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The Metalstech Ltd (ASX: MTC) share price is storming higher today as the company released its quarterly report. Shares in the gold miner are up 10% at the time of writing to a price of 16 cents. However, the company has traded as high as 19.5 cents this morning.

The news comes as the company announced high grade gold deposits at the Sturec gold mine.

Quarterly report

Metalstech made some solid steps in the first quarter of the financial year in what has been a transformative period for the company.

Despite the coronavirus pandemic, the company has added considerable value to its Sturec Mine in Slovakia. During the quarter, the company delivered a maiden 1.069 million ounces of solid gold and 8.214 million ounces of silver. In order to continue its positive results, the company also secured an extension to its underground mining licence.

With impressive exploration results, Metalstech took the opportunity to raise capital. The miner successfully raised $3.3 million through institutional investors. The funds raised will be used on underground railway development and to bankroll future exploration.

In terms of the company’s cash flows, there was no income to speak off. As such Metalstech announced a net loss of $367,000 for the quarter. However, with the addition of the capital raise, Metalstech cash position increased to a total of $2.9 million.

Sturec gold discovery

The discovery of high grade deposits at Sturec underlines the company position that exploration is key to its future. It also ratifies the decision to invest in its underground mining licence.

The gold was intersected at 252m, and is estimated to be an extension of the Schramen Vein which was the main vein for historical production.

About the Metalstech share price

The micro-cap miner is a resource exploration company currently focused on its Sturec gold mine in Slovakia. It is also listed on the Paris Stock Exchange and owns a mine in Canada.

The Metalstech share price has been on a strong positive run so far this year. Since the start of the year, its shares have risen from a price of 4 cents to 16 cents today. That’s a 300% increase in just 10 months.

More reading

• Newcrest (ASX:NCM) share price tumbles lower following Q1 update
• 2 ASX 200 shares poised to rocket when the world reopens
• Jumbo (ASX:JIN) share price drops lower following Q1 update
• Xplore Wealth share price surged to a 2-year high today on M&A fever
• Aldoro Resources (ASX:ARN) share price soars 137% on project update

Motley Fool contributor Daniel Ewing 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 world isn’t quite ready to reopen yet. In fact, it’s currently heading in the other direction.

The northern winter hasn’t really got rolling and already the coronavirus is spreading across much of the north at a truly pandemic rate.

While dreadful, a second mass outbreak during the cooler months shouldn’t come as a surprise. After all, this is when people spend more time together in close proximity indoors. And even outdoors, the virus lingers longer on surfaces at winter temperatures.

I’ve been cautioning my family in the United States and in the Netherlands to brace for this second winter wave for months. Not that there’s a whole lot they can do. Other than ensure an ample supply of hand sanitiser, facemasks and, well, toilet paper.

Although this second wave isn’t entirely unexpected, the rate at which it’s spreading has caught Europe’s leaders off guard.

In a televised speech, French President, Emmanuel Macron, stated:

The virus is circulating at a speed that not even the most pessimistic forecasts had anticipated. Like all our neighbours, we are submerged by the sudden acceleration of the virus. We are all in the same position: overrun by a second wave which we know will be harder, more deadly than the first.

In an effort to slow the spread, France and Germany have reintroduced strict lockdown conditions. France’s measures are almost as extreme as the stage 4 lockdowns Victorians endured, except that French schools will remain open.

Understandably, the daily news of mounting infection numbers – and uplifting speeches like Macron’s – have put already jittery share markets even more on edge.

And the latest news on the renewed lockdowns in Germany and France – Europe’s two biggest economies – prodded many investors to hit the sell button.

A sea of red

All the major European and American indexes sold off yesterday (overnight Aussie time).

In the US, the tech-heavy NASDAQ-100 (NASDAQ: NDX) led the way down, losing 3.9%.

In Europe, that undesired honour went to Germany’s DAX PERFORMANCE-INDEX (DB: DAX), which closed the day down 4.2%.

Not surprisingly then, the S&P/ASX 200 Index (ASX: XJO) is losing ground today too, down 1.4% in early afternoon trading. Geographically, we may be a remote, island nation with extremely low COVID numbers. But when it comes to most of the shares on the ASX, what happens in the rest of the world matters.

And nowhere is this more true than in the energy sector.

ASX 200 energy shares pummelled

Already suffering from a global supply glut, the onset of the pandemic absolutely smashed the price of crude oil.

Brent crude, the global benchmark, had been tracking steadily higher since early October 2019. That was largely due to the success of OPEC+ (which includes Russia) in cutting excess output fuelled by record US production.

As recently as 6 January, Brent was trading for US$68.91 (AU$97.75) per barrel. By 21 April, it was down to US$19.33 per barrel. Buoyed by global government stimulus, low interest rates, and optimism that the virus could be held in check, Brent was trading for US$43.16 only last Tuesday 20 October.

At time of writing it’s down to US$39.28.

ASX 200 energy shares, already the target of activist investors, have seen their values pummelled.

Woodside Petroleum Limited (ASX: WPL) is Australia’s largest independent dedicated oil and gas company. Down 1.3% in intraday trading, year to date the Woodside share price is down 49%.

Santos Ltd (ASX: STO), Australia’s second largest oil and gas company, is down 4.0% at time of writing. Year to date, the Santos share price is down 41%.

And US listed energy giant, Exxon Mobil Corporation (NYSE: XOM) has fared even worse. The Exxon share price slipped 3.8% yesterday, putting its shares down 55% year to date.

And most analysts are pointing the finger of blame (or one finger, in either case) directly at COVID.

Andrew Lebow, a senior partner at Commodity Research Group, observed (as quoted by Bloomberg):

This is more of a reaction to concerns over the coronavirus and potential for further restrictions and lockdowns than the crude build. Seemingly things are getting worse by the day.

Oil in the streets

Contrarian investor, Baron Rothschild famously said, “The time to buy is when there’s blood in the streets.” 

In the case of the leading ASX 200 energy shares, and Exxon if you’re comfortable with buying international shares, that time looks nigh. 

Oil, along with the Santos and Woodside share prices, could well slide further if the pandemic lockdowns in Europe persist or even spread.

But once the world does get past this virus, I expect the demand for oil will rebound to pre-pandemic levels. This could see the share prices of companies like Exxon, Santos and Woodside rebound just as strongly.

More reading

• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• Why Afterpay, LiveTiles, PointsBet, & Santos shares are tumbling lower
• 5 things to watch on the ASX 200 on Tuesday
• The Santos (ASX:STO) share price is up 3% on positive sentiment

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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The Jumbo Interactive Ltd (ASX: JIN) share price is trading lower on Thursday following the release of its first quarter update.

At the time of writing, the online lottery ticket seller’s shares are down 2.5% to $11.12.

How did Jumbo perform in the first quarter?

Despite what its share price decline might indicate, Jumbo has been a relatively positive performer during the first quarter. This was despite the company facing a sizeable decline in large jackpots.

According to the release, Jumbo has recorded a 36% increase in sales from jackpots under $15 million over the last 12 months. This helped to partially offset a reduction in large jackpots to 8 from 13 and a peak jackpot of $80 million compared to $150 million in the prior corresponding period.

This ultimately led to Jumbo reporting consolidated total transaction value (TTV) of $108 million and consolidated revenue of $22.3 million for the quarter. This was down 6% from $115 million and down 2% from $22.8 million, respectively, compared to the prior corresponding period.

Jumbo’s revenue was boosted by an 80 basis points increase in its revenue/TTV margin from 19.8% to 20.6%.

Jumbo’s CEO, Mike Veverka, was pleased with the company’s performance given the challenging trading conditions.

He commented: “In the opening quarter, when large jackpots were down 38% on the pcp and the peak jackpot reached $80m compared to the record $150m jackpot a year ago, I am pleased to announce a significant improvement in Jumbo’s underlying performance, including in our key lotteries business, where like-for-like sales increased by between 26% and 64%.”

“This contributed to a group revenue result which was down just 2% on the pcp and demonstrates our superior ability to continue to deliver engaging and entertaining experiences to our customers,” he added.

Management notes that its performance was driven by stay-at-home restrictions driving customers online, a growing contribution from the Powered By Jumbo SaaS business, and improved data analytics. The latter is enhancing its customer engagement.

Outlook.

No guidance was given for the remainder of the first half or the full year. However, Mr Veverka remains positive on the future.

“I am proud of the commitment and performance of our whole team in this challenging environment. We look to the future with the confidence that we have a resilient business in strong financial shape, allowing us to sustainably grow our customer base as we continue to invest in our existing businesses and capitalise on our options for growth.” the CEO concluded.

More reading

• These ASX growth shares could be great options in October
• 3 ASX shares to watch closely
• Top brokers name 3 ASX shares to buy next week
• Insiders have been buying Jumbo (ASX:JIN) and this ASX share
• These ASX dividend shares could be stars of the future

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Jumbo Interactive Limited. The Motley Fool Australia owns shares of and has recommended Jumbo Interactive 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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It’s a bleak day for the ASX. But that didn’t stop the Xplore Wealth Ltd (ASX: XPL) share price from surging to a two-year high due to a takeover.

The Xplore share price surged 188% to 19 cents during lunch time trade even as the All Ordinaries (Index:^AORD) (ASX:XAO) and the S&P/ASX 200 Index (Index:^AXJO) tanked by around 1.5% each.

There aren’t many stocks trading in the black today due to a large sell-off on Wall Street overnight. But the wealth platform company is bolstered by merger and acquisition (M&A) action.

M&A fever fires up the Xplore share price

It’s larger rival Hub24 Ltd (ASX: HUB) will acquire the company via a scheme implementation agreement.

The bidder completed its $50 million placement today to help fund the takeover. It’s looking to raise up to an extra $10 million via a share purchase plan.

Hub24 is going for a hat trick. It will use the proceeds from the new share price to make two other investments. The first is the acquisition of Ord Minnett’s portfolio administration and reporting services (PARS) asset.

Multiple transactions shake-up wealth industry

Hub24 will also acquire a 40% interest in Easton Investments Ltd (ASX: EAS). As part of this investment, Easton will purchase Hub24’s Paragem business, reported Money Management.

The transaction will give Easton 670 advisors from Paragem. This will make Easton the fifth largest dealer services group in Australia.

Meanwhile, the three strategic transactions will strengthen Hub24’s position as the leading provider of integrated platforms, data and technology services for financial advisers, stockbrokers and private banks.

Hub24 joins Xplore’s share price parade

The market seems to like what the bidder is saying. The Hub24 share price surged 8% to a record high of $22.64 at the time of writing.

“The successful completion of these transactions, which include the acquisition of Xplore Wealth and Ord Minnett’s PARS, will result in a 47% increase in custodial FUA, around 400 new adviser relationships and the expansion of non-custody administration FUA [funds under advice] to $14 billion,” said Hub24’s chief executive Andrew Alcock.

“For a total consideration of $93m, including integration and transaction costs, these compelling transactions are expected to return approximately 13% improvement in EPS to shareholders in FY22.”

Outlook for M&A in 2021

We haven’t seen many M&A’s this year as the COVID‐19 pandemic may have scuttled plans. Having said that, the proposed takeover of Coca-Cola Amatil Ltd (ASX: CCL) will put M&A back on the agenda for 2021.

This means we will probably see a pick up in the number of takeovers. The fallout from COVID-19 presents opportunities for those lucky enough to be cashed up.

More reading

• Why market crashes are useful for buying ASX dividend shares
• The Seek Ltd (ASX:SEK) share price under attack by offshore shorter
• ASX 200 down 1.1%: ANZ cash earnings down 42%, SEEK slammed, HUB24 jumps
• Why Coles, HUB24, Mesoblast, & Temple & Webster shares are pushing higher
• Why the HUB24 (ASX:HUB) share price is storming higher despite the market selloff

Brendon Lau has no position in any of the stocks mentioned. Connect with me on Twitter @brenlau.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd. The Motley Fool Australia has recommended Hub24 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 Aldoro Resources Ltd (ASX: ARN) share price soared more than 173% to 26 cents today before dropping back to 22.5 cents at the time of writing. The surge in the Aldoro share price is defying the wider market selloff and came after the company released an update about its Narndee project in Western Australia.

What was in the announcement?

According to Aldoro, it has commenced exploration at its Narndee project, which will take place from now into 2021. Aldoro Resources stated that it has been reviewing the project, along with historical data, and is set to commence exploration. The company will commence exploration work with an electromagnetic survey, set to take place in November. Following the electromagnetic survey, groundwork will commence in order to define drill targets for late 2021.

Aldoro stated that it will use modern exploration techniques in order to search for nickel and copper deposits. The announcement stated that “Aldoro holds 100% of the basal ultramafic portion of the complex around Narndee”. Aldoro Resources holds a tenement of approximately 306km² in the area. 

According to the company, previous exploration conducted by Falconbridge revealed widespread nickel, copper and platinum anomalies of up to 6,190 parts per million of nickel, 672 parts per million of copper and 595 parts per billion of platinum and palladium. 

About the Aldoro share price

Aldoro Resources is a mineral exploration and development company with assets in Western Australia. The company has been listed on the ASX since 2018.

Earlier in October, Aldoro announced it had completed drilling at its Unaly Hill South project with assay results pending. The 56 drill holes were targeting gold and totalled 3,422 metres. 

In the quarter to 30 June 2020, the company spent $294,000, mostly on exploration. Aldoro Resources had cash on hand of $2.5 million at 30 June, however, it raised $1.19 million after the end of the June quarter.

After today’s impressive rally, the Aldoro share price is up 246.14% from its 52-week low of 6.5 cents and has increased 32.35% since the beginning of the year. The Aldoro Resources share price is up 25% since this time last year.

More reading

• ATO: Stop using JobKeeper to pay for fat bonuses and dividends
• Why the Esports Mogul (ASX:ESH) share price is down today
• Archtis (ASX:AR9) share price jumps 8% on cyber security acquisition
• Are these small cap ASX shares the next Kogan (ASX:KGN) and Nearmap (ASX:NEA)?
• ASX stock of the day: Total Brain (ASX:TTB) shares surge on massive revenue growth

Motley Fool contributor Chris Chitty 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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An Australian Taxation Office (ATO) commissioner has warned companies receiving taxpayer COVID-19 assistance shouldn’t be giving out fat bonuses to executives.

ATO second commissioner Jeremy Hirschhorn said that JobKeeper will hand out about $100 billion to Australian businesses to help retain staff.

“The quid pro quo in the community’s mind is that large corporates, in particular but not limited to those who accessed these schemes, will pay their share and improve their approach to tax,” he said Thursday at the Australian Financial Review CFO Live conference.

“Yes, follow the tax law, but also follow the spirit of the law.”

Several ASX-listed companies have outraged taxpayers and politicians for receiving millions in JobKeeper then using that assistance to pay out large bonuses to its leadership.

Retail giant Premier Investments Limited (ASX: PMV) was one example, revealing that it received $49 million in wage subsidies as of July – then paying out a $2.5 million bonus to its chief executive.

Consider the optics, commissioner warns

Hirschhorn said there was nothing in the rules about a prohibition on executive bonuses or dividends for subsidy recipients. But companies who pull such stunts are ravaged in public opinion, especially in economically difficult times.

“There was a quick backlash for those companies seen to be exploiting the spirit of the measures.”

Shareholders certainly would think twice about investing in businesses with this sort of conduct, according to the commissioner.

“I encourage you to consider the optics of making a statement in your annual report noting that the pandemic has not substantially impacted the operations of your business while at the same time collecting hundreds of millions of dollars in stimulus.”

The corporate community itself has also been critical of such stunts, with Hirschhorn citing a television appearance by Business Council chief Jennifer Westacott.

“Westacott told ABC’s Insiders that companies should not be paying executive bonuses if they are receiving JobKeeper because it wasn’t designed for that, it was designed to keep people working.”

The oft-used line “We follow the tax laws in every country in which we operate” just doesn’t wash if companies flagrantly exploit loopholes, he added.

Hirschhorn was promoted to the second commissioner seat in April, in the midst of the coronavirus shutdown. He oversees the ATO’s Client Engagement Group.

More reading

• Leading brokers name 3 ASX shares to sell today
• 5 things to watch on the ASX 200 on Monday
• These were the best performing shares on the ASX 200 last week

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Premier Investments 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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Shares in gaming company Esports Mogul Ltd (ASX: ESH) are dropping today as the company announced its quarterly report.

The Esports Mogul share price has fallen 7.69% on the back of the news. In morning trade, its price dropped as low as 2.2 cents although it currently sits at 2.4 cents.

What did the report reveal?

The quarterly report has been highly anticipated, with the Esports Mogul share price jumping up as high as 3 cents within just the last 5 days. However, with a higher share price comes higher expectations.

During the quarter, the e-sport gaming company announced an oversubscribed placement which successfully raised $8 million. The placement will focus on funding the company’s expansion into mobile gaming. Strategically, with no native mobile tournament solution currently in the market globally, Esports Mogul believes it possesses a first mover advantage.

Furthermore, the company also announced a deal to partner with NASDAQ-listed Super League Gaming. The partnership gives Esports Mogul the opportunity to incorporate Super League Gaming’s AI technology into its platform.

Despite the positive announcements, the company’s cash flow report failed to impress, raking in just $66,000 from customers. In total, the company lost $523,000 in the quarter. As a result, Esports Mogul has $1.68 million in the bank, but this does not take into account its recent placement.

New appointments

Esports Mogul announced two newcomers to the leadership team, with Kate Vale and Michael Rubinelli joining the company.

Mr Rubinelli, a former Electronic Arts and Walt Disney Co executive, has been appointed CEO. He brings significant experience in executive leadership, product development and revenue growth. Ms Vale, who has experience with Alphabet Inc and Spotify Technology, joins the Esports Mogul board. 

What now for the Esports Mogul share price?

Despite recent share price gains, the company’s market cap remains around the $60 million mark. 

The company finished developing its tournament-as-a-service offering for global brands, advertisers and agencies during the quarter, which may bode well for the Esports Mogul share price moving forward.

The Esports Mogul share price is currently trading 7.69% lower.

More reading

• Why the Emerge Gaming Ltd (ASX:EM1) share price jumped 12% today
• The Esports Mogul (ASX:ESH) share price has surged up 57%. Here’s why

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Daniel Ewing owns shares of Alphabet (A shares) and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares) and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Electronic Arts and recommends the following options: long January 2021 $60 calls on Walt Disney. The Motley Fool Australia has recommended Alphabet (A shares) and Walt Disney. 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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Archtis Ltd (ASX: AR9) shares are up 8.33% on Thursday afternoon following the company’s acquisition of global information protection business, Nucleus Cyber. At the time of writing, the Archtis share price is trading at 39 cents after closing yesterday’s session at 36 cents.

What’s moving the Archtis share price?

In contrast to a wider market selloff, investors are today driving up the Archtis share price after the company announced news of its latest acquisition.

Archtis is a Canberra-based firm that specialises in the design and development of products, solutions and services for secure information sharing and collaboration. The company has a broad range of products and service offerings such as:

• Kojensi, a highly secure and trusted platform for sharing sensitive and classified files and document collaboration.
• Axiomatics, a dynamic and externalised authorisation solution. 
• Appsian, a security platform with dynamic control access. 
• Consulting and solutions services for secure information sharing and inter-organisation collaboration. 

Nucleus Cyber provides advanced information protection solutions that prevent data loss and protect against insider threats across the Microsoft Corporation (NASDAQ: MSFT) software suite. Microsoft is the world’s largest supplier of digital collaboration products to government, enterprise and SMEs. Microsoft boasts 115 million daily users of its Teams platform, and the Nucleus Cyber technology solutions operate seamlessly in conjunction with these products. For example, its protection solution provides a simpler, faster and cheaper solution to tailor information protection for file sharing, messaging and chat across collaboration tools. 

Nucleus Cyber’s customers include companies such as Virgin Australia Holdings Ltd (ASX: VAH), the Australian Government Department of Defence and Department of Health, Melbourne Polytechnic and Paramount Pictures. 

Acquisition details 

Archtis will acquire 100% of Nucleus Cyber for a total potential consideration of up to $9.75 million in Archtis shares. The company believes that this acquisition is highly strategic and transformational for its growth trajectory and global presence. Archtis will gain immediate presence in the key North American market, as well as access to the Microsoft business product suite. 

Opportunities for the combined business

The acquisition presentation highlights the company’s initial focus on foundational benefits such as simplifying its combined licensing and revenue model, solidifying its products, stabilising the combined customer base, introducing the Microsoft relationship to Archtis, and developing initial awareness. 

This will position the company in 2021 and beyond to focus more on expansion including a direct regional expansion across the European Union, Middle East and Asia Pacific regions. It will also enable Archtis to expand its product alliance with Microsoft Teams and security platforms as well as delivering lead generation and opportunities within US federal and central governments. 

The Archtis share price has increased 200% in year-to-date trading.

More reading

• Why the Esports Mogul (ASX:ESH) share price is down today
• Are these small cap ASX shares the next Kogan (ASX:KGN) and Nearmap (ASX:NEA)?
• ASX stock of the day: Total Brain (ASX:TTB) shares surge on massive revenue growth
• The Credit Clear (ASX:CCR) share price has rocketed 133% since its IPO this week
• Why the Bellevue (ASX:BGL) share price is dropping lower

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Lina Lim 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 Microsoft and recommends the following options: long January 2021 $85 calls on Microsoft and short January 2021 $115 calls on Microsoft. 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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If you’re looking for small cap ASX shares to add to your watchlist, then I think the two listed below could be worth considering.

While they still have a lot of work ahead of them, I believe both have the potential to grow into much large entities in the future if all goes to plan.

Here’s why I’m watching them closely:

Aerometrex Ltd (ASX: AMX)

Aerometrex is a growing aerial mapping business specialising in aerial photography, photogrammetry, LiDAR, 3D modelling, and aerial imagery subscription services. The latter is through its MetroMap offering, which provides access to high quality 2D imagery and 3D reality mesh models. The company has been busy developing new products to strengthen its offering and recently announced a new bush fire prevention product.

This new technology is able to determine, in three dimensions, the exact fuel load densities in any bushfire prone region in Australia. Management believes the breakthrough could allow users to adopt a far more science-based and pre-emptive fuel load strike position ahead of this year’s bushfire season. All in all, Aerometrex is starting to look like the next Nearmap Ltd (ASX: NEA).

MyDeal.com.au Limited (ASX: MYD)

MyDeal.com.au is a recently listed online retail marketplace provider with a focus on furniture, homewares, appliances, technology, baby products, and hardware. It has been a strong performer in FY 2021, delivering first quarter gross sales growth of 317% to $56.67 million. This was underpinned by the shift to online shopping and a 268% increase in active customers to 669,897.

The company raised $40 million from its IPO and intends to use the proceeds to drive future growth. This includes growing its private label business, investing in its proprietary technology, and investing in advertising to grow its customer base and brand. If it can continue its strong form and invests its funds wisely, we could be looking at the next Kogan.com Ltd (ASX: KGN).

More reading

• Why Redbubble, Kogan, Marley Spoon and 1 other ASX share are surging
• Temple & Webster (ASX:TPW) share price barnstorms back with 11% rise
• Here’s how Adore Beauty (ASX:ABY) and these new IPOs have fared since listing
• 3 explosive ASX growth shares to buy with $3,000
• How did ASX retail shares perform in the latest quarter?

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. 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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Our ASX stock of the day today is Total Brain Ltd (ASX: TBB). Total Brain shares are going ballistic today, up 10.14% at the time of writing to 38 cents a share. The company’s share price closed at 34 cents a share yesterday, opened at 40 cents this morning, rose as high as 42 cents a share in early morning trading, before settling at the current level.

There’s no doubt 2020 has been a wild ride for the company. Total Brain shares were as high as 83 cents in January and as high as 62 cents a share in May, meaning shareholders are still down significantly from those highs, despite the massive share price appreciation we’ve seen today so far.

So what is this futuristic-sounding company and why are its shares going wild today?

Who is Total Brain?

Total Brain describes itself as a “mental health and brain performance self-monitoring and self-care platform”. It was founded in 2002 in San Francisco, California by neuroscientist Dr Evian Gordon. The company states that “our mission is to improve mental health and brain performance through brain-based self-awareness and training.”

The pillar of Total Brain’s business is a self-titled app (the Total Brain app). The app is available for smartphones and tablets as well as a desktop version. This app features a mental health screener, mental relaxation exercises and a ‘brain capacity test’, which measures your cognitive abilities across 12 ‘core brain capacities’, which include memory, resilience, connectivity and anxiety control.

Users can use the app for free, but free usage is restricted to your ‘brain score’ as well as a few sample training apps.

However, users can also opt for Total Brain’s paid membership, which is available on a subscription basis, costing $9.99 at the time of writing. A paid membership entitles the user to their full “scientifically validated brain health report” as well as a tailored training program and Total Brain’s full suite of training apps.

The company also offers packages tailored to companies and organisations. The company or organisation can pay for its staff to access the platform and receive the assessments and benefits of the app previously discussed. Total Brain lists Boeing Co (NYSE: BA) and Stanford University as among its clients.

Why are Total Brain shares rocketing today?

Total Brain’s share price was skyrocketing at market open this morning. However, the company only released a quarterly update at midday today. Putting that discrepancy aside, let’s assume that today’s strength is a result of this report.

Total Brain told investors that the company collected $800,000 in cash receipts for the quarter ending 30 September 2020. This was a 54% decrease, quarter on quarter. However, the company notes that in the previous quarter, a large upfront payment from a single contract was recorded. So if we adjust this number for that contract, revenue was actually up 20% on the prior quarter.

The company also notes that user registrations increased by 3% quarter on quarter, and 37% on a year-on-year basis. Brain profiles also increased by 4% and 37%, respectively.

Total Brain also told investors that user registrations have been growing at a 28% compounded annual growth rate (CAGR) between FY2017 and this quarter. Brain profiles had a CAGR of 35% over the same period.

In the company’s annual report for FY2020 (released back in August), Total Brain reported annual revenue growth of 48.4%, with expenses only growing by 3% (highlighting the benefits of a software-as-a-service business model).

It’s this continuation of Total Brain’s impressive revenue growth, further confirmed in the quarterly report, that I estimate is pushing up Total Brain shares today.

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Motley Fool contributor Sebastian Bowen owns shares of Boeing. 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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