After all, just because a stock is trading cheaply does not mean it is a bargain.

But for investors looking to add some high-potential options to their watchlist, here are two with fresh guidance from Bell Potter that could have upside. 

Oneview Healthcare PLC (ASX: ONE)

ONE's Care Experience Platform (CXP) is a unified set of digital tools in a single bedside solution that connects patients, families, and care teams with services, education, and information during hospital stays.

The system is fully automated, integrated, and personalised, which streamlines nursing workflows and positively impacts safe and timely hospital discharges.

Bell Potter has recently raised its valuation on this penny stock thanks to improving cash flows and a key contract win. 

The broker noted that the company reported an operating cash outflow of approximately €1.4m, supported by €3.5m in cash receipts, resulting in a cash balance of €4.6m at the end of the period. 

The result shows a clear improvement both quarter on quarter and year on year, marking the second consecutive quarter of improving cash performance.

Bell Potter also noted the recent contract win as a positive for this ASX penny stock. 

ONE has secured access to a top ten US health system / GPO (name not disclosed) that covers 85 hospitals and 15,000 beds, which is similar in scale to ONE's current onboarded beds. Access to the GPO is via an amendment to Baxter's existing arrangement and enables hospitals to purchase ONE's products.

The broker has raised its price target on Oneview Healthcare to $0.50 (previously $0.25). 

We have rolled forward our DCF valuation and lowered our WACC from 12.5% (after allowing for adjusting our RFR to 4.5%) to 10.1% to reflect improving confidence and cadence of new customer wins.

Based on yesterday's closing price of $0.40, this indicates an upside of 25%. 

Alcidion Group Ltd (ASX: ALC)

Alcidion is a provider of intelligent informatics software for the healthcare sector.

Its share price has risen 25% already in 2025. 

Bell Potter pointed out in a recent report that FY26 contracted revenue is already above FY25. 

FY26 contracted revenue is currently $43.1m (including both sold & renewals), an increase of +$6.8m from $36.3m at the prior quarter and already 6% above FY25 full-year revenue.

Alcidion Group also upgraded its FY26 guidance, lifting EBITDA and operating cash flow from simply "positive" to at least in line with FY25, with potential upside tied to the successful completion of the UHSx contract and the ongoing conversion of new revenue opportunities.

This implies EBITDA >$4.8m and operating cash flow >$5.8m, which Bell Potter views as readily achievable.

Based on this guidance, Bell Potter maintains a buy recommendation on this ASX penny stock along with a price target of $0.17 (previously $0.15). 

Based on yesterday's closing price, this indicates an upside of 36%. 

The post Two ASX penny stocks Bell Potter thinks are worth watching in 2026 appeared first on The Motley Fool Australia.

The technology company said University Hospitals Sussex NHS Foundation Trust (UHSx) had selected Alcidion as its preferred supplier for its new electronic patient record system.

The company said UHSx was a substantial healthcare provider in the UK.

UHSx is located in the south of the UK and forms part of the Sussex Integrated Care System (ICS). They provide hospital and community health care for approximately a million people in Sussex. It is one of the largest acute trusts in the UK, with seven hospitals hosting more than 1.5 million outpatient appointments, A&E visits and surgery cases annually, employing nearly 20,000 staff.

Alcidion said it would deploy its flagship Miya Precision platform, "including Miya Observations and Assessments (Patientrack), which is already live at the Trust''.

The company went on to say:

The EPR solution will provide clinicians real-time access to patient records whilst streamlining patient flow and improving clinical decision making processes. Following a competitive tender process, we will now finalise the contract prior to commencing deployment of Miya Precision which is expected to commence in Q4 FY26.

ASX technology share gaining momentum 

Alcidion Managing Director Kate Quirke said the company was "excited" to provide the expanded platform to UHSx.

This builds on a long-standing relationship Alcidion have with UHSx where they have been using Miya Observations and Assessments (Patientrack) for many years. UHSx's purpose for the EPR procurement is to implement a single, integrated digital platform that improves patient care, supports regional integration, drives operational efficiency, and delivers long-term social and research benefits. Miya Precision is ideally placed to deliver on this vision working alongside the implementation teams and clinical staff at UHSx to ensure there is long term benefit to the people of this region.

Alcidion shares traded as high as 12 cents on the news, up 20.2% before settling back to be 11.1% higher at 11 cents.

The contract win follows another in November, involving a contract expansion with Leidos Australia to further expand its use of Miya Precision.

That contract is worth $12.3 million out to 2028, adding $2.5 million to the company's annual recurring revenue. The company is expecting to recognise $5.5 to $6.5 million of the new revenue in FY26.

Alcidion was valued at $132.9 million at the close of trade on Wednesday.

The post This ASX technology company's shares are surging more than 20% on a new contract win appeared first on The Motley Fool Australia.

Again.

Shares in the healthcare technology company closed yesterday trading for 9 cents. In morning trade on Thursday, shares are swapping hands for 9.7 cents apiece, up 7.8%. This sees the Alcidion share price up an impressive 94% since this time last year.

For some context, the All Ordinaries Index (ASX: XAO) is up 0.3% today and up 7.3% over 12 months.

Today's outperformance follows the release of the ASX healthcare stock's half-year results for the six months ending 31 December (H1 FY 2025).

Read on for the highlights.

ASX healthcare stock leaps on earnings growth

• Revenue of $17.6 million, down 7% from H1 FY 2024
• Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $500,000, up from a loss of $2.79 million in the prior corresponding period
• Gross profit of $15.37 million, down 8% year on year
• Operating expenses of $14.3 million, down 24%

What else happened with Alcidion during the half?

Alcidion noted that the 7% decline in revenue was expected. The company said this was driven by the known reduction in non-recurring product implementation due to the near-term completion of its project implementation work for the Leidos Australia contract.

Over the half, the ASX healthcare stock signed new material contracts for its Miya Precision platform with Hume Rural Health Alliance, North Adelaide Local Health Network, and Peninsula Health.

What did management say?

Commenting on the results boosting the ASX healthcare stock today, Alcidion CEO Kate Quirke said, "Total YTD contract signings currently represent over $60M of new sales, confirming the significant value proposition of the Miya Precision platform for our customers and our shareholders."

Quirke added:

During the first half we continued to build our presence in the Australian market, particularly in Victoria, with several new contracts awarded for our leading flow and mobile solutions along with our first contract in South Australia.

The increasing challenges in efficiently moving patients through the hospital system continues to be a critical issue which hospital administrators are trying to address each and every day.

What's next for the ASX healthcare stock?

Looking at what could impact the ASX healthcare stock in the months ahead, Alcidion pointed to "strong momentum" in the second half of FY 2025, with two new sizeable contracts announced since 31 December.

"Importantly, these contracts continue to build our annual recurring revenue, which is increasingly valuable given the critical nature of our technology offering and long-standing nature of our customer relationships," Quirke said.

Alcidion said its contracted and renewal revenue currently stands at $39.5 million.

Management is confident that the ASX healthcare stock will deliver positive EBITDA and cash flow results for the full year FY 2025.

The post Up 94% in a year, why is this ASX healthcare stock rocketing again today? appeared first on The Motley Fool Australia.

Shares in the healthcare technology company closed yesterday trading at 8.4 cents. At the time of writing in midday trade on Friday, they are changing hands for 10.5 cents apiece, up 25.0%.

Here's what's grabbing investor interest.

ASX healthcare stock soars on contract win

Investors are bidding up the ASX healthcare stock after the company reported it has secured a long-term contract with North Cumbria Integrated Care NHS Foundation Trust (NCIC) in the United Kingdom.

NCIC provides hospital and community health services to around half a million people.

The contract is for use of Alcidion's Miya Precision platform to provide an Electronic Patient Record (EPR) to the Trust.

Alcidion said its modular EPR will enhance digital maturity and support clinicians to deliver high-quality safe patient care.

The total contract value (TCV) is approximately $37.5 million (£19.0 million) over a contract term of 10 years, with options to extend.

Likely spurring investor enthusiasm, the ASX healthcare stock said deployment of its Miya Precision platform will commence immediately. The company expects to recognise $8.0 million to $9.0 million from the new contract in FY 2025.

Alcidion noted that the new agreement with NCIC extends its market footprint in North East North Cumbria, with two other NHS trusts in the region also using its modules.

What did management say?

Commenting on the new agreement sending the ASX healthcare stock soaring today, Alcidion CEO Kate Quirke said, "Securing this long-term contract with North Cumbria Integrated Care is a significant step for the Trust and demonstrates the value a modern, modular EPR platform can bring to healthcare systems."

Quirke added:

Miya Precision has a strong reputation for supporting clinicians to digitise their workflows and improve care outcomes for patients, and we are excited to deliver this for NCIC.

For Alcidion, this contract represents a key milestone in our efforts to support major healthcare providers with market-leading digital health solutions.

The emergence of smarter, more focused electronic patient records infrastructure is being widely accepted as an essential part of clinical workflow and patient care, globally, and we remain committed to continuous improvement and world-class innovation in this space.

Adrian Clements, executive medical director of NCIC, added, "By integrating cutting-edge technology, we are not just keeping pace with modern healthcare, but setting a standard for safer, smarter, and more efficient care delivery."

With today's big boost in the Alcidion share price factored in, the ASX healthcare stock is up 110% since this time last year.

The post Guess which ASX healthcare stock is rocketing 25% on big UK news appeared first on The Motley Fool Australia.

As always, there are outliers, and these two ASX healthcare shares are outperforming today.

Let's find out why.

Race Oncology Ltd (ASX: RAC)

Race Oncology shares are 2.18% higher at $1.64 apiece after the biotech reported positive progress in its Phase 2 trial of Bisantrene for the treatment of relapsed or refractory acute myeloid leukaemia (AML).

The clinical-stage biopharmaceutical company is investigating a small-molecule chemotherapeutic drug called bisantrene in the treatment of cancer.

The ASX healthcare share is in the green on news that investigators at the Sheba Medical Centre in Israel have successfully concluded the Phase 1b/2 trial of RC110 bisantrene, which met the predetermined efficacy criteria.

In a statement, Race Oncology said 40% of patients with highly advanced disease showed a response to the bisantrene combination treatment. Five patients had complete responses, and one had a partial response. This surpassed the trial's predefined efficacy goal of at least three complete responses.

Race said the trial results strongly supported the company's intention to initiate a new Phase 1/2 investigator-sponsored AML trial using the reformulated version of bisantrene, called RC220.

The ASX healthcare share is currently up 92.95% in the year to date and 34.43% over the past 12 months.

Alcidion Group Ltd (ASX: ALC)

Alcidion Group shares are up 2.56% to 8 cents per share on Tuesday. This follows the technology solutions developer releasing its quarterly activities report this morning.

Investors in this ASX healthcare share appear to be pleased with the numbers on Tuesday.

Alcidion reported record quarterly cash receipts of $18.6 million in 4Q FY24. That's up from $17.6M in the prior corresponding period (pcp).

The company said it was also seeing the impact of cost-saving initiatives. Staff costs in 4Q were $6.3 million, down significantly from $8.1 million pcp.

Alcidion said it expected unaudited FY24 revenue to be in the range of $37 million to $37.5 million. Approximately 74% of that is annual recurring revenue (ARR) and 26% is services revenue.

Alcidion Group Managing Director Kate Quirke said:

Q4 was a strong period for cash collections with record cash receipts of $18.6M resulting in a positive cashflow for the quarter and the second half of the year.

As indicated at the time of our half year results, we expected to deliver a strong second half cashflow result which now positions us well as we head into the new financial year.

The ASX healthcare share is down 1.25% in the year to date and down 39.23% over the past 12 months.

The post 2 ASX healthcare shares outperforming on big news appeared first on The Motley Fool Australia.

Shares in the healthcare technology company closed yesterday at 5.5 cents and were trading at 8.0 cents apiece after market open today, putting the stock up a blistering 45.5%. After some likely profit-taking, shares are currently changing hands for 6.6 cents, up 20%.

Any guesses?

If you said Alcidion Group Ltd (ASX: ALC), give yourself a virtual gold star.

Here's why investors are sending the ASX healthcare stock flying higher today.

What's boosting the ASX healthcare stock?

Alcidion is rocketing after the company announced that the North Cumbria Integrated Care NHS Foundation Trust (NCIC) has selected Alcidion as the preferred supplier by for its new Electronic Patient Record (EPR) system.

Located in the United Kingdom, North Cumbria provides hospital and community healthcare for approximately half a million people. The foundation operates across two acute care hospitals, eight community-based hospitals, eight Integrated Care Communities and several support staff locations.

The ASX healthcare stock will provide its Miya Precision platform, including Silverlink PCS, which is already live at NCIC. Alcidion said this will provide clinicians with real-time access to patient records while streamlining patient flow and improving clinical decision-making processes.

Subject to successful negotiation, Alcidion expects this to be a 10-year contract utilising the full Miya Precision product suite along with partner applications.

The total contract value (TCV) remains under negotiation, but Alcidion said it's likely to be between $30 million and $40 million over 10 years.

Alcidion is targeting deployment in the first quarter of calendar year 2025.

What did management say?

Commenting on the contract sending the ASX healthcare stock rocketing today, Alcidion managing director Kate Quirke said, "We are excited to build upon our existing relationship with NCIC by being selected as their preferred EPR supplier."

Quirke continued:

The Alcidion approach of providing an integrated, modular EPR offering allows NCIC to develop their existing digital footprint, protecting their existing investments and allowing them to realise the benefits of additional clinical capabilities such as electronic noting and integrated observations through integration with a number of existing systems.

At a time when the healthcare system is under enormous pressure, we see this increased speed to deliver value as a real opportunity for our customers.

Adrian Clements, executive medical director at NCIC, added:

Over the last few months, many of us have spent a great amount of time evaluating the various Electronic Patient Record systems in order to reach the correct conclusion to help us implement the best possible dynamic EPR system.

I feel assured and confident that selecting Alcidion will allow us to implement an EPR that enables high quality patient care, improves clinical safety and saves clinicians' valuable time.

With today's intraday gains factored in, the ASX healthcare stock is down 10% year to date.

The post Guess which ASX healthcare stock just rocketed 46% on major news! appeared first on The Motley Fool Australia.

At the time of writing, the healthcare technology company's shares are down 27% to a 52-week low of 7.1 cents.

What's going on with the Alcidion share price today?

There have been a couple of catalysts for the weakness in the Alcidion share price on Wednesday.

The first has been the company undertaking a capital raising. According to the release, Alcidion has received firm commitments to raise $5 million through an institutional placement. These funds are being raised at 7.5 cents per new share, which is a 23% discount to its last close price.

In addition, Alcidion is aiming to raise a further $1 million via a share purchase plan at the same price.

These funds are being raised to maintain a strong balance sheet so it can execute on its market opportunities and drive ongoing revenue growth.

What else?

The company's quarterly update doesn't appear to have gone down too well with investors and could also be weighing on the Alcidion share price today.

Alcidion reported new total contract value of $2.5 million for the quarter, which is up 39% on the prior corresponding period. This means that total contracted revenue was $35.3 million at the end of the quarter, which is up 12% on the prior corresponding period.

And while management has maintained its expectation to be EBITDA and operating cashflow positive in FY 2024, its first quarter performance is certainly not supportive of this.

Alcidion revealed quarterly cash receipts of $6.4 million and negative operating cash flow of $8 million. A big portion of this outflow relates to staff costs, which came in at a lofty $8.5 million.

This reduced its cash balance from $14.6 million at the end of June to just $6.5 million. Though, this excludes the money raised from its capital raising.

The post Why is the Alcidion share price crashing 27% to a 52-week low? appeared first on The Motley Fool Australia.

Since inflation rocketed, interest rates followed, and Russia stamped into Ukraine, money was pulled out from smaller players into their larger rivals. 

This is due to the perception that big companies are better placed to cope with economic uncertainty, due to their pricing power and scale.

However, last month green shoots started to appear in small-cap land, according to Cyan portfolio manager Dean Fergie.

"After a very challenging investment period at the smaller end of the Australian market, July offered some real signs that confidence is finally beginning to emerge," he said in a memo to clients.

Inflation seems to be on the way down, and central banks look like they might put their guns away.

"Further, with the conclusion of June's tax-loss selling period, there has been a noticeable uptick in the confidence of small company investors, contributing to an atmosphere of growing optimism."

So which are the ASX shares that Fergie's team has the most conviction in?

Here are two:

CAGR of 69%? Yes, please

Video game developer Playside Studios Ltd (ASX: PLY) has had a wild ride since listing on the ASX in December 2020.

After starting its listed life in the mid-20 cents, it initially defied the tech sell-off at the end of 2021 to sit proudly at $1.19 in February last year.

Then the market lost faith, sending the Playside share price to as low as 28 cents earlier this year.

But with a massive 46% rise in July, Fergie reckons it's ready to turn it around.

"Playside proved it is more than a work-for-hire game developer with a solid rebound in its quarterly cash flow statement, with strong performances from both its original IP and work-for-hire divisions."

The Melbourne company announced revenue guidance of more than $50 million for the current financial year.

"[This] was ~20% higher than previous expectations of analysts," he said.

"It is worth remembering that this represents organic growth from $10 million to a forecast $50 million+ in 3 years, equating to a compound annual growth rate of 69%."

Fergie's fund has been invested in Playside for years, but is more bullish than ever right now.

"We would also argue that the quality of revenue has improved, given Playside now partners with some of the best of breed industry leaders."

The start of 'significant price momentum'

Hospital software maker Alcidion Group Ltd (ASX: ALC) has been one of the most frustrating holdings for Fergie's portfolio.

Despite winning clients, the stock price has been pummelled 74% down since June 2021.

The latest performance figures, however, convince him that a turnaround is imminent.

"Alcidion rebounded well with a strong June quarter, from both a cash flow and revenue perspective."

Indeed, the market sent the share price soaring 32% over the last month.

"We expect this is the beginning of significant price momentum as the company executes on its strong pipeline of potential projects, particularly in the UK," said Fergie.

"We believe Alicidion will be a strong performer over the next 12 months as the government-led push to digitisation of the UK healthcare sector accelerates."

The Cyan team is not the only one keen on Alcidion.

According to CMC Markets, all three of Bell Potter, Canaccord and RBC Capital Markets currently rate the stock as a strong buy.

The post 400% organic growth in 3 years: The ASX small-cap Cyan is pumped about appeared first on The Motley Fool Australia.

The business is excellent — winning new customers, expanding market share — but the stock price just languishes, or even plunges.

Even with a long-term horizon, your faith is tested.

That's especially been the case with small-cap stocks in recent times. 

The economic turbulence from inflation, rising interest rates, and a war in Europe has triggered investors to pull their money out of riskier stock and into larger cap businesses with more stable earnings.

One stock that exemplifies this experience is Alcidion Group Ltd (ASX: ALC).

The hospital software provider has seen its share price plummet more than 72% since June 2021.

But one could now argue that's enough punishment.

'Disconnect' between company performance and share price

The fact is that the Alcidion business has not done much wrong over that time.

Cyan Investment Management has been a backer of the small cap for a while now, and has been bemused by the way it's been treated by the market.

"Their revenues, earnings and client bases have expanded over the past two years and yet their [stock price has] declined by more than 50%," portfolio manager Dean Fergie said back in March.

"Whilst it could be argued prices did get ahead of themselves during 2020/21, the disconnect between underlying company performance and share price movement cannot continue indefinitely."

Fergie is not alone in recognising the deep value for Alcidion shares.

According to CMC Markets, Bell Potter, Canaccord, and RBC Capital Markets all agree with him, rating Alcidion shares as a strong buy.

Already the valuation for the software maker seems to have turned around, gaining more than 33% since 27 June.

This is why I will consider buying $5,000 worth of Alcidion shares this month.

Late last month, the company's quarterly update was received warmly by the market, with the stock surging 9% higher that morning.

"The record achievement in cash receipts in the fourth quarter builds upon Alicidion's all-time performance last year," reported The Motley Fool's Mitchell Lawler.

"At that time, the company pulled in $14 million to mark a new high for the financial measure."

The post An unloved ASX stock I'm considering buying with $5,000 in August appeared first on The Motley Fool Australia.

Shares in the healthcare software provider are 9.1% higher this morning, trading hands at 12 cents apiece. More than 4.5 million shares have already been exchanged today, compared to the past month's average one-day volume of approximately 1.2 million shares traded.

The Alcidion share price opened the session at 12.5 cents before edging down a step. 

Alcidion share price shines as cash flows explode

Here are the key numbers from Alcidion's fourth-quarter FY23 report:

• Record quarterly cash receipts of $17.6 million, up 25.7% on the prior corresponding period
• Positive operating cash flow of $6 million, increasing 81.8%
• New sales of $7.3 million during the quarter
• Cash balance of $14.6 million, up from $11.1 million in the previous quarter
• Contracted and renewal revenue of $33.7 million expected in FY24

The record achievement in cash receipts in the fourth quarter builds upon Alicidion's all-time performance last year. At that time, the company pulled in $14 million to mark a new high for the financial measure. 

Ending FY23, Alcidion improved its cash receipts in two out of four quarters during the financial year. The exceptions were Q2 and Q3, which were attributed to timing delays.

What else happened in the fourth quarter?

On 30 May, two existing Patient Care System (PCS) customers — obtained via the Silverlink acquisition — renewed their contracts. Signing a two-year agreement, Royal Wolverhampton NHS Trust is now on board for additional two years, expiring in March 2025.

University Hospitals Dorset NHS Foundation Trust also signed a three-year agreement with the Silverlink PCS solution. The renewal extends the partnership to March 2026. 

Despite representing $3.3 million in combined value, the Alcidion share price failed to respond positively on the announcement day.

The final earnout payment to Silverlink has been made after the renewal. The A$2.7 million payout was funded by existing cash reserves from its balance sheet.

What did management say?

In light of the record quarter, Alcidion managing director Kate Quirke stated:

In Q4, we enjoyed module sales to both new and existing customers. Additionally, there were several contracts signed with existing customers for ongoing service delivery. The combination of these sales demonstrates the resilience of our business and the commercial value being delivered on a long-term and sustainable basis.

Adding to this, Quirke highlighted a recent success story following the implementation of Alcidion's solutions: 

With a purpose to free clinician time to provide care, it is rewarding to receive feedback from customers who say their doctors have realised savings of at least one hour per day in reduced administrative burden since implementing our software, as was recently relayed by South Tees Hospital NHS Foundation Trust.

What's next?

Alicidion management is already eyeing down where the avenues of growth are ahead. The team believes they are particularly well positioned in the United Kingdom to take advantage of new contract opportunities.

In terms of the next year, Quirke said, "I am confident in our ability to continue delivering accelerated growth as we capitalise on global market tailwinds."

Notably, Alicidion has formed a strategic partnership with Olinqua — a market leader in hospital automation — to roll out Miya Central. This product will specifically target improving operational efficiency and making data-driven decisions.

Alcidion share price snapshot

The Alcidion share price has been in the doghouse in 2023, falling 20% year-to-date.

Perhaps the lack of bottom-line earnings has left investors uninterested in this ASX company. Generally, the small-caps have struggled more than their larger peers this year as shareholders seek out safety in the stalwarts of the market.

For example, the S&P/ASX Small Ordinaries Index (ASX: XSO) is up 5% in 2023. Whereas the S&P/ASX 200 Index (ASX: XJO), containing more established companies, is up 7.3%.

The current Alcidion share price gives the company a price-to-sales (P/S) ratio of 3.6 times sales.

The post Alcidion share price charges 9% ahead on record quarter appeared first on The Motley Fool Australia.

Inflation is still flying high, interest rates are still heading up, and there is still no certainty as to whether the world will avoid a recession.

But, according to small-cap specialist Cyan portfolio manager Dean Fergie, this is not the time to sell out of the little guys.

"Patience is always tested at times such as these but, each time in history, the market has improved, and disciplined investing has been rewarded accordingly," he said in a memo to clients.

"There is no silver bullet. But over time we think there is material upside in the portfolio and we, albeit somewhat impatiently, look forward to it being released."

In fact, now might be the best time to buy some of these unloved small caps, if the underlying business is sound and has great prospects.

Here are two ASX shares that Fergie's team is keeping the faith in:

Inside buying is always a good sign

Shares of hospital software provider Alcidion Group Ltd (ASX: ALC) have been absolutely punished this year, to the tune of 36%.

Just in April alone, the Alcidion share price tumbled a horrifying 22%.

The Cyan team's frustration is palpable, as the market continues to ignore what it considers an outstanding business delivering a stream of good news. 

"The market dealt harshly with Alcidion's quarterly cash flow statement which came out on April 26, resulting in the stock trading down 20% in [the] last two days of the month," said Fergie.

"The reported numbers were reasonable, and even the outlook for the fourth quarter cash receipts is quite strong."

The catch was that management indicated there are some "delays in procurement outside of Alcidion's control" that may cause the company to miss its original plan of delivering positive earnings for this financial year.

However, the statement also read that Alcidion currently has "the strongest pipeline in our history" and that the outlook "remains positive".

"Indeed, two Alcidion directors have been buying shares in early May, which has provided some confidence and support to the stock in recent days."

Back on the way up?

Electronic games developer Playside Studios Ltd (ASX: PLY) has had a wild ride since listing on the ASX in December 2020.

From its debut closing price of 26 cents, the stock rocketed as high as $1.19 in February last year. Then it tumbled almost 70% to close Tuesday at 38 cents.

The Cyan analysts loved its latest update, though.

"Playside proved it is more than a work-for-hire game developer with a strong rebound in its quarterly cash flow statement, with the upside surprise delivered through its original IP division and strong revenue from its 'Dumb way to Die' franchise."

The full-year guidance showed "ongoing growth", which the market appreciated, to send Playside shares 6% up last month.

"After some disappointing news in recent months, which had resulted in a material share price decline, the market rewarded it for its improvement with some price strength which has continued into May."

The post 'Upside surprise': 2 small-cap ASX shares ready to break out appeared first on The Motley Fool Australia.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here's why they are bullish on them:

Accent Group Ltd (ASX: AX1)

According to a note out of Goldman Sachs, its analysts have retained their buy rating and $3.10 price target on this footwear and athleisure retailer's shares. Accent presented at Goldman Emerging Leaders conference and the broker was pleased with what it heard. It notes that cost pressures are starting to stabilise and Accent expects to offset this with one final price increase in July. In addition, it highlights that the company now has a higher return hurdle on new store openings to reflect a higher cost of capital. The Accent share price is trading at $2.48 today.

Alcidion Group Ltd (ASX: ALC)

A note out of Bell Potter reveals that its analysts have resume coverage on this commercial stage healthcare IT company's shares with a speculative buy rating and 20 cents price target. The broker believes that Alcidion is well-placed to benefit from governments across the globe supporting and funding the upgrade of hospitals to digital records and patient management systems. The Alcidion share price is fetching 11.5 cents on Tuesday.

Eagers Automotive Ltd (ASX: APE)

Analysts at Morgans have retained their add rating and $15.85 price target on this auto seller's shares. The broker highlights that electric vehicles (EV) sales have now hit 7.4% of the market. Morgans believes that Eagers is well-placed to benefit from this trend thanks to its direct leverage to EV penetration. The Eagers share price is trading at $13.75 this afternoon.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

I know… a 20-bagger can sound outlandish — but, rest assured, it is entirely possible. In fact, 14 ASX-listed companies have seen their share prices skyrocket more than 2,000% between 2015 and now. You might recognise some of the ASX shares that fall into this bucket — including Hub24 Limited (ASX: HUB), Pilbara Minerals Ltd (ASX: PLS), and Pro Medicus Ltd (ASX: PME).

But, to tap into opportunities now to build a $1 million portfolio, I think it's essential to look at the small dogs on the block.

Searching small to make it big with ASX shares

The law of large numbers implies that it can become difficult for big companies to grow at high rates.

Put simply, it is harder to go from $1,000,000 to $2,000,000 than it is to go from $1,000 to $2,000. But in percentage terms, they are the same — both being a 100% increase. Based on this, the greatest growth is plausibly found among the small caps of the market.

Research conducted by Dede Eyesan and Jenga Investment Partners further supports this. In the book titled Global Outperformers, Eyesan looked at companies that returned more than 1,000% during the 10 years between 2012 and 2022.

As shown in the extract above, 97% of global outperformers during the reviewed decade started out as small caps — or even smaller. That is some strong evidence to support the smaller end of the market as the best place to go hunting for a chance at a $1 million portfolio.

Where I'd shoot for a million

There are two ASX shares that I believe tick the boxes needed for massive upside.

Both companies operate in large addressable markets and are in the midst of structural tailwinds. Furthermore, both have delivered exceptional revenue growth, increasing more than tenfold over the past five years.

The first company I'd consider is counter-drone equipment maker Droneshield Ltd (ASX: DRO). A $10 billion market opportunity — combined with a track record of growth, a foot in the door with the world's biggest defence spender, and a geopolitical environment conducive to greater protection measures — Droneshield has a lot to like.

It's still early days. Though, Droneshield's continued product development leads me to believe this company could take a considerable slice of a market that is becoming increasingly relevant.

Shares in the company are already up 88% over the last 12 months.

The other ASX share which I think could be primed for remarkable returns is Alcidion Group Ltd (ASX: ALC).

In my opinion, healthcare costs are reaching a breaking point globally. The cost of care is spiralling toward an amount that exceeds what the taxpayer can shoulder. At the same time, the rising cost of living could be forcing more people into the public system.

That's why I think digital patient management solutions — like those provided by Alcidion — are going to become critical to increasing productivity and controlling costs.

The company is not yet profitable. However, revenue has grown at a compound annual growth rate (CAGR) of 69% over the past four years. Given the scalability of its product, attractive profits could be simply a matter of time for this ASX share.

Shares in Alcidion are down 40% over the last 12 months.

The post ASX shares: Invest in these 2 stocks for a legit chance at $1 million appeared first on The Motley Fool Australia.

Three that haven't gone down particularly well with investors are summarised below. Here's why these ASX All Ordinaries shares are falling:

Alcidion Group Ltd (ASX: ALC)

The Alcidion share price is down 3% to 15.5 cents. This healthcare technology company's shares have come under pressure despite reporting strong sales figures during the second quarter. Alcidion reported new sales of $16.8 million, with $4.2 million to be recognised in FY 2023. This led to FY 2023 contracted revenue hitting $32.9 million, which is up 21% on the prior corresponding period. For the first half, Alcidion recorded cash receipts of $18.8 million, which is up 15% year over year.

Electro Optic Systems Holdings Ltd (ASX: EOS)

The EOS share price is down over 7% to 64 cents. This follows the release of the technology company's fourth quarter and full year update. Unfortunately, EOS revealed that some sales opportunities that were previously expected to be signed and commence delivering revenue in the second half of 2022 have been delayed by customers. And while receipts from customers came to almost $41 million, the company still posted an operating cash outflow of $13.9 million for the quarter. This left EOS with a cash and equivalents balance of $21.75 million.

Whispir Ltd (ASX: WSP)

The Whispir share price is down 5% to 48.5 cents. Investors have been selling this communications management systems provider's shares after it reported a 9% year over year decline in cash receipts to $14.84 million during the second quarter. Though, it is worth noting that the prior corresponding period included COVID-19 vaccine rollout related revenues. Whispir ended the period with total cash and equivalents of $9.5 million, which it estimates to be 1.7 quarters of funding.

The post 3 ASX All Ordinaries shares getting hammered on quarterly updates appeared first on The Motley Fool Australia.

Despite their many differences, a passion for investing in ASX shares is something all our writers definitely have in common.

So when we asked them to let us know which of the ASX companies they own shares in that they are feeling particularly upbeat about right now, they leapt at the chance to share their thoughts.

Here's what they had to say:

8 of their own ASX shares our writers are especially pumped about (smallest to largest)

• Bailador Technology Investments Ltd (ASX: BTI), $185.59 million
• Alcidion Group Ltd (ASX: ALC), $199.72 million
• VanEck Morningstar Wide Moat ETF (ASX: MOAT), $454.32 million
• Vulcan Energy Resources Ltd (ASX: VUL), $1.01 billion
• Elders Ltd (ASX: ELD), $1.59 billion
• Telix Pharmaceuticals Ltd (ASX: TLX), $2.324 billion
• Domino's Pizza Enterprises Ltd (ASX: DMP), $5.70 billion
• Fortescue Metals Group Limited (ASX: FMG), $58.32 billion

(Market capitalisations as of market close on 25 November 2022)

Why these ASX shares set our writers' hearts aflutter

Bailador Technology Investments Ltd

What it does: Bailador exposes investors to a "portfolio of information technology companies with global addressable markets". It generally makes initial investments of between $5 million and $20 million in businesses in the 'expansion stage'. Some of the sectors that Bailador looks for are subscription-based internet businesses, online marketplaces, software, e-commerce, high-value data, online education, telco applications, and services. Siteminder Ltd (ASX: SDR) is currently one of its biggest investments.

By Tristan Harrison: The typical characteristics that Bailador looks for in a business to invest in are attractive to me. These include companies that are run by founders and have a "proven" business model with attractive unit economics, international revenue generation, "huge market opportunity", and the "ability to generate repeat revenue".

In the current climate of economic uncertainty, I think this sort of discerning approach could help this  ASX financial share excel over the long term. Yet, the Bailador share price is down 20% since the end of August.

Almost half the company's portfolio value is cash after Bailador recently sold its Instaclustr and SMI stakes for a combined $138 million. Due to those sales, $119 million of Bailador's total $246.8 million portfolio value is cash, providing protection and a hunting fund in these volatile times.

Motley Fool contributor Tristan Harrison owns shares in Bailador Technology Investments Ltd.

Alcidion Group Ltd

What it does: Alcidion is a healthcare informatics company that provides a range of software solutions to hospitals and healthcare professionals. Think everything from patient flow and bed management to real-time analytics, theatre management, waiting lists, and registrations.

Alcidion has an established foothold in Australia, New Zealand, and the United Kingdom, with its technology being used to manage more than 65,000 beds across 400 hospitals.

By Cathryn Goh: Although the digital transformation of business, in general, has been in train for some time, the healthcare sector has been somewhat of a laggard. Many hospitals are rooted in old-world systems. Others have embraced digital but use a variety of disparate systems that don't talk to each other.

This is where Alcidion enters the fray, offering hospitals everything from a fully-fledged electronic patient record (EPR) solution to individual software modules that play nice with existing technology investments.

Put simply, Alcidion is a mission-critical, scalable software business that's experiencing strong business momentum and has tipped into cash flow and earnings before interest, tax, depreciation and amortisation (EBITDA) positive territory.

With a newly-transformed offering and stiff industry tailwinds at its back, it's a small-cap ASX share I think holds plenty of promise.

Motley Fool contributor Cathryn Goh owns shares in Alcidion Group Ltd.

VanEck Morningstar Wide Moat ETF

What it does: This exchange-traded fund (ETF) holds a small portfolio of US shares that are deemed to show characteristics of Warren Buffett's famous 'economic moat'. In other words, intrinsic and durable competitive advantages.

By Sebastian Bowen: The VanEck Wide Moat ETF invests in a relatively small portfolio of quality US companies. The holdings are selected for their ability to demonstrate an economic moat. Types of moats can include an exceptionally strong brand, pricing power in a particular sector, or selling a product that many customers have no alternative for, to name a few.

This ETF has proven its approach works. The VanEck Wide Moat ETF has outperformed its benchmark S&P 500 Index (SP: .INX) over the past five years and since its inception in June 2015.

Since inception, the fund has averaged a return of 14.48% per annum (as of 31 October). This is more than enough to earn the VanEck Wide Moat ETF pride of place in my ASX share portfolio.

Motley Fool contributor Sebastian Bowen owns units in the VanEck Vectors Wide Moat ETF.

Vulcan Energy Resources Ltd

What it does: Vulcan Energy is an ASX lithium company working to develop its flagship Zero-Carbon Lithium Project, a German lithium brine resource. The project is expected to power its production using renewable energy from the brine's geothermal properties.

By Brooke Cooper: For me, my most exciting investment is one that also carries plenty of risk.

Vulcan Energy is working to develop a world-first zero-carbon lithium project. Thus, there's lots of scope for potentially-significant upside, but also the risk of error and misfortune along the way. Being in my 20s and having a long investment horizon, I'm okay with taking on this risk. 

Beyond the company itself, unprofitable resource shares are typically particularly susceptible to shifting market sentiment, as I've delved into previously. That's arguably one contributing factor to Vulcan's 34% year-to-date share price tumble.

However, I remain excited about the Zero-Carbon Lithium Project's potential, as well as the company's work in the geothermal power space.

Motley Fool contributor Brooke Cooper owns shares in Vulcan Energy Resources Ltd.

Elders Ltd

What it does: Since its founding in 1839, Elders has taken many forms over its 183-year lifespan. Today, the company derives most of its gross profits from its agricultural chemicals operations and agency services. Elders' agricultural industry involvement has also permeated into other areas such as fertilisers, animal health, and rural real estate.

By Mitchell Lawler: Upon releasing its FY22 full-year results last week, the market responded with a hefty sell-down of the agribusiness's shares. The Elders share price was demolished by nearly 23% in a single session despite sales revenue and underlying profit increasing by 35% and 42%, respectively.

News of the company's CEO, Mark Allison, retiring likely played a significant role in the shifting sentiment. Allison, without a doubt, was instrumental in conducting one of the greatest turnaround stories in Australia's corporate history.

While it will be a loss to the company, I believe Elders is strongly positioned to continue its growth. The company has made many acquisitions recently, bringing the trusted Elders brand to more locations and potential customers than ever before.

With a price-to-earnings (P/E) ratio of around 9.7, I believe this long-standing S&P/ASX 200 Index (ASX: XJO) share looks acutely underappreciated and undervalued.

Motley Fool contributor Mitchell Lawler owns shares in Elders Ltd.

Telix Pharmaceuticals Ltd

What it does: Telix is a pharmaceutical company that makes cancer diagnostic and treatment products.
The business is currently transitioning from a pre-revenue phase to a growth stage. In April, Telix commercially launched prostate cancer diagnostic tool Illuccix into the US market. The pharma also has other cancer products in the pipeline.

By Tony Yoo: Many experts are bullish on healthcare as Australia and the world head into an economic slowdown. The sector has defensive characteristics because consumers will still spend money on their health while cutting other costs.

I believe Telix combines this defensive streak with the potential for explosive growth as it develops new products for release into an aging population. The share price is down 10.3% year to date, still presenting an attractive entry point for those willing to hold long-term.

Motley Fool contributor Tony Yoo owns shares in Telix Pharmaceuticals Ltd.

Domino's Pizza Enterprises Ltd

What it does: Domino's Pizza Enterprises holds exclusive master franchise rights for the Domino's brand and network in Australia and several international markets such as New Zealand, France, and Japan.

By James Mickleboro: I recently took advantage of the significant weakness in the Domino's share price in 2022 to pick up some shares. I made the move on the belief that the pizza chain operator's shares are currently trading at a compelling level for a long-term investment.

While trading conditions are proving difficult for Domino's at present due largely to inflationary pressures, these headwinds will inevitably ease in time. In light of this, I think investors should look beyond this and focus on the long term, which remains very positive thanks to the company's store expansion plans.

Domino's aims to more than double its store footprint over the next decade. Combined with its same-store sales growth target of 3% to 6% per annum, I believe this bodes well for its growth.

Motley Fool contributor James Mickleboro owns shares in Domino's Pizza Enterprises Ltd.

Fortescue Metals Group Limited

What it does: Fortescue is the largest, pure-play iron ore miner on the ASX. It has multiple mining operations in the Pilbara region of Western Australia. It now has a subsidiary called Fortescue Future Industries (FFI), which is a green energy and technology business.

By Bronwyn Allen: I like investing in founder-led companies because I think there is inherently more passion and drive at the management level to keep the company growing and evolving.

Fortescue founder Andrew 'Twiggy' Forrest is one of Australia's pre-eminent business leaders and, I believe, an incredible innovator who gives the miner a significant edge.

Fortescue is one of the world's lowest-cost iron ore producers because Forrest has invested in infrastructure and technology, including robotics and artificial intelligence, like nobody else. I also think he's way ahead on what may be the biggest investment thematic of my generation – climate change.

Forrest spent much of COVID-19 travelling the world, establishing business and government partnerships to develop green hydrogen and other renewable energy technologies under the FFI banner. His goal is to transition Fortescue from an iron ore miner to a 'global green energy and resources company'.

I'm excited to see a leader in a 'dirty' industry like mining embracing climate change as an opportunity for business expansion, not a burden to core operations.

Motley Fool contributor Bronwyn Allen owns shares in Fortescue Metals Group Limited.

The post Skin in the game: The ASX share in my portfolio I'm most excited about appeared first on The Motley Fool Australia.

"All types of investing require nerve and courage. But perhaps none more so than small-cap stocks," said Ophir analysts in a memo to investors this month.

"When an economic downturn hits, small caps tend to fall first and farthest."

In volatile and uncertain times, the value of smaller companies sinks much more dramatically than larger companies for multiple reasons.

"Small caps also tend to be more sensitive to changes in the economy. They are less able to diversify their operations and are less likely to have the large cash reserves needed to withstand difficult trading conditions."

They can also get caught up in a liquidity spiral. In a falling market, institutional investors often sell out of smaller holdings first to avoid getting trapped in an illiquid position.

"They then also stop buying, pushing prices down further and faster on even lower levels of liquidity," read Ophir's investment strategy memo.

"And while small-cap managers might see even cheaper stocks, many are unwilling to enter the market so prices in small-cap stocks keep falling at a faster rate."

But the reward for hanging onto the small fish is that, on the other side, they rally much faster than large caps.

"Historically, in the 12 months after the US small-cap index has bottomed around a recession, they have returned an incredible 70% on average – that's 11% higher than large caps," read the Ophir memo. 

"The small-cap rebound is also quick. Most of the additional return benefit versus large caps has happened in the first three months."

So remembering this, here are three small-cap ASX shares that the Cyan C3G Fund is holding onto despite being absolutely hammered last month:

Rock solid investments for the inevitable small-cap recovery

The Mighty Craft Ltd (ASX: MCL) share price tumbled more than 21% in September, but the Cyan team is not worried.

"The alcohol industry globally is dominated by a handful of powerful players, but the domestic industry has been growing strongly in recent years," read Cyan's memo to clients.

"We think it's a sector worth being exposed to and Mighty Craft is our preferred business model, whereby they acquire and accelerate growing beer and spirits brands through provision of capital, distribution and retail and wholesale points of presence."

The nature of the industry means Mighty Craft could become an attractive takeover target.

"Inevitably the successful domestic businesses or alcohol brands are acquired as they obtain, or are on a clear path to obtaining, reasonable market share."

Melbourne video games developer Playside Studios Ltd (ASX: PLY) is another small-cap Cyan analysts are backing, despite a 14.3% drop in valuation last month.

"This gaming business continues to impress with the execution of its growth strategy through a business model based on work-for-hire, original IP development and new initiatives like a third party publishing division," read the memo from Cyan.

"In short, an exceptional team with a strong and growing business in a strong and growing industry."

The heavy discounting in its shares means it's another potential takeover subject.

"We believe Playside can deliver great returns to shareholders independently or as an M&A target in time (hopefully both)," said the Cyan portfolio managers. 

"We see this as a unique opportunity to get exposure to these dynamics in the ASX listed space."

The Cyan team has been a longtime fan of hospital software maker Alcidion Group Ltd (ASX: ALC).

And that hasn't changed despite a 12.1% drop in share price in September.

"Alcidion is building a strong position in the digitisation of hospital management systems, both administrative and clinical, in Australia and the much larger UK market."

The business raked in $34 million in revenue for the 2022 financial year. Its June quarter revenue was 46% up year on year.

"The company has worked hard to become one of the leading providers and the timing looks perfect to scale the business significantly over the next two years as governments drive the push towards technology in healthcare in a post-COVID environment."

The post 3 battered small-cap ASX shares we're still backing: expert appeared first on The Motley Fool Australia.

That fall, as painful as it is, has been cushioned by the epic performance of a handful of large  commodity stocks, including the Core Lithium Ltd (ASX: CXO) share price surging 177% higher, the New Hope Corporation Limited (ASX: NHC) share price roaring 157% higher, and the Lake Resources N.L. (ASX: LKE) share price jumping 89% higher in the past year.

How New Hope shares – with its $5.7 billion market capitalisation – are included in the Small Ordinaries Index and are one of life's mysteries. Also a constituent of the S&P/ASX 200 Index (ASX: XJO), New Hope is around the 80th largest ASX-quoted company in the country.

Moving on…

Writing in its September monthly update, the Cyan C3G Fund notes the ongoing severe volatility in global markets, with the US stock market having now experienced its worst first nine months of a calendar year in 20 years.

If your portfolio is hurting, like mine, you'll know why. 

It's even worse if you don't hold any of the hot lithium and coal stocks, like me, and the Cyan C3G Fund. Or you do hold some of the many big losers over the past 12 months, like the Aussie Broadband Ltd (ASX: ABB) share price slumping 59% or the Pinnacle Investment Management Group Ltd (ASX: PNI) share price falling 41%, like me.

Cyan C3G Fund portfolio managers Graeme Carson and Dean Fergie say "the Australian economy appears to be in a stronger position than some of its counterparts, but the financial markets aren't yet reflecting this."

That's certainly the case in the small-cap space, with the share prices of many companies down 60% or more despite some of them growing quickly, having good balance sheets with no debt, and being cash generative.

Or perhaps I'm just bemoaning the performance of the small and micro cap stocks in my portfolio…

Here's when stock markets could start to move higher…

Looking for a silver lining amongst these cloudiest of times, the Cyan C3G portfolio managers say that with the market already pricing in an upcoming economic slowdown, the hope is "financial markets will front-run the recovery just as they did the downturn… as they have with all bull and bear market cycles in the past."

As for the timing, as ever, no-one knows when markets will turn. That said, it may be sooner rather than later.

Cyan C3G believes "the most-likely first positive catalyst for a stock market recovery will be a line of sight as to when the interest rate hike cycle will end." The portfolio managers go on to say it is expected the US will end its cycle in the first quarter of calendar 2023, with Australia perhaps being a month or two earlier.

That's not too far away, and markets, being forward-looking beasts, could move higher before then. 

If I was taking a guess – and it's nothing more than a guess – I reckon the stock market could be in for a big January as the so-called January Effect kicks into high gear.

As bottom-up stock pickers, the Cyan C3G portfolio managers are confident the companies in their portfolio will have materially stronger market share positions in their industry in years to come, irrespective of economic conditions.

The September monthly update outlines the investment rationale for some of the Cyan C3G key portfolio positions including…

Alcidion Group Ltd (ASX: ALC), a company building a strong position in the digitisation of hospital management systems, both administrative and clinical, in Australia and the much larger UK market. The Alcidion share price is down almost 60% over the past 12 months, yet Cyan say "the timing looks perfect to scale the business significantly over the next 2 years as governments drive the push towards technology in healthcare in a post-Covid environment."

Playside Studios Ltd (ASX: PLY) is an independent video game developer with "a business model based on work-for-hire, original IP development and new initiatives like a 3rd party publishing division," according to Cyan C3G. The Playside share price fell 25% in September, yet the fund managers believe the company "can deliver great returns to shareholders independently or as an M&A target in time (hopefully both). We see this as a unique opportunity to get exposure to these dynamics in the ASX listed space."

The post Top fund manager thinks ASX could start to move decisively higher, potentially sooner than you might be expecting appeared first on The Motley Fool Australia.

Armed with a barrow full of info on which listed companies have been flourishing and floundering, we asked our Foolish contributors to let us know which ASX shares they reckon are worth planting some cash in right now.

Here's what the team came up with:

8 best ASX shares for September 2022 (smallest to largest)

• DroneShield Ltd (ASX: DRO), $88.67 million
• Airtasker Ltd (ASX: ART), $184.92 million
• Alcidion Group Ltd (ASX: ALC), $196.55 million
• Lovisa Holdings Ltd (ASX: LOV), $2.31 billion
• Core Lithium Ltd (ASX: CXO), $2.39 billion
• Lynas Rare Earths Ltd (ASX: LYC), $7.78 billion
• South32 Ltd (ASX: S32), $19.21 billion
• CSL Limited (ASX: CSL), $141.57 billion 

(Market capitalisations as of 31 August 2022)

Why our Foolish writers love these ASX shares

DroneShield Ltd

What it does: DroneShield specialises in designing and developing products to detect and disable threats from unmanned drones.

By Aaron Teboneras: The DroneShield share price sank by more than 19% on Wednesday, and I believe the stock is now trading at a bargain.

The substantial fall came on the heels of DroneShield's half-year results, which were released after market close on Tuesday. In its release, the company advised it had achieved revenue of $3.6 million, down 6% on the prior period ($3.9 million was delivered in the second half of 2021).

However, taking a closer look at some other key metrics, the company recorded cash receipts of $5.2 million in the first half of 2022. This represents a growth of 21% when compared to the $4.3 million recognised in the second half of 2021.

DroneShield said the difference between the revenue and cash receipts received in H1 2022 related to payments received in advance.

The counter-drone market is growing rapidly with a forecast total addressable market of around $5.9 billion by 2026.

In its 2022 second-quarter update, DroneShield also noted the highly favourable macro environment arising from the Russian war in Ukraine, with both sides demonstrating extensive use of small drones.

With this in mind, defence budgets globally, including that of the Australian Government, have been rapidly increasing.

Motley Fool contributor Aaron Teboneras owns shares in DroneShield Ltd.

Airtasker Ltd

What it does: Airtasker operates an online local services platform that helps people who want a task completed connect with those who want to do the work. Furniture assembly, removalist services, website design, handyman services and photography are just some examples of the categories on offer.

By Tristan Harrison: I'm looking for compelling ASX growth shares that are attractively valued.

The Airtasker share price has dropped by around 50% in 2022, but the company is generating solid double-digit growth. In FY22, its gross marketplace volume rose 23.8% to $189.6 million, while revenue increased 18.4% to $31.5 million.

Airtasker also reported that, excluding research and development (R&D) costs, it made positive earnings before interest, tax, depreciation and amortisation (EBITDA) of $1.3 million at the 'Australian marketplace and head office operations' EBITDA level.

I'm also excited by the company's international potential. In the United States, in the FY22 fourth quarter, the number of posted tasks grew 49% quarter-on-quarter.

Motley Fool contributor Tristan Harrison does not own shares in Airtasker Ltd.

Alcidion Group Ltd

What it does: Alcidion provides software solutions to the healthcare industry to improve patient outcomes. The company's flagship product is known as Miya Precision, which incorporates everything from bed management to patient monitoring.

By Mitchell Lawler: Alcidion released its full-year FY22 report earlier this week, showing a continuation of the company's tremendous growth momentum.

For the 12 months, the software provider achieved record revenue of $34.4 million, an increase of 33% from the year prior. Notably, the time frame included one entire half's worth of contribution from Alcidion's Silverlink acquisition.

Ultimately, the two most promising indicators for me from the recent results are the company's lessening dependence on revenue from Australia and New Zealand, reducing geographic risk, and the further improvement in recurring revenue composition, which reached around 68%.

The current valuation could be attractive if management continues to deliver on geographic and client expansion at this pace.

Motley Fool contributor Mitchell Lawler does not own shares in Alcidion Group Ltd.

Lovisa Holdings Ltd

What it does: Jewellery and accessories retailer Lovisa is a staple in many shopping centres around Australia and the world. In addition to its extensive network of brick-and-mortar stores, Lovisa operates a successful e-commerce business.

By Brooke Cooper: Last financial year was a ripper for Lovisa. Its revenue surged 59%, it posted a $59.9 million profit and entered four new markets. It also more than doubled its final dividend to 37 cents per share.

And it's not expected to slow down soon. Morgans analyst Andrew Tang dubbed the company's earnings a "goldmine", saying:

"What was even more remarkable than the result itself was the phenomenal scale of [Lovisa's] ambition.

"The momentum of growth is expected to increase in FY23, and the addition of further new markets … appears more than likely. In our opinion, it won't stop there."

Motley Fool contributor Brooke Cooper does not own shares in Lovisa Holdings Ltd.

Core Lithium Ltd

What it does: Core Lithium is a resource explorer with a key focus on lithium. Its Finniss Lithium Project, located just south of Darwin Port in the Northern Territory, is under development.

By Bernd Struben: Core Lithium has been a stellar performer over almost any longer-term time frame you choose. Shares reached an all-time high of $1.62 on 15 August. At the time of publication, Core Lithium shares are up by around 122% in 2022 and 288% over 12 months. But I don't think the ship's sailed on the good times just yet.

In July, Core Lithium reported that its Finniss construction was progressing on track to export the first lithium by the end of 2022. This comes in an environment where lithium demand and prices are soaring amid the global shift to EVs and battery grid storage.

UBS recently upgraded its lithium price forecasts by 37%. UBS expects global demand for the critical battery metal to rocket 700% by 2030.

Motley Fool contributor Bernd Struben does not own shares in Core Lithium Ltd.

Lynas Rare Earths Ltd

What it does: Lynas has expertise in integrating rare earths metals from mine to metal. It has a portfolio of assets concentrated in the exploration and production of rare earths.

By Zach Bristow: China currently supplies around 80% of the world's rare earths. But recently, growing geopolitical tensions have highlighted the world's need to diversify its supply chain. According to its website, Lynas "holds a unique position as the only significant producer of scale of separated rare earths outside of China".

It also has a considerable first-mover advantage over its ASX competitors. I believe this places the company in a prime position to capitalise on industry tailwinds that could see demand for Australian rare earths soar in the coming few years. This optimism was echoed in research from Jevons Global in a recent note. 

Lynas shares are also rated as a buy by four out of seven brokers, with a consensus price target of $9.89 per share, according to Refinitiv Eikon data. At the time of writing, Lynas trades on a 14.4x trailing price-to-earnings (P/E) ratio and presents with a 3.5% free cash flow yield and 6.7% earnings yield. 

The Lynas share price closed Wednesday's session around 3% higher at $8.88.

Motley Fool contributor Zach Bristow does not own shares in Lynas Rare Earths Ltd.

South32 Ltd

What it does: South32 is a diversified mining company with extensive global operations in base metals such as lead, aluminium, copper, zinc, and nickel.

By Sebastian Bowen: ASX 200 mining company South32 could well be worth a look this September, even though the company has already had quite a stellar run in 2022 thus far. South32's earnings last month contained a bumper 362% increase in annual dividends to 22.7 US cents per share. That's in addition to the special dividends worth another 3 US cents.

But ASX broker Morgans reckons the shares could climb to $5.50 over the next 12 months, which would give investors around 30% upside from today's price of $4.15. The broker also expects the company to deliver even higher dividends for FY23. As such, I believe South32 shares are well worth considering as we enter spring.

Motley Fool contributor Sebastian Bowen does not own shares in South32 Ltd.

CSL Limited

What it does: CSL is a global biotechnology company that develops and delivers innovative therapies and vaccines that save lives, protect public health, and help people with life-threatening medical conditions to live full lives.

By James Mickleboro: I think CSL shares could be a quality option for investors in September.

The last couple of years have been tough for the company due to COVID-19 impacting plasma collections. Since plasma is a key ingredient in CSL's therapies, the lack of supply meant the company was paying over the odds to donors, putting pressure on margins.

The good news is that plasma collections are now at pre-COVID levels. And with its new collection technology expected to result in greater yields, CSL's margins look likely to start improving again in the near term.

Combined with strong demand for its immunoglobulins, the acquisition of Vifor Pharma, and new product launches on the horizon, I believe the future looks very bright for the company.

The CSL share price closed Wednesday at $293.54, down by around 5% over the past year.

Motley Fool contributor James Mickleboro does not own shares in CSL Limited.

The post Top ASX shares to buy in September 2022 appeared first on The Motley Fool Australia.

Earnings season has been a busy one with plenty of mixed results. Here are three ASX All Ordinaries standouts that are lifting on their earnings today.

Helloworld Travel Ltd (ASX: HLO)

Shares of Helloworld are up 5.67% to $2.05 apiece at the time of writing.

Investors have rallied the share price higher following a robust set of FY22 results that saw the company return to operational profitability.

This translated to a full-year EBITDA loss from continuing operations of $10.6 million compared to $24.5 million in FY21.

Despite this, the momentum towards the back end of FY22 gave Helloworld confidence in providing FY23 guidance.

It expects a FY23 EBITDA profit of $22-$26 million.

Helloworld shares are up 20% in the past 12 months of trade.

Wisr Ltd (ASX: WZR)

Shares of Wisr were on the move in early trade and have since levelled back to trade in-line with yesterday's closing price.

The non-bank lending company delivered a 118% year-on-year gain in operating revenue with total new loan originations increasing 67% to $611 million.

This saw loan book growth of 103% for the 12 months to $780 million.

As a result, cash EBITDA saw an improvement of 30% to a loss of $7 million, ahead of last year's loss of $10 million.

Zooming out, Wisr shares are down 74% in the past 12 months.

Alcidion Group Ltd (ASX: ALC)

Shares of Alcidion are also cruising along in afternoon trade today, currently up 3.33% to 15.5 cents apiece.

Following its FY22 results, the company that specialises in digital software for healthcare providers has caught a bid as investors evaluate the company's growth trends.

Full year revenue was up 33% year on year to $34 million with total contract value (TCV) of $57.7 million.

This momentum sees Alcidion enter FY23 with more than $28 million in contracted revenue, an 87% gain on the same time last year.

Alicidion shares are down more than 55% for the year to date.

The post 3 ASX All Ords shares lifting on full-year results appeared first on The Motley Fool Australia.

Four ASX shares that are climbing more than most today are listed below. Here's why they are racing higher:

Alcidion Group Ltd (ASX: ALC)

The Alcidion share price is up 15% to 15.5 cents. Investors have been buying this healthcare technology company's shares after it reported a record performance during the fourth quarter. This led to FY 2022 revenue coming in at $34 million, up 31% year on year. Also getting investors excited was the company reporting positive fourth-quarter operating cash flow of $3.3 million.

Betmakers Technology Group Ltd (ASX: BET)

The Betmakers share price is up 2.5% to 49.7 cents. The catalyst for this was the release of the betting technology company's fourth quarter and full year update. For the 12 months, Betmakers reported cash receipts of $26.2 million. This was a massive 194% increase on the prior corresponding period.

BrainChip Holdings Ltd (ASX: BRN)

The BrainChip share price is up 2.5% to $1.19. This follows the release of the semiconductor company's quarterly update. Although the company reported second quarter cash receipts of just US$1.2 million, that hasn't stopped investors driving its market capitalisation to the $2 billion mark today.

Zip Co Ltd (ASX: ZIP)

The Zip share price is on form again and up a further 7% to $1.10. Investors have been buying the buy now pay later (BNPL) provider's shares this week despite there being no news out of it. Though, Zip isn't alone in experiencing some investor love. Fellow beaten down BNPL share Sezzle Inc (ASX: SZL) is also rocketing higher on no news.

The post Why Alcidion, Betmakers, BrainChip, and Zip shares are racing higher appeared first on The Motley Fool Australia.