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The Ramelius Resources Limited (ASX: RMS) share price edged higher on Monday following the release of an impressive full year result for FY 2020.

The gold miner’s shares ended the day 0.5% higher at $2.02. This means the Ramelius share price is now up 58% since the start of the year.

How did Ramelius perform in FY 2020?

During the 12 months ended 30 June 2020, Ramelius recorded a 17% increase in gold production to 230,426 ounces. Combined with a solid rise in the average realised gold price, this led to the gold miner delivering a 31% increase in revenue to $460.6 million.

And thanks partly to a reduction in its all-in sustaining cost (AISC) to A$1,164 an ounce, Ramelius’ earnings before interest, tax, depreciation and amortisation (EBITDA) margin expanded to 56%. Management notes that this is one of the highest margins among its peers. This margin expansion resulted in the company posting a massive 128% increase in EBITDA to $256 million.

On the bottom line it was even better, with net profit after tax growing 420% year on year to $113.4 million. As a result of this strong performance, a fully franked final dividend of 2 cents per share was declared.

Ramelius’ Managing Director, Mark Zeptner, commented: “This is the sixth consecutive year that Ramelius has posted a net profit after tax, which demonstrates the operating and financial strength of the Company, its quality assets and the success of our growth strategy.”

“It is very pleasing to also announce a 2.0c per share fully franked dividend after our record breaking year, building on the 1.0c per share dividend paid in October 2019. Ramelius is proud of the fact that it is now rewarding shareholders with a dividend yield, in addition to the significant share price growth achieved over the last 12 months.”

What about FY 2021?

Management expects to grow its production again in FY 2021 and is targeting 260,000 to 280,000 ounces. This represents an increase of 12.8% to 21.5% year on year.

One slight disappointment is the company won’t be capitalising fully on the recent gold price increase due to an expected increase in costs. Ramelius has provided AISC guidance of A$1,230 to A$1,330 an ounce. This will be a 5.7% to 14.3% increase year on year.

More reading

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• Indiana Resources share price jumps to 3-year high on acquisition news

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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The Altium Limited (ASX: ALU) share price has grown strongly over the past three years, despite not making any significant ground over the past 12 months. The Altium share price is up nearly 50% from its March low but only 7.5% in year-to-date trading.

Altium released its full year results for FY 2020 last week. It was a reasonably strong set of numbers in light of the challenging market conditions. Altium achieved its ninth year in a row of solid revenue growth.

Is the Altium share price a buy in light of these results?

Another solid financial year for Altium

Altium achieved revenue growth of 10% to US$189 million for the full year ended 30 June 2020. Performance was solid across all of its core global operating regions and core business units. Profit before tax for Altium climbed by 12% to reach US$64.6 million. Meanwhile, earnings before interest, taxes, depreciation and amortisation (EBITDA) grew by 13% to $75.6 million.

Altium recorded a 17% increase in its overall subscriber base to 51,006. Altium Designer seats grew by 15%, with 9,251 new licenses sold throughout FY2020. Altium Designer is now the most widely used professional PCB design tool globally. It is used by over 100,000 engineers worldwide.

The Aussie WAAAX share also ended the financial year with a strong balance sheet. The company’s cash balance at the end of June was US$93 million. That was up 16% on the prior year.

What’s been driving the Altium share price?

Altium has now recorded nine consecutive years of double-digit revenue growth. Annual revenue has increased from $71 million in FY2014, to $111 million in FY2017 and now $189 million during FY2020, as reported above. Equally impressive is that Altium’s operating margin has expanded each consecutive year during that time. Back in FY2014, Altium’s operating margin was only 30.1%, and during FY2020 it has now reached 40%.

Altium’s customer base now extends across a broad range of industries. This includes everything from automotive, aerospace and defence, mobile device and consumer electronics to industrial controls and research and education.

Altium’s target of US$500 million in revenue and 100,000 subscribers by 2025 is still in place. However, it may now be delayed by around 6 to 12 months due to COVID-19.

Foolish takeaway

The Altium share price was hit hard in the first phase of the pandemic. Since then, it has only made a partial recovery, and is currently trading at $36.91. Combined with a very solid set of numbers for FY 220, this in my opinion, offers investors a good buying opportunity right now. Altium now has a proven track record of strong financial performance and has an entrenched global market position in its technology niche.

I believe the growth prosepcts for the Altium share price over the next five years look very positive. In my view, a growing number of smart connected devices globally is likely to lead to continued strong demand for Altium’s products in the years to come.

More reading

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• 3 stellar ASX growth shares to buy in FY 2021

Phil Harpur 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’re building a quality ASX blue chip share portfolio then I think there are a couple of names that I think should be in there.

There are plenty of ASX 20 shares that I wouldn’t want to own in my portfolio because I’m not confident about their longer-term growth prospects. Names like BHP Group Ltd (ASX: BHP), Westpac Banking Corp (ASX: WBC), Scentre Group (ASX: SCG) and Woodside Petroleum Limited (ASX: WPL) look challenged to me.

I don’t think it’s worth buying a blue chip just because it’s a big name. It needs to have growth potential in my opinion.

That’s why I’m attracted to these two names:

Wesfarmers Ltd (ASX: WES)

I think Wesfarmers could be the best ASX blue chip share with how it operates. It has a number of operating businesses including Bunnings, Officeworks, Kmart and Catch.

I like the business model because it allows Wesfarmers to buy businesses in whatever industry management think is a growth opportunity. For example, not too long ago it invested into Kidman Resources, a lithium business. Retail and lithium mining are completely different – but both could be good investments for Wesfarmers to pursue.

COVID-19 has been tough for some of Wesfarmers’ businesses like Target with the trading restrictions, but other sections have seen strong growth in FY20 like Bunnings, Officeworks and Catch. Bunnings benefited from a surge of households doing DIY projects, its revenue grew by 13.9%. Officeworks saw lots of people needing home office supplies, this helped revenue rise by 20.4%. Catch, as an online retailer, benefited from the rocketing ecommerce growth with grass transaction value growing by 49.2% since the acquisition.

The ASX share seems well placed to grow whatever happens next with COVID-19 and the economy. It has a solid balance sheet and a reliable dividend. I’m interested to see what happens in FY21 – a vaccine could be very beneficial for sentiment regarding the medium-term prospects for retail.

At the current Wesfarmers share price, it’s trading at 27x FY22’s estimated earnings.

Macquarie Group Ltd (ASX: MQG)

Macquarie is Australia’s global investment bank and one of the biggest financial businesses on the ASX.

It has shown good resilience during COVID-19 so far. As one of the world’s biggest infrastructure managers, it generates attractive recurring revenue from the management fees.

In the first quarter of FY21 Macquarie reported that its group operating net profit was only slightly down on the first quarter of FY20. There were mixed trading conditions for the different segments. For example, whilst there were lower numbers of acquisitions and initial public offerings (IPOs), there were increased numbers of capital raisings to shore up balance sheets. 

The reason why I think it’s one of the best ASX blue chip shares around is because of its global nature and its diversification. Unlike most financial shares, Macquarie has different segments – its earnings aren’t reliant on loans.

Macquarie generates two thirds of its earnings outside of the domestic Australian and New Zealand market. Most ASX20 shares are largely reliant on Australia (and perhaps China) for their earnings.

Macquarie can decide to invest and expand into whatever country or industry it thinks is a good growth opportunity. The investment bank’s Green Investment Group continues to grow with new renewable energy projects.

At the current Macquarie share price it’s priced at 16x FY22’s estimated earnings.

Foolish takeaway

I think both of these ASX blue chips offers investors compelling diversification and good growth potential. They both have good dividend credentials too. 

At the current prices I’d probably more inclined to go for Macquarie – Wesfarmers has had a strong run since the COVID-19 crash. However, I’d be more confident about owning Wesfarmers for the ultra-long-term because it could grow into any industry with its business model. I think Wesfarmers will be a solid dividend share for a long time to come.

More reading

• On a day when the ASX 200 is going nowhere, these popular “coronavirus shares” are hitting record highs
• 6 ASX giants pay $1 billion for ripping off customers
• Here are the highlights of this ASX reporting season
• ASX 200 Weekly Wrap: Blue chips, earnings drag ASX lower
• 2 of the best ETFs for investing in ASX shares

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended Scentre Group. 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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AMP Limited (ASX: AMP) chair David Murray and AMP Capital chief executive Boe Pahari stepped down Monday after investor pressure arising from a sexual harassment scandal.

But it seems these supposed acts of contrition haven’t satisfied.

S&P Global Ratings announced Monday afternoon that risks were still “on the downside” for the finance giant.

“In our view, the changes highlight governance challenges as well as potential dependency on key individuals within the group,” the ratings agency stated.

“Most of our ratings on AMP group entities remain on CreditWatch with negative implications, where we initially placed them on June 12, 2020.”

The company was under fire last week after details of Pahari’s alleged sexual harassment of a subordinate were revealed.

The board’s judgment was questioned as it was accused of overlooking the seriousness of the case when promoting Pahari to the plum position of AMP Capital CEO.

AMP insisted all along that the offences were “low level” and that the board took sufficient action in penalising some of Pahari’s annual bonus.

But the public pressure became too much to bear. 

Resignations are self-serving

On Monday morning, AMP announced Murray’s departure and Pahari’s exit from the CEO role. Non-executive director John Fraser also resigned as a result of Murray’s exit.

RMIT University senior lecturer Warren Staples said Murray’s departure was self-serving.

“Chairman David Murray has always pushed back against public sentiment on board matters – [such as] gender quotas and responding to the Royal Commission,” he said.

“Murray’s decision to leave AMP is far more about his lack of interest in bowing to public pressure than it is about him taking the ultimate accountability for conduct at AMP.”

Australian Council of Superannuation Investors (ACSI) chief executive Louise Davidson welcomed the resignations – but said AMP still had much to fix.

“The company must now get on with [the] job of rebuilding public confidence, and in particular, the trust of their staff,” she said.

“Investors will be continuing to engage with AMP to understand how these decisions were made and how the company intends to strengthen company culture.”

Corporate stars seem to get away with bad behaviour

Pahari’s promotion showed a general inclination for companies to support moneymakers regardless of their behaviour, according to RMIT sessional lecturer Andrew Linden.

“Longstanding governance problems at AMP reflect a wider endemic problem across corporate Australia,” he said.

“Boards and CEOs almost always back in ‘rainmakers’ regardless of a history of poor personal conduct at work.”

More reading

• 6 ASX giants pay $1 billion for ripping off customers
• AMP executives resign over sexual harassment scandal
• AMP to release sexual harassment details, won’t sack anyone
• Investors call for AMP Capital CEO’s head
• Why today is a great day to add to your ASX 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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“Greed, for lack of a better word, is good”. That’s the signature line uttered by Michael Douglas’ immortal character Gordon Gekko in the 1987 film Wall Street. It has come to define all that is perceived wrong about the world of finance and investing – whether you agree with that concept or not.

Of course, the concept of greed in markets has been around a lot longer than Wall Street (the film) has. One of the founding fathers of value investing, Benjamin Graham, described how the share market is moved by the 2 emotions of fear and greed in his 1949 book The Intelligent Investor.

According to Graham, it’s either fearful or greedy behaviour that causes markets to become periodically irrational, which inevitably leads to a restoration of rationality after the emotions have run their course.

So how do these concepts relate to today’s share market?

Well, one of my personal investing idols has recently described the current state of the global share market as “the greediest” he’s ever seen.

He points to Tesla reaching more than US$2,000 a share, Amazon.com reaching US$3,200 and Apple shares more than doubling since March as evidence.

I suppose we Aussies could point to how Afterpay Ltd (ASX: APT) shares have rocketed more than 800% since March and find the same conclusion.

So, is the market irrationally greedy right now? If it is, it’s not a good sign for investors and could indicate a market crash is on the horizon.

Greed isn’t good

I do think there are signs of irrational exuberance in the markets right now. Yes, the coronavirus pandemic has gilded the fortunes of a few ASX companies as well as crippled many others. Investors seem to be rewarding the winners with massive floods of new capital. Just look at the share prices of Afterpay, Zip Co Ltd (ASX: Z1P), JB Hi-Fi Ltd (ASX: JBH) and Kogan.com Ltd (ASX: KGN). What is interesting is how most companies that have been decimated by the crisis have also been making investors rich.

Just look at Corporate Travel Management Ltd (ASX: CTD). Its shares are up more than 74% this month and more than 203% since March. That was despite the company reporting an $8.2 million loss last week. Or Sydney Airport Holdings Pty Ltd (ASX: SYD). Sydney airport’s business model is almost broken. Almost no international flights are coming or leaving Australia, and probably won’t be for at least another 6 months, if not longer. The company won’t be paying any dividends in 2020. Yet Sydney Airport shares are only 7.5% lower than levels seen in 2017, up more than 27% since March and currently have a price-to-earnings (P/E) ratio of more than 80.

Foolish takeaway

I don’t think this ‘buy the winners, ignore the losers’ attitude that investors seem to be adopting can continue forever. Who knows how or when it will end, but end it will. The markets have seen plenty of greed before, and it’s never been sustained. And the only other options are rationality or fear. Something to keep in mind as we make our way towards the end of the year!

More reading

• On a day when the ASX 200 is going nowhere, these popular “coronavirus shares” are hitting record highs
• 4 exciting ASX tech shares surging higher today
• Here are the highlights of this ASX reporting season
• ASX 200 up 0.2%: Afterpay expansion, Fortescue’s monster dividend, NIB disappoints
• Zip share price surges 8% on QuadPay update

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’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Kogan.com ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It has been a reasonably subdued start to the week for the S&P/ASX 200 Index (ASX: XJO).

Although it is up modestly this afternoon, for most of the day the benchmark index has been trading largely flat.

But that hasn’t stopped a group of shares from continuing to print new highs.

The nine shares listed below have been positive performers today and have all hit new highs thanks to their strong performance during the coronavirus pandemic. Here’s what is driving them to new highs:

Online shopping winners.

With retailers forced to close their doors at the height of the pandemic, shoppers had to shift their purchasing online. The good news for those with strong online offerings is that this trend has continued even after most retailers reopened. This afternoon the Adairs Ltd (ASX: ADH) share price hit a record high of $3.54 and the Redbubble Ltd (ASX: RBL) share price climbed to a new high of $3.94. Both companies reported stellar sales growth this month. This shift to online shopping has also been a big boost to buy now pay later providers. As such, it’ll be no surprise to learn that the Afterpay Ltd (ASX: APT) share price has hit a record high of $83.00.

The shift to the cloud.

It’s not only shopping that is going online. With many workers out of the office and working from home, the usage of cloud-based software has been growing strongly. This has led to a surge in demand for capacity in data centres across the country. It’s no wonder then that data centre company NEXTDC Ltd (ASX: NXT) hit a record high of $12.24 today. In addition to this, the Megaport Ltd (ASX: MP1) share price rose to an all-time high of $17.02 on Monday. The network-as-a-service provider reported very strong growth in FY 2020.

Social distancing restrictions.

Finally, another group of ASX shares are benefiting from social distancing restrictions. The Marley Spoon AG (ASX: MMM) share price continued its positive run and hit a record high of $3.80 on Monday. Lockdowns and restaurant closures have accelerated the adoption of meal kit delivery services and led to explosive sales growth from Marley Spoon this year. Carsales.Com Ltd (ASX: CAR) is benefiting from an aversion to public transport use and the shift to online shopping. Its shares hit a record high of $21.17 today. And then Nick Scali Limited (ASX: NCK) and Wesfarmers Ltd (ASX: WES) shares have both hit new highs today amid increasing demand for furniture and home improvements. With people spending more time at home, they appear intent on improving their surroundings.

More reading

• 2 leading ASX shares for a blue chip portfolio
• Is this ASX 200 market too greedy right now?
• 4 exciting ASX tech shares surging higher today
• Leading brokers name 3 ASX shares to buy today
• Here are the highlights of this ASX reporting season

James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends MEGAPORT FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO and Wesfarmers Limited. The Motley Fool Australia has recommended carsales.com Limited and MEGAPORT FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The coronavirus pandemic has triggered human tragedy and economic mayhem, so this reporting season was not expected to be pretty.

However, we’ve now hit the final week of results and the market is far from a bloodbath. 

The All Ordinaries Index (ASX: XAO) actually gained 0.1% last week, while the S&P/ASX 200 Index (ASX: XJO) lost just 0.2%.

It’s not like companies are bragging about massive profits, so what’s the story?

It seems COVID-19‘s omnipresence in the media and pre-emptive downgrade of expectations has cushioned any possible shock.

“Although earnings have slumped, this had already been largely anticipated by the market and the actual results have not been a lot worse than feared,” BetaShares chief economist David Bassanese told The Motley Fool.

“As has been the case in the United States, equity performance during the latest earnings reporting season is testament to the fact that the market is forward looking.”

‘Beats’ beat the ‘misses’

According to Morgans, the percentage of results that were better than expectations (“beats”) was the same as the “misses” among the 50 largest companies in the ASX.

Outside the top 50, the beats actually outnumbered the misses – 34% to 18%.

Morgans senior analyst Tom Sartor said reporting season had so far surprised “overly fearful expectations”.

“Ultimately FY20 results disrupted by lockdowns and COVID-related one-offs are less meaningful than usual, particularly given the broad lack of FY21 guidance seen so far,” he wrote in a blog post.

“Ongoing company trading updates and the AGM season are going to be far more important than usual, providing us with more catalyst trading opportunities which have worked well for us so far.”

Even companies that had missed expectations were still “well supported by the market”, according to Sartor.

“Whether this can continue when fiscal support scales down will be a key question as we exit August.”

Winning and losing sectors

Market nerves were also calmed by results not showing any surprises in terms of which sectors had done well and which fared poorly.

“Travel and leisure areas obviously [fared] the worst,” said Bassanese.

“While the resources sector has been supported by high iron-ore prices related to the V-shaped recovery in the Chinese economy.”

Government stimulus had helped prop up spending for ASX-listed retail companies.

This was especially the case for players with “a strong online presence” or specialising in “whitegoods or hardware”, according to Bassanese.

The finance sector has been subdued this reporting season.

“But, again, not a lot worse than expected – helped by the fact that as yet there has not yet been a surge in loan defaults,” Bassanese said.

“My sense is that both the banks and policy makers will be sensitive to the risk of rising loan defaults caused by high unemployment and will be careful in withdrawing support in coming months if the economy remains weak.”

More reading

• Meet the group reaping the biggest profit from the gold bull run
• ASX 200 up 0.2%: Afterpay expansion, Fortescue’s monster dividend, NIB disappoints
• 2 ASX 200 bargains to buy this week
• Boral cops $1.3bn body blow to profits could signal impending cap raise
• Are Webjet and other ASX travel shares taking off?

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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It has been a strong day on the ASX for a number of ASX tech shares, with some impressive share price gains. Australia’s ASX tech sector has grown rapidly over the past five years. 

Let’s take a closer look at 4 ASX tech shares that have seen particularly strong share price rises today.

Nearmap Ltd (ASX: NEA)

Australian aerial imagery and location data company Nearmap has seen an 11.2% peak in its share price so far today. This ASX tech share released its full year FY 2020 results 5 days ago. Despite reporting solid statutory revenue growth of 25% to $96.7 million, Nearmap’s share price fell by 11.6% on the day.  Investors appear to have had a change of heart today, after having more time to fully absorb all the details of the release. Nearmap  believes it is well-placed for strong growth during FY 2021. The ASX tech share is trading 11% higher at $2.98 at the time of writing.

Megaport Ltd (ASX: MP1)

The Megaport share price is up by 6.6% today. This follows a string of consecutive positive trading days since August 13. Since that time, the Megaport share price has risen from $12.89 to now be trading at $16.89. A key reason for this strong share price rise, has been a very impressive FY 2020 result. The ‘network-as-a-service’ provider reported total revenues of $58.0 million. This was a 66% rise over the prior year.  Megaport is now feeling more confident that it can achieve EBITDA breakeven in the near future.

Zip Co Ltd (ASX: Z1P)

The Zip Co share price is up by 12.4% in trading so far today, following a trading update regarding buy now, pay later (BNPL) provider QuadPay. Zip Co has entered into an agreement to purchase the remaining shares in New York based QuadPay subject to shareholder approval in late August. The announcement today on QuadPay showed it had displayed impressive growth during July. In addition, new key strategic partnerships and merchant agreements have been recently signed. This positive news has obviously been taken very well by investors, with the Zip Co share price having another strong day today.

Sezzle Inc (ASX: SZL)

Another BNPL provider that has seen its share price soar higher today is Sezzle.

This ASX tech share focuses on the North American market, although it was listed on the ASX in mid-2019. The company seen significant growth in the United States over the past year. The BNPL provider recently announced the successful completion of its oversubscribed share purchase plan.

The Sezzle share price has been on fire since late March. It has risen from $0.37 back then, and with today’s share price rise of 9.5%, it is now be trading $8.76. 

More reading

• Zip share price surges 8% on QuadPay update
• Why Afterpay, Bubs, Fortescue, & Zip Co shares are charging higher
• Fortescue and 2 more ASX 200 shares to watch this week
• These are the 10 most shorted shares on the ASX
• Are these ASX shares future millionaire makers?

Phil Harpur owns shares of MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia has recommended MEGAPORT FPO, Nearmap Ltd., and Sezzle Inc. 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 Archtis Ltd (ASX: AR9) share price has surged after the company announced a new services contract today.  

Archtis wins new contract

Archtis has won a new 3-month services contract with KPMG to provide information security services with a Commonwealth national security agency.

Archtis will provide $400,000 worth of resources and subject matter experts under the deal, which starts immediately. This will see the company contribute to security architecture, information sharing, integration and cross-domain services. It will be part of a consortium of industry leaders assembled by KPMG. 

Archtis management said the contract recognised the company’s development of services and intellectual property.

What does Archtis do?

Archtis is an Australian-based cyber security technology company that specialises in the safe and secure sharing of classified information. Since its establishment in 2006, the company has provided cyber security consulting and infrastructure and software development services to Australian government clients.

In a bid to commercialise its services, Archtis launched its software-as-a-service (SaaS) Kojensi platform last year to service government, defence and commercial clients. The company released an update for the fourth quarter of FY20 which highlighted strong progress in commercialising its platform.

The company has been growing sales momentum after renewing a government contract and also securing its first commercial contract with the defence industry. This follows a deal with Curtin University in May which will see Artchis expand into the education and space sector. Archtis also completed a $2.26 million capital raise in early June to expand its platform to new markets.

Foolish Takeaway

At the time of writing, the Archtis share price is trading at almost 9.7% higher for the day at around 51.0 cents. Shares in the company have been sold down after hitting an intra-day high of 58 cents earlier. Since mid-July, the Arcthis share price has surged more than 236% with tradee reaching an all-time high of 60 cents.

More reading

• The Archtis share price has doubled in a week! Here’s why
• Analysts back archTIS share price to outperform

Motley Fool contributor Nikhil Gangaram 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 BrainChip Holdings Ltd (ASX: BRN) share price has been rising to new multi-year highs thanks to the development of its ground-breaking Akida Neuromorphic System-on-Chip. At the time of writing, the Brainchip share price has jumped nearly 18% today alone to 33 cents.

As the ASX tech share announced new partnerships and arrangements to cement its position as a leading artificial intelligence (AI) specialist, investor attention has been growing at a rapid rate.

What’s been happening with the Brainchip share price?

It’s hard to believe the Brainchip share price has once again risen like a phoenix from the ashes.

Founded in 2011, the United States-based tech company hit an all-time low of 1.1 cent in January 2015. With a vision to mimic the human brain through a microchip, this prompted former Australian mining company, Aziana Limited, to acquire the tech company at a discounted rate.

In the months following the deal, the Brainchip share price reached a record high of 46 cents in November 2015.

However once again, the company’s shares plummeted in value due to the uncertain economic environment caused by COVID-19. Brainchip shares were trading at 3 cents in March 2020.

For the brave investor who bought the company’s shares during the bear market and held onto them until today, a gain of 1000% would be showing on the right side of their holdings. Impressive returns for just five months of patience.

What has fuelled Brainchip’s share price rise?

Defying challenging market conditions, the world’s only pure-play AI company has been making tailwinds.

Last week, Brainchip announced its partnership with Magik Eye Inc. to combine its AI processing unit with revolutionary 3D depth sensing technology. The collaboration further strengthens the capabilities of Brainchip’s promising Akida neuromorphic processor and opens up new market opportunities for revenue.

The week before, Brainchip entered a put option agreement with LDA Capital Limited, a US-based investment group. The agreement provides a financing facility of up to $29 million over the next 12 months. The drawdown will strengthen Brainchip’s balance sheet and support the commercialisation of its pioneering Akida technology.

In its most recent quarterly update to the market, the company advised it had completed the wafer fabrication, assembly and test operations of the Akida device. The early access program and proof-of-concept engagements are expected to commence this month.

The company is expected to release its 1H20 results some time this week.

Is Brainchip a bargain buy?

Investing in small-cap shares that mature to become a dominant force with large recurring revenues can be life changing for an early investor.

Indeed, it is considered a risky play which is why I would never recommend more than 5% of your portfolio in 1-2 companies with a market capitalisation of less than $500 million.

Having said that, I believe today’s Brainchip share price has huge potential to materially grow in the future. Cutting-edge technology mixed with insatiable demand is an investor’s dream.

I would certainly be a buyer of the Brainchip share price today with a view to holding for the long term.

Remember, successful investing requires immense discipline and patience.

More reading

• Brainchip share price rockets 30% in a week
• Brainchip share price surges 9% on new financing facility
• 3 unloved ASX growth shares that could make you rich

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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