More than a pretty face

Facebook was up more than 2% Monday afternoon. The social media powerhouse also hit record highs during the summer, but it has spent the last few months treading water.

Much of the challenge for Facebook has come on the regulatory side. Lawmakers haven’t liked what they’ve seen from the company, and there are growing concerns that it hasn’t done enough to monitor the content on its platform. Related to that, some advertisers are boycotting Facebook, which could curtail its revenue growth. A recent anti-discrimination lawsuit filed by the Department of Justice hasn’t helped the company’s reputation either.

Yet Facebook continues to push forward with efforts to make the most of its billions of members worldwide. Its recent acquisition of customer relationship management upstart Kustomer points to its plans to make its messaging capabilities more valuable to business customers and create new streams of revenue.

Look for Facebook and Apple to lead in 2021

For the Nasdaq to continue climbing next year, its most influential stocks will have to contribute to the upward momentum. Right now, investors are watching Apple and Facebook closely to see if they and their fellow FAANG stocks are likely to be able to get the job done in 2021 and beyond.

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

More reading

• Here’s how world’s 10 richest made $1.5 trillion from COVID-19
• Facebook just spent $1 billion to monetize messaging
• 2 reasons Amazon will keep taking ad sales from Google
• Facebook to acquire Kustomer in $1 billion deal
• Why is the Atomos (ASX:AMS) share price up 6% this morning?

Dan Caplinger owns shares of Apple. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, 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 Apple and Facebook. The Motley Fool Australia has recommended Apple and Facebook. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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The Abacus Property Group (ASX: ABP) share price won’t be going anywhere on Tuesday after the property company requested a trading halt.

Why is the Abacus Property share price in a trading halt?

This morning Abacus requested a trading halt whilst it launches a fully underwritten equity raising.

According to the release, Abacus is aiming to raise $402 million via a 1-for-4.8 accelerated non-renounceable pro rata entitlement offer in order to repay debt and increase its acquisition capacity for continued growth over the medium term.

In respect to the latter, management notes that it has a current identified acquisition pipeline comprising approximately $160 million of assets under active consideration. From these, approximately $130 million is in advanced negotiations with due diligence well progressed.

The company is raising the funds at $2.90 per new security, which represents a 6.5% discount to its last close price.

Abacus’ Managing Director, Steven Sewell, commented: “It has been immensely pleasing for Abacus to successfully deliver on its stated strategy. Since FY19, $926 million of capital has been deployed into acquisitions in the key areas of Office and Self Storage.”T

“This Entitlement Offer is expected to allow Abacus to extend its strong track record of long term value enhancing investments by providing an additional $911 million of acquisition capacity, ensuring Abacus will be in a strong position to continue to take advantage of the significant number of opportunities in these key sectors,” he added.

Trading update.

In addition to the equity raising, Abacus released an update on its performance so far in FY 2021.

It advised that trading conditions in its Self Storage portfolio have proved resilient. Its multi-pronged growth strategy including acquisition, development, expansion and optimisation has delivered a strong first quarter result.

This includes occupancy of 89.7% and revenue per available square metre (RevPAM) of $251. Positively, its rent collection remains high at 99%.

In light of this, it is expecting half year Funds from Operations (FFO) of 8.9 cents to 9.1 cents per security and an interim distribution of 8.5 cents per security.

More reading

• Which shares will benefit from trillions of dollars in new global stimulus?
• The ICSGlobal (ASX:ICS) share price has climbed 13% today. Here’s why.
• Why the Regional Express (ASX:REX) share price is flying higher today
• Zip and Creso Pharma were among the most traded shares on the ASX last week
• Why is the APA Group (ASX:APA) share price trading flat today?

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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Make no mistake.

Without the concerted stimulus efforts of governments and central banks across the developed world, the late March share market miracle rallies would not have occurred.

In the United States, the Nasdaq Composite (NASDAQ: .IXIC) would never have soared 82% from its 23 March low to its closing level yesterday.

In Europe, Germany’s DAX PERFORMANCE-INDEX (DB: DAX) would never have leapt 57%.

In Asia, Japan’s Nikkei 225 (NIKKEI: NI225) would not have rocketed 59%.

And here in Oz, the S&P/ASX 200 Index (ASX: XJO) would not have gained 47%.

Not without central banks slashing interest rates to effectively zero and pumping trillions into their quantitative easing (QE) programs. And not without governments abandoning their balanced budget goals to release trillions more dollars in stimulus spending.

We’re not out of the pandemic woods yet

Despite their herculean efforts, and the imminent rollout of numerous COVID-19 vaccines, we’re not out of the woods yet.

Australia looks to have the virus largely contained (knock on wood!). But it’s running rampant across most of Europe, the Americas, and much of Asia. That means much of the world can expect to remain in various stages of lockdown well into 2021.

That’s bad news for economies and share markets. And that means more stimulus is underway.

Indeed, in the US, politicians are moving closer to a new US$908 billion (AU$1.2 trillion) package, which President Donald Trump has indicated he’s likely to sign.

According to Bryce Doty, portfolio manager at Sit Fixed Income Advisors, that next round of stimulus is already widely priced into the markets (quoted by Bloomberg): “The market is basically assuming that it gets done. Now any setback makes the market vulnerable, because it’s built in that they will pass it.”

But this US stimulus package is almost certainly not the last. President-elect Joe Biden has already signalled Americans can expect more to come in 2021.

Meanwhile the Japanese economy and share market are set for their own Suga hit (sorry, couldn’t resist!).

Japan’s Prime Minister, Yoshihide Suga, is expected to unveil a new stimulus package in excess of 70 trillion yen (AU$900 billion) later today. In potentially good news for tech shares, Suga intends to spend big on improving Japan’s digital infrastructure.

We’re also expecting new stimulus announcements from European Central Bank (ECB) president Christine Lagarde this week.

The details of that package have not been revealed. But Bloomberg reports that, following this week’s expected stimulus announcement, the ECB’s total measures to date “will exceed 1.8 trillion euros [AU$3 trillion] after the newest salvo this week – along with huge provisions of cheap loans for banks”.

Here in Australia, the RBA remains open to extending its new $100 billion QE program if needed.

Growth shares, value shares, or run for the hills in 2021?

2020’s share market rally was a boon for many sectors. But growth shares, particularly in the tech and medical sectors, largely stole the show.

This has seen buy now, pay later (BNPL) darling Afterpay Ltd (ASX: APT) top the ASX 200 list with the biggest share price gains in 2020 (so far). If you’d bought shares in Afterpay at the market close last year, you’d be sitting on a gain of 230% today.

Mesoblast Limited (ASX: MSB) takes the second spot on the ASX 200 top share price gainers for 2020. Shares in the regenerative medicine company are up 116%.

Those kinds of price gains, according to Vocus founder James Spenceley, spell bubble trouble. Though not necessarily right away. Speaking at the Australian Financial Review Innovation Summit, Spenceley said:

Everything is overvalued, there’s absolutely no question, we’re into bubble territory. I think the important differentiator is bubbles can keep going for a very long while.

Frank Panayotou, managing director, UBS Private Wealth Management, offers a more upbeat view in a written note, while stressing the need to keep the right balance in your portfolio (quoted by the AFR):

The pace of gains in big cap technology stocks will inevitably cool as participation broadens to include more cyclical names as markets anticipate progress toward a more normalised post-COVID economic environment.

We remain mindful of not allowing our portfolio strategy to become intoxicated with what’s worked this year at the risk of missing out on the next great thematic opportunity.

Going forward, we don’t believe that growth stocks need to roll over for value stocks to do well, so we have been steadfast in rebalancing client portfolios to ensure they are appropriately style balanced heading into 2021.

So, according to Panayotou, don’t expect share markets to behave next year as they did this year. And keep an eye on your bubble indicators.

But with trillions of dollars in new global stimulus set to be unleashed, it seems there will be plenty of opportunities to make money from the best ASX shares in 2021.

More reading

• ASX 200 rises on Monday
• The sector that’ll explode in February: fundie
• Leading brokers name 3 ASX shares to buy today
• RBA gives BNPL another blessing
• Why the Mesoblast (ASX:MSB) share price is charging higher today

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The ICSGlobal Ltd (ASX: ICS) share price has leapt up 13% today after the company provided a positive guidance update for FY21.

At the time of writing, the ICSGlobal share is price is trading at $2.09.

Strong performance in FY21

The medical billing company says that the results for November 2020 have continued on a positive trend, and as a consequence the board is in a position to provide guidance for the financial year ending 30 June 2021.

ICSGobal expects net profit after tax (NPAT) to be in the range of $1.5 million to $1.7 million. This would be an increase of 22–38% on the prior year’s NPAT of $1.23 million.

The company remains cautious, noting that in the current environment, risks remain including a worsening of the trading environment due to further COVID-19 impacts, and an adverse foreign exchange movement. Should such risks materialise, the company says it will be necessary to revise this guidance.

ICSGlobal also announced the appointment of Graham Dormer as managing director of its medical billing and collections (MBC) business unit. The company says Mr Dormer is ideally suited to this role, having an exceptional background in business operations, finance, IT, and retail.

More about ICSGlobal

ICSGlobal is the largest medical billing company in the United Kingdom, where it derives almost all of its revenue from. 

The company’s revenue is based on an ‘annuity style’ model, where it collects on annualised recurring fees.

For the financial year 2020, the company delivered NPAT of $1.23 million, up 22% from the previous year. This came from a top line revenue of $6.08 million for the full year, which was 7% higher than FY19.

The company said that its strategy for 2020 was to implement key operational changes and efficiencies, which it says are now flowing to the FY21 bottom line.

About the ICSGlobal share price

The ICSGlobal share price had lost 5% this year before today’s increase. The share price went all the way down to $1.43 in March, but has recovered strongly since October. At the current market price, the ICSGlobal commands a market value of $20 million.

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Motley Fool contributor Eddy Sunarto 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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