Shaw and Partners recently ran the ruler over the company and believes they're deeply undervalued at the moment.

More on that later. Let's have a look at the most recent statements from the company.

Strong profit uplift

Dug, in its first-half profit statement to the ASX released in late February, said its total revenue came in at US$40.4 million, up 40%, while normalised EBITDA was up 161% to US$13.6 million.

The company said regarding its results:

DUG achieved record financial results in FY26-H1, characterised by significant revenue growth and margin expansion. These results were underpinned by growth in the Services business and the ramp up of the EPIC contract in Malaysia. Services growth was driven by strong performance in both established and emerging regions, and the continued adoption of MP-FWI Imaging technology. DUG expanded its global multi-client portfolio by launching two new seismic reprocessing projects offshore Equatorial Guinea in partnership with Geoex MCG. Both projects are fully pre-funded by clients and cover extensive acreage in the highly prospective deep-water Douala and Rio Muni basins, ahead of upcoming exploration licensing rounds by the Ministry of Hydrocarbons and Mining Development.

Dug Managing Director Dr Matthew Lamont said the company entered the second half "with a high degree of confidence in our growth momentum''.

Shares looking cheap

Shaw and Partners said in a recent research note sent to its clients that Dug had sunk nearly $60 million into high-performance computing infrastructure over the past three years, which it could now leverage for outsized gains.

Shaw and Partners added:

New regions and a growing reputation support contract awards continuing to grow. Dug is favourably exposed to a rising oil price environment, has limited direct revenue exposure to the Middle East currently and has materially underperformed its oil and gas service peers … year to date, creating an opportunity for savvy investors.

Shaw said Dug has only recently expanded into the Middle East, with the region accounting for less than 8% of total revenue.

This was despite the Middle East and Latin America accounting for about 22% of global upstream capex in the sector.

Shaw said Dug was also demonstrating an ability to grow its "share of wallet" with existing customers.

Shaw and Partners has a price target of $3 on Dug shares compared with $2.01 currently.

Dug was valued at $273.7 million at the close of trade on Monday.

The post This ASX 200 technology company is about 50% undervalued, the team at Shaw and Partners says appeared first on The Motley Fool Australia.

Experts are always on the lookout for great businesses. Opportunities can arise as share prices move up and down over time. We're going to look at some of the most highly respected ASX tech shares that could deliver strong returns.

Both of the companies below are rated as buys by multiple experts. We'll look at the level of return experts are expecting in the coming year from these businesses.

Life360 Inc (ASX: 360)

According to CMC Markets, there are (at least) five different analysts who rate the business as a buy.

What does it do? The software business says it's a family connection and safety company, keeping people close to the ones they love. It claims to be the category-leading mobile app.

It empowers people to stay connected to the people, pets and things they care about most through a range of services including location sharing, safe driver reports and crash detection with emergency dispatch.

The business recently revealed its 2025 third quarter update, which showed total paying circle growth of 23% to 2.7 million, revenue growth of 34% to $124.5 million, adjusted operating profit (EBITDA) growth of 174% to $24.5 million and operating cash flow growth of 319% to $26.4 million.

According to CMC Markets, analysts are excited about the strong demand for the ASX growth share's pet tracking device, suggesting potential for additional subscribers and revenue. Elderly monitoring, auto insurance and card payments for children could also help growth.

The average price target of $52.35 suggests upside of more than 30% at the time of writing, according to CMC Markets.

DUG Technology Ltd (ASX: DUG)

The other ASX growth share I'll highlight is DUG Technology, which says it enables organisations from across the world to "tackle their most complex data challenges through its reliable cloud-based network of high performance computing facilities, proprietary software solutions, energy-efficient immersion cooling systems and tailored geoscience services."

According to CMC Markets, there are currently five buy ratings from analysts on the business.

Its FY26 first quarter update demonstrated strong growth by the business, including 19% revenue growth and 65% operating profit (EBITDA) growth. Operating cash flow improved US$1.1 million year-over-year to US$0.4 million and its services order book reached US$51.9 million, up 46% year-over-year.  

DUG Technology's managing director Matthew Lamont said that delivering its first revenue in Brazil and increasing traction in the Middle East demonstrates the success of its international expansion strategy, positioning it for future growth.

According to CMC Markets, analysts noted that Petronas had contracted the in-house processing centre to SLB, which shows the win potentially validates DUG's offering as a market leader. The upfront payment will enable capital expenditure to be funded without utilising working capital.

The average price target of $3 suggests a possible upside of more than 40% at the time of writing, according to CMC Markets.

The post Experts rate these 2 ASX growth shares as buys this month! appeared first on The Motley Fool Australia.

Dug earlier this month said it had signed a multi-year software-as-a-service and computing-as-a-service deal with Petronas with a minimum total contract value of US$23.8 million over the initial three-year contract period, "with further upside potential once the scope is finalised".

The project is expected to be fully commissioned around the first quarter of calendar 2026, with interim phases expected to be delivered during calendar 2025. This is subject to signing the formal contract, which is expected to be completed by the end of this month.

The company later said on September 16 that it had subsequently received the first purchase order under the deal and upgraded the total contract value to US$43.3 million.

Wilsons Advisory analysts, in a note to clients, said the contract win "underscores the quality of its compute and software stack".

The initial three-year term is now expected to generate at least US$43.3m in total contract value (up 82% versus US$23.8m previously), implying roughly US$10m per annum net to Dug and about US$8m of EBITDA per annum on our assumed 80%. This is meaningful upside versus the US$15m of EBITDA Dug produced last year. With the seismic analysis industry likely at its trough, we see the balance of risk as being skewed to the upside.  

Wilsons said it was factoring in strong long-term demand from the oil and gas sector, which followed "an underinvestment in exploration and production work over the last several years".

This should be supportive of improved demand and pricing for Dug's processing work. We see Dug as in a strong position to leverage its increased compute power and advanced geophysics models.

Stock cheap at current prices

Analysts at Wilsons Advisory have an overweight recommendation on the stock. Wilsons has a 12-month target price of $2.86 on Dug stock compared with the current price of $2.49. The stock has appreciated off lows of 85 cents over the past year.

Risks to the company include the cyclical nature of the oil and gas sector "and reliance on oil prices which influence seismic pricing rates''.

There was also the potential for competition from existing companies in the sector, and over the longer term, the risk of a shift in energy markets to renewable sources of power.

The post This stock is up more than 100% for the year but there's more fuel in the tank one broker says appeared first on The Motley Fool Australia.

But this rising tide did not lift all boats today. So let's talk about three ASX tech stocks that just hit new multi-year lows.

3 ASX tech stocks that just hit new multi-year lows

First up, we have tech stock Data#3 Ltd (ASX: DTL). Data#3 shares have had a horror year, down more than 25% over the past 12 months. Today has been no different, with this company dropping another 0.32% today to finish at $6.29 a share. That's after Data #3 hit a new 52-week low of $6.24 during intra-day trading.

This is not only a new 52-week low but also the lowest point this company has traded at since late 2022.

Next up, we have DUG Technology Ltd (ASX: DUG). This ASX tech stock and data analysis services company has also had a rough time today, sliding 0.77% lower to $1.29 by market close. That's after Dug stock hit a new 52-week low of $1.25 earlier in the day.

Again, it's been a while since Dug has been at these levels, with the last time we saw this pricing being mid-2023.

Finally, let's talk about ASX tech stock and semiconductor company 4DS Memory Ltd (ASX: 4DS). 4DS Memory had an even more calamitous 2024, with the company now down 45% over the past 12 months. Today alone, this ASX tech stock retreated by a chunky 6.25% to a 52-week low of 4.3 cents before closing at 4.4 cents apiece.

Again, we'd have to travel back to mid-2023 to see the last time 4DS was at the 4-cent levels we are currently seeing.

Time to buy?

Sometimes, bargains are easy to spot on the ASX. Buying quality businesses that have minimal risk of bankruptcy during a stock market crash is a good example. But sometimes, companies fall in value for a good reason. All three of the above ASX tech stocks arguably fall into the latter camp.

Let's start with 4DS. This company cratered more than 25% last month when it abandoned a capital raising program and revealed an expensive partnership with Infineon Technologies. Investors clearly noted the lack of market interest in 4DS' growth plans.

Similarly, it seems Dug Technologies has also lost the faith of some investors over its own capital raising. Dug announced a major capital raising back in October to raise between $30 and $35 million – a substantial amount relative to the company's current market capitalisation of roughly $170 million.

Investors don't usually like stock dilutions on this scale, which seems to be the case here.

Data#3's case is an interesting one. This company has a history of being a volatile investment. But the announcement from major partner Microsoft in December sparked a rush for the exits.

Last month, Microsoft revealed some changes to its partner incentive program (of which Data #3 is part) that will reduce the incentives earned by the company on its Microsoft Enterprise agreements from 1 January 2025.

Data# 3 did reveal that it has implemented various initiatives to mitigate the effects of this, but many investors were still evidently spooked.

Foolish takeaway

In order to view any of these ASX tech stocks as a bargain buy today, you need to have absolute confidence that the market is dead wrong about its assumptions. For example, you would need to come up with a thesis that Dug's capital raisings will lead to turbocharged growth for the company or that Data#3's earnings can survive and thrive under Microsoft's changes.

Knowing when the market is overreacting or merely responding in a rational manner to changing facts on the ground is an essential part of value investing. Tread carefully.

The post These ASX tech stocks just hit multi-year lows! Are they cheap? appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are dropping:

Appen Ltd (ASX: APX)

The Appen share price is down 3% to $2.11. This appears to have been driven by the artificial intelligence (AI) data services provider's recent institutional placement. Earlier this week, it successfully raised approximately $50 million through the issue of approximately 26 million new shares. These funds were raised at $1.92 per new share, which represented an 11.5% discount to its last close price. The allotment of these new shares took place today, meaning a quick profit was on offer for institutional investors if they wanted to take it.

DUG Technology Ltd (ASX: DUG)

The DUG Technology share price is down 7% to $2.02. This has been driven by the completion of technology company's institutional placement this morning. DUG Technology has received firm commitments for a non-underwritten $30 million institutional placement at $1.90 per new share. This represents a 12.8% discount to its last close price. Management advised that the proceeds raised will be used to accelerate its growth trajectory, including investment in new verticals and geographic expansion.

OFX Group Ltd (ASX: OFX)

The OFX Group share price is down 32% to $1.56. This follows the release of a first half update from the international money services provider. For the six months ended 30 September, OFX expects to deliver net operating income of approximately $111 million and underlying EBITDA of approximately $29 million. Management acknowledges that this outcome is lower than anticipated. It blamed the underperformance partly on the "later than anticipated shifts in the interest rate cycle, and corresponding range-bound key currency corridors as a result of the strong USD, [which] resulted in a slower rebound in Corporate confidence."

WiseTech Global Ltd (ASX: WTC)

The WiseTech Global share price is down 4% to $125.81. This is despite there being no news out of the logistics solutions company today. Though, it is worth noting that its shares have been on fire this year. This could mean that some investors are taking a bit of profit off the table today. For example, despite today's decline, WiseTech Global's shares are up a sizeable 65% since the start of 2024.

The post Why Appen, DUG, OFX, and WiseTech shares are tumbling today appeared first on The Motley Fool Australia.

The ASX small-cap company specialises in analytical software development and high-performance computing (HPC). It is known for its innovative, cost-effective software products, which are focused on geoscience data analysis.

Let's find out what the ASX technology company reported today.

Headline numbers

Financial highlights from DUG Technology's FY24 financial results included:

• Sales wins of US$67.4 million, up 35% from a year ago
• Revenue from customers of US$65.5 million, up 29% from a year ago, supported by a 35% jump in its services revenue
• Earnings before interests, taxes, depreciation, and amortisation (EBITDA) of US$16.6 million, up 10% year-over-year.
• Excluding third-party compute costs of US$6.6 million, underlying EBITDA grew by 54%.
• Net profit after tax (NPAT) of US$3.3 million, down 33%, mainly due to computing outsourcing costs. These costs will not occur in FY25 as the company internalised its compute requirements.

DUG's revenue grew by 29% to US$65.5 million in FY2024, with services revenue hitting a record high of US$54.7 million, a 36% increase. Software revenue also rose by 11% to US$7.4 million, while high-performance computing (HPC) revenue declined by 16% to US$3.4 million.

The company's profitability reached a record high, with an EBITDA of US$16.6 million, up 10%, and an underlying EBITDA of US$23.2 million, a 54% increase from the previous year.

DUG ended the year with US$9.4 million in cash and gross debt of US$1.2 million, which included a US$1 million loan repaid shortly after the fiscal year ended. The company had a net debt of US$14.5 million, a significant change from the previous year's net cash position of US$5.2 million, mainly due to investments in new computing equipment through asset financing.

Operating cash inflows decreased to US$12.1 million, primarily due to higher third-party compute costs. DUG invested US$31.3 million in new capital equipment to support its services business, with US$24.4 million of this amount funded through asset lease financing.

DUG managing director Matt Lamont said:

We've had another great year, breaking a number of financial records along the way. The growth of our Services business was particularly encouraging with the increasing uptake of our Multi-parameter FWI Imaging technology. In total we secured US$67.4 million in new services projects during FY2024.

Its Multi-parameter FWI Imaging technology is the company's new product attracting high demand because of its energy efficient feature amid anticipated power shortages.

FY25 outlook

The company remains upbeat going into FY25. The Services order book grew by 31% to US$36.5 million as of 30 June 2024, supporting strong growth expectations for FY25. The company believes its timely investment in new computer hardware in FY24 will support anticipated growth in MP-FWI imaging product sales.

Commenting on FY25, Dr Lamont added:

We recently announced the signing of a significant Intellectual Property (IP) licensing agreement with Baltimore Aircoil Company (BAC) which we believe will change the data centre cooling landscape globally.

The outlook for our Services business line continues to be strong. We are excited by our new Abu Dhabi office which has been commissioned and undergoing fit out.

Share price snapshot

The DUG Technology share price is up 9% today, approaching its all-time high.

Over the past year, the DUG Technology share price more than doubled.

The post Guess which ASX small-cap share is soaring 9% on FY24 results? appeared first on The Motley Fool Australia.

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

Arcadium Lithium (ASX: LTM)

The Arcadium Lithium share price is up 6% to $4.25. This follows the release of the lithium miner's second quarter update. Arcadium Lithium reported a 55% decline in revenue to US$255 million and a 69.9% decline in adjusted EBITDA to US$99.1 million. This was driven by a sharp drop in lithium prices, which offset higher sales volumes. And while this looks weak on paper, it was ahead of the market's expectations. In addition, Arcadium Lithium announced plans to pause its production expansion plans in response to an oversupply of the battery making ingredient.

DUG Technology Ltd (ASX: DUG)

The DUG Technology share price is up almost 3% to $2.69. This morning, this analytical software developer announced the signing of an exclusive DUG Cool licensing agreement with Baltimore Aircoil Company (BAC). According to the release, the agreement grants BAC an exclusive and worldwide licence to use DUG's patent rights and know-how regarding DUG Cool. It is the company's immersion-cooling technology. The licence includes the right to use, manufacture, market and sell the licensed IP and will be used by BAC to manufacture and sell immersion cooling tanks. DUG will earn 2.5% of net sales of BAC's immersion cooling tanks utilising DUG's patent rights.

GQG Partners Inc (ASX: GQG)

The GQG Partners share price is up 2.5% to $2.66. Investors have been buying the fund manager's shares on Wednesday after it released its latest funds under management (FUM) update. GQG Partners revealed that its FUM increased almost 0.5% month on month to US$156.3 billion at the end of last month. As of 31 July, the company had experienced net inflows for the year to date period of US$13.9 billion.

Woodside Energy Group Ltd (ASX: WDS)

The Woodside Energy share price is up 2% to $25.60. This appears to have been driven by bargain hunters swooping in after a sharp decline on Tuesday. That decline was driven by news that Woodside is making another major acquisition. Analysts aren't keen on the deal and believe Woodside should be waiting for a more favourable point in the cycle. There are also concerns that the company's dividends could come under pressure.

The post Why Arcadium Lithium, DUG Technology, GQG, and Woodside shares are climbing today appeared first on The Motley Fool Australia.

Two that are catching the eye of investors and roaring higher this morning are listed below.

Here's why investors have been buying their shares today:

DUG Technology Ltd (ASX: DUG)

The DUG Technology share price is up 7% to $2.67 after investors responded positively to an announcement out of the analytical software developer.

DUG Technology delivers innovative software products and cost-effective, cloud-based high-performance (HPC) computing as a service backed by tailored support for technology onboarding. Its expertise in algorithm development and code optimisation allows its clients to leverage big data and solve complex problems.

According to the announcement, the company has received delivery of the 1,500 AMD EPYC Genoa machines announced in February. As a result of the RAM upgrades to its existing machines and other purchases, DUG is no longer incurring third-party compute costs.

The ASX tech share's managing director, Dr Matthew Lamont, was pleased with the news. He said:

I am pleased to see our HPC capabilities grow in response to the demand we see moving forward. These are good times!

In February, Dr Lamont noted that the "AMD machines are needed to accelerate delivery of both current and imminent projects, and to support the unprecedented demand we continue to see moving forward."

Imugene Ltd (ASX: IMU)

The Imugene share price is up almost 8% to 5.5 cents. This morning, this clinical stage immune-oncology company announced that the first patient has been dosed in its trial for bile tract cancer (cholangiocarcinoma) patients.

This trial is an expansion of the MAST (Metastatic Advanced Solid Tumours) Phase 1 trial after early responses were observed in gastrointestinal cancers, and particularly cholangiocarcinoma, using Imugene's cancer-killing virus CF33 (Vaxinia).

Bile tract cancer is a rare disease in which malignant cancer cells form in the bile ducts. It is known to be difficult to treat and responds poorly to immunotherapy drugs. A total of 10 patients will be enrolled in the trial.

The ASX share's managing director and CEO, Leslie Chong, appears optimistic that Vaxinia could be effective in treating bile tract cancer. She said:

Given the results we've seen to date we are eager to see the potential of VAXINIA in bile tract cancer. We look forward to now advancing to the higher doses in the trial to gather further key data and make a genuine difference to patients in need of innovative treatment options.

The post 2 ASX shares roaring higher on big news appeared first on The Motley Fool Australia.

In parallel, industries are facing mounting demands from artificial intelligence (AI) and digital infrastructure, heightening the need for reliable and abundant electricity like never before.

Tesla Inc CEO Elon Musk predicts power shortages will be the next big challenge. In a March 2024 interview at the Bosch Connected World conference, he said:

A year ago, the shortage was chips, neural net chips. Then, it was very easy to predict that the next shortage will be voltage step-down transformers. Then, the next shortage will be electricity.

They won't be able to find enough electricity to run all the chips. I think next year, you'll see they just can't find enough electricity to run all the chips.

As I highlighted here, Australia is not free from this global trend.

In light of this, do you wonder if there are any ASX small-cap shares that may capitalise on the anticipated electricity shortages and capital investments? I've done the homework for you.

IPD Group Ltd (ASX: IPG)

IPD Group is a leading distributor of electrical and automation solutions in Australia, with more than 70 years in the industry. Partnering with global giants like ABB Ltd and General Electric Co., IPD Group offers a comprehensive range of services encompassing power distribution, industrial control, and renewable energy solutions.

Recently, IPD Group expanded its portfolio into solar energy by acquiring Addelec. This enhanced its capability to deliver full-scale photovoltaic (PV) system solutions.

IPD Group expects robust growth for FY24, forecasting earnings before interest, taxes, depreciation, and amortisation (EBITDA) between $39 million and $39.5 million — a 42% increase from the previous year. This growth is largely driven by strategic acquisitions like EX Engineering and CMI Operations.

Through these acquisitions, IPD Group aims to further expand its value chain. The company now provides comprehensive support for critical infrastructure development, including data centres and electric vehicle (EV) charging facilities.

The IPD Group share price has lifted by 10% over the past year, and its shares are trading at 16x FY25 EPS estimates by S&P Capital IQ.

DUG Technology Ltd (ASX: DUG)

Founded in Perth in 2003, DUG Technology specialises in advanced computing and data solutions. From two founders — Dr Matthew Lamont and Dr Troy Thompson — DUG has grown to more than 250 staff with offices in Australia, the United States, the United Kingdom, Malaysia, and most recently, Abu Dhabi.

With a focus on delivering high-performance computing (HPC) solutions to industries such as oil and gas exploration, DUG is known for its expertise in seismic processing and imaging. The company uses cutting-edge computational techniques to enhance data processing speeds and accuracy.

DUG highlights that its new technology, Multi-Parameter Full Waveform Inversion (MP-FWI) imaging technology, consumes only 10% of the time and 7% of the manpower compared to conventional imaging solutions.

The company uses a unique cooling mechanism, DUG Cool, which the company claims cuts power usage by up to 51% and significantly reduces maintenance.

In 3Q FY24, the company reported a 39% increase in revenue and a 24% growth in EBITDA. DUG's co-founder and managing director, Dr Lamont, is optimistic about the future. He said:

These are very exciting times for DUG. The order book funnel, which includes project awards and risk-weighted opportunities and leads, remains very strong.

Following a decision to establish a business development presence in Abu Dhabi, a great deal of opportunity has been unearthed. As a result, plans are underway to start a new business unit in the Middle East. This will be our fourth business unit following Australia/Asia, Americas and UK/Europe/Africa.

The DUG share price has surged 136% over the past year, placing its shares at 40x their FY25 EPS estimates.

The post 2 ASX shares to benefit from anticipated power shortages appeared first on The Motley Fool Australia.

Some industries have advantages when it comes to growth, and tech may be the most advantaged of all. Many companies within the sector offer software that can achieve strong profit margins because of the software's intangible nature. They also may be able to deliver strong revenue growth because software can be instantly replicated, whereas physical goods require manufacturing, shipping, and storage.  

Below are three of the best-performing ASX tech shares in FY24 within the All Ords. As always, remember that past performance is not a guarantee of future performance.

Gentrack Group Ltd (ASX: GTK)

Over the 12 months to 30 June 2024, Gentrack shares rose by 140%. It's important to note Gentrack's 2024 financial year finishes on 30 September 2024, there are still a few months to go.

Gentrack provides software to energy and water utility companies, as well as airports.

The company is benefiting from a return passenger volume to airports, with the airports spending on projects and improvements. Gentrack is also winning customers and seeing customers upgrade.

In the recent FY24 first-half result, Gentrack reported revenue growth of 21% to $102 million and also upgraded its guidance. For FY24, it previously expected revenue of at least $170 million, and now its guidance is around $200 million of revenue for the current financial year.

The company also upgraded its earnings before interest, tax, depreciation and amortisation (EBITDA) guidance range to between $23.5 million and $26.5 million, up from the previous range of between $20.5 million and $25.5 million.

DUG Technology Ltd (ASX: DUG)

In the 12 months to 30 June 2024, DUG Technology shares rose by 136%.

This company specialises in "analytical software development, big-data services and reliable, green, high-performance computing (HPC)".

The market usually pays the most attention to a company's most recent update. For the FY24 third quarter, the ASX tech share's total revenue grew 39% year over year to US$17.6 million, and EBITDA rose 24% to US$4.6 million.

DUG Technology also reported US$14.6 million of new service projects were awarded in the three months to 31 March 2024, taking the total services order book at 31 March 2024 to US$43.1 million, an increase of 6% compared to 31 December 2023.

In addition, the company revealed plans to start a new business unit in the Middle East after unearthing a "great deal of opportunity" in Abu Dhabi.

Bravura Solutions Ltd (ASX: BVS)

The Bravura Solutions share price has soared 130% in the 12 months to 30 June 2024.

Bravura describes itself as a leading provider of software solutions for the wealth management, life insurance and funds administration industries.

The ASX tech share reported growth and a recovery in the FY24 first-half result, which showed revenue increased 7.4% to $127 million. EBITDA grew 11.5% to $7.9 million and cash EBITDA returned to profitability with $0.3 million of positive cash EBITDA generation. Adjusted net profit after tax (NPAT) rose $12.6 million to a loss of $1.7 million.

Bravura is forecasting that FY24 revenue to be around the same as FY23, while its transformation plan is now expected to deliver $40 million in gross cost-out savings.

The post 3 best ASX tech shares of FY24 appeared first on The Motley Fool Australia.

Many ASX shares offer excellent opportunities, and smart investors are looking for shares with strong capital growth potential.

As we approach FY25, here are three growth-focused ASX shares that I think are worth considering for the upcoming financial year.

PWR Holdings Ltd (ASX: PWH)

First up is cooling solutions provider PWR Holdings. The company designs and manufactures high-performance cooling solutions for automotive, motorsport, and industrial applications.

PWR serves top-tier global clients, including Formula 1 teams and major automotive manufacturers.

The retail stock reported an excellent set of numbers in its 1H FY24 results, with its revenue rising 22.2% to $64.2 billion and EBITDA up 27.2% to $18.4 billion. Strong growth in the aerospace and defence segment, up 124% from a year ago, continued to support its business, while motorsport revenue delivered a robust 19% growth.

This positive development led the PWR Holdings share price to hit its all-time high of $12.98 in February. However, since then, the share price has dropped about 14% to $11.00 at the time of writing.

At the current share price, PWR shares are trading at 35x FY25 earnings estimates by S&P Capital IQ, mid-point of its trading history of between 20x to 52x. While this is not exactly cheap, I tend to agree with my colleague Tony that the high-quality shares are rarely cheap.

VEEM Ltd (ASX: VEE)

My next pick is ASX small-cap share VEEM, which makes advanced marine technology and engineering parts. The company is well-known for its high-quality gyro stabilisers (gyros), propellers, and other precision parts used in the marine, defence, and aerospace industries.

VEEM is a small ASX company, but it has a presence in the global market and two exciting growth opportunities ahead of it.

VEEM gyros are an innovative product that replaces traditional propeller-based stabilisation. The company has the dominant position in this interesting niche.

In 1H FY24, its gyro sales were $5 million, with orders in hand of $9.2 million. While this may still look small compared to its total revenue of $37.5 million, the company sees a total addressable market of US$1.1 billion from this product. So, it's a long runway for growth.

The company is collaborating with another industry leader, Sharrow Engineering, to adapt Sharrow's design to a wider range of vessels. In this exclusive agreement, VEEM would manufacture and sell Sharrow-designed propellers worldwide for inboard-powered vessels. In April 2024, VEEM saw a positive outcome from initial testing and hopes to launch this product line throughout FY25.

The VEEM share price has more than quadrupled over the past year, after hitting an all-time low of 40 cents in July 2023. VEEM shares are trading at 30x FY25 earnings estimates, based on S&P Capital IQ.

DUG Technology Ltd (ASX: DUG)

The last share to discuss is DUG Technology. The company provides high-performance computing solutions, software, and data analytics services. It specialises in innovative cloud-based services, and high-performance computing (HPC). DUG is a global business with offices in Australia, Asia, Americas and Europe.

This ASX small cap share also provides an artificial intelligence (AI) angle.

In June, the Perennial Natural Resources Trust manager Sam Berridge said DUG could offer direct exposure to the AI boom, as my colleague James summarised. He highlighted DUG's patented immersion cooling technology, which the company claims provides 90% savings in electricity use and manpower.

In 3Q FY24, the company delivered a 39% growth in revenue to US$17.6 million and a 24% growth in EBITDA to US$4.6 million. In response to strong demand, the company is planning to establish a new business unit in the Middle East.

The DUG share price more than doubled over the past year and is at a price-to-earnings ratio of 38x using FY25 estimates by S&P Capital IQ.

The post 3 of the best growth-focused ASX shares to buy in June appeared first on The Motley Fool Australia.

Checking where the experts are positioned is a good place.

The Perennial Natural Resources Trust has delivered impressive returns of 30% per annum over the last three years. It believes ASX resources stocks could offer compelling value in the future.

With stocks such as BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) often the first Australian resource companies that come to mind, some might forget there is a whole universe of commodity stocks on the ASX.

Here's a look at the ASX shares the fund is bullish on and whether they are suitable ASX shares to buy.

Undercovered commodity shares

Perennial's resources fund, headed up by Sam Berridge, has returned 32.3% in the year to May 31, with notable gains from commodities like gold, lithium, uranium, rare earths, and bauxite.

According to the Australian Financial Review, the fund has shown a keen interest in Brazilian Rare Earths Ltd (ASX: BRE).

"We've had solid runs from gold, lithium, uranium, rare earths, and bauxite at different points over the last four years", Berridge said.

He says one of these "big winners" included Brazilian Rare Earths. The company is Australian-based but has exploration sites for rare earths and critical minerals in Brazil and operates the Rocha da Rocha Critical Minerals project there.

This diversification away from traditional resources such as iron ore is critical to the fund's strategy, which involves buying ASX shares in the commodity space.

The commodity sector is becoming more diverse, with new boutique metals periodically rising to prominence due to some energy-related change in demand.

As such, players like Brazilian Rare Earths with exposure to critical minerals fit this bill well. Regarding the company's prospects, Berridge notes that it has "plenty more to give."

Should you buy these ASX shares?

The fund is also bullish on Capricorn Metals Ltd (ASX: CMM), an ASX-listed gold miner. Berridge said the ASX share has been a major contributor to its total 2024 return.

But he said that investors could capitalise on the AI theme in commodities through DUG Technology Ltd (ASX: DUG). Regarding the thesis to buy the ASX share, he said:

I think the most interesting direct exposure is DUG Technology. DUG makes most of its money by processing vast quantities of seismic data for oil and gas companies, but the compute it uses for this has ubiquitous applications.

Its key advantage is the use of immersion cooling, in which the hard drives sit in gently circulating baths of oil. This is more energy-efficient and cheaper than air-conditioning whole rooms full of computers. Elsewhere, the energy demands for AI and data centres require immense amounts of power. It must be cheap 24/7 power so, in the short term, that means US gas.

Leading brokers are also bullish on Capricorn Metals. Analysts at Bell Potter recently maintained a buy rating on the ASX share with a price target of $6.50 per share. According to my colleague James, the broker said the company deserved to be traded at a premium.

Foolish takeaway

According to the Perennial Resources Fund, investors looking to buy ASX shares may find potential in Capricorn Metals and Brazilian Rare Earths.

The Brazilian Rare Earths share price is trading 70% higher year to date, while shares in Capricorn Metals are down 5.3% over the same period. Dug Technology shares are up 34.7% since January this year.

As always, remember to conduct your own due diligence before investing.

The post This fund returned 30% per annum for 3 years. Here are the ASX shares it's buying now. appeared first on The Motley Fool Australia.

Yet it is the harsh reality that many of your investments will end up doing just that. 

It's inevitable regardless of your experience or knowledge. It's just what happens because no one in the world owns a working crystal ball.

But the great news is that with thorough research and diversification, a few — or even just one or two — massive winners can carry your entire portfolio into the black.

Let's examine one such small-cap example that's put a smile on many faces recently:

The ASX tech stock putting smiles on dials

DUG Technology Ltd (ASX: DUG) is a high-performance computing specialist in the technology sector.

Back just 20 months ago, in June 2022, the DUG share price hit the 40 cent mark.

Imagine that you were wise enough to buy $20,000 of the tech stock then.

DUG Technology, ever since listing on the ASX in August 2020, has consistently grown its revenue, operating margin and net profit since.

Combine this with a general revival in high-growth tech stocks in 2023, and you have yourself a prodigious winner.

That $20,000 would have now turned into $124,500.

This is why you don't need every stock to be a winner

So to what extent could such an explosive stock wipe out the effects of other stocks in your portfolio that haven't done as well?

Let's go back to June 2022.

At the time you were buying DUG shares, let's say you also bought up four other stocks for $20,000 each in order to construct a diversified portfolio.

As I mentioned earlier, no one buys stocks thinking they will sink. 

You bought all five companies because you deemed them to be quality businesses with bullish prospects.

However, let's assume the other four picks other than DUG Technology flopped.

Take it to the extreme and say they're now all worth $0.

Even then, thanks to DUG shares, your portfolio is now 30% up.

There's the power of diversification, and a lesson that not every stock pick has to be a winner for you to build your wealth.

The post If you'd put $20,000 in this ASX tech stock 20 months ago, you'd have $125,000 now appeared first on The Motley Fool Australia.

In morning trade, the ASX tech stock sank as much as 29% to $1.80 following the release of its half-year results.

Its shares have recovered a touch since then but remain down 16% to $2.13.

ASX tech stock sinks on results release

• Total revenue up 23% to US$30 million
• EBITDA up 4.4% to US$7.1 million
• Net profit after tax down 31.6% to US$1.3 million

What happened during the half?

For the six months ended 31 December, DUG Technology reported a 23% increase in revenue to US$23 million. This was driven by a strong performance from its key Services business, which delivered a 28% increase in revenue to US$25.3 million.

Things weren't as positive for the company's earnings after its EBITDA margin weakened materially. It was 24% for the half, down from 28% a year earlier and 31% from the second half of FY 2023.

This ultimately led to the company's profit after tax falling by almost a third to US$1.3 million from US$1.9 million a year earlier (and US$3.1 million in the preceding half).

At the end of the period, the ASX tech stock had net cash of US$1.1 million.

Management commentary

The company's managing director, Matt Lamont, said:

This result demonstrates further strengthening of our business, driven by increased momentum in the Oil & Gas exploration & production sector. Our Services wins grew strongly by 64% on H1 FY23, whilst delivering record high revenues for the period.

The Company recorded EBITDA of US$ 7.1m. For the first time we incurred third party compute costs; these costs are expected to cease when the compute upgrade is complete. It has been significantly more expensive to purchase third party compute than it is for DUG to provide its own.

Outlook

The ASX tech stock's Services order book grew by 45% to US$40.5 million compared to 30 June. Management believes this will underpin revenue for the second half and beyond.

In addition, it advised that the outlook for Software looks strong, growing by 9% to US$2.6 million, with new opportunities being pursued outside renewals from existing clients.

Management also aimed to ease concerns about its balance sheet. It said that it expects to continue supporting all planned activities through its balance sheet with support of asset financing for new compute and storage along with cash generated from operations.

Despite today's decline, DUG shares are still up approximately 150% over the last 12 months.

The post Guess which ASX tech stock crashed 29% on its half-year results appeared first on The Motley Fool Australia.

At the time of writing, the ASX All Ords tech share is up 9% to a new 52-week high of $2.34.

Why is this ASX All Ords share jumping?

Investors have been buying the analytical software development company's shares after it released an announcement after lunch.

In case you're not familiar with DUG Technology, it delivers innovative software products and cost-effective, cloud-based high-performance computing (HPC) as a service backed by tailored support for technology onboarding.

Its expertise in algorithm development and code optimisation allows its clients to leverage big data and solve complex problems. These clients come from a diverse range of industries including radio-astronomy, biomedicine, and meteorology, as well as the resource, government, and education sectors.

What was the announcement?

This afternoon the ASX All Ords share announced that it has deployed 600 new Intel Xeon CPU Max Series machines.

In addition, it is investing in 1,500 AMD EPYCTM Genoa machines costing US$18.2 million to support the growth of its Services business line. It notes that it has executed a letter of intent received from First National Capital to lease the compute.

The ASX All Ords share's managing director, Dr Matthew Lamont, was very pleased with the news. He said:

It is very exciting to see our HPC capabilities grow in response to the increasing demand for our services. The Intel machines are already benefiting our active MP-FWI projects. The AMD machines are needed to accelerate delivery of both current and imminent projects, and to support the unprecedented demand we continue to see moving forward. These are exciting times indeed.

DUG Technology shares are now up 170% over the last 12 months.

The post Why is this ASX All Ords share leaping 9% on Friday? appeared first on The Motley Fool Australia.

The flagship fund is a listed investment company (LIC) called WAM Capital Ltd (ASX: WAM).

That LIC has delivered an investment portfolio performance (before expenses, fees, taxes and the impact of capital management initiatives) of 14.9% since August 1999. This compares to an average return per annum of 8.1% for the All Ordinaries Accumulation Index (ASX: XAOA).

The WAM team recently highlighted a relatively small ASX tech share that has soared over the past year.

DUG Technology Ltd (ASX: DUG)

WAM described the business as an Australian-based technology company specialising in analytical software development and high-performance computing. DUG Technology itself says that it delivers a "comprehensive geoscience offering" and that it "maximises the value of seismic data".

It has offices in Perth, London, Houston and Kuala Lumpur. DUG said its diverse client base operated in radio-astronomy, biomedicine and meteorology, and the "resource, government and education sectors". The company says it designs, owns and operates a network of some of the largest and greenest supercomputers on Earth.

WAM noted that the DUG share price performed strongly in September after the company delivered a record FY23 result.

In addition, DUG Technology secured almost US$50 million in new services projects in FY23 and expanded into new markets.

That FY23 result showed a 51% revenue increase to US$50.9 million and a 153% increase in net profit after tax (NPAT) to US$4.9 million. Operating cash flow jumped to US$13.4 million.

Outlook for the ASX share

The WAM team believes that the company's FY24 outlook is "positive, with several software evaluations underway with potential customers".

DUG's services order book grew by 26% to US$27.9 million at 30 June 2023. It grew further in July after a record-high month of order intake.

New hardware will be installed in the Houston data centre during October 2023 to support new service projects.

The company also said the outlook for its software and HPC businesses looked "strong", with several software evaluations underway with potential customers. The sales teams for all three business lines have been strengthened recently.

The business had net cash of US$5.2 million in June 2023, and it announced with its FY23 result that the cash balance had strengthened since the end of FY23.

It expects to support all its planned initiatives through its balance sheet with financing for new computer and storage assets along with cash generated from operations.

DUG Technology share price snapshot

Over the past year, the DUG Technology share price has risen 275%.

The post An ASX share to buy with 'record-breaking profitability' appeared first on The Motley Fool Australia.

At times, it can be telling when certain ASX shares underperform on days of broad strength. Such situations usually indicate investors are paying attention to more prevalent issues at the company level than the positivity demonstrated at a sector-wide level.

Having said this, let's take a look at three ASX tech shares that reached new lows today.

These ASX tech shares are not catching a break

Siteminder Ltd (ASX: SDR)

While the global hotel e-commerce platform technically reached a new 52-week low today, the company has only been listed since 8 November 2021.

Following its initial share price pop on debut, this ASX tech share has failed to impress shareholders. In February, the Siteminder share price suffered a blow after reporting a net loss of $87 million for the December ending half year.

However, today's negative move occurred without any substantial information. The company is slated to enter the S&P/ASX 300 Index (ASX: XKO) on 22 March. Shares in Siteminder finished the day at $4.52, down 5.8% from their previous close.

Damstra Holdings Ltd (ASX: DTC)

Another ASX tech share hitting a new 52-week low today was the workplace management solutions company, Damstra Holdings.

Investors have gone cold on Damstra after a guidance downgrade in November last year. Since then, the picture hasn't gotten prettier, as the company reported a net loss of $56 million compared to $5.49 million in the previous corresponding period.

In a similar fashion, Damstra did not release any announcements today. However, the company is expected to be removed from the All Ordinaries Index (ASX: XAO) this month. Shares in Damstra finished the day at 20 cents, up 2.6% — rebounding from their new 18 cent low.

Dug Technology Ltd (ASX: DUG)

Lastly, Dug Technology is the third and final ASX tech share that cemented a new 52-week low on Wednesday.

Unfortunately for shareholders, it has been a slow and steady grind lower for the high-performance computing company over the past 12 months. Today, Dug Technology announced the appointment of a new CFO after its previous chief financial officer resigned yesterday.

Shares in Dug Technology finished the day at 55 cents, down 1% from their previous close.

The post 3 ASX tech shares at 52-week lows despite tech rally appeared first on The Motley Fool Australia.

At the time of writing, the Dug Technology share price is up 2.29% trading at $1.115.

The trading results come a day after the company announced it plans to build a high-performance computing (HPC) data campus in Western Australia powered entirely by renewable energy. Let's take a look.

A mixed trading update

Dug Technology announced that unaudited revenue from 1 January to 30 April this year was US$11.8 million compared to US$13.8 million in the prior corresponding period.

In response to the drop in revenue, the company said that revenue in its service division for the four-month period had been below expectations. However, its high-performance computing (HPC) as-a-service and application software revenues have continued to grow through the period.

On a more positive note, Dug Technology advised that its tender activity had increased due to recovering market conditions. The company achieved US$45.9 million in new work proposals in its services division for the first four months of 2021. This represents an increase of 10% on pre-COVID-19 levels, over the same period in 2019.

Despite its year-to-date revenue coming in below expectations, the company is seeing positive signs for growth moving forward. Dug advised that this elevated level of activity had led to increasing project awards, which were expected to contribute positively to revenue growth in FY22.

About the Dug Technology share price

The Dug Technology share price has slipped 8% year-to-date and is down almost 25% since its ASX debut on 12 August 2020 when it closed at $1.45.

The thing is, Dug Technology isn't alone in its underperformance. Many notable initial public offerings that took place around the same time as Dug have underperformed. ASX shares including MyDeal.com.au Ltd (ASX: MYD), Adore Beauty Group Ltd (ASX: ABY), Youfoodz Holdings Ltd (ASX: YFZ) and Cleanspace Holdings Ltd (ASX: CSX) have all struggled to make headway after listing.

Despite its positive performance today, its shares have a long way to go before breaking even with its debt highs of $1.45 and listing price of $1.35.

The post The Dug Technology (ASX:DUG) share price is climbing today. Here's why appeared first on The Motley Fool Australia.

The Dug Technology share price lifted after this afternoon's announcement and was swapping hands for $1.08, 1.4% higher at the close of trade.

Let's take a closer look at the news driving the Dug Technology share price.

HPC data centre powered by renewable energy

Dug Technology announced that its carbon-free HPC data campus – to be located in Geraldton, Western Australia – will be a world-first and one of the largest HPC data centres globally.

The campus will use Dug Technology's immersion-cooling technology. The company said this could see its HPC data centre become one of the most energy-efficient on earth, utilised by clients working towards carbon-reduction and environmental, social, and governance (ESG) goals.

Renewable power for the campus will come from solar and wind. Dug Technology is also looking into whether it can place a hydrogen battery system on site.

The company plans to lease plans 45 hectares of land near Geraldton to build the project.

Dug Technology said it chose Geraldton as it's one of the world's best up and coming renewable energy regions.

High-speed fibre internet is available at the proposed site which means connection speeds from the mid-west township will be as good as those of a CBD location.

The company stated its project has the full support of the Yamatji Nation Board and the project includes opportunities and training for the Yamatji people.

The land Dug Technology plans to lease will soon be passed to the Yamatji Nation Trust as part of the Yamatji Nation Indigenous Land Use Agreement.

The company's board has approved a $5 million budget to build the HPC's data hall. The funds will be taken from the company's existing cash reserves.

Construction of the HPC data campus is set to begin in the third quarter of this year, subject to approvals.

Commentary from management

Dug Technology's CEO and founder Matt Lamont commented on the proposal, saying:

As demand for HPC continues to grow exponentially around the world, we must invest in world-leading, carbon-free, cost-effective HPC solutions for our clients.

We developed our award-winning DUG Cool immersion system to reduce the energy footprint of our data centres. Having the ability to utilise this technology at scale would solidify the Geraldton campus as the world standard in environmentally-friendly HPC.

Dug Technology share price snapshot

The Dug Technology share price has been floundering on the ASX lately.

Currently, the company's share price is down 10.7% year to date and has fallen 25.5% since this time last year.

The company has a market capitalisation of around $106 million, with approximately 99 million shares outstanding.

The post Dug Technology (ASX:DUG) share price gains on carbon-free project appeared first on The Motley Fool Australia.

For some, it might be the first time even hearing of DUG before, so we'll run cover what the company does at a high level.

At the time of writing, the DUG share price is trading 18% higher to $1.14.

DUG is super smart

Listed in August last year, DUG is a technology company that provides high-performance computing as a service (HPCaaS). In this day and age processing power is required by many industries. Some of the world's most complex problems are being deciphered not by people in a room, but by supercomputers in specialised facilities.

Originally founded in 2003, the company has expanded internationally. DUG now boasts a global network of 4 supercomputers; playfully named BUBBA, BAZZA, BODHI, and BRUCE. In 2019 the company began broadening its client base outside the resource sector, branching out to radio astronomy, academic research, academic institutions, etc.

Interestingly, DUG's computer rooms are some of the 'greenest' in the world. Instead of using the commonly used air-conditioning method to cool its supercomputers, DUG utilises a specialised dielectric-fluid cooling solution.

Recent performance

The company recently reported its first-half results in February. According to the report, DUG has increased its focus on software solutions to include its high-performance service offering in its 'McCloud' platform. McCloud is the business's customer-focused processing on-demand platform. As a result, HPCaaS revenue experienced an 86% uplift half-on-half.

While HPCaaS revenue increased, other segments experienced a reduction — leading to an overall revenue fall of 9.8% year-over-year. DUG blamed COVID-19 for delaying projects in its services division.

Furthermore, DUG's bottom-line losses ballooned to $4.4 million, compared to a $2.5 million loss the prior year. However, the report indicated an improved outlook for the company as it continues to expand its offering to other industries.

DUG share price recap

Since the company listed in August last year, it has been a disappointing ride. Even accounting for today's strong rally, the DUG share price has slumped 24% from its ASX debut. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has returned more than 10% over the same timeframe.

Based on DUG's current share price, the company now has a market capitalisation of $96 million.

The post DUG Technology (ASX:DUG) share price flying 17% higher today appeared first on The Motley Fool Australia.