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The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price action this year provides a concise snapshot of the damage inflicted by the global pandemic.

After gaining more than 38% in 2019, things took a sharp turn for the worse in February this year. That’s when investors began to cotton on to the fact that the kind of lockdowns China had instituted to control the coronavirus in Wuhan could spread across the globe.

As indeed, they did.

With the prospect of international and domestic air travel grinding to a halt, the Sydney Airport share price crashed more than 45% from 4 January through to 19 March. Since that low, shares have rebounded by 48%. Still, Sydney Airport shares remain down nearly 20% year to date.

But with domestic borders reopening, the light at the end of the tunnel for Sydney Airport, and a host of other ASX travel and leisure shares, appears to be growing much nearer.

What does the company do?

Sydney Airport Holdings owns a 100% of Sydney Airport. The domestic and international gateway connects to more than 90 other airports around the globe.

The company is headquartered in Sydney. Its two main business units – Aviation (Sydney Airport) and Leasing & Advertising Opportunities ­– provide aeronautical, retail, property, car rental, and parking and ground transport services.

Sydney Airport listed on the ASX in 2002.

Why the Sydney Airport share price is gaining today as the ASX 200 slips

After opening 0.6% higher in the early morning, the S&P/ASX 200 Index (ASX: XJO) is down 0.9% in afternoon trading.

The Sydney Airport share price, while also giving back some of its earlier intraday gains, remains up 0.15% today. That puts Sydney Airport shares up around 24% in November, compared to a 10.5% gain on the ASX 200.

Investor enthusiasm is likely driven by the reopening of most state borders.

New South Wales is again open to Victoria as of last week, and tomorrow Queensland and South Australia will reopen their borders with Victoria. Tomorrow will also see travellers from Sydney once more being allowed to fly into Queensland.

That’s “huge” news, according to Sydney Airport’s CEO, Geoff Culbert, as quoted by the Australian Financial Review:

We are expecting a really material impact on the amount of passengers coming through the airport. If you look at trips from Sydney to Queensland, Sydney into Victoria combined, they represent about 70 per cent of our total domestic traffic and about 50 per cent of all traffic through the airport, so those two border openings are going to be huge.

Even with the pending rollout of a COVID vaccine, international travel is unlikely to return to its pre-pandemic levels for some time. But the promised return of domestic air travel is already boosting interest in Sydney Airport’s shares.

More reading

• ASX 200 Weekly Wrap: ASX 200 on track for a top month
• 2 quality ASX cyclical shares to buy today
• ASX 200 Weekly Wrap: ASX continues to climb, despite outage
• ASX 200 up 0.1%: CBA’s APRA update, Mesoblast rockets, Oil Search sinks
• Sydney Airport (ASX:SYD) share price resilient despite plummeting passenger traffic

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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There are a wide range of cheap shares available to buy following the 2020 stock market crash. However, in many cases they face uncertain futures that include the prospect of a second market downturn in the coming months.

Therefore, drip-feeding money into undervalued stocks could be a sound move. It may enable you to capitalise on even lower valuations that could become available further down the line.

Over time, this strategy may boost your returns. It may even improve your prospects of making a million.

Drip-feeding money into cheap shares

Slowly buying cheap shares could be a better idea than investing a lump sum because of the uncertain economic outlook. At the present time, risks such as coronavirus and Brexit remain relatively high. Any of those threats, as well as a large number of other risks, could cause a second stock market crash. This would mean that investors who invest a lump sum today experience paper losses. They may also be unable to take advantage of even lower stock prices in the coming months.

As such, buying smaller amounts of shares on a regular basis could be a more logical strategy. Regular investing services are widely available, with the cost of a trade being significantly lower than it otherwise would be. This means that regular investing does not produce excessive commission costs that negate the benefits of investing slowly in undervalued stocks.

Cheap shares with growth potential

Buying cheap shares after the stock market crash could be a sound move. Certainly, in some cases companies are currently trading at low prices for good reason. For example, they may have weak market positions or their balance sheets could contain significant amounts of debt that inhibit their financial prospects. However, many high-quality companies are currently trading at low prices because of weak investor sentiment towards equities.

Historically, buying undervalued shares has been a profitable strategy. Investors who have previously purchased bargain stocks have generally benefitted to a greater extent from the market’s long-term growth prospects compared to their peers who purchase companies with high valuations. Low share prices mean greater scope for capital returns that could have a positive impact on your portfolio.

Making a million

Drip-feeding money into cheap shares can produce surprisingly large portfolio values over the long run. For example, investing $500 per month at the stock market’s historic annual growth rate of 8% would produce a $1 million portfolio within 35 years.

However, through buying undervalued shares today and holding them for the long run, you may be able to obtain a higher return than that of the wider market. This may improve your prospects of becoming a millionaire as the stock market recovers from its recent crash over the coming years.

More reading

• What is a holding company?
• ASX stock of the day: WPP Aunz (ASX:WPP) shares surge 30%
• The PolyNovo (ASX:PNV) share price is up 30% in November
• 3 key advantages Moderna holds over Pfizer and AstraZeneca
• Why the Xtek (ASX:XTE) share price is edging higher today

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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A holding company is designed for one specific purpose – to purchase and hold shares in other companies. Whereas a normal company is formed to provide products and services to clients, a holding company essentially ‘outsources’ that. This type of company will own assets in other companies, which then provide products and services to the public.

So, what does this mean for investors?

Buying shares in a holding company means that you are essentially accessing a number of other companies. This gives you exposure to multiple securities through a single purchase.

Exchange-traded funds (ETFs) offer a similar style of investing. Just as an ETF holds multiple shares inside a fund, a holding company holds other securities.

Today, I’m looking at two well-known companies on the ASX that are both considered to be ‘holding companies’. Although they have slightly different investment strategies, both are interesting case studies.

Premier Investments Limited (ASX: PMV)

According to the company, Premier Investments was created for the following reason:

The company was established as an investment vehicle to maximise growth in capital returns to shareholders. This is achieved through the acquisition of controlling or strategic shareholdings in premier Australian companies. A particular focus is given to retailing, importing and distributing.

You can see here that Premier was entirely created to invest in other companies. This is usually the main strategy of a holding company. 

What does Premier Investments own?

Premier Investments wholly owns the retail conglomerate The Just Group. If you aren’t familiar with the name, you might recognise the brands. The Just Group owns and operates the following popular retail brands:

• Smiggle
• Peter Alexander 
• Just Jeans
• Jay Jays
• Portmans
• Jacqui E
• Dotti

Premier Investments obtained a controlling interest in the shares of Just Group Limited in 2008. This came after an off-market takeover offer, which saw Premier purchase 100% of the shares. Just Group Limited was removed from the ASX after this occurred.

Additionally, Premier Investments owns 28.06% of Breville Group Limited, another well-known Australian brand. Breville Group is a leading provider of small electrical appliances. Breville was founded in 1932 (during the Great Depression) and was originally known as ‘Breville Radio’!

Breville’s brands include:

• Breville
• Kambrook
• Sage by Heston Blumenthal
• Distribution of Ronson and Philips products.

The Premier Investments share price

The Premier Investments share price is up more than 20% in 2020. However, during March this year, it crashed hard as a result of COVID. The share price fell from $21.61 down to as low as $8.07, representing a catastrophic drop of 62%. 

Premier has since recovered strongly from this initial setback – not only did it recover lost ground, but exceeded it. The company created new all-time highs in October this year and has managed to stay above those levels since then. In fact, from the lows in March of $8.07 to today’s price of $22.76, Premier has risen more than 170%!

One thing to note is that Premier Investments delivered strong financial results this year, in spite of COVID. This has helped to move the share price in a positive direction. 

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

According to the company, Soul Pattinson (or ‘Soul Patts’) was created for the following reason:

WHSP is a significant investment house with a portfolio encompassing many industries. These include its traditional field of pharmaceuticals, as well as mining, building materials, property investment, telecommunications, financial services and other equity investments.

Soul Patts certainly has a much broader scope than Premier, but the concept is very similar – it’s also a company designed to invest in other companies.

What does Soul Pattinson own?

Soul Pattinson owns a wide range of investments, many of which are ASX listed companies:

• TPG Telecom Ltd (ASX: TPG) 
  • TPG is an Australian telecom provider, Soul Patts holds 25.3%.

• Brickworks Limited (ASX: BKW)
  • Brickworks is group of companies in the construction space, Soul Patts owns 43.9%.

• New Hope Corporation Limited (ASX: NHC)
  • New Hope is a diversified energy company, Soul Patts owns 50%.

• Australian Pharmaceutical Industries Ltd (ASX: API)
  • This company is a leader in health and beauty, Soul Patts holds 19.3%.

• Bki Investment Co Ltd (ASX: BKI)
  • BKI is a listed investment company, Soul Patts owns 8.6%.

• Round Oak Minerals (private company)
  • This is a mining and exploration company and is wholly owned (100%) by Soul Patts

• Milton Corporation Limited (ASX: MLT)
  • This is another listed investment company, of which Soul Patts owns 3.3%.

• Apex Healthcare Berhad (KLSE: AHEALTH)
  • Apex is a leading healthcare group based in Asia. Soul Patts owns 30.3%.

• Palla Pharma Ltd (ASX: PAL)
  • A manufacturer of narcotic raw material, of which Soul Patts owns 19.9%.

• Ampcontrol Pty Limited (private company)
  • An international electrical supplier, Soul Patts owns 43.3%.

• Clover Corporation Limited (ASX: CLV)
  • Clover is a “bioactives” provider in the health space. Soul Patts owns 22.6%.

• Pitt Capital Partners (private company)
  • Pitt is an independent corporate advisory firm, wholly owned (100%) by Soul Patts.

The Soul Pattinson share price

The Soul Pattinson share price is up more than 35% in 2020. The market has largely become unpredictable this year due to the impact of the COVID pandemic, however, the Soul Patts share price is somewhat hedged given the company’s broad portfolio. Additionally, three of Soul Pattinson’s holdings are private and largely unaffected by the stock market.

Comparing Premier Investments and Soul Pattinson

In terms of their structure as holding companies, the main difference between Premier and Soul Patts is the type of shares they hold. Additionally, their investment strategies vary.

All of Premiers holdings are completely private – that is, they don’t trade on a public exchange. The company also has a strong retail focus with The Just Group and Breville.

The majority of Soul Pattinson’s holdings are in publicly listed companies from a broad range of sectors. Soul Pattinson has a similar structure to Berkshire Hathaway, Warren Buffett’s company, which also has broad holdings, many in publicly listed companies. 

Foolish takeaway

A holding company is an interesting concept and one which both Premier and Soul Patts have embraced. Each style of holding has a certain agenda. Therefore, it’s worth doing some deeper research to see what might align with your investment strategy. 

More reading

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• 3 ASX companies named and shamed as worst in industry
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• 3 ASX shares with large dividend yields

glennleese owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Clover Limited. The Motley Fool Australia owns shares of and has recommended Brickworks, Premier Investments Limited, and Washington H. Soul Pattinson and Company Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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WPP Aunz Ltd (ASX: WPP) shares are exploding today, up 30.95% to 55 cents per share at the time of writing. The WPP share price closed at 42 cents on Friday afternoon, but opened at 54 cents this morning before climbing as high as 56 cents, then settling to its current level.

Although today’s move doesn’t quite get WPP over the line in terms of the company’s 64 cents per share 52-week high, it does mean that WPP is up more than 200% from the 52-week lows we saw back in early April.

So what is WPP? And why is this company’s share price rocketing so enthusiastically today?

WP-who?

WPP Aunz is a company which, according to its website, brings together “Australia and New Zealand’s most creative minds to help reshape business futures”. Put simply, it’s a marketing services company with communication, public relations and advertising rolled into one. WPP Aunz is actually a group of 90 subsidiary companies.

WPP Aunz (the latter is not a German word and stands for ‘Australia and New Zealand’) is actually a subsidiary of WPP plc (LSE: WPP) itself. The WPP plc company is WPP Aunz’s global parent, is publicly listed in the United Kingdom and has a current market capitalisation of 9.18 billion pounds sterling. WPP plc currently owns 61.5% of WPP Aunz’ shares.

The ASX’s WPP Aunz has had an arguably turbulent history. Its last share market high was all the way back in 2002, when the company was priced at over $4 per share. It hasn’t seen those heights since, meaning shareholders who bought in back then would still be down more than 86% on their money today. Even those who might have bought in back in August 2016 for more than $1.33 are still down more than 58%. That was despite WPP Aunz merging with another company – STW Group – back in 2016.

WPP Aunz’s 90 subsidiaries are all small, specialised providers of marketing services, tailored for specific clients or allocations. For instance, its Barton Deakin division focuses on governmental relations, with a specialty in “Liberal-National governments and oppositions”. Cannings is a corporate and financial communications consultancy. Beyond Analysis is a business data analytics “solutions provider”. Blaze Advertising specialises in “brand building” and “property marketing”. You get the idea.

Why are WPP shares on fire today?

It’s likely we can put today’s massive move in the WPP Aunz share price today down to an ASX announcement the company released to the markets before open this morning. This announcement was advice that WPP Aunz has received an “unsolicited proposal” from its parent, WPP plc, to “acquire all of the ordinary shares in WPP AUNZ that it does not already own”. The proposal is offering a price of 55 cents per share, to be paid for in cash.

That 55 cents a share offering is, coincidentally, the share price WPP Aunz has appreciated to at the time of writing. If this deal goes ahead, it will result in WPP plc owning 100% of WPP Aunz, which would presumably result in WPP Aunz de-listing from the ASX upon its completion.

The announcement notes that WPP plc has “reserved the right to withdraw the Proposal at any time prior to execution of an implementation agreement in relation to the Proposal”.

It’s also worth noting that, as at the time of writing, WPP Aunz and its directors have told existing shareholders that they “are advised to take no action in relation to WPP plc’s Proposal until they receive the Independent Directors’ formal recommendation”.

More reading

• The PolyNovo (ASX:PNV) share price is up 30% in November
• 3 key advantages Moderna holds over Pfizer and AstraZeneca
• Why the Xtek (ASX:XTE) share price is edging higher today
• Here’s why the Surefire (ASX:SRN) share price has rocketed up 38% today
• Why the Mach7 (M7T) share price is closing in on a record high today

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The PolyNovo Ltd (ASX: PNV) share price has continued its positive run on Monday.

In afternoon trade the medical device company’s shares are up over 4% to $3.22.

This leaves the PolyNovo share price trading just short of its record high of $3.28. It also means the company’s shares are now up 30% since this time last month.

Why is the PolyNovo share price rocketing higher this month?

There have been a number of catalysts for the strong gain by the PolyNovo share price this month.

The first is of course the development of three potentially effective COVID-19 vaccines. This has given investor sentiment a huge boost and sent global share markets charging higher.

In addition to this. a couple of company-specific announcements have gone down well with investors and given the PolyNovo share price a lift.

What did PolyNovo announce?

On November 13, PolyNovo announced that the United States Food and Drug Administration (FDA) has approved the pivotal trial IDE for NovoSorb BTM.

This authorisation allows the company to begin patient recruitment, once various hospital Independent Review Boards grant approval. This relates to its treatment of full thickness burns.

Management is now seeking to utilise 20 sites and enlist 150 patients for the clinical study of NovoSorb BTM.

Recruitment is expected to start in early 2021 and conclude around the end of 2023. This program is being supported by Biomedical Advanced Research and Development Authority (BARDA) funding of $150 million.

In addition to this, another announcement on 19 November gave the PolyNovo share price a boost.

That announcement revealed its entry into Belgium, Netherlands, Luxemburg (Benelux), and Sweden through an extension of its partnership with PolyMedics Innovations in Germany.

Management notes that PMI has been an excellent partner for it in Germany, Switzerland, and Austria. Sales in these markets are exceeding projections to date and showing signs of further growth.

PolyNovo’s Managing Director, Paul Brennan, was happy with the news. He said: “We are very pleased to extend our partnership with PMI. They are an excellent sales organisation with very good relationships with surgeons not only in DACH (Germany, Austria, Switzerland) but also in Sweden, Belgium and the Netherlands.”

Shareholders will no doubt be hoping December is just as kind to the PolyNovo share price. Time will tell!

More reading

• ASX 200 rises on mixed Thursday
• The Polynovo (ASX:PNV) share price is climbing higher today. Here’s why.
• Why Aurelia Metals, PolyNovo, SKYCITY, & Tyro shares are dropping lower
• Why the Polynovo (ASX:PNV) share price up 6% higher today
• Why Elders, Jumbo, Northern Star, & PolyNovo shares are charging higher

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 POLYNOVO FPO. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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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.

Pfizer Inc (NYSE: PFE) appears to be likely to be the first drugmaker, along with its partner BioNTech (NASDAQ: BNTX), to win U.S. emergency use authorization (EUA) for a coronavirus vaccine. AstraZeneca (NASDAQ: AZN), with plans to produce up to 3 billion doses next year, might distribute more doses of its COVID-19 vaccine globally than any other company.

Do these leading positions mean that Moderna Inc (NASDAQ: MRNA) is playing second fiddle in the coronavirus vaccine race? Not for investors. Here are three key advantages that Moderna holds over both Pfizer and AstraZeneca.

1. No sharing required

Many of us were taught in kindergarten that it’s good to share — and our kindergarten teachers were right. In the biopharmaceutical world, though, sharing profits can translate to slower growth. Both Pfizer and AstraZeneca will share the rewards gained from their COVID vaccines.

Pfizer, as mentioned earlier, teamed up with BioNTech on coronavirus vaccine candidate BNT162b2. The big drugmaker forked over $72 million in cash to its partner, and bought a $113 million stake in the German biotech. BioNTech is also eligible to receive milestone payments of up to $563 million. The two companies didn’t reveal how they’re splitting revenue and profits on any sales of BNT162b2, but Pfizer certainly won’t pocket all of the money the vaccine could make.

AstraZeneca partnered with the University of Oxford to develop and distribute experimental COVID-19 vaccine AZD1222. No financial details of the collaboration were announced. However, you can bet that Oxford will receive some level of royalties from any sales of the vaccine.

Meanwhile, Moderna has full ownership of COVID-19 vaccine candidate mRNA-1273, and doesn’t have to share any potential revenue or profits from sales of the vaccine. Granted, Arbutus Biopharma owns the patent to lipid nanoparticle (LNP) technology used in the past by Moderna. However, Moderna has publicly stated that mRNA-1273 doesn’t use any technology covered by Arbutus’ patent.

2. Platform possibilities

If AstraZeneca wins regulatory approvals for AZD1222, the company has no other vaccine candidates that use similar technology waiting in the wings. It’s the same story for Pfizer. However, good news for Moderna’s mRNA-1273 could bode well for the rest of the biotech’s pipeline.

Moderna hopes to leverage commercial success for mRNA-1273 into a full-blown mRNA (messenger RNA) platform. In addition to mRNA-1273, the company’s pipeline currently includes 12 other mRNA vaccines and therapies in clinical testing. Moderna thinks it could expand that number to as many as 50 clinical-stage programs if the anticipated big bucks from mRNA-1273 begin to pour in.

Believe it or not, Moderna CEO Stephane Bancel thinks that the biotech could even become the biggest vaccine company in the world within the next four years. That view could be overly optimistic, but Moderna should grow at a much faster rate than AstraZeneca or Pfizer because of its platform possibilities.

3. Size

Last — and least, in a literal sense — is Moderna’s size advantage over Pfizer and AstraZeneca. You might be thinking, “What size advantage?” After all, Pfizer’s market cap tops $200 billion. AstraZeneca’s market cap is close to $140 billion. Moderna is tiny in comparison, with a market cap in the ballpark of $50 billion. However, Moderna’s smaller size is actually a big advantage.

It’s not surprising at all that Moderna’s stock gains so far in 2020 have been a lot better than the performances turned in by AstraZeneca and Pfizer. That’s because positive developments for mRNA-1273 have moved the needle a lot more for Moderna than similar positive developments for AZD1222 and BNT162b2 have done for AstraZeneca and Pfizer, respectively.

Moderna still has a lot more room to run than either AstraZeneca or Pfizer. An additional $5 billion to $10 billion annually would be nice for these two big drugmakers, but wouldn’t cause either of the two pharma stocks to skyrocket. On the other hand, that kind of revenue would likely light a fire beneath Moderna’s share price.

We should soon know if mRNA-1273 will win EUA in the U.S. and regulatory approvals in other countries. If it does, Moderna stands to make billions of dollars in a short period. Its size, combined with its full ownership of its COVID vaccine and its platform possibilities, will almost certainly make Moderna a much bigger winner again in 2021 than AstraZeneca and Pfizer.

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

More reading

• Why Platinum Asset’s healthcare fund doesn’t own CSL (ASX:CSL) shares
• Why AstraZeneca’s potential vaccine is more exciting than you think
• Why Moderna Is Less Risky Than You Think
• With the Moderna (NASDAQ:MRNA) share price blasting up, have the forward-looking markets got it right?
• Here are the US shares that CommSec customers are buying

Keith Speights owns shares of Pfizer. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post 3 key advantages Moderna holds over Pfizer and AstraZeneca appeared first on Motley Fool Australia.

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

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The Xtek Ltd (ASX: XTE) share price is edging higher today following the appointment of a new non-executive director. At the time of writing, the Xtek share price is up 0.81% to 62 cents. In comparison, the All Ordinaries Index (ASX: XAO) is down 0.72% to 6774.7 points.

What’s moving the Xtek share price?

The Xtek share price is inching higher after the company announced that former Minister for Defence, Mr Christopher Pyne, will be joining its board.

According to the release, Mr Pyne holds significant experience in the commercial, political and defence industries. Having served as a member of parliament for 25 years, he was responsible for initiating Australia’s $200 million defence program. In addition, Mr Pyne assisted in developing the 2016 Defence White Paper and implementing projects within it.

Mr Pyne is the current chair of Pyne and Partners, and principal of GC Advisory, both of which provide consulting services to businesses on government and political matters. Based in Adelaide, South Australia, these companies operate domestically and overseas.

Accredited as an industry professor at the University of South Australia Business School, Mr Pyne specialises in the defence and space environments. In the lead up to his position in parliament, he practised law as a solicitor at Corrs Chambers Westgarth and Thomson Geer.

The strategic appointment will seek to utilise Mr Pyne’s skillset to assist Xtek in commercialising its products in global markets.

Management commentary

Xtek chair, Mr Uwe Boettcher, spoke on the new appointment of Mr Pyne, saying:

We are delighted to welcome Christopher to the XTEK Board. His extensive experience and expertise, and his vast knowledge of the Australian Defence Industry, will be of immense value to the Company as it continues to execute its strategy to commercialise its proprietary technologies globally, as well as further strengthen its domestic capabilities.

We look forward to working with Christopher going forward and his contribution to XTEK.

Adding to Mr Uwe Boettcher’s comments, Mr Pyne said:

XTEK is on the verge of significant growth as it continues to develop and commercialise its IP globally, building on its domestic distribution networks and capabilities. I look forward to contributing to this next stage of growth and being part of this market leading Company.

Xtek share price summary

The Xtek share price is up over 10% since the start of the month, and 61% since hitting an all-time low of 38.5 cents in March. However, when compared with the beginning of 2020, the Xtek share price is down around 18%.

More reading

• ASX 200 Weekly Wrap: ASX 200 on track for a top month
• Why this ASX cybersecurity ETF is a buy today
• Xtek (ASX:XTE) share price soars 7% on AGM update
• The Native Mineral (ASX:NMR) share price leaps 17% higher. Here’s why…
• The Ioneer (ASX:INR) share price has rocketed up 11% today and 61% in November

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Surefire Resources NL (ASX: SRN) share price is on fire today. Surefire shares are up 38.7% at the time of writing to 4.3 cents a share. Surefire shares closed at 3.2 cents on Friday last week, but opened at 4.7 cents a share this morning and shot as high as 5 cents before settling to the current price.

It’s been a spectacular trading day for Surefire, whose shares were essentially trading at zero for most of the year before jumping up in mid-July. Shareholders would be up 320% on their money between 31 July and today on current prices. As it stands, Surefire now has a market capitalisation of $32.1 million.

So why is this company appreciating in value so dramatically today?

Surefire gains?

Surefire put out some notices to the ASX after market close on Friday. These detailed that the company has issued 200 million new shares.

The gold miner released another announcement before market open today, this one titled “Spectacular Results from Yidby Gold project”.

Surefire only acquired the Yidby project in August this year. The project is located at the southern portion of the Yalgoo-Singleton Greenstone Belt, and rests on three exploration licences. These licenses cover 113.77 square kilometres, with “3 gold prospects hosting significant gold mineralisation”.

The Yalgoo-Singleton Greenstone Belt is reportedly an area of massive natural wealth, with several other gold and iron ore mines and operations surrounding Yidby. Surefire notes that many of these surrounding gold mines have potential reserves of more than a million ounces of gold.

Since August, the company has reportedly fast-tracked reviewing the [Yidby] project and is establishing a program of works with the [WA] Department of Mines, Industry, Resources, and Safety. In addition, it has “planned and executed its maiden drilling program”.

Here’s some of what the company had to say on the gold discovery:

Surefire Resources NL… is pleased to announce significant, high-grade intersections from drilling at the Yidby Road Prospect on its Yidby Gold Project, located 320km northeast of Perth in the mid-west region of Western Australia… Each of Surefire’s 2020 RC drillholes intersected gold mineralisation.

Some of these samples indicated gold concentration as high as 14.47 grams of gold per tonne of ore. One sample returning a grade of 26.57 grams per tonne of ore.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here’s why the Surefire (ASX:SRN) share price has rocketed up 38% today appeared first on Motley Fool Australia.

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The Mach7 Technologies Ltd (ASX: M7T) share price is pushing higher on the day of its annual general meeting.

In afternoon trade, the healthcare technology company’s shares are up 3% to $1.25.

This leaves the Mach7 share price trading within touching distance of its record high of $1.28.

What happened at the annual general meeting?

At the event, management provided investors with a summary of its performance in FY 2020, an update on current market conditions, and its guidance for FY 2021.

Mach7 was a strong performer in FY 2020 despite the pandemic. For the 12 months ended 30 June, the enterprise imaging solutions provider delivered a 102% increase in revenue to $18.9 million.

Things were even better for its earnings before interest, tax, depreciation and amortisation (EBITDA). Margin improvements led to its EBITDA jumping 181% higher year on year to $3.3 million.

Current trading conditions.

Management notes that COVID-19 has had an unpredictable impact on hospital revenues across the globe.

However, it is seeing signs of image volume returning and hospitals reengaging with previously planned projects and investment.

And while it is difficult to predict the budgetary impact to its current and future customers, management notes that its products are well-placed in the current environment as they help to solve the ongoing issue of providing care from outside the walls of the hospital.

Pleasingly, the company’s pipeline is very strong in respect to late-stage deals, which management feels is alluding to a strong second half of FY 2021.

It also notes that it is experiencing continued strong partnerships with its largest clients. As of today, $10.8 million of sales orders (total contract value) have been recorded in FY 2021.

Finally, new marketing initiatives are kicking off this week to assist in bolstering its sales pipeline for FY 2022.

FY 2021 guidance.

Mach7 expects to deliver a minimum of $11.5 million in Annual Recurring Revenue (ARR) from its existing customer base in FY 2021. This represents >90% growth on FY 2020.

Management is also forecasting positive EBITDA growth for FY 2021. It notes that ARR provides 70% coverage of existing cost run rate, excluding one-off costs.

It also expects to deliver positive cash flows for the year. However, it advised that this will continue fluctuate quarter to quarter due to the irregular timing of cash receipts from license fees.

More reading

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends MACH7 FPO. The Motley Fool Australia has recommended MACH7 FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Computer memory designer Weebit Nano Ltd (ASX: WBT) share price has retreated 7.27% today, paring back gains of more than 30% in November. Investors have bought Weebit Nano shares this month amid optimism around the company’s potential commercialisation of memory technology next year.

At the time of writing, the Weebit Nano share price has dropped lower to $1.85. 

Weebit Nano’s recent capital raising

Weebit Nano has progressed efforts recently to take its latest memory chip technology to market. 

On 20 November, the company announced it had raised $12 million for commercialisation and to accelerate research and development of its ReRAM technology. The money will be used to strengthen its sales team and increase marketing activities ahead of the product launch mid-next year.

That $12 million was priced at $1.70 a share, and is part of an overall $15 million capital raise. The placement was made to new and existing sophisticated and institutional investors, and did not require shareholder approval.

Meanwhile, the remaining $3 million targeted under the capital raise will come via a share purchase plan (SPP) in December. An SPP is a form of capital raising by a listed company that offers shareholders the opportunity to apply for new additional shares. Australian regulations currently limit the maximum application per shareholder under an SPP to $30,000.

Only last week, Weebit Nano also reported the expansion of its strategic agreement with French research institute CEA-Leti. The company says the expanded deal will strengthen its competitive advantage, and enables it to upgrade the applications of the ReRAM technology into a wider range of future products.

More about the company

Weebit Nano is an Israeli company founded in 2015, and trading on the ASX since 2016. It focuses on addressing the growing need for new and advanced memory chips. 

Weebit claims that its ReRAM product is cheaper, faster, and more energy efficient than the existing Flash technology. The company touts ReRam as an emerging memory technology that combines the advantages of both RAM and Flash, and believes its commercial usage will increase dramatically over the next few years.

In its first-quarter update for FY21, Weebit said that its ReRAM technology was on track to transfer to the semiconductor fabrication plant. This brings it a step closer to commercialisation.

About the Weebit Nano share price in 2020

The Weebit Nano share price has surged more than 350% as the market sees its product nearing commercialisation. It has a 52-week high of $2.47, and currently commands a market cap of $212 million.

More reading

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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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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