Tag: Motley Fool

The Bigtincan Holdings Ltd (ASX: BTH) share price could be on the move on Thursday after the announcement of a new acquisition.

What did Bigtincan announce?

This morning the sales enablement platform provider announced that it has entered into an agreement to acquire Denmark-based Agnitio for 15 million Danish kroner (A$3.3million).

The agreement includes a conditional deferred cash consideration of up to 7.5 million Danish kroner (A$1.65 million) payable based on target revenue and subscription revenue earned in the 6-month period commencing 1 October 2020.

This acquisition will be fully funded from Bigtincan’s existing cash reserves, which were boosted by an institutional placement and share purchase plan in May.

What is Agnito?

Agnitio was founded in 2001 and is a pioneer in sales enablement for the life sciences sector.

Management notes that its Rainmaker solution enables pharma and medtech companies to respond to the needs of their customers in the age of COVID-19. It enables and supports health care professionals, payers, and other healthcare stakeholders.

At the last count, Agnito had in excess of 3,000 users across 45 countries and was generating sustainable annualised recurring revenue (ARR) of A$1.6 million.

Bigtincan’s Co-Founder and CEO, David Keane, commented: “Life sciences organisations are seeking new ways to engage their customers remotely while remaining compliant with local and international laws.”

“Agnitio has pioneered the market’s most advanced virtual engagement solution specifically designed to support life sciences companies, and when added to Bigtincan’s existing market leading Sales Enablement Automation platform, will help life sciences companies interact with their customers in a virtual ‘Digital Sales Room’ environment,” he added.

Digital sales rooms are a growing trend in business to business (B2B) sales. Research firm Gartner is forecasting 50% of all enterprise B2B sales technology implementations will include digital sales rooms by 2025.

Why Agnitio?

Management notes that Agnitio meets Bigtincan’s defined acquisition criteria. It provides a positive financial impact, complementary technology, excellent people, and a focussed go-to-market strategy with an active customer base.

In addition to this, it explained that Agnitio is a leader in the provision of mobile sales tools for life sciences. This means it brings new technology to Bigtincan, including its Rainmaker remote selling technology which has a proven track record of helping remote sellers engage with their customers in ways not possible before.

And given their highly complementary businesses, management believes it represents an opportunity to deliver significantly increased value to customers of both companies when combined.

Commenting on the deal, Agnitio’s CEO, Lars Meincke, said: “Agnitio’s core mission has been to empower sales teams, market access and medical affairs teams in today’s digital world, and we believe that together with the global Bigtincan team, we can accelerate progression towards that vision.”

More reading

• Are these the best small cap ASX shares to buy for FY 2021?
• Why I would buy Xero (ASX:XRO) and this ASX tech share
• Why these ASX tech shares just hit record highs
• 2 ASX tech shares I’d buy with $10,000 
• Could these small cap ASX shares be the next Afterpay (ASX:APT) or Zip (ASX:Z1P)?

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends BIGTINCAN FPO. The Motley Fool Australia has recommended BIGTINCAN 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 Why all eyes will be on the Bigtincan (ASX:BTH) share price on Thursday appeared first on Motley Fool Australia.

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The Lendlease Group (ASX: LLC) share price was on fire yesterday as it surged 3.1% higher.

That’s good news for shareholders, but I think there could be further share price growth ahead for the Aussie construction group.

Why is the Lendlease share price surging?

2020 has not been a great year for Lendlease as its shares have underperformed the S&P/ASX 200 Index (ASX: XJO).

However, strong support for the construction and infrastructure sectors is good news for major players like Lendlease.

The federal government is expanding its existing $100 billion infrastructure plans with a further $10 billion allocated to spend in the sector.

Construction and major infrastructure projects including road and rail are key components of that plan. That to me says the Lendlease share price could be headed higher if it can secure some more major contracts. 

Is now a good time to buy?

The Lendlease share price has slumped 34.0% to $11.84 per share this year as the coronavirus pandemic has hit profits.

However, Tuesday’s Federal Budget announcement contained some great news for companies like Lendlease. That could mean that a 3.1% share price surge is just the start of a bigger run for the ASX share.

Lendlease has an $8.2 billion market capitalisation with a 2.8% dividend yield right now. I think it could be a chance to snap up a high-quality ASX infrastructure share for a good price.

Lendlease has had its fair share of troubles including a $350 million writedown of its engineering arm in November 2018.

However, I think the significant support in the Federal Budget could prove to be a turning point for the Lendlease share price.

Foolish takeaway

The Lendlease share price has had a tough time in 2020 but it could be turning a corner.

I believe strong government backing for the sector combined with existing robust relationships on major infrastructure projects at a state and federal level is good news for Lendlease.

More reading

• Why the Federal Budget is good for the Transurban (ASX:TCL) share price
• Top ASX Stock Picks for October 2020
• 2 unloved ASX 200 shares I would buy now
• Is Lendlease (ASX:LLC) the new Goodman Group (ASX:GMG)?
• Macquarie says ASX value shares will outperform growth stocks from here

Motley Fool contributor Ken Hall 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 ELMO Software Ltd (ASX: ELO) share price will be on watch today after the announcement of a major acquisition after the market close on Wednesday.

What did ELMO announce?

The cloud-based human resources and payroll software provider announced the acquisition of UK-based Breathe for an initial payment of 18 million pounds (A$32.4 million) using a combination of cash and scrip.

In addition to this, an earnout consideration of 4 million pounds (A$7.2 million) is payable in cash subject to the achievement of certain financial targets.

Founded in 2012, Breathe is a fast-growing, scalable human resources platform for small businesses. Management notes that the acquisition provides ELMO with entry to a new market segment, the small business market, while at the same time expanding its footprint in the UK.

Breathe’s self-service business model is highly scalable and makes it fast, easy, and cost-effective for small businesses to digitise critical HR processes.

Its annualised recurring revenue (ARR) as of 31 August 2020 stood at 3.6 million pounds (A$6.5 million) and has been growing at over 30% annually. Its revenue is 100% subscription-based and recurring in nature.

Management advised that Breathe has a large and growing customer base in the UK with over 6,700 customers and customer retention at over 85%. It is earnings before interest, tax, depreciation and amortisation (EBITDA) neutral at present following investments in its growth.

ELMO’s CEO and Co-founder, Danny Lessem, commented: “The acquisition of Breathe is an important step in ELMO’s evolution as a provider of cloud-based HR solutions. Strategically, Breathe is a very compelling, fast growing business. It provides ELMO with access to a new and attractive customer segment, complementary technology, and a significant UK footprint. The strategic crossovers and revenue opportunities are very meaningful, and our market opportunity has significantly expanded.”

“We are now able to transform the way people are managed, either in office or remotely across all market segments, improving productivity, performance and overall wellbeing of millions of workers across Australia, New Zealand and also the United Kingdom,” he added.

Founder Jonathan Richards will continue on as CEO of Breathe UK.

FY 2021 guidance update.

As a result of this acquisition, the company has upgraded its guidance for FY 2021.

ELMO’s ARR is now expected to be in the range of $72.5 million to $78.5 million, up from $65 million to $70 million.

Similarly, revenue in FY 2021 is now expected to be in the range of $61 million to $66 million. This compares to $57 million to $61 million previously.

Finally, EBITDA is forecast to be -$3.5 million to -$7.5 million. Previously ELMO was forecasting -$4 million to -$7 million.

More reading

• Are these the best small cap ASX shares to buy for FY 2021?
• 4 stellar ASX growth shares to buy right now
• Why I would buy Domino’s and this exciting ASX growth share
• New to investing? I would invest $500 into these exciting ASX shares
• Why I would buy these ASX growth shares right now

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Elmo Software. The Motley Fool Australia has recommended Elmo Software. 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 the ELMO Software (ASX:ELO) share price is on watch today appeared first on Motley Fool Australia.

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Is the Altium Limited (ASX: ALU) share price a strong buy? I’d say Altium has been a mixed big since the onset of the COVID-19 pandemic.

Looking at the share price movement, Altium shares dropped 42% during the COVID-19 crash at the lowest point. It’s still down by 16.4% from the all-time high price in February 2020.

I think the electronic PCB software business is one to consider because of its high quality. 

Recent events

It wasn’t too long ago that Altium announced its FY20 result.

Revenue increased by 10% to US$189.1 million, the subscription base rose by 17% to 51,0006 and the number of Altium Designer seats increased by 15% to 9,251. Earnings before interest, tax, depreciation and amortisation (EBITDA) went up 13% to US$75.6 million and the EBITDA margin improved to 40%, up from 38.9%.

FY20 profit before income tax went up 12% to US$64.6 million, though profit after income tax fell 42% to US$30.9 million. There was a one-off taxation change that will allow Altium to decrease its effective tax rate beginning in FY21 to a run rate of between 22% to 25%.

Excluding that taxation change, normalised earnings per share (EPS) grew by 5% to US 42.45 cents and the dividend grew by 15% to AU$0.39 per share. That fall in the earnings growth rate probably justifies the volatility and decline of the Altium share price.

It was a pretty disrupted second half of the year. It decided to launch ‘attractive pricing’ to continue winning new customers over the last few months. Winning long-term market share is probably more important for the business than short-term profitability. However, it’s important not to degrade the value of the software company’s brand too much.

The most interesting development was the launch of Altium 365, which is the company’s effort at providing its services through the cloud.

The current conditions and the accelerated roll out of Altium 365 is evolving Altium’s revenue away from perpetual licensing and maintenance subscriptions towards term-based licensing and software as a service (SaaS) subscriptions.

Leadership restructuring

Altium recently announced that the whole business is pivoting towards the cloud, with Altium now split between ‘cloud’ and ‘software’, with each having its own leadership and organisational roadmap.

The goal is to make Altium’s cloud business have a SaaS-liked organisational structure. It will also allow Altium to tailor its sales better to target clients.

As a result, Mr Sergey Kostinsky was appointed to the role as president who will be focused on driving high performance in the execution of all operational domains with a particular emphasis on the rapid development and adoption of Altium 365.

My outlook for the Altium share price

Firstly, it’s impossible to know what’s going to happen with shares in the short-term.

The upcoming US election could certainly throw up a lot of volatility and may open up some buying opportunities, so the Altium share price could be one to watch over the next few weeks and months.

I still think Altium is on the right path for reaching its long-term goal of market dominance over the next five years, even if the US$500 million revenue goal takes a bit longer. Its balance sheet and dividend continue to improve. 

I believe it makes a lot of sense for Altium to focus on Altium 365. Online services is the direction that the world is headed. Altium needs to be able to offer the best software and access for engineers.

Remember that interest rates are now incredibly low. I think that tech shares that are growing can justify much higher valuations these days. I can’t see interest rates rising for a long time.

The Altium share price is currently trading at 48x FY23’s estimated earnings. That looks fairly expensive, so it’s not a strong buy for me today. But if its revenue and EBITDA margin can keep rising then perhaps it’s actually a pretty good long-term buy. However, I’d prefer to buy Altium shares at least 10% lower than today, so I’m looking at other share opportunities at the moment.

More reading

• ASX 200 up 0.4%: Big four banks push higher, Westpac upgraded, ARB impresses
• Why the Altium (ASX:ALU) share price is one to watch today
• $10,000 invested in the Altium (ASX:ALU) IPO is worth how much now?
• 2 exciting ASX tech shares to buy and hold for a decade
• Altium (ASX:ALU) updates market on restructure

Tristan Harrison owns shares of Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. 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 are looking to invest some funds into growth shares this month, then you might want to consider the ones listed below.

I believe these three ASX growth shares are among the best on offer on the share market right now. Here’s why I would buy them:

a2 Milk Company Ltd (ASX: A2M)

The first growth share to look at is A2 Milk Company. It is a New Zealand-based infant formula and fresh milk company with a focus on A2-only products. Over the last few years the company has been growing its earnings at a rapid rate thanks largely to the insatiable demand for its infant formula in China. I expect more of the same in the coming years. This could be supported by new product launches and value accretive acquisitions.

Afterpay Ltd (ASX: APT)

I think this rapidly growing payments company has the potential to be a market-beater over the 2020s. This is thanks to its impressive growth in both the UK and US markets and its expansion into new markets. In addition to this, the ongoing shift to online shopping has been a big boost and looks set to underpin stellar underlying sales and customer growth in FY 2021. Combined with the growing popularity of the payment method and its strong brand, I believe Afterpay is on a path to becoming a giant. This could make it a great buy and hold option.

Pushpay Holdings Group Ltd (ASX: PPH)

A final ASX growth share to consider buying is Pushpay. It is a donor management and community engagement platform provider for the faith sector. Pushpay has been growing at a very strong rate over the last few years thanks to its leadership position in a niche but lucrative market. The good news is that its growth is still only in its infancy. Management has set itself a target to win a 50% share of the medium to large church market in the future. This represents a US$1 billion revenue opportunity and is many times greater than FY 2020’s revenue of US$127.5 million.

More reading

• Has the Afterpay (ASX:APT) share price stalled?
• 2 top ASX 200 blue chip shares worth a spot in your portfolio
• Got $5,000 to invest? Buy these unstoppable ASX shares right now
• 3 ASX shares to buy in a US election selloff
• Why a2 Milk, Afterpay, ARB, & SEEK shares are pushing 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 PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended PUSHPAY FPO NZX. 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 I would buy Afterpay (ASX:APT) and these ASX growth shares appeared first on Motley Fool Australia.

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At present Commonwealth Bank of Australia (ASX: CBA) is offering interest rates of just 0.9% on five-year term deposits. This is broadly in line with what the rest of the banks are offering.

If you’re an income investor, then I wouldn’t settle for these paltry interest rates.

Instead, I would turn to the share market, where you can easily get a greater return on your investments.

But which ASX dividend shares should you buy? Here are two top options for investors to consider buying:

National Storage REIT (ASX: NSR)

The first ASX dividend share to look at is self-storage operator National Storage. I think the company is a top option for income investors due its positive long term growth outlook thanks to its organic and inorganic growth opportunities. The latter is through its growth through acquisition strategy which has been very effective over the last few years.

It does look as though FY 2021 could be a reasonably subdued year because of the pandemic, but I expect a swift rebound once the crisis passes. Especially given optimism over the housing market. This could lead to higher housing sales activity and increasing demand for its storage solutions. Based on the current National Storage share price, I estimate that the company’s shares offer investors a forward 4.2% dividend yield.

Vitalharvest Freehold Trust (ASX: VTH)

A second ASX dividend share to consider buying is Vitalharvest. I think it would be a great option for investors that are looking to diversify their portfolio. This is because the company’s shares provide investors with exposure to quality agricultural property assets. Some of these assets, which comprise four berry properties and three citrus properties, are leased to horticulture giant Costa Group Holdings Ltd (ASX: CGC) and are exposed to the nutritious and healthy food trend. 

In light of this, I believe the company is well-placed for earnings and distribution growth over the next decade. For now, based on the current Vitalharvest share price, I estimate that it offers investors a forward ~6% distribution yield.

More reading

• ASX 200 finishes 1.3% higher after federal budget
• ASX 200 up 0.4%: Big four banks push higher, Westpac upgraded, ARB impresses
• Is the CBA share price a buy right now?
• Why this Federal Budget is good for many ASX shares
• Here’s where you could invest your Woolworths (ASX:WOW) dividends 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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On Wednesday the S&P/ASX 200 Index (ASX: XJO) continued its impressive run and surged higher again. The benchmark index climbed 1.25% to 6,036.4 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to rise again.

It looks set to be another positive day of trade for the ASX 200 index. According to the latest SPI futures, the benchmark index is expected to rise 25 points or 0.4% at the open. This follows a particularly positive night of trade on Wall Street after President Trump brought COVID stimulus talks back to the table. In late trade the Dow Jones is up 2%, the S&P 500 is 1.8% higher, and the Nasdaq is climbing 1.9%.

Oil prices soften.

Energy shares including Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) may come under pressure today after oil prices softened overnight. According to Bloomberg, the WTI crude oil price is down 1.7% to US$39.99 a barrel and the Brent crude oil price is down 1.35% to US$42.08 a barrel. Oversupply concerns were weighing on oil prices.

Gold price drops lower.

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch today after the gold price dropped lower. According to CNBC, the spot gold price has fallen 1% to US$1,889.0 an ounce. The prospect of a stimulus plan being agreed in the United States put pressure on the precious metal.

Dividends being paid.

A number of companies will be rewarding their shareholders with dividend payments on Wednesday. Among the companies making payments are logistics solutions company Brambles Limited (ASX: BXB) and leading appliance manufacturer Breville Group Ltd (ASX: BRG).

ASX Ltd shares rated as a sell.

The ASX Ltd (ASX: ASX) share price is overvalued according to one leading broker. A note out of Goldman Sachs reveals that its analysts have retained their sell rating and $70.44 price target on the stock exchange operator’s shares. This follows the release of its September update. Goldman Sachs didn’t see anything to justify the premium its shares trade at and believes they are expensive at 33x estimated FY 2021 earnings.

More reading

• Why you should wait another month to invest in ASX shares
• Has the Afterpay (ASX:APT) share price stalled?
• ASX 200 finishes 1.3% higher after federal budget
• 2 top ASX 200 blue chip shares worth a spot in your portfolio
• ASX 200 up 0.4%: Big four banks push higher, Westpac upgraded, ARB impresses

The post 5 things to watch on the ASX 200 on Thursday appeared first on Motley Fool Australia.

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It’s early October and the S&P/ASX 200 Index (ASX: XJO) has already appreciated 2.8% since the start of the month. After the ASX 200’s lacklustre performance throughout September, I’m sure there are more than a few investors out there who are thinking about deploying more cash into the markets this month because… well you know, they’re going up.

But I think it might be prudent for investors to keep at least some (if not all) of their powder dry over the course of this month.

Why?

Well, we have one of the (arguably) most consequential events of the year (and perhaps of the decade) in early November. I’m of course talking about the United States 2020 presidential election. Yes, the election for president (as well as for the entire US House of Representatives and a third of the US Senate) will take place on Tuesday 3 November (Wednesday our time). The incumbent Republican, Donald Trump, is running for a second and final term against the Democratic nominee, former vice president Joe Biden.

Putting political views aside (that’s not what we really do here at the Fool), what does this have to do with investing? Or more specifically, not investing, as I’ve indicated.

Elections and investing

This election is consequential for all investors. And here’s why: Even under pre-2020, normal circumstances, elections are inherently disruptive events for investors. Elections lead to uncertainty, which leads to volatility. Throw in the special set of circumstances in 2020, including a highly divisive president and unprecedented levels of political polarisation in the US, and we have a recipe for extreme volatility. If the election is close and hinges on days or week of recounts, these circumstances will be exacerbated enormously. No matter what happens on 3 November, I’m expecting the US share markets to be up and down like a yo-yo. And that means, in all likelihood, our markets will be exactly the same.

This is normally a great time to have money to sink into the markets. Volatility can be frightening for investors, but it is also the patient investors’ friend. Anyone who invested large amounts of money in quality ASX shares back in March would be very glad they did so today, even if it was absolutely terrifying at the time. And no matter what happens in the election, I’m confident it won’t lead to any long-term issues that might affect the performance of ASX shares (or American companies for that matter).

Foolish takeaway

So I’m saving all of the cash that I can for this period. It might not play out exactly the way I’ve outlined today, but I think there’s a fair chance it will. And if it does, I’ll be glad to have an extra-large cash pile to play with. Just something to consider this October!

More reading

• Has the Afterpay (ASX:APT) share price stalled?
• ASX 200 finishes 1.3% higher after federal budget
• 2 top ASX 200 blue chip shares worth a spot in your portfolio
• ASX 200 up 0.4%: Big four banks push higher, Westpac upgraded, ARB impresses
• Why you may not need ASX REITs for dividends

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

The post Why you should wait another month to invest in ASX shares appeared first on Motley Fool Australia.

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While I think the big four banks are great options for income investors due to their generous yields, I wouldn’t be expecting a huge amount of growth from them in the coming years.

So if you’re looking for growing dividends, you might want to take a look at the shares below. While their yields may not be as large as the banks, I believe they have the potential to grow materially over the 2020s.

Here’s why I would buy these ASX dividend shares:

Bravura Solutions Ltd (ASX: BVS)

I think this leading provider of software products and services to the wealth management and funds administration industries would be a great option for income investors. This is because I’m confident that Bravura is well-placed for growth once the pandemic passes. Especially given its growing portfolio of high quality solutions which have large addressable markets.

The main product in its portfolio is the Sonata wealth management platform. While I expect it to be the key driver of growth in the future, this should be supported by the Rufus transfer agency solution, the Garradin back office solution, and the Midwinter financial planning solution. 

At present, I estimate that it will pay shareholders an 11.5 cents per share dividend in FY 2021. Based on the current Bravura share price, this equates to an attractive 3.3% dividend yield.

People Infrastructure Ltd (ASX: PPE)

Another option to consider buying is People Infrastructure. It is a leading workforce management company which has been experiencing strong demand for its innovative solutions to workforce challenges. This led to the company delivering an impressive 34.5% increase in revenue to $374.2 million and a 53.3% lift in normalised net profit after tax and before amortisation (NPATA) to $18.4 million in FY 2020. 

And while its growth may moderate in FY 2021 because of the pandemic, I believe its strong growth will continue once the crisis passes. In the meantime, I estimate that it will pay shareholders a 9.5 cents per share fully franked dividend in FY 2021. Based on the current People Infrastructure share price, this gives investors an attractive 3.1% forward dividend yield.

More reading

• 2 great value ASX dividend shares to buy right now
• These ASX dividend shares could be stars of the future
• Where should you invest your Wesfarmers (ASX:WES) dividends?
• Why I would buy these ASX dividend shares today
• 2 top ASX dividend shares for income investors to buy today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd. The Motley Fool Australia has recommended People Infrastructure 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 Harvest Technology Group Ltd (ASX: HTG) share price dropped today after the company announced a global marketing alliance.

In morning trade, the Harvest share price reached as high as 37 cents, but has since retreated to close 4.17% lower at 34 cents.

What does Harvest do?

Harvest Technology develops end-to-end customised technology solutions. The company specialises in hardware and software solutions that encode multiple video, audio and synchronised data channels over satellite communications.

Harvest’s product suite includes secure, low bandwidth, real-time content that is accessible from anywhere in the world.

The company has aggressively pursued high revenue opportunities in growth industries. Key markets such as defence, airline, space, remote-land based communities and emergency communications are all within Harvest’s scope.

What is the global marketing alliance

The market alliance is a trilateral partnership for ultra-low bandwidth remote monitoring solutions.

Harvest’s partners include Inmarsat Enterprise and Applied Satellite Technology Group (AST), both world leaders in satellite communications.

The new alliance will provide Harvest access to satellite communications infrastructure. This will enable the transmission of high-quality synchronised video and audio over ultra-low bandwidth. In turn, the company will be able to remotely monitor assets, coordinate site surveys and conduct maintenance operations.

Harvest noted the alliance would benefit sectors such as resources, energy and utilities as a result of COVID-19. This was because the pandemic had placed restrictions on personnel and created sustainability challenges.

Harvest also said remote customers could be connected live back to base, thus relieving pressure to maintain infrastructure while safeguarding workers.

A welcome partnership

Harvest managing director Paul Guilfoyle welcomed the alliance, saying:

We are beyond thrilled to work with Inmarsat and AST to further strengthen the global reach of ultra-low- bandwidth remote communications.

This alliance will not only allow for the implementation of existing technology but will further fuel innovation for future cutting-edge communication initiatives.

AST managing director Gregory Darling added:

AST is delighted to partner with Harvest and Inmarsat to provide real-time video and audio solutions cost effectively through our secure global INTEGRA network from anywhere in the world.

The partnership supports our vision to continuously empower our customers with dependable solutions that improve their operational efficiency, reduce their health and safety risk and minimise their carbon footprint.

Inmarsat sector development director Steven Tompkins also welcomed the partnership. He said:

By developing a wearable solution that supports our High Data Rate (HDR) streaming capabilities across a low-bandwidth connection, Harvest is facilitating highly efficient, safe, cost-effective and sustainable site surveys of pipelines and valuable assets across industrial sites in remote areas around the world.

We are excited about the huge potential of this agreement and how it will change the way industrial professionals communicate and collaborate, no matter where they are located.

More reading

• 2 growing ASX dividend shares to buy before it’s too late
• Has the Afterpay (ASX:APT) share price stalled?
• Are these the best small cap ASX shares to buy for FY 2021?
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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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