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The Ramsay Health Care Limited (ASX: RHC) share price has largely been flat since 2015. The company had previously delivered Afterpay Ltd (ASX: APT) like returns for many years before its plateau. 

With the company’s first quarter update pushing its share price 5% higher last Friday, could Ramsay be a turnaround story in 2021? Here’s what big brokers had to say. 

First quarter FY21 recap 

Ramsay Australia reported a 1.5% increase in total revenue, or a 6.6% increase excluding Victoria. This reflects a 1.7% increase in surgical admissions (ex-Victoria up 8%) and lower non-surgical activity. The Australian business experienced a decline in earnings before interest, tax, depreciation, amortisation (and restructuring or rent costs) (EBITDAR) compared to the prior corresponding period. This was impacted by the coronavirus restrictions on activity in Victoria’s second lockdown and the increased costs. 

The company’s European division reported a 5.4% increase in surgical volumes combined with lower non-surgical activity. A similar narrative to the Australian business. 

Ramsay UK reported a 9.9% decline in total revenue with volumes picking up in the latter part of the quarter. The United Kingdom and France currently operate under government support arrangements which both run until 31 December 2020. 

The company was unable to provide a guidance for FY21 given the near-term uncertainties in the market. Notwithstanding the current environment, it believes that over the medium to long term, the healthcare industry fundamentals remain positive.

The Ramsay share price rallied 5% on the day of its first quarter announcement but remains near its post-COVID highs, just shy of $70.  

Broker updates 

Citi raised its Ramsay share price target from $70 to $71. It upgraded expected earnings for Australian operations but anticipates that Europe will likely take longer to return to normal. Overall expected earnings for FY22 and FY23 were upgraded by 2% each. 

Credit Suisse lowered its Ramsay share price target from $70 to $69 and retains a neutral rating. The broker is not impressed with the first quarterly trading update but notes the improvement in Australian operations. Overseas earnings are still at risk and costs are rising. 

Macquarie Group Ltd (ASX: MQG) raised its Ramsay share price target from $73.15 to $73.65 and retains an outperform rating. The broker sees the positives in the first quarter trading update, particularly in Australian activity levels. It notes rising costs due to the pandemic, but still sees longer term growth and value. 

More reading

• Leading brokers name 3 ASX shares to buy today
• ASX 200 drops 0.2% on Friday
• Why Orocobre, Ramsay, Webjet, & Xero shares are dropping lower
• ASX 200 down 0.35%: Ramsay Q1 update, NEXTDC’s international expansion, gold miners surge
• Ramsay Health Care (ASX:RHC) share price on watch after Q1 update

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care 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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The Afterpay Ltd (ASX: APT) share price is trading lower on Tuesday despite the release of two positive updates.

In early trade the payments company’s shares are down 2% to $99.59.

What did Afterpay announce?

This morning Afterpay is holding its virtual annual general meeting. Ahead of the meeting, the company provided an update on changes in its leadership.

According to the release, the company has appointed Nick Molnar as co-CEO and Managing Director, sharing the role with current CEO and Managing Director, Anthony Eisen.

Afterpay Chair, Elana Rubin, commented: “Since Anthony and Nick co-founded Afterpay, the ability to leverage their complementary skills and experience has culminated in a strong and very successful partnership and has been key to Afterpay’s global success.”

“As Afterpay continues to expand globally, the focus on its international operations has never been greater, as such, the co-founders and the Board believe that it is important to have an appropriate level of oversight, executive prominence and presence both internationally and domestically.”

“To achieve this, Anthony and Nick will become co-CEOs of Afterpay. They will continue to share responsibility for executing on our strategy and their performance will be measured on the same key objectives. Nick will return to the US as soon as is practicable and Anthony will continue to be based in Australia,” she added.

Annual general meeting.

Afterpay’s annual general meeting presentation touched on its performance in FY 2020, the recent ASIC report into the buy now pay later industry, and trading so far in the new financial year.

In respect to the latter, as was announced a few weeks ago, Afterpay’s active customers and underlying sales continued to grow during the first quarter.

Its active customers reached 11.2 million at the end of September and the company was generating $4.1 billion of sales from them. This was up 115% from $1.9 billion in the first quarter of FY 2020.

Pleasingly, this morning Afterpay revealed that October was yet another strong month for the company and November has been even stronger.

The company’s co-CEO, Anthony Eisen, commented: “October was another record month for underlying sales globally and we are performing ahead of this in November. The growth of new customers is accelerating since the end of Q1 in both the US and UK as the pipeline of new merchants go live on our platform.”

“On our key financial and performance metrics, there is no change to the comments we made around gross losses, net transaction losses and Net transaction Margins in our Q1 business update and we are pleased with how the business is tracking in the first 6 weeks of Q2 FY20,” he added.

Global expansion update.

Fellow co-CEO Nick Molnar provided investors with an update on its global expansion.

He commented: “Launching into Canada in August was a really exciting moment for the team. We have had a solid start with a number of large merchants now live, integrating or signed.”

In respect to Europe, Mr Molnar revealed that Afterpay is busy developing integration plans to ensure that it is ready to launch as soon as the Pagantis acquisition is completed.

Over in Asia, its expansion plans are also progressing with a base now established in Singapore. This will enable Afterpay to drive the development of a strategy for the South East Asia market.

Mr Molnar also spoke about the launch of its new Cross Border Trade offering.

He said: “Our Cross Border Trade also builds on our global expansion by enabling our merchants to offer their products to customers across the world. Specifically, all Afterpay merchants can now open their ecommerce sites to Australian, British, Canadian and New Zealand shoppers. Next year, global merchants will also be able to sell to US consumers.”

All in all, the chief executive appears confident on its prospects globally and intends to continue to use its successful ANZ operations as a blueprint for execution.

More reading

• Macquarie (ASX:MQG) picks best ASX stocks to buy for 2021 post-COVID recovery
• 5 things to watch on the ASX 200 on Tuesday
• These ASX shares have been unstoppable in FY 2021
• ASX ends trading early, ASX 200 up 1.2%
• This cheap ASX share is supplying US giants: fundie

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T 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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The Volpara Health Technologies Ltd (ASX: VHT) share price is on the move today following the release of a new product update.

At the time of writing, the healthcare technology company’s shares are up 2.5% to $1.38.

What did Volpara announce?

This morning Volpara announced the launch of BreastED, a first-of-its-kind online breast density training tool in collaboration with DetectED-X.

According to the release, radiologists around the world will have access to this first-of-its-kind online breast density training tool designed to improve their ability to correctly identify women’s breast density categories to comply with the Breast Imaging-Reporting and Data System (BIRADS).

The new training module, DensityED, integrates key technologies from Volpara and DetectED-X.

DetectED-X was founded by two University of Sydney radiation and imaging experts. It was the winner of the Best Startup for Social or Community Good at the Australiasian Startup Awards in 2019.

DetectED-X’s CEO and Chair of Diagnostic Imaging at University of Sydney, Patrick Brennan, commented: “While we have seen tremendous advances in medical imaging and AI tools to improve the detection of breast cancer, varying levels of skill and experience among radiologists reading mammograms can contribute to interpretation errors and variations in assessing breast density.”

“Such errors and variations can delay diagnosis and impact the effectiveness of the treatment of disease, which may have important clinical and economic implications,” he added.

What now?

Volpara’s founder and CEO, Dr. Ralph Highnam, sees a lot of promise from the collaboration.

He said: “DensityED will help radiologists improve their ability to correctly and consistently perform BIRADS density assessment, which is becoming increasingly important in light of the personalization of screening and expected FDA density reporting regulations. Accurate, reproducible density information is needed to empower women in their breast health journey.”

This is opportune timing for the release given potential changes to regulations in the United States. A potential new federal regulation, first proposed in February 2019, would require mammography facilities across the United States to include whether a patient has dense breast composition in the report following her screening mammogram.

More reading

• 2 exciting small cap ASX shares for your watchlist
• Volpara (ASX:VHT) share price on watch after Q2 trading update
• These exciting small cap ASX shares could smash the market in the 2020s

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 VOLPARA FPO NZ. The Motley Fool Australia has recommended VOLPARA FPO NZ. 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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News of another promising COVID‐19 vaccine will spur a further rally on the market but the best ASX stocks to buy for 2021 won’t be the same as 2020.

The S&P/ASX 200 Index (Index:^AXJO) jumped 0.4% in morning trade after Moderna Inc (NASDAQ: MRNA) said its vaccine trial was 94.5% effective.

This is the second COVID drug in the past week that yielded a more than 90% success rate during human testing.

Best ASX buys are COVID losers

The best way to gain upside from this thematic is to rotate into ASX value stocks and so-called COVID losers, according to Macquarie Group Ltd (ASX: MQG).

In many cases, both stocks are one and the same. The reason why ASX stocks are in the “value” category is usually due to their underperforming share prices.

There’s a wide range of ASX stocks that have lagged during the pandemic. These include stocks exposed to tourism, property and financials.

Rotation from ASX growth to value stocks

We have already been seeing this shift towards value from growth. Growth stocks tend to be those that trade at a premium as investors are happy to cough up for better than market profit growth.

These include those best placed to benefit from social restrictions due to COVID like the Afterpay Ltd (ASX: APT) share price and Kogan.com Ltd (ASX: KGN) share price.

“Buying the laggards and selling winners was a good short-term strategy in the rally,” said Macquarie.

“We note there was an 18% return spread in favour of Covid losers in the recent value rally, and we think investors should continue to rotate to Covid-losers.”

ASX stocks on earning upgrade cycle

The broker pointed out that the ongoing annual general meeting (AGM) season is supportive of the rotation.

With around two-thirds of ASX companies providing updates during their AGMs, Macquarie noted there have been five times more companies upgrading their FY21 outlook than downgrading.

“Earnings upgrades are already at their highest level since 2005, and we have not even started to experience the post-vaccine boom,” said the broker.

“Maybe the FY22 PE is not high, it’s just that analysts’ forecasts are too conservative?”

Rising bond yields to also favour ASX value buys

Further, Macquarie believes bond yields are set to rise in 2021. It’s tipping the 10-year US Treasury yield will jump to 1.5% next year as successful vaccines will prompt central banks to remove some stimulus measures which have been depressing the yield to under 1%.

Rising bond yields are good news for embattled ASX banks and insurers.

Best ASX stocks to buy for 2021

Some of the stocks that Macquarie is urging investors to buy for 2021 include the Worley Ltd (ASX: WOR) share price and Telstra Corporation Ltd (ASX: TLS) share price.

Others on its list include the Sydney Airport Holdings Pty Ltd (ASX: SYD) share price, Seven Group Holdings Ltd (ASX: SVW) share price and Westpac Banking Corp (ASX: WBC) share price.

More reading

• Aussie companies blast ‘knee-jerk’ COVID-19 border closures
• ASX 200 on watch after study shows Moderna’s COVID-19 vaccine is 94.5% effective
• 5 things to watch on the ASX 200 on Tuesday
• ASIC to investigate if ASX is fit to hold market licence
• These ASX shares have been unstoppable in FY 2021

Brendon Lau owns shares of Seven Group Holdings Limited, Telstra Limited, Westpac Banking, and WorleyParsons Limited. Connect with me on Twitter @brenlau.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Kogan.com ltd. 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 MoneyMe Ltd (ASX: MME) share price is charging higher on Tuesday following the release of an update.

At the time of writing, the digital credit company’s shares are up 3% to $1.53.

What did MoneyMe announce?

This morning MoneyMe provided investors with an update on its funding costs following a recent refinancing of its funding facilities.

According to the release, the company’s funding costs have reduced to 4.8% from today following the refinancing of its Velocity warehouse facility and the AOFM’s investment into its new major bank warehouse facility.

This is down significantly from 11.4% at 30 June 2020.

In light of this, MoneyMe intends to grow its customer base and target higher loan transaction value and higher quality customers with lower personal loan pricing.

Trading update.

In addition to the funding update, MoneyMe provided the market with an update on its performance in FY 2021.

It advised that its strong loan origination growth momentum is continuing. Originations were up 8% month on month in October to $19.3 million.

This is the highest level of originations since January 2020 and follows the 30% month on month increase in originations in September.

Management notes that its strong origination and gross loan book growth continues to be achieved while maintaining tightened underwriting parameters to reflect the COVID-19 environment.

The company’s closing gross loan book was $145.1 million at the end of October, a 30% increase on the prior corresponding period.

MoneyMe expects its loan book to grow significantly during the current financial year, supported by more competitive pricing, wider product offers, recent product innovations such as PayAnyOne and MoneyMe+, and an improving trading environment.

The company’s Managing Director and Chief Executive Officer, Clayton Howes, said: “Fully realising the step change reduction in its cost of funding is a truly fantastic and exciting landmark achievement for the MoneyMe Group. We welcome the AOFM as a mezzanine debt investor and look forward to fully leveraging the lower cost of funds and capacity from the new Major Bank warehouse funding facility to further grow and diversify our balance sheet to meet the needs of Generation Now.”

More reading

• Why the MoneyMe (ASX:MME) share price is tumbling lower 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. 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 fund manager has declared the share markets to now be at a “rare turning point” and has named the next sector ready to enjoy technology-like growth.

Frazis Capital Partners portfolio manager Michael Frazis said while there’s little chance of interest rates rising anytime soon, many “red hot tech stocks” seemed to have now passed their peak.

“Longer term yields have begun to rise, tech valuations are at record highs, and we believe a period of serious multiple compression has already begun,” he said in a memo to investors.

But Frazis added a possible rationalisation in the market means it’s an opportunity to buy.

And with tech seemingly overvalued, the Sydney portfolio manager is ready to put money into another sector set to take off in the post-COVID-19 world.

“We are increasing our investments in the life sciences,” he said. 

“Decades of painstakingly difficult and pedantic work in laboratories all around the world has lifted the state of genetic technology to [what was previously] science-fiction levels.”

Life science technologies are presenting investors with “extraordinary new greenfield opportunities”, according to Frazis.

“Many companies in the life sciences are coming off epidemically depressed revenues, are cyclically defensive, and have growth rates as high as any in tech.”

Frazis said companies that are in the COVID-19 vaccine race are already doing pretty well. But other life science companies not in that game are undervalued.

“Those associated with, say, elective surgery in hospitals or non-lethal conditions – a large group indeed – have struggled. Now those trends will reverse, and this is positive for some of our holdings like Progyny Inc (NASDAQ: PGNY), which focuses on fertility.”

Selling down technology

Frazis told The Motley Fool last month that his fund was up about 60% so far this year.

That success was built largely on the backs of amazing growth from technology shares. But he’s now cycling those out.

“We are dramatically reducing what little we have left invested in 40x revenue businesses,” he said.

“These have generated spectacular returns for us, but have now graduated into ‘lower return prospects’. We are focused on the next set of opportunities in the $1 billion to $20 billion market cap range growing at more than 100% [per year].”

Best year of travel ever

Aside from life sciences, Frazis is adding another sector to his portfolio.

It’s one that will obviously benefit from a future COVID-19 vaccination or treatment.

“We believe that the best year in travel on record will shortly start, and intend to be there for it.”

Frazis told The Motley Fool last month that his fund focuses on companies that its customers support with religious fervour.

“We want true customer love. We want explosive growth. We don’t even use these traditional metrics that other people use,” he said.

“It’s been extraordinarily effective. I think we’ve got 18 things that have tripled or more from when we first bought them. Got a number of 4x or 5x opportunities.”

More reading

• How I’d find the best shares to buy before this window of opportunity closes
• Aussie companies blast ‘knee-jerk’ COVID-19 border closures
• PointsBet (ASX:PBH) share price on watch after US update
• iCollege (ASX:ICT) share price on watch following strong trading update
• Is the Xero (ASX:XRO) share price a buy?

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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Finding the best shares to buy today may be a worthwhile use of an investor’s time. It may allow them to capitalise on low valuations that may not be on offer permanently. Furthermore, it could mean that they purchase high-quality companies that have the capacity to deliver solid recoveries from their current price levels.

Through searching in unpopular sectors and analysing company fundamentals, it is possible for an investor to take advantage of the opportunities provided by the 2020 stock market crash. Over time, this could lead to impressive returns.

Finding the best shares in unpopular sectors

Searching in unpopular sectors could be a good starting point for an investor who is aiming to buy the best shares available today. Industries that are currently unfavoured by investors may contain a larger number of undervalued stocks. Their prices may reflect their short-term challenges, rather than their long-term financial prospects. As such, there may be opportunities to buy them while their prices do not account for their recovery potential.

Certainly, unpopular stocks and sectors can remain unfavoured among investors for an extended period of time. However, the track record of the global economy shows that it has always bounced back from its previous declines to post positive GDP figures. Therefore, the operating conditions of companies facing difficult near-term outlooks are likely to improve over the long run. This may help to justify higher valuations that result from improving financial performances and stronger investor sentiment.

Assessing company fundamentals

Analysing company updates may also help an investor to unearth the best shares to buy today. Assessing their financial position may paint an accurate picture of how they may fare in an uncertain economic period. Companies with low debt levels, strong cash flow and a solid financial position may be better equipped to overcome weak operating conditions. This may mean that they can not only survive a difficult near-term outlook, but may even be able to gain market share at the expense of their weaker peers.

Certainly, even financially-sound businesses may prove to be disappointing investments in some cases. However, a company that has a solid financial foundation is likely to stand a much higher chance of benefitting from any economic recovery compared to its weaker sector peers. Therefore, the most appealing investments are likely to be those stocks with the financial means to overcome today’s present economic challenges.

Long-term investment opportunities

Of course, even the best shares may fail to produce positive returns in the short run. The outlook for the economy is extremely difficult to predict at the present time. A number of factors, such as the coronavirus pandemic, could have a major impact on its outlook.

However, through buying financially-sound businesses at low prices, an investor can maximise their returns in the long run. They may be able to benefit from a likely upturn in economic conditions and investor sentiment in the coming years.

More reading

• Aussie companies blast ‘knee-jerk’ COVID-19 border closures
• PointsBet (ASX:PBH) share price on watch after US update
• iCollege (ASX:ICT) share price on watch following strong trading update
• Is the Xero (ASX:XRO) share price a buy?
• 2 fully franked ASX dividend shares with attractive yields

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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Australian businesses have criticised state governments for immediately closing their borders in reaction to a new COVID-19 cluster in Adelaide.

South Australians have been told to wear masks in public after 20 locally acquired cases of coronavirus were found in the capital city.

Western Australia, Tasmania and the Northern Territory immediately shut its borders to anyone travelling from South Australia.

Employer group AI Group’s chief executive Innes Willox said COVID outbreaks could be resolved locally without interstate travel bans every single time they occur.

“A knee-jerk border closure sends a clear but terrible message to investors and nationally focused employers that there can be no regulatory certainty to doing business in Australia.”

The Business Council of Australia (BCA) represents many of the biggest ASX-listed companies, such as Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), Australia and New Zealand Banking GrpLtd (ASX: ANZ), Macquarie Group Ltd (ASX: MQG), AGL Energy Limited (ASX: AGL), BHP Group Ltd (ASX: BHP), Coca-Cola Amatil Ltd (ASX: CCL), Coles Group Ltd (ASX: COL), Wesfarmers Ltd (ASX: WES), Telstra Corporation Ltd (ASX: TLS), Scentre Group (ASX: SCG), and Qantas Airways Limited (ASX: QAN).

NSW demonstrated COVID-19 outbreaks could be managed with contact tracing and local containment, said BCA chief Jennifer Westacott.

“Rather than a confidence-destroying stop-start approach, we have to learn from what we’ve already been through to better manage outbreaks as they happen,” she told The Motley Fool.

“With the right systems in place for tracking and tracing and local containment, there is no reason we can’t manage outbreaks safely, keep borders open and create much needed new jobs.”

Is the federation broken?

Willox agreed, saying local clusters are a chance for state health systems to show their testing and contract tracing regimes are up to scratch.

“By closing their borders, states are making it clear they have no faith in their systems and are prepared to inflict enormous economic pain on each other and themselves.”

He said the spontaneous closing of state borders only showed the business sector that “our federation is irretrievably broken”.

“The agreed national strategy sensibly does not aim for elimination and states that go for this approach are following a road to economic ruin.”

Adelaide’s outbreak has been attributed to a person who worked in the state’s hotel quarantine system.

Unfortunately, 17 of the 20 cases were reportedly within one extended family, and some of those members attended work in high-risk sites like a nursing home and jail.

Victoria’s second wave that shut the state down from July to October is also believed to have been triggered from a biosecurity breach at hotel quarantine.

Market reaction to the latest state border closures could not be ascertained, due to computer troubles shutting down trade on the ASX on Monday.

More reading

• 2 fully franked ASX dividend shares with attractive yields
• What can you do when the ASX is down?
• 3 shares that have strongly outperformed their sectors this month
• Here’s what big brokers think about the Commonwealth Bank (ASX:CBA) share price 
• The Qantas (ASX:QAN) share price soared 12% higher last week

Motley Fool contributor Tony Yoo owns shares of Macquarie Group Limited and Qantas Airways Limited. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Telstra Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Wesfarmers 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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The PointsBet Holdings Ltd (ASX: PBH) share price will be on watch today following the release of an announcement ahead of its annual general meeting.

What did PointsBet announce?

This morning the sports betting company announced that it has launched in the State of Colorado and has taken its first bet. This represents the company’s fifth online sportsbook operation in the United States.

Prior to its launch in Colorado, PointsBet signed a multi-year partnership with Kroenke Sports & Entertainment. This has made the company the official and exclusive partner of the Denver Nuggets of the National Basketball Association, Colorado Avalanche of the National Hockey League, Colorado Mammoth of the National Lacrosse League, and their home venue, The Ball Arena.

In addition to this, PointsBet has signed an agreement with Learfield IMG College, the media rights holder of University of Colorado Athletics. The two parties have agreed a multi-year corporate sponsorship agreement that makes PointsBet an exclusive partner of the Colorado Buffaloes.

PointsBet USA CEO, Johnny Aitken, commented: “Launching in Colorado, the site of PointsBet’s US headquarters, is an extra special moment for the business. This is our fifth state of operation in the US following our most recent launch in Illinois, and as always, we will be providing this passionate, sports-loving community with the fastest online sports betting product in the market and the most betting options for every NFL, NBA, MLB and NHL game.”

“It is a great feeling to now be able to officially introduce Colorado sports bettors to the competitive advantages PointsBet possesses in owning our technology end-to-end, as well as light up our major investments in the state like our fully exclusive deal with the Kroenke Sports and Entertainment team across the Denver Nuggets, Colorado Avalanche and the Ball Arena in advance of the upcoming NBA and NHL seasons,” he added.

What now?

It won’t be long until the company launches its sixth operation in the United States.

Management advised that the next launch is planned for Michigan in third quarter of FY 2021. Michigan will also see the inaugural launch of PointsBet’s iGaming product.

The iGaming launch will see PointsBet offer a mix of classic games such as online poker and game show games in the state.

More reading

• Why Laybuy, Oil Search, PointsBet, & Webjet shares are racing higher
• Why Afterpay, LiveTiles, PointsBet, & Santos shares are tumbling lower
• PointsBet (ASX:PBH) share price on watch after explosive Q1 growth
• Pointsbet (ASX:PBH) share price continues to excite investors
• 3 ASX shares I’d buy for summer 2021

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 Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. 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 iCollege Ltd (ASX: ICT) share price will be on watch this morning. This comes after the company announced a positive trading update yesterday morning.  

Just minutes after the announcement, the ASX went into lockdown, restricting all trades due to a technical glitch. It will be interesting to see where the iCollege share price will end up today.

Before the halt, shares in the organisation were up 4.1% to 12.5 cents.

What does iCollege do?

iCollege is an Australian-based organisation, comprising 7 business that deliver accredited and non-accredited vocational education and training solutions.

The company operates throughout Australia, but services both domestic and international markets.

Trading update

For the period ending 31 October, iCollege reported a solid trading performance for the first four months of FY21. The company revealed it is on track to deliver record revenue and earnings for the half-year to the end of December.

So far, iCollege has recorded revenue of $5.6 million, and earnings before interest, tax, depreciations and amortisation (EBITDA) of $1.1 million. The company attributes the robust result to significant growth in its domestic training operations and its ability to rapidly address skill shortages.

iCollege received its first cash receipts from the Western Australian government-funded ‘priority industry training scheme’. In addition, revenue is also expected to flow in from its infection control skills set training, which is being delivered as a part of an $80 million federal and state government initiative.

Despite border closures, the company is beginning to witness a recovery in enrolments for international students who remained in Australia. For pupils who are abroad, iCollege has focused its efforts on sales and marketing programs. This has led to an uptick of international students commencing online courses in their home countries.

To expand its revenue streams, the company has rolled out an online coding boot camp for children, specialising in gaming.

What did management say?

iCollege managing director Mr Ash Katta commented on the record results:

Year to date, iCollege has performed exceptionally well and we are on track to deliver a record first half performance. As we have previously stated, the Company’s ability to rapidly adapt in extremely challenging market conditions highlights the resilience of our business model.

We expect November to be another strong month ahead of the traditionally quieter Christmas and New year period, but we are rolling out a series of short courses to boost revenue streams across these months. As well as our strong organic growth, we are using our balance sheet to acquire complementary businesses and scale up existing operations.

iCollege share price summary

The iCollege share price has been on the move in the last 5 months. Shares in the education and training provider have risen from 3 cents to 12.5 cents, representing a gain of 300%.

The company has a market capitalisation of $72.7 million, making it a small-cap ASX share with considerable room to grow.

More reading

• Why the iCollege (ASX:ICT) share price is flying 8%

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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