While the rest of us have been watching earnings season reports, several growth shares have been blazing a trail on the ASX.
Every percentage point of growth now, means a lower return over the medium to long-term. For example, I bought Sezzle Inc (ASX: SZL) at $2.83, today I am up by ~300%. Had I waited even two to three weeks, my return today would be far less. Here's my pick of 3 ASX growth shares to buy before they rise any further.
Brainchip Holdings Ltd (ASX: BRN)
BrainChip's share price has risen by 85.29% in the past month. The artificial intelligence company has had two very major announcements in the past 6 months. First, was the completion of wafer construction for the company's Akida neuromorphic processor. This is a first-of-its-kind neural technology designed to mimic the processes of the brain and nervous system. Second, was the announcement of the company's first proof of concept partnership to apply it into the gaming and consumer products sectors.
The company already has a range of commercial products generating revenue. Furthermore, this partnership will be exploring Smart Transportation and Smart City applications. This includes Advanced Driver Assistance Systems (ADAS) and Autonomous Vehicles (AV). We should expect to hear more proof of concept partnerships from BrainChip very soon.
I think this is a great ASX growth share to buy is because I earnestly believe this is a turning point in artificial intelligence.
Jumbo Interactive Ltd (ASX: JIN)
Jumbo Interactive saw its share price rocket up by 21.85% in the past month. The company sells lottery tickets under license from Tabcorp Holdings Limited (ASX: TAH). It is already an established force, and recently extended a distribution deal with Tabcorp 2022 to 2030. Moreover, it is already in negotiations with Lotterywest to sell lottery tickets on its behalf, and recently acquired the Gatherwell UK company. The latter is the UK's largest external lottery manager for schools and local authorities.
Lastly, the company has been targeting charity sponsored lotteries. This is a $26 billion industry globally with only 10% of sales online. During the lockdown most countries saw falls in lottery ticket sale, while Australia continued to do well. This is because of the Jumbo online sales channel.
Jumbo is a great share to buy in my view, because it is already undervalued, has a massive addressable market, and is pioneering a one-top platform for all lotteries.
Base Resources Limited (ASX: BSE)
The Base Resources share price has risen by 29.1% over the past month. This overlooked pure-play mineral sands miner operates in Kenya and Madagascar. I think it is a great resources share to buy in a sector where prices are massively inflated.
In its FY20 annual report the company made earnings before interest, taxes, depreciation and amortisation (EBITDA) of $108.7 million. This translated into a net profit after taxes (NPAT) of $39.6 million. However, this was largely due to depreciation and amortisation of $57.2 million. It pays to keep in mind that this is an accounting transaction, and the cash does not leave the company.
Overall, revenues, EBITDA and NPAT were slightly down due to lower ore grades. The company is planning to increase production in FY21, and is moving its Madagascar project closer to operation. Moreover, the company has just announced its maiden dividend payment. On Friday's closing price this will deliver a yield of 12.5%. The Base resources share price is trading at a price to earnings (P/E) ratio of 6.14.
This is an ASX growth share to buy very quickly to secure the 12.5% dividend payment.
