How did Compumedics perform in the first half?

During the six months ended December 31, Compumedics posted revenue of $18.3 million. This represents a 2% decline on the prior corresponding period and was due to some key US sales not being booked by the end of the half.

This offset growth in the company's key Asian markets and in Europe via its Germany-based business, DWL.

Compumedics continued to invest heavily in new products for the core business during the first half. Combined with its narrower gross margins due to a skew towards lower margin distributor sales, this led to the company reporting a 20% decline in EBITDA to $1.2 million.

On the bottom line, the company posted a profit after tax of $0.2 million, which was down 75% on the prior corresponding period.

FY 2020 guidance.

Whilst the company has identified key growth opportunities to deliver an increase in revenues and earnings in the current financial year, its performance looks set to be impacted by the coronavirus outbreak.

Management explained: "In recent weeks the Company has been in discussion with its key distributors in China regarding the impact of the Coronavirus. From these discussions it is understood that there has been a diversion of resources in the health/hospital sector to combat the spread of Coronavirus, and as a result, purchasing and funding has been reallocated temporarily."

In light of this, management expects its sales to China to slow in the second half of FY 2020, which has led to a downgrade to its guidance.

The company now expects full year sales of $40 million to $42 million, down from its previous guidance of $42 million to $44 million. Its EBITDA guidance has been downgraded by $1 million to the range of $5.5 million to $6.5 million.

Surprisingly, its net profit after tax guidance remains in line with its previous guidance at $4 million to $5 million.

The post Why this ASX healthcare share just downgraded its guidance appeared first on The Motley Fool Australia.

Some of these shares even managed to climb to 52-week highs or better. Here's why these ASX shares are on a high right now:

Compumedics Limited (ASX: CMP)

The Compumedics share price jumped a whopping 37% on Monday to hit a multi-year high of 96 cents. Investors were fighting to get hold of the medical device company's shares after it released an update on its Orion LifeSpan Magnetoencephalography (MEG) single Dewar system. MEG is a neuroimaging technique for mapping brain activity by recording magnetic fields produced by electrical currents occurring naturally in the brain. It has now been approved by the U.S. FDA. Which means that sites using the Orion LifeSpan may now routinely bill both private and public insurance plans for MEG examinations.

Money3 Corporation Limited (ASX: MNY)

The Money3 share price climbed to an all-time high of $2.93 yesterday. The shares of the secured automotive loans company surged higher following the release of its first half year results. In the first half, Money3 reported normalised net profit after tax (NPAT) of $15.7 million. This was a sizeable 61.9% increase on the prior corresponding period. This allowed the Money3 board to declare a fully franked interim dividend of 5 cents per share. Looking ahead, management expects this strong form to continue in the second half. It has provided guidance for NPAT in excess of $30 million and a minimum 10 cents per share full year dividend.

ResMed Inc. (ASX: RMD)

The ResMed share price continued its positive run and reached a new record high of $26.36 on Monday. The sleep treatment specialist's shares have been on fire this year thanks to its strong performance in the second quarter. During the quarter the company delivered revenue growth of 13% to US$736.2 million. And thanks to the further expansion of its margins, ResMed's net operating profit increased at the even quicker rate of 26% to US$197.8 million.

The post Why these ASX shares just surged to 52-week highs appeared first on The Motley Fool Australia.

In morning trade the medical device company's shares rocketed a massive 26% higher to 87.5 cents.

Why is the Compumedics share price rocketing higher today?

Investors have been fighting to get hold of the company's shares after it released an update on its Orion LifeSpan Magnetoencephalography (MEG) single Dewar system.

MEG is a neuroimaging technique for mapping brain activity by recording magnetic fields produced by electrical currents occurring naturally in the brain.

According to the update, MEG has received US Food and Drug Administration (FDA) approval in the United States following its installation at Barrow Neurological Institute in Arizona, USA.

The MEG hardware approval comes in addition to the already approved components offered with the Orion LifeSpan by Compumedics.

These include the amplifiers, the simultaneous electroencephalogram (EEG) subsystem; and the fully integrated, state-of-the-art co-registration, neuroimage processing, and source estimation software known as CURRY. Management describes CURRY as the world's gold standard for clinical MEG/EEG and neuroscience research.

What's next?

The FDA clearance allows for routine clinical use of the single MEG device, primarily for epilepsy and pre-surgical brain function mapping.

Sites using the Orion LifeSpan may now routinely bill both private and public insurance plans for MEG examinations. This is an important consideration when purchasing medical equipment.

Management notes that in the late 1980s there were about 200 MRI systems installed, like MEG today. These were largely used for research at that time before billable codes became available in the 1990's for MRI.

There are now about 36,000 MRIs installed globally, with 2,000 to 3,000 MRI systems sold annually. The company believes MEG may follow a similar trajectory over time.

The company's CEO and Chairman, Dr David Burton, said: "Compumedics Neuroscan is very pleased to have achieved this important milestone for the Orion LifeSpan MEG. Receiving 510(K) clearance from the FDA, whilst expected, it is nevertheless satisfying and validating after all the R &D over many years."

"In addition to the technical accomplishments achieved by the company and our partners at the Korea Research Institute of Standards and Science (KRISS), it represents a foundation for the commercialisation of our MEG technology. This market clearance will allow us to transition from product development to full commercialisation," he added.

Dr Burton also revealed that Compumedics is actively pursuing 40 identified MEG opportunities around the world. Four of these opportunities are substantively advanced.

The post Compumedics share price rockets 26% higher on FDA news appeared first on The Motley Fool Australia.

Four shares that are falling more than most today are listed below. Here's why they are tumbling lower:

The ARB Corporation Limited (ASX: ARB) share price is down 2.5% to $18.94. This decline appears to be related to a broker note out of Citi this morning. Although it has retained its neutral rating and lifted the price target on its share to $19.45, it warned that it expects sales growth to slow in the second quarter and margin pressure to continue. This led to a downgrade to its earnings forecasts for the 4×4 auto parts company.

The Compumedics Limited (ASX: CMP) share price has fallen 7.5% to 72 cents. Investors have been selling Compumedics' shares after the release of a business update. According to the release, the medical device company has experienced a delay in some sales orders being received in the United States. As a result, its revenue in the first half is expected to be $17.7 million. This is a decline of 5.3% on the prior corresponding period's $18.7 million. Management believes this is a timing issue and the sales have not been lost.

The Coronado Global Resources Inc (ASX: CRN) share price has dropped 2% to $2.26. This morning the coal miner announced that there was an incident at its Curragh mine that fatally injured an employee of Thiess. Queensland Police, the Queensland Mines Inspectorate, and relevant authorities have been advised of the tragic incident and an investigation is underway. Operations at Curragh have been suspended until investigators permit the operations to resume.

The Integrated Research Limited (ASX: IRI) share price has fallen 2% to $3.15. This morning the performance management company released its guidance for the first half. Integrated Research expects revenue to be in the range of $52.5 million to $53.5 million during the half. This represents 4% to 6% growth over the prior corresponding period. Things aren't quite as strong on the bottom line, though. Management expects to report a half year profit after tax in the range of $11.5 million to $12 million. The low end of its profit after tax guidance range represents a decline of 1.7% and the top end implies growth of 2.5%.

The post Why ARB, Compumedics, Coronado Global, Integrated Research are tumbling lower appeared first on The Motley Fool Australia.

At the time of writing the medical device company's shares are down 22% to 61 cents.

Why is the Compumedics shares price sinking lower?

Investors have been selling Compumedics' share on Monday after the release of a business update.

According to the release, the company has experienced a delay in some sales orders being received in the United States.

As a result, its revenue in the first half is expected to be $17.7 million. This is a decline of 5.3% on the prior corresponding period's $18.7 million.

Things were better in Asia, the Middle East, and Germany, though. Management revealed that it achieved sales growth in all three markets during the half.

Management revealed that it is confident the sales order delays in the United States are a timing issue at this point and have not been lost.

In light of this, it has reaffirmed its full year guidance. It expects revenues between $42 million and $44 million and EBITDA between $6.5 million and $7.5 million in FY 2020.

Another positive is the progress of its first MEG sale to Barrow Neurological Institute (BNI). According to the release, the 2nd and final phase of the installation of the MEG system are due in the coming months.

The company has also continued to progress the FDA submission for the current MEG device installed at BNI and is pursuing the 2nd and 3rd potential MEG sales from its current list of opportunities.

What is Compumedics?

Compumedics is a medical device company that develops, manufactures and commercialises diagnostics technology for the sleep, brain and ultrasonic blood-flow monitoring applications.

It owns United States based Neuroscan and Germany based DWL Elektronishe GmbH. It also has a broad international reach, including the Americas, Australia and Asia Pacific, Europe, and the Middle East.

The post Why the Compumedics share price is crashing 22% lower on Monday appeared first on The Motley Fool Australia.

Three results that may have slipped under your radar are summarised below:

The Atlas Arteria Group (ASX: ALX) share price is down almost 4.5% to $6.74 after the toll road operator posted a disappointing half year result. Although the company, formerly known as Macquarie Atlas Roads, reported a 3.4% increase in its aggregate portfolio traffic and a 5.6% lift in proportionate revenue to $559.9 million, it posted a first half loss of $15.5 million. The loss includes expenses from internalisation costs and performance fees which were calculated pursuant to its Internalisation Proposal.

The Compumedics Limited (ASX: CMP) share price has zoomed 17% higher to 55 cents after reporting a sizeable jump in profits in FY 2018. The medical device company posted an 8% increase in revenues for shipped and invoiced sales to $37 million and a whopping 133% jump in net profit after tax to $2.8 million. In addition to this, investors appear to have been pleased with the company's guidance for FY 2019. Management expects revenue in the range of $40 million to $42 million and net profit after tax in the range of $4 million to $5 million. At the high end of its guidance range this means growth of 13.5% and 78.5%, respectively. Sales could be given an additional lift its China joint venture goes ahead. A decision on this joint venture is expected by mid-November.

The Silver Chef Limited (ASX: SIV) share price has risen almost 3% to $2.26 after the commercial equipment rental company released its preliminary full year results. Silver Chef's results were impacted greatly by the exit of its GoGetta business and a material reset of its collections strategy. This led to the company reporting a statutory net loss after tax of $48 million. One bright spot was that its underlying hospitality business posted a net profit before tax of $17.3 million. Looking ahead, the board and management remain confident in its core hospitality business and believe its transformation strategy will deliver growth and returns over coming years.

The post 3 results you might have missed on Thursday appeared first on The Motley Fool Australia.

Three shares on the rise at the small end of the market are listed below. Here's why they are pushing higher:

The Compumedics Limited (ASX: CMP) share price has risen 10.5% to 52 cents after the medical device company announced an 8% increase in revenues for shipped and invoiced sales to $37 million and a 133% jump in net profit after tax in FY 2018. Management also provided a positive outlook for the year ahead with revenue guidance of $40 million to $42 million and net profit after tax guidance of $4 million to $5 million. While this was a solid result and its guidance was strong, I would suggest investors keep their powder dry until its China joint venture is confirmed. Earlier this month the company's shares fell sharply after advising that unexpected complexities had arisen leading to a decision on the joint venture being pushed back to between late September and mid-November.

The Oncosil Medical Ltd (ASX: OSL) share price has pushed 5% higher to 22 cents after the medical device company focused on localised treatments for patients with pancreatic and liver cancer announced the appointment of IQVIA in Europe. IQVIA will be its Market Access and Reimbursement advisor for the OncoSil device in EU markets including France, UK, Germany and the Nordic countries. IQVIA is a NYSE-listed global provider of advanced analytics, technology solutions, and contract research services to the life sciences industry.

The Ramelius Resources Limited (ASX: RMS) share price has risen 6.5% to 49.5 cents after the gold miner delivered a 74% increase in full year profit to $30.8 million. This was driven by record gold production of 208,188 ounces in FY 2018, up 66% on the prior year. Management expects another year of record production in FY 2019 and has guided to 200,000 to 220,000 ounces of the precious metal being produced at an all-in sustaining cost of $1,150 to $1,250 an ounce.

The post These 3 small cap shares are on the rise today appeared first on The Motley Fool Australia.

Four shares that have fallen more than most today are listed below. Here's why they have started the week deep in the red:

The Compumedics Limited (ASX: CMP) share price has plunged a massive 25.5% to 44 cents after providing an update on its proposed joint venture in China. The joint venture with Health 100 was expected to generate revenue of at least A$133 million (US$100m), but due to some unexpected complexities, should a definitive outcome of the current negotiations be achievable, an outcome on the proposed joint venture with Health 100 has been delayed a further 6 to 12 weeks.

The Nufarm Limited (ASX: NUF) share price has tumbled 14.5% to $6.45 after its U.S. peer Monsanto was dealt a blow in court. A former school groundskeeper with terminal cancer has been awarded US$289 million in damages after using its Roundup weed killer product for years. There are concerns that this ruling could set a precedent for thousands of other cases claiming herbicide causes non-Hodgkin's lymphoma. Nufarm used to sell the product in Australia and also sells a similar product containing the key ingredient, glyphosate.

The Praemium Ltd (ASX: PPS) share price has fallen 4.5% to 85.5 cents following the release of its full-year results. The fintech company reported profits of $1.4 million on revenue of $43.2 million. The strong year of operational performance was driven by the growing popularity of its online wealth administration platforms.

The Primary Health Care Limited (ASX: PRY) share price is down almost 4.5% to $3.14 after the healthcare company responded to speculation in the AFR that it could tap the markets for funds. Management advised that it expects underlying net profit after tax for the year to be towards the lower end of the guidance range of $92 million to $97 million, before adding that it continues to review its capital management options.

The post Why these 4 ASX shares have started the week in the red appeared first on The Motley Fool Australia.

In early afternoon trade the medical device company's shares are down almost 25% to 44.5 cents.

Why are Compumedics' shares being crushed?

At the end of May the company announced that it was looking to form a joint venture with leading China-based premium health-check company, Health 100.

According to the release, the two companies were aiming to form a joint venture that would commercialise Compumedics' Somfit product and technology platform in the China market.

Management stated that if the China Food and Drug Administration gave its approval to the device, Health 100 would purchase 1 million Somfit devices from the joint venture over a two-year period.

This was expected to generate revenue of at least A$133 million (US$100m) over the period for the joint venture, which Compumedics would hold a 49% interest in.

Fast forward to today and things are looking a little mixed.

This morning management advised that due to some unexpected complexities, should a definitive outcome of the current negotiations be achievable, an outcome on the proposed joint venture with Health 100 will be announced within the next 6 to 12 weeks.

Previously it had stated that formal agreements to establish the joint venture would be executed no later than August 16.

What now?

These delays and management's rhetoric certainly don't fill me with confidence that a deal is going to be done.

Because of this I would suggest investors resist buying the dip and wait to see what happens. After all, if the two companies fail to come to an agreement I think there's a good chance that Compumedics' shares will fall even lower from here.

Instead of risking money in its shares, I would suggest investors look at other small cap healthcare technology shares such as Nanosonics Ltd (ASX: NAN) and Volpara Health Technologies Ltd (ASX: VHT).

The post Why the Compumedics Limited (ASX:CMP) share price has been smashed today appeared first on The Motley Fool Australia.

Three small cap shares that caught my eye with big moves today are listed below. Here's why they are on the rise:

The Compumedics Limited (ASX: CMP) share price has returned to trade and rocketed a massive 67% to 68.5 cents. This morning the medical device company announced that it is looking to form a joint venture with leading China-based premium health-check company, Health 100. The two companies aim to form a joint venture that will commercialise Compumedics' Somfit product and technology platform in the China market. If successful and the China Food and Drug Administration gives its approval to the device, Health 100 will purchase 1 million Somfit devices from the joint venture over a two-year period. This is expected to generate revenue of at least A$133 million (US$100m) over the period. Compumedics will own approximately 49% of the joint venture.

The Resapp Health Ltd (ASX: RAP) share price has pushed 5% higher to 14.2 cents. This morning the medical technology company advised that recruitment for its SMARTCOUGH-C-2 study is progressing well and is expected to complete by the middle of the year. The study is evaluating the efficacy of the ResAppDx smartphone application for the diagnosis of childhood acute respiratory disease using cough sounds and will enrol up to 1,667 patients at the three participating hospital sites in the United States. While the technology looks very promising, the last study was a disaster for the company. If this one isn't a success then I think it will be hard for the company to move forward from here.

The Zip Co Ltd (ASX: Z1P) share price is up over 4% to 86 cents after the fintech company announced that Super Retail Group Ltd (ASX: SUL) has joined its interest free payments platform. This is the largest retail group to have joined Zip's platform. The rollout is expected to commence from July onwards and means both the Zip and Afterpay Touch Group Ltd (ASX: APT) platforms will be available to Super Retail's customers now.

The post These 3 small cap shares are on the rise today appeared first on The Motley Fool Australia.

Three small caps that are pushing notably higher are listed below. Here's why they are on the rise:

The Compumedics Limited (ASX: CMP) share price has rocketed 20.5% to 44 cents after the medical device company announced three-year distribution contracts with three existing, long-term, China-based sleep and neuro-diagnostic and monitoring distributors. The new agreements come with a minimum sales commitment of $15 million over the three years. Compumedics has had a lot of success in the China market of late, growing its business by an average of 20% per annum over the last five years. Management believes this agreement is a sign that it can continue double-digit growth in the country for the foreseeable future. Given its strong growth prospects in the country, Compumedics could be worth a closer look.

The Hills Ltd (ASX: HIL) share price has climbed 4.5% to 22.5 cents after the electronics and communications products manufacturer announced that it has been awarded the contract to supply the nurse call solution for the new Westmead Central Acute Service Building at the $1 billion Westmead Redevelopment project in New South Wales. No financial terms were disclosed, but CEO and managing director, David Lenz, believes this is a strategically important win that will strengthen its presence in the Western Sydney Local Health District.

The Neometals Ltd (ASX: NMT) share price has pushed almost 5% higher to 32.5 cents after the lithium miner surprised the market by declaring a 1 cent per share unfranked dividend. Management has been able to do this thanks to the consistent cash flow being generated by its Mt Marion lithium project. This is in line with the company's capital management strategy which aims to provide prudent shareholder returns in parallel with the maintenance of a strong balance sheet. Based on its current share price, this dividend equates to a 3% yield.

The post Why these small cap shares are racing higher today appeared first on The Motley Fool Australia.

Four shares that have not let that hold them back are listed below. Here's why they have jumped higher today:

The Compumedics Limited (ASX: CMP) share price is up 12.5% to 40 cents after the medical device company released its half-year results. Although Compumedics reported a slight drop in revenue to $16.1 million, this was largely the result of some orders being booked late in the half. As a result, they won't be recognised as revenue until the second-half. Investors appear pleased with the record sales orders it reported during the half.

The Nufarm Limited (ASX: NUF) share price has climbed 5% to $8.67 following the release of its first-half results. Nufarm reported a 7.4% increase in group revenues to $1.46 billion during the period. Things were not as rosy on the bottom line after production interruptions and challenging operating conditions in Brazil impacted its earnings. Underlying EBIT fell 11.8% to $75 million, in line with its guidance. Despite this, management is forecasting full-year underlying EBIT growth of between 5% and 10% on the prior year.

The Synlait Milk Ltd (ASX: SM1) share price has jumped 13% to $8.58. This morning the dairy processor revealed a half-year profit of NZ$40.7 million on revenue of NZ$439.3 million for the six months ended January 31. This was a 283% and 52% increase, respectively, on the prior corresponding period. The main driver of this growth was from the infant formula market which Synlait Milk is exposed to predominantly through its manufacturing deal with A2 Milk Company Ltd (ASX: A2M).

The Whitehaven Coal Ltd (ASX: WHC) share price has stormed 7% higher to $4.51. After the market closed on Tuesday Rio Tinto Limited (ASX: RIO) announced the sale of its Queensland coal assets to Glencore. Whitehaven had been tipped by UBS as a bidder for these assets and believed they would be highly accretive to earnings. Judging by the reaction today, it seems as though the market disagreed and felt the debt-funded deal would have been a negative.

The post Why these 4 ASX shares jumped higher today appeared first on The Motley Fool Australia.

Four shares which have acted as a drag on the market today are listed below. Here's why they have started the week in the red:

The Compumedics Limited (ASX: CMP) share price is down 7% to 39 cents after reporting a 60% decline in net profit to $1.3 million. Management placed the blame on lower than expected sales in the United States following restructuring activities. Furthermore, sales from its Australian business fell 28% year-on-year.

The Japara Healthcare Ltd (ASX: JHC) share price has tumbled 11% to $1.80 following the release of its full-year results. Despite revenue rising 11% to $362 million, net profit after tax fell 2% to $30 million. Furthermore, EBITDA is expected to remain flat in FY 2018, before returning to growth in FY 2019 as developments complete.

The Qantas Airways Limited (ASX: QAN) share price has fallen 6% to $5.64 despite the release of several favourable broker updates this morning. Today's decline could relate to a sudden rise in fuel prices after Hurricane Harvey struck Texas.

The Silver Chef Limited (ASX: SIV) share price has plunged almost 11% to $7.59 after the commercial equipment rental and financing company released its full-year results. Although revenue increased 29.4% to $286 million, net profit tumbled a disappointing 9.8% to $20.2 million. I would suggest investors continue to stay well clear of this one.

The post Why these 4 ASX shares started the week in the red appeared first on The Motley Fool Australia.

In afternoon trade the medical device company's shares are down 19% to 51 cents.

Why have its shares dropped?

This morning Compumedics provided the market with an update on its performance for the 12 months ending June 30 2017.

As you might have guessed, it was a reasonably disappointing update.

According to the release, due to restructuring activities in its core capital equipment business, the company expects to report sales of approximately $33 million in FY 2017.

This was much lower than previously expected and a disappointing 12% drop on the $37.5 million sales it generated a year earlier.

These restructuring activities were largely focused on its management and sales force in its U.S. business. Whilst these activities are now complete, the transition phase has taken longer than planned, resulting in weaker sales for its sleep and neurological diagnostic businesses.

As a result, earnings before interest, tax, depreciation, and amortisation is expected to be between $2.1 million and $3.6 million, before one-off costs. A year earlier the company posted EBITDA of $5 million.

Should you buy the dip?

I think Compumedics is an exciting healthcare company with strong growth potential.

But as I said last month, I plan to err on the side of caution with this one and hold off an investment for the time being.

I feel it is fair to say that FY 2017 has been a big disappointment. And whilst I trust management has rectified the situation, it may still take some time before this shows in its results.

In light of this, I continue to believe investors would be better off looking at other medical device companies like Nanosonics Ltd. (ASX: NAN) or ResMed Inc. (CHESS) (ASX: RMD).

The post Why the Compumedics Limited share price fell 19% today appeared first on The Motley Fool Australia.

Four shares which have fallen more than most today are listed below. Here's why they are ending the week deep in the red:

The Coca-Cola Amatil Ltd (ASX: CCL) share price has fallen 5% to $8.49 after the beverage company was downgraded by Morgan Stanley. According to a research note out of the investment bank, its analysts were concerned about the loss of more supply contracts following the decision of Domino's Pizza Enterprises Ltd. (ASX: DMP) to switch to rival Pepsi-Schweppes.

The Compumedics Limited (ASX: CMP) share price has plunged 19% to 51 cents following the release of a business update. Due to restructuring activities in its core capital equipment business, the medical device company expects sales of approximately $33 million for the 12 months ending June 30 2017. This will be a 12% decrease from a year earlier.

The Ellex Medical Lasers Limited (ASX: ELX) share price is down 10% to 96.5 cents after the medical device company released its preliminary full-year sales result. According to the release, Ellex expects sales of $71.7 million in FY 2017, down 1.6% on the previous year. Management plans to respond to the drop in sales with a significant investment in its sales and marketing in FY 2018.

The Fortescue Metals Group Limited (ASX: FMG) share price has fallen 3% to $5.09 following a drop in the iron ore price overnight. According to Metal Bulletin, the iron ore price fell 2.1% to US$61.96 a tonne, bringing its month-to-date decline to approximately 4.6%. With the Australian government tipping iron ore to fall significantly in 2018, I'd consider avoiding Fortescue's shares for the time being.

The post Why these 4 ASX shares are ending the week deep in the red appeared first on The Motley Fool Australia.

Four shares which have gone against the grain and climbed higher are listed below. Here's why they have posted gains:

The Bubs Australia Ltd (ASX: BUB) share price has continued to climb higher for a second day in a row. Today the infant formula and baby food company's shares are up 14% to 20 cents. Investors have been fighting to get hold of the company's shares since it announced a strategic partnership with NetEase Kaola.com. I believe it is a very positive development and can't say I'm surprised by the buying frenzy.

The Compumedics Limited (ASX: CMP) share price has gone gangbusters today and rocketed 43% to 53 cents. This morning the medical device company announced a major contract with Barrow Neurological Institute in the United States. This led Moelis Australia to upgrade its shares to a buy rating with a 58 cents price target.

The Independence Group NL (ASX: IGO) share price has jumped 7% to $3.38 despite there being no significant news out of the gold miner. One piece of news out this morning, though, was that major shareholder T. Rowe Price has increased its stake in the company to over 8.2%.

The Yowie Group Ltd (ASX: YOW) share price is up 8% to 32.5 cents. This is the second day in a row that the confectionery company's shares have rallied higher despite there being no news out of it. But with its shares down by 50% year-to-date, I feel this recent rally could be attributable to bargain hunters swooping in.

The post Why these 4 ASX shares have jumped higher today appeared first on The Motley Fool Australia.

Compumedics is a medical device company involved in the development, manufacture, and commercialisation of diagnostics technology for the sleep, brain and ultrasonic blood-flow monitoring applications.

In early afternoon trade the company's shares are up a whopping 43% to 53 cents.

What happened?

This morning the company announced that it had secured a major magnetoencephalography (MEG) brain imaging contract from the world-renowned Barrow Neurological Institute in the United States.

According to the release, the contracted system is expected to be worth around US$3.75 million (AU$4.9 million), with a discount for special collaborative arrangements.

In the near-term the two parties' collaboration will include U.S. FDA applications and beta-site services such as biomarker test protocols.

In the longer-term the two parties will work together to improve and expand CPT/IDT (government health reimbursement) codes to help enhance brain healthcare.

Should you invest?

I believe Compumedics is an exciting healthcare company with significant growth potential. While its first-half results were a big disappointment, things have started to pick up now.

But although things do appear to be improving, I plan to err on the side of caution with this one and hold off an investment for the time being.

Sales into the U.S. fell sharply in the first-half, causing its share price to collapse to a 52-week low. If sales rebound in the second-half, asides from the new contract, then I may be inclined to take a closer look.

But in the meantime I would suggest investors consider other medical device companies like Nanosonics Ltd. (ASX: NAN) or ResMed Inc. (CHESS) (ASX: RMD).

The post Why the Compumedics Limited share price rocketed 43% higher appeared first on The Motley Fool Australia.

In fact, the three shares below have just fallen to 52-week lows. Are they in the bargain bin now?

The Compumedics Limited (ASX: CMP) share price has fallen a massive 61% this year and currently sits at a 52-week low of 33 cents. The medical equipment company's shares came under heavy selling pressure in February after it posted its half-year results. A shortfall in sales in the United States led to a 50% drop in EBITDA to $1.2 million. This was especially disappointing considering management had previously stated that it expected EBITDA growth of 20% in FY 2017. While Compumedics is an interesting company with a lot of promise, I would hold off an investment until there are signs of improvement.

The Mayne Pharma Group Ltd (ASX: MYX) share price continued its decline last week and sunk to a 52-week low of 99 cents. Incredibly this means its shares have lost 34% of their value since the day before the company announced its acquisition of 37 approved and five FDA-filed products from Teva Pharmaceutical Industries and Allergan for US$652 million last year. Concerns that President Trump may shake up the industry by forcing significant price cuts on generic drugs appears to be behind the slump. Whilst I'm a big fan of Mayne Pharma and think the company has a number of valuable assets, until Trump's plans are finalised I would suggest investors avoid the company's shares.

The Yowie Group Ltd (ASX: YOW) share price fell to a multi-year low of 29 cents on Friday of last week. Weaker-than-expected sales in the U.S. and news that it is likely to go to trial for an alleged breach of its manufacturing agreement have weighed heavily on its shares. While the confectionery company could prove to be a bargain buy at the current share price, I would suggest investors wait for an improvement in its sales performance and also the outcome of the aforementioned trial.

The post 3 ASX shares at 52-week lows: Are they in the bargain bin? appeared first on The Motley Fool Australia.

Tom Richardson: TPG Telecom Ltd (ASX: TPM)

Selling for $6.36 this stock looks cheap given its corporate dark fibre business is likely to grow strongly in the years ahead, while its fibre-to-the-basement home internet business also offers a decent growth opportunity. The recent price falls offer a superb opportunity to grab a slice of a well run founder-led tech company that I also expect to move deeper into the lucrative mobile space over time. Trading on 14x estimated forward earnings with a trailing 2.4% yield as it continues to invest heavily in the infrastructure of the future the stock looks a buy.

Motley Fool contributor Tom Richardson owns shares in TPG Telecom.

Tristan Harrison: Healthscope Ltd (ASX: HSO)

Healthscope shares are still down by 24% since it announced patient numbers hadn't grown in Q1 of FY17 compared to FY16. I think there's a good chance patient numbers will have grown in Q2 which could result in a fairly big price recovery when it reports in a few weeks.

Even if patient numbers don't grow in Q2, they will in the long term thanks to Australia's ageing population and an increasing reliance on private hospitals as the public system becomes too crowded and expensive for the government.

Motley Fool contributor Tristan Harrison owns shares in Healthscope Ltd.

James Mickleboro: BWX Ltd (ASX: BWX)

BWX is the personal care company behind the popular Sukin brand. With its shares down 20% in the last six months, I believe now could be an opportune time to invest in this fast-growing company. Especially following the launch of the Sukin range into the UK market through the Boots pharmacy chain at the end of last year. If the company can replicate the success it has enjoyed domestically in the UK, then I expect BWX could build on last year's fantastic result with similar profit growth in FY 2017.

Motley Fool contributor James Mickleboro has no financial interest in BWX Ltd.

Christopher Georges: Compumedics Limited (ASX: CMP)

Compumedics is a micro-cap healthcare company that develops and distributes medical devices that are used in the monitoring of sleep and neurological disorders.

The company has established market-leading positions in a number of attractive geographical markets including Australia, Japan and China. It is now also focused on expanding into the U.S and German markets. Importantly, Compumedics is translating strong sales growth into strong profit growth and management is expecting EBITDA to increase by as much as 60% in FY17.

The shares have pulled back recently and I think this presents an attractive buying opportunity for risk-tolerant investors.

Motley Fool contributor Christopher Georges has no financial interest in Compumedics.

Edward Vesely: Technology One Limited (ASX: TNE)

The economic performance of Technology One Limited has been remarkably consistent for a number of years, so consistent in fact that its share price has always appeared expensive. Not so last week which saw the share price unjustifiably affected in response to a Brisbane City Council (BCC) press-release that implied blame on the company's behalf for delays and cost blowouts during the IT systems replacement program contract.

A price of close to $5 is an opportunity to buy some shares in the business, especially given management's view that the BCC contract causing the share price slide is immaterial to the company's bottom line.

Motley Fool contributor Edward Vesely owns no shares in Technology One Limited

Rachit Dudhwala: Boral Limited (ASX:BLD)

The combination of a $2.6 billion acquisition and discounted rights offer saw shares in Boral Limited plummet 19% in a week. Three months on and Australia's premier constuction materials supplier has all but regained its falls since the announcement of its Headwaters Incorporated acquisition last November.

I believe this trend can continue as the prospect of an increased U.S. infrastructure spend and a continuing boom in Australia's housing market should buoy earnings. This makes Boral one stock to watch this reporting season and earns it my top pick for February.

Motley Fool contributor Rachit Dudhwala does not own shares in Boral Limited.

Sean O'Neill: Flight Centre Travel Group Ltd (ASX: FLT)

Trading at just under $30, Flight Centre appears good value, despite facing a number of headwinds. The founder-led business has a number of positive attributes including global diversification, a strong balance sheet, and recent expansion into a number of niches that could generate growth. Although competitor Corporate Travel Management is popular at the moment, approximately 40% of Flight Centre's earnings come from the corporate sector and this is another viable growth opportunity for the company. In terms of capital gains, Flight Centre is unlikely to astound, but I believe it is undervalued and should deliver attractive dividends and higher profits over time.

Motley Fool contributor Sean O'Neill owns shares in Flight Centre.

The post Top stock picks for February appeared first on The Motley Fool Australia.

While these blue-chip shares still have a lot of growth left in them, the law of large numbers suggests they will find it difficult to replicate their impressive historical growth rates as they grow larger.

That doesn't mean they won't be great investments moving forward, but it does mean investors who want explosive levels of growth will need to look at alternative options.

Luckily, the ASX has quite a large number of up-and-coming healthcare shares that investors should take a closer look at. Here are four to consider:

Paragon Care Ltd. (ASX: PGC)

Paragon Care is a medical supplies company that specialises in servicing hospitals and aged care facilities. The company has undertaken a number of earnings accretive acquisitions recently, but more importantly, continues to deliver a strong level of organic growth. FY17 started off strongly for Paragon Care with EBITDA up 12% on a like-for-like basis for the first three months.

Viralytics Ltd. (ASX: VLA)

Viralytics is an exciting biotechnology company that has developed a novel cancer treatment using the common cold virus. While the company is still far from being profitable, it is making enough positive progress through its clinical trials program to suggest it could easily become a target for larger pharmaceutical companies.

Compumedics Limited (ASX: CMP)

Compumedics is a found-led medical devices company that focuses on the sleep, brain and ultrasonic blood-flow monitoring markets. Importantly, the company enjoys a market-leading position in a number of large markets including China and Japan. Compumedics is forecasting for at least 20% EBITDA growth in FY17, and at the same time plans to significantly ramp up its presence in the U.S. and Germany.

Pro Medicus Limited (ASX: PME)

Pro Medicus should probably be classified as a technology company, but its potential impact on the traditional medical imaging market means it still makes the list of healthcare related shares to watch. The company has developed a range of cutting-edge software applications that makes it substantially quicker and easier to deliver data rich medical images to end-users. Pro Medicus' target market is extremely large, although investors should note the shares already trade on a pretty loft valuation multiple.

The post 4 small-cap healthcare shares that you need to know about appeared first on The Motley Fool Australia.