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Australian electric scooter maker Vmoto Ltd (ASX: VMT) announced a market update on its activities for the third quarter ending 30 September.

The company reported record growth in sales of 7,009 units during the quarter, and record international sales year to date of 15,847 units.  This is 35% higher than the corresponding period in 2019, and 107% up on the same period in 2018.

The Vmoto share price is trading flat at 51.5 cents at the time of writing. 

Who does Vmoto do?

Vmoto is a Perth-based company that manufactures and distributes electric-powered two-wheel vehicles. Its factory is located in Nanjing, China.

The company has marketed itself as a premium maker of electric scooters with chic European design, coupled with German engineering. Vmoto is also involved in the manufacture of petrol-based scooters, however this represents a small part of its product line-up.

Highlights from today’s market update 

In 2020, Vmoto has undergone a strategic review on its operations to focus on the international sales of its high margin electric two-wheel product segment. Although 91% of sales are in China, the company wants to give more focus on the European market. 

The highlights of the announcement today include:

• International sales in 3Q20 beat its biggest competitor Niu Technologies (NASDAQ: NIU) – 7,009 units for Vmoto vs 5,596 units for Niu Technologies. This validates Vmoto’s competitiveness in international markets.
• A net cash position of AU$ 15.3 million. This is net of debt.
• There are significant inquiries from the business-to-business (B2B) segment especially from food delivery and ride-sharing companies. Advanced discussions are under way to secure those contracts.
• A European government’s initiative to subsidise the purchase of electric two-wheel vehicles will have longer term positive impact for the company.
• The company has secured international orders for 6,512 units to be delivered post 3Q20.
• The company has consistently delivered increasing sales every year since 2018.

The share price of Vmoto has increased by 117% this year at today’s trading. It has a market cap of AU$148.5 million at today’s value. 

The current state of electric motorcycles

The COVID-19 pandemic has accelerated the purchase of two-wheeled vehicles around the world – both by individuals as well as companies such as food delivery. In the city of London for example, new motorcycle registrations in 2020 were up by 31% compared to the same period last year. Food delivery company Deliveroo has seen its riders doubled in the UK within a year, with similar numbers across Europe. 

However, the electrical segment still only represents a small percentage of the motorcycle market.  In India, which is the world’s largest motorcycle market, it’s still less than 1%. 

The key to mass adoption of electric motorcycles will be the provision and ubiquity of Electric Vehicle (EV) charger stations in metropolitan areas. Some European governments  have begun discussions with private entities to install these EV stations around the major cities.

More reading

• ASX stock of the day: Strategic Elements (ASX:SOR) surges 170% on new self-charging battery
• Do Australian companies pay more tax than our neighbours?
• Here’s how Adore Beauty (ASX:ABY) and these new IPOs have fared since listing
• Will COVID-19’s second wave crash share markets a second time?
• Alcidion (ASX:ALC) share price storms higher on update

Motley Fool contributor dsunarto 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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Today, our ASX stock of the day is Strategic Elements Ltd (ASX: SOR). The Strategic Elements share price is certainly having a top day today. It has surged more than 170% from 6.5 cents a share yesterday to 18 cents a share at the time of writing (a new 52-week high). That means a $1,000 investment yesterday would now worth approximately $2,077 today. Not bad.

Today’s gains cap off what has been a volatile year in 2020 so far for this company. Strategic Elements shares have a 52-week range of 3 cents to today’s new high of 18 cents. But before today, the share price went nowhere over the past month, staying flat at 7 cents.

But why such a massive change in valuation over the space of one day? Well, the company did make an announcement to the markets this morning that seems to be why its shares are reaching for the stars today. But more on that later.

Who is Strategic Elements?

Strategic Elements is a very interesting kind of company, and one you might not have run into before. The company tells us that it “operates as a venture builder where it generates ventures and projects from combining teams of leading scientists or innovators in the technology or resources sectors.”

Importantly, the company describes itself as a “registered Pooled Developed Fund (PDF)”. According to Strategic Elements, a PDF means that “our investors pay no tax on capital gains or dividends to compensate for the higher risk of investing in small and medium-sized companies.”

The federal government’s business.gov.au website confirms this arrangement. It states that the PDF program aims to “increase the supply of capital to Australian small and medium-sized enterprises (SMEs).”

According to the government, under the arrangement:

PDFs and their shareholders receive tax benefits on the income derived from their equity investments. This is to help compensate for the higher risk of investing in SMEs. PDFs will be taxed at 15% on the income and gains derived from equity investments in Australian SMEs. Shareholders are exempt from tax on the income and gains derived from holding and disposing of PDF shares.

Strategic Elements aims to use this program to “take part in projects that explore brand new fields of innovation”. However, it also notes that, under the PDF arrangement, investments in retail or property investments are not permitted.

At the moment, some of Strategic Elements’ investments include an artificial intelligence and robotics company called Stealth Technologies, as well as a meteorite mining company (Australian Exploration Projects) and a company dedicated to making ‘memory ink’ (Nanocubes).

A new self-charging battery?

But Strategic Elements comes before us today for a different reason. It’s 100%-plus share price movement this morning can be put down to one announcement made before market open: a company in Strategic Elements’ portfolio is developing a self-charging battery technology. Strategic Elements’ subsidiary Australian Advanced Materials is collaborating with both the CSIRO and the University of New South Wales to develop the battery. According to the release:

The battery cells create electricity from humidity in the air or skin surface to self-charge themselves within minutes. No manual charging or wired power is required. They are created with a printable ink and are ideally suited for use in Internet of Things (IOT) devices.

The company notes that, if successful, the new battery technology would have a number of benefits over the existing lithium-ion rechargeable battery technology in widespread use today. These include non-flammability, weight reduction, no need for ‘plug-in charging’ and reduced environmental impact.

The batteries will be made using ‘battery ink’ from Strategic Elements’ Nanocubes, as well as graphene oxide, which is derived from graphite, a form of carbon.

Why are investors so excited about these batteries?

With the Strategic Elements share price rising by more than 170% just today, I think it’s fairly safe to say investors are excited about this technology’s prospects. But why? I think the answer lies with this technology’s potential applications. Strategic Elements is very keen to tout the application of these batteries to the Internet of Things.

Part of the company’s release states:

The global battery market for IOT is already significant with US$8.7 billion in 2019 and is projected to grow to US$15.9 billion by 2025. The growing need for thin and flexible batteries in IOT and medical devices, along with inherent advantages of micro batteries provides significant opportunities.

Rechargeable batteries are already being used for new applications. Most famously perhaps is by Tesla Inc (NASDAQ: TSLA). If Strategic Elements is really onto a winner here, it would have virtually limitless applications – including in electric vehicles. Further, companies working in this area, like Tesla and Nio Inc (NYSE: NIO), have recently seen significant investor interest and share price appreciation. I’m sure some of this goodwill and sentiment is flowing into Strategic Elements today.

This is an interesting one to watch going forward!

More reading

• Tesla knocks Q3 earnings out of the park
• Could Tesla deliveries surge 70% next year?
• Tesla Q3 trounces analyst estimates
• Tesla (NASDAQ:TSLA) earnings: What to watch
• 2 big challenges as Tesla (NASDAQ:TSLA) aims for a $25,000 car

Sebastian Bowen owns shares of Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. 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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Company tax is often a sensitive topic. 

Foreign multinationals are accused of not paying enough, local companies complain they pay too much, and businesses clever enough to domicile in low-tax regions are accused of tax-dodging.

Conversely, nations manipulate their corporate tax level according to their needs. Lower it to attract business activity, or raise it to fund social spending.

The stereotype is that wealthy European nations will have a higher tax rate to pay for their more generous social spending. And poorer countries have lower corporate taxes to entice business. 

Accounting software provider QuickBooks recently actually did the sums to work out whether any of this is true.

Australia has the 9th highest company tax

Australia’s 30% company tax rate saw it ranked as the equal 9th highest in the world. In the Asia-Pacific region, only Japan’s company tax rate was higher, at 30.62%.

Oddly enough, the highest taxing “country” on QuickBooks’ league table is not a country at all — it is the United States territory of Puerto Rico, which slugs businesses a whopping 37.5%.

The biggest trend was that the old stereotype of developed nations having higher corporate taxes and poorer countries having lower rates was shattered.

European countries on average had a tax rate of 20.27%, while Africa averaged 28.45%.

South America was the most frequently represented in the top 10, with Brazil and Venezuelan businesses paying 34% in tax.

“It is unclear whether South America, as an emerging continent, is charging higher taxes in order to raise government revenue or to benefit from businesses that are looking to expand internationally and enter new markets,” said QuickBooks analyst, Lucy Desai.

“South America is becoming a popular choice for businesses to enter, with strong trade links and an advantageous geographic location.”

Looking at the richest countries, there is no magic formula for company taxes – some charge high and some charge low.

“The top five richest countries in the world’s corporation tax are relatively varied, with Luxemburg standing at 27.08%, Norway at 22%, Iceland at 20%, Switzerland at 18% and Ireland at 12.5%,” said Desai. 

“It would appear that some countries’ cultures factor into how much tax they pay. For example, Scandinavian countries are proud to pay higher taxes to contribute to social welfare.”

Countries with the highest corporate taxes

Nation/region	Company tax rate (%)
Puerto Rico	37.5
Zambia	35
Brazil	34
Venezuela	34
France	33.3
Columbia	33
Morocco	31
Japan	30.62
Australia + 7 others	30
Source: QuickBooks, table created by author

Countries with the lowest corporate taxes

Nation/region	Company tax rate (%)
Barbados	5.5
Hungary	9
Qatar	10
Bulgaria	10
Cyprus	12.5
Ireland	12.5
Iraq	15
Kuwait	15
Maldives	15
Georgia	15
Lithuania	15
Source: QuickBooks, table created by author

 

More reading

• Here’s how Adore Beauty (ASX:ABY) and these new IPOs have fared since listing
• Will COVID-19’s second wave crash share markets a second time?
• Alcidion (ASX:ALC) share price storms higher on update
• Why the Clinuvel (ASX:CUV) share price is climbing higher today
• A look into Mike Cannon-Brookes’ share portfolio

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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The month of October has certainly been a very busy one for IPOs.

A number of shares have completed their IPOs this month and hit the ASX boards. Some more successfully than others.

Here’s a summary of recent IPOs and how they have fared since listing:

Adore Beauty Group Limited (ASX: ABY)

The Adore Beauty share price has had a difficult start to life on the ASX boards. This afternoon the online beauty retailer’s shares are trading at $5.88. This represents a 13% decline from its IPO price of $6.75. 

Adore Beauty raised $269.5 million from its IPO, giving it a market capitalisation of $635.3 million. The company intends to use the proceeds of its IPO to support its growth strategy and future growth opportunities. This includes growing its brand awareness, strengthening its offering, and expanding into new markets and adjacent categories.

Aussie Broadband Limited (ASX:ABB)

The Aussie Broadband share price has been a very strong performer since completing its IPO. On Tuesday afternoon the internet provider’s shares are fetching $1.89. This is up a sizeable 89% from its IPO listing price of $1.00.

Aussie Broadband listed on the Australian share market after raising approximately $40 million through a partially underwritten initial public offering. The funds raised are going to be used predominantly on the deployment of a dark fibre network.

CleanSpace Holdings Limited (ASX: CSX)

The CleanSpace share price has also been a strong performer since listing on the Australian share market. The shares of the designer, manufacturer, and seller of workplace respiratory protection equipment (RPE) for healthcare and industrial end markets are trading at $6.88 this afternoon. This is up an impressive 56% from its listing price of $4.41.

CleanSpace’s IPO raised a total of $131.4 million. Though, only $20 million of this was primary capital. The remainder is for long term shareholders to realise some of their investments.

MyDeal.com.au Limited (ASX: MYD)

The MyDeal.com.au share price is trading at $1.32 this afternoon. While this is notably higher than its IPO price of $1.00, it is materially lower than its high. The online retail marketplace provider’s shares rocketed 120% higher on their first day on the ASX boards to $2.20.

MyDeal raised $40 million from its IPO, which comprises $35 million for the company and $5 million for certain existing shareholders. It 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.

Zebit Inc (ASX: ZBT)

The Zebit share price has had a disastrous start to life on the ASX boards. This afternoon the US-based e-commerce company’s shares are changing hands for 97.5 cents. This is down 38% from its IPO price of $1.58.

The California-based company raised A$35 million, which it plans to use to rapidly accelerate its growth in North America. Zebit markets itself as the Amazon for the under-served, with a built in buy now pay later platform that provides credit to those that cannot get it elsewhere.

More reading

• Zebit Inc (ASX:ZBT) share price crashes 21% lower following IPO
• The Adore Beauty (ASX:ABY) share price surged 10% higher today
• MyDeal (ASX:MYD) share price rockets 120% higher following IPO
• New $259 million ASX tech player listing Thursday
• ASX 200 Weekly Wrap: Promises of easy money push ASX 200 to post-crash high

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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In the ongoing share market battle between the coronavirus and the next rounds of government stimulus, the virus took the upper hand yesterday. Major indexes the world over closed well into the red. And it’s pushing down share prices on the S&P/ASX 200 Index (ASX: XJO) again today.

On the virus side, case numbers are exploding across much of Europe and the United States. In efforts to minimise the tragic loss of lives, European nations are reimposing strict lockdowns sure to drag on their economies. And many US hospitals are already at or near capacity.

Of course, it’s not just the US and Europe.

Australia looks like it may join New Zealand and a handful of other less populated nations in containing or even eliminating the pandemic. But COVID-19 continues to expand across most of the rest of the world. Brazil, Mexico, India and Iran, to name a few, are all at or near record levels of new infections.

And yesterday news broke that the world’s most populous nation, China, reported its first new local infection since 14 October.

The reported case numbers were relatively small — 20 tested people showed symptoms while 161 were asymptomatic. But the prospect of a second wave in China was likely the culprit which drove the ASX 200 from early morning gains to close at a loss, while also driving the Aussie dollar lower.

Bring on the stimulus

With these alarming statistics in mind, investors are rightfully worried about the short to mid-term earnings outlooks for their shareholdings, and hence their share prices.

Let’s not forget that when the first wave of COVID crashed across the globe it sent the ASX 200 down 37% in less than 5 weeks, before hitting bottom on 23 March.

It was the same the world over.

The S&P 500 Index (INDEXSP: .INX) lost 34% during the panic selling. Germany’s DAX PERFORMANCE-INDEX (INDEXDB: DAX) tumbled 39%. Japan’s Nikkei 225 (INDEXNIKKEI: NI225) fell by 31%.

I could go on. But you get the idea. No major share market index in the world escaped the bloodbath.

And what was it that pulled share prices back up from those depths?

Record fiscal and monetary stimulus unleashed by the world’s leading central banks and wealthiest nations.

Only then did markets look past the immediate spectre of the economic fallout from lockdowns and social distancing to the longer-term outlook of what had been – and likely will be again – high quality, high performing shares.

At the moment all eyes are on the United States to do the next round of heavy lifting.

And for good reason.

The much-delayed new round of fiscal stimulus promises to be huge, regardless of how the final stages of negotiations work out. The White House now supports a US$1.9 trillion (AU$2.7 trillion) spending package. The Democrats are holding out for US$2.4 trillion.

Unfortunately, this half-a-trillion-dollar gap again saw House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin walk away (or hang up their phones) without reaching an agreement yesterday.

Here’s what the pros are saying

With so much riding on the stimulus versus virus battle, here are some soundbites from the market experts.

According to Keith Buchanan, portfolio manager for GLOBALT Investments in Atlanta (quoted by Bloomberg here and here):

Fiscal stimulus seems to not be coming as quickly as we thought and the virus is coming quicker than we imagined. Putting those two together is somewhat of a reality check for the markets…

The gains we made from an economic standpoint have been predicated on the feeling like we can start to deal with the virus and continue the economic recovery out of the bottom. It’s a scary moment from an economic standpoint to have all of those indicators that the virus is getting worse as stimulus seems to be slowing down very dramatically.

And David Donabedian, chief investment officer of CIBC Private Wealth Management says:

The overwhelming consensus in the market is that while the economic recovery to date is impressive, it still needs help. It’s not ready to stand on its own, and so some fiscal support is necessary and does not really seem to be forthcoming before year-end…

You really can’t blame the stock market for pulling back at any point given how far it’s come. It’s like a blast from the past – there’s rising concerns about COVID-19 and its impact on the economy.

Then there’s Ryan Detrick, chief market strategist for LPL Financial:

The double whammy of a stalled stimulus bill and new highs in cases is a harsh reminder of the many worries that are still out there. Most of the recent economic data has been strong, but when you see parts of Europe going back to rolling shutdowns, it reminds us this fight is still far from over.

But it’s not all doom and gloom for the short-term share market outlook.

A pre-election share market rally?

As a long-term investor, I believe you can look beyond most of this renewed angst. I’m confident that new stimulus measures will pass in the US and other developed nations. And, in time, the virus will be vanquished with effective vaccines and rapid testing.

On a much shorter time scale, next Tuesday, 3 November, marks the US presidential election. And if history is any guide, US – and likely Aussie – shares could rally into that date.

Miller Tabak strategist Matt Maley says the “odds are high” markets will rally through to 3 November.

As Bloomberg reports, in a note Maley wrote on Saturday, he pointed out the S&P 500 has rallied every time in the week before the presidential election since 1992, except 2016. The average gains in those 6 instances were 3.8%.

Maley noted:

Although the stock market fell 1.9% over the seven days of trading in 2016, you have to go all the way back to 1988 to find another time when it didn’t rally over the last week and a half of the election campaign.

Nothing is ever guaranteed in the markets… but our point is that history does tell us that the odds are high that the market will rally between now and Election Day.

With the average share price of the top 200 ASX companies down 1.3% at time of writing, we hope to see the pre-election market rally trend play out again this year.

More reading

• ASX 200 down 1.2%: Blackmores jumps, Bendigo and Adelaide Bank’s update, Zip sinks
• Boral (ASX:BLD) share price surges after announcing a US$1bn transaction
• ASX 200 slumps as second COVID-19 wave takes over US and Europe
• 5 things to watch on the ASX 200 on Tuesday
• 3 ASX stocks are outperforming today after brokers upgraded them to “buy”

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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Today, the Alcidion Group Ltd (ASX: ALC) share price is storming higher as the company released a positive quarterly report to the market. Shares in the e-health provider are rising strongly despite the sharp sell off in the All Ordinaries Index (ASX: XAO). At the time of writing, the Alcidion share price is trading 4.17% higher at 12.5 cents.

Strong start to the year

Alcidion has posted very strong numbers despite the ongoing impacts of the global pandemic. The healthcare small cap announced $4.8 million in new contracted revenue. This number is up 30% on the previous quarter’s results and up a huge 92% from the prior corresponding period (pcp). Despite this sizeable increase in revenue, the Alcidion share price has slumped 40% over the past year.

As a result of the company’s surging revenue during the quarter, total contracted revenue to be realised in FY2021 has also increased. Alcidion reported this number stands at $14.7 million. Furthermore, the company reported strong cash receipts from customers of $6.4 million, a 34% increase on a year ago.

Despite the rise in income, Alcidion still reported net cash outflows of $1.2 million. However, it should be noted that this number reflects ongoing investment in growing the business and was in line with the company’s expectations.

Alcidion had cash reserves of $14.7 million at the end of the first quarter. 

Comments

Alcidion Managing Director, Kate Quirk, was pleased with the results, stating:

I am pleased with the strong start we have made to the new financial year. It has been an important sales quarter in Australia, where we signed initial contracts with significant potential for future expansion.

We continue to scale up our sales, product implementation and marketing capabilities to accelerate growth in all markets, as healthcare undergoes unprecedented digital transformation. Investment in these areas will remain our focus throughout the financial year to support further growth and firmly establish Alcidion as a leading provider of digital healthcare solutions in this rapidly growing market.

About the Alcidion share price

Alcidion is a Melbourne-based company that is focused on developing a range of software products for use in the healthcare sector. Some of the company’s most prominent brands are Miya and Patientrack. These platforms enable medical professionals to better manage their time and patients.

As at October 2020, the company’s platforms are utilised by more than 65,000 users across over 300 hospitals in Australia, New Zealand and the United Kingdom.

Despite strong revenue growth over the last couple of years, the Alcidion share price has been on a downward trend since reaching all time highs of 30 cents in September last year. Shareholders will be hoping the company’s ongoing revenue growth will help drive a turnaround in the Alcidion share price.

More reading

• Why Alcidion, Blackmores, Boral, & CogState shares are pushing higher

Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Alcidion Group Ltd. The Motley Fool Australia has recommended Alcidion Group 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 Clinuvel Pharmaceuticals Limited (ASX: CUV) share price has returned from its trading halt and is pushing higher on Tuesday afternoon.

At the time of writing, the biopharmaceutical company’s shares are up almost 1% to $22.11.

Why is the Clinuvel share price pushing higher?

Investors have been buying the company’s shares today following the release of an update on its Scenesse product.

Scenesse is the first treatment to provide erythropoietic protoporphyria patients (EPP) with protection from the wavelengths of light that cause phototoxicity. It reduces the number and severity of reactions and increases the amount of time that sufferers can be exposed to light.

Management notes that since the drug has been made available in Europe in 2016 and the United States in 2020, patients report that they have been given a freedom they never had imagined.

The good news for Australians with EPP, is that Clinuvel has just received approval for Scenesse to be prescribed in Australia. It will soon be listed on the Australian Therapeutic Goods Register following approval from the Therapeutic Goods Administration (TGA).

The release explains that Scenesse will be registered for the indication prevention of phototoxicity in adult patients with EPP. It will be available as a prescription medication, to be administered by trained and accredited healthcare professionals.

In light of the latter, the company will implement a comprehensive training and accreditation program and ensure that healthcare professionals are provided with information in line with the Australian approval.

Clinuvel’s Chief Scientific Officer, Dr Dennis Wright, commented: “Our team is delighted that an Australian innovation is returning home as an approved drug and will be made available for Australian EPP patients.”

“I recognise the work of patients, physicians, TGA staff and our team to facilitate today’s outcome, which is the result of many years of engagement and dialogue. Our objective has been clear: to find ways to enable all EPP patients worldwide to access the first ever treatment for this disorder which is largely misunderstood but which causes patients a lifelong imprisonment, away from a normal outdoor life,” he concluded.

More reading

• Why the Clinuvel (ASX:CUV) share price is pushing higher today
• These are the 10 most shorted shares on the ASX
• These are the 10 most shorted shares on the ASX
• These are the 10 most shorted shares on the ASX
• Here are the 10 most shorted ASX shares

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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You might have heard of Mike Cannon-Brookes… He’s the Aussie entrepreneur who, alongside his schoolyard buddy, Scott Farquhar, started the tech giant Atlassian Corporation PLC (NASDAQ: TEAM). Atlassian makes business software such as Jira, which aims to help businesses function better and solve problems more efficiently (presumably hence the ticker code). Even though Atlassian is headquartered in Sydney, and both Cannon-Brookes and Farquhar are Aussies, Atlassian is a United States-listed company. It joins the likes of Tesla Inc (NASDAQ: TSLA), Facebook Inc (NASDAQ: FB) and Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) on the tech-heavy Nasdaq Composite (NASDAQ: .IXIC) exchange.

Despite Atlassian’s American roots these days, reporting in the Australian Financial Review (AFR) this week gives us a rare insight into the fortunes of Mr Cannon-Brookes. Let’s take a look.

Like many successful entrepreneurs and investors, Cannon-Brookes has looked to diversify away from his core pillar of wealth in Atlassian shares. According to the AFR, Cannon-Brookes has a family office by the name of Grok Ventures. Grok employs Armina Rosenberg as a global equities portfolio manager (a stockpicker) to help in this endeavour.

According to the AFR, Ms Rosenberg has built a globally diverse portfolio for Mr Cannon-Brookes and his family – naturally dominated by tech stocks.

A look into Mike Cannon-Brookes’ share portfolio

Among his largest holdings are reportedly tech giants like Apple Inc (NASDAQ: AAPL), Amazon.com Inc (NASDAQ: AMZN) and Alibaba Group Holding Ltd (NYSE: BABA). But one of Ms Rosenberg’s favourite current picks – tech wunderkind Zoom Video Communications Inc (NASDAQ: ZM) – is noted by the AFR as a ‘controversial pick’. Why? Well, Zoom has become a poster child for what some commentators call a ‘tech bubble’.

No one questions that Zoom has been one of 2020’s biggest winners in terms of the dramatic shift to working from home and remote communication. But Zoom’s stock performance in 2020 has raised some eyebrows, perhaps understandably. Zoom shares started 2020 at just US$68.22. But today, they trade for US$517.79 (up 653% year to date) and have a 52-week high of $588.84. On the current share price, Zoom boasts a price-to-earnings (P/E) ratio of 661.

But according to the AFR, that valuation doesn’t bother Ms Rosenberg, who managed to invest in Zoom at its initial public offering (IPO) for US$36 a share, in the slightest. Labelling Zoom CEO ‘one of the best founders [I] have ever met”, Ms Rosenberg had this to say on the company:

Everyone thought that video-conferencing was commoditised, and to a large extent it was. But Eric saw all the challenges people had with existing options given he worked at Webex, so he knew that Zoom’s unique selling proposition had to be its technology.

Foolish takeaway

In my opinion, ordinary investors like you and me shouldn’t take too much guidance from the portfolios of billionaires like Mike Cannon-Brookes. Remember, Mr Cannon-Brookes is probably attempting to diversify his wealth rather than building it with his stock portfolio. Even so, I still think knowing where the wealthy have their money is a very useful tool for becoming a better investor.

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• Why is everyone talking about Amazon (NASDAQ:AMZN) stock?
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• How to tell if an ASX share is a bargain or a dog

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares), Facebook, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alibaba Group Holding Ltd., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Atlassian, Facebook, Tesla, and Zoom Video Communications and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Facebook, and Zoom Video Communications. 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 Livetiles Ltd (ASX: LVT) share price is falling today despite the release of a positive first quarter update to the market.

Although, the ASX market is currently in retreat following heavy Wall Street losses overnight, the software company shares haven’t fared well. At the time of writing, the LiveTiles share price has fallen 3.8% to 25 cents.

Let’s take a look at the company’s performance for the last 3 months and what that means for the Livetiles share price.

Accelerated growth

For the quarter ending 30 September, LiveTiles reported a record result in cash receipts and accelerated growth.

Annualised recurring revenue (ARR) increased to $57.1 million, up 33% over the prior corresponding period (pcp). On a constant currency basis, ARR grew to $61.7 million, a jump of 44% over the pcp and 227% in the last 2 years.

Customer cash receipts also lifted to $12 million, up 41% over Q1 FY19. The strong result representing a fourth consecutive record quarter. This was underpinned by a surge in both direct and partner sales channels, despite the COVID-19 environment.

In addition, the compound annual growth rate (CAGR) of the average ARR per customer soared to $55,303. This reflected a 23% increase on the prior period and 9-fold jump in the last 5 years.

Net operating cash flow improved over 90% year-on-year, however a $800,000 loss was recorded.

LiveTiles said it was focusing on reducing its cash burn rate, and reconfirmed it would not seek to raise further capital.

The company noted it has a robust pipeline growth in the current quarter as it has refreshed its product portfolio. New contract wins include a high-profile global apparel retailer in the United States, and a consulting agency in France.

LiveTiles closed the quarter with a healthy cash balance of $34.6 million, enough to fund the business for the next 3 years.

COVID-19 response

As the COVID-19 impact is now better understood, the company is starting to see a return of confidence in buying levels.

Europe and the United States have rebounded, with its software relating to employee communications solutions, up 80% over the prior quarter.

In the last 6 months, investments have been made into product research and development to aim to capture new customers. Two new products are due to be released to the market, which will help executive teams in a post-COVID environment.

What did management say?

Commenting on the result, LiveTiles co-founder and CEO Karl Redenbach said:

We are pleased with our overall Q1 results, particularly when combined with our ongoing cost-discipline after reducing operating expenditures to preserve our balance sheet in Q4. Our annualised recurring revenue (ARR) has risen to $61.7 million on a constant currency basis, which is up 44% since last year and 227% in two years.

 As announced to the market on 23 October, Mr Redenbach said LiveTiles also secured its largest ever LiveTiles Intranet deal in Q1, a multi-year, multi-million-dollar deal with a major US apparel retailer:

The recognition from Gartner as one of the largest vendors by total deployments and revenue couldn’t underline LiveTiles’ position as an industry leader any more clearly.

Our sales pipeline continues to show accelerated growth from both direct and partner sales channels as companies around the world look to implement COVID-19 re-opening strategies by embracing digital workplace solutions.

We’re confident LiveTiles products will continue to gain traction and our growth will continue to accelerate with it.

More reading

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• Why the Livetiles (ASX:LVT) share price has rocketed up 11% today
• Why the LiveTiles (ASX:LVT) share price is tumbling lower today.

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

The post The LiveTiles (ASX:LVT) share price is falling today. Here’s why. appeared first on Motley Fool Australia.

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In early afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. At the time of writing, the benchmark index is down a sizeable 1.4% to 6,071.1 points.

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

Alcidion Group Ltd (ASX: ALC)

The Alcidion share price has risen 4% to 12.5 cents. Investors have been buying the healthcare technology company’s shares following the release of its first quarter update. Alcidion has had a strong start to FY 2021, with $4.8 million new contracted revenue sold in the first quarter. This was up 30% on the previous quarter and 92% on the prior corresponding period.

Blackmores Limited (ASX: BKL)

The Blackmores share price is up over 3.5% to $65.67 following the release of the health supplements company’s annual general meeting update. According to the release, management continues to expect profit growth in FY 2021. However, this will come predominantly from the second half of the financial year. The company also revealed that its restructuring is set to deliver $15 million of gross annualised savings from the second half.

Boral Limited (ASX: BLD)

The Boral share price is up 2.5% to $4.85. This morning the building products company released its annual general meeting presentation which included an update on its first quarter performance. Boral advised that its first quarter revenue was down 9% and its EBIT was down 5% on prior corresponding period. The company also revealed that it has agreed to sell its 50% interest in USG Boral to Knauf for US$1.015 billion.

CogState Limited (ASX: CGS)

The CogState share price has jumped a further 20% higher to $1.17. Hot on the heels of a major contract announcement on Monday, this morning CogState released its first quarter update. That update revealed contracted future revenue of $42.1 million, an increase of $2.7 million during the quarter.

More reading

• ASX 200 down 1.2%: Blackmores jumps, Bendigo and Adelaide Bank’s update, Zip sinks
• Boral (ASX:BLD) share price surges after announcing a US$1bn transaction
• Blackmores (ASX:BKL) share price on watch after AGM update
• 5 things to watch on the ASX 200 on Tuesday
• Why the CogState (ASX:CGS) share price is rocketing 36% higher today

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 Alcidion Group Ltd. The Motley Fool Australia owns shares of and has recommended Blackmores Limited. The Motley Fool Australia has recommended Alcidion Group 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.

The post Why Alcidion, Blackmores, Boral, & CogState shares are pushing higher appeared first on Motley Fool Australia.

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