Given that SVB had a big presence in the tech sector, a large number of ASX tech shares were customers and had funds in its bank accounts.

With the bank now falling into insolvency, it is unclear what will happen to these funds and what ramifications it will have on their operations and access to capital.

Though, the good news is that no ASX tech shares appear to have put all their eggs in one basket, underlying the importance of diversification and limiting their exposure to this collapse.

Here's a summary of tech shares with SVB exposure:

Bigtincan Holdings Ltd (ASX: BTH)

This sales enablement platform provider revealed that it has no material exposure to SVB.

Life360 Inc (ASX: 360)

This location technology company is a little more complex than others but estimates that its exposure is US$5.6 million. However, Life360 acknowledges that it also has US$75.4 million in shares of money market mutual funds invested in short-term, AAA-rated U.S. Government Treasury and Government Agency securities that are in SVB custodian accounts. It believes that these accounts were not co-mingled with SVB's assets.

Nitro Software Ltd (ASX: NTO)

This document productivity software company has US$12.2 million of its cash reserves held on deposit at SVB. This compares to its cash balance of US$28 million at the end of December. Positively, though, the company revealed that this development has not impacted its takeover approach from Potentia.

Redbubble Ltd (ASX: RBL)

This struggling ecommerce company estimates that its cash exposure to the SVB collapse is $1.3 million. However, it had a first-half closing cash balance of $97 million, so this is immaterial.

Sezzle Inc (ASX: SZL)

This buy now pay later provider had limited exposure to SVB. Just US$1.2 million of its US$68 million was held at the collapsed bank.

Siteminder Ltd (ASX: SDR)

This travel technology joined in on the bank run on Friday and "had success in transferring some of its cash holdings to other banking partners." However, cash holdings of up to A$10 million were not able to be transferred. The company also revealed that it has an undrawn US$20 million revolving credit facility with SVB. Nevertheless, it currently has A$58 million in cash outside SVB to fund its operations.

Xero Limited (ASX: XRO)

This cloud accounting platform provider revealed that its total exposure to SVB is approximately US$5 million. This represents less than 1% of its most recent cash and cash equivalents balance.

Latest development

In the last few minutes, the US government has announced that it will be stepping in.

According to CNBC, depositors at both SVB and Signature Bank in New York, which has also just closed, will have full access to their deposits on Monday.

A joint statement from Fed Chair Jerome Powell, Treasury Secretary Janet Yellen, and FDIC Chair Martin Gruenberg, said:

Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system. This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth.

After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors. Depositors will have access to all of their money starting Monday, March 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.

This news has given Wall Street a major lift and sent US futures hurtling higher.

The post These ASX tech shares have exposure to the Silicon Valley Bank collapse appeared first on The Motley Fool Australia.

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

Arafura Rare Earths Ltd (ASX: ARU)

The Arafura share price is up 4.5% to 45 cents. Investors have been loading up on this rare earths producer's shares once the dust settled on its recent institutional placement. Arafura received firm commitments for $121 million from institutional investors at 37 cents per new share. These funds will be used to help accelerate the development schedule of the Nolans Project.

Megaport Ltd (ASX: MP1)

The Megaport share price is up 4.5% to $6.76. This is despite there being no news out of the network as a service provider. However, with its shares down almost 70% year to date prior to today's session, some investors may believe they had been oversold.

Nitro Software Ltd (ASX: NTO)

The Nitro share price is up almost 4% to $2.21. This morning the document productivity software provider revealed that Alludo has increased its takeover proposal by 15 cents per share to $2.15 per share. Investors appear to be betting that fellow suitor Potentia will lift its $2.00 per share offer. Though, it is worth noting that Nitro is recommending Alludo's latest offer to shareholders.

Sayona Mining Ltd (ASX: SYA)

The Sayona Mining share price is up 3.5% to 22.25 cents. Investors have been buying this lithium developer's shares after it released an update on the North American Lithium (NAL) project. That update reveals that the company has been awarded the final permit for NAL's restart ahead of the planned recommencement of production in the first quarter of 2023. Management believes this has effectively de‐risked its NAL operation.

The post Why Arafura, Megaport, Nitro, and Sayona Mining shares are storming higher today appeared first on The Motley Fool Australia.

The Nitro Software Ltd (ASX: NTO), Arafura Rare Earths Ltd (ASX: ARU) and Air New Zealand Limited (ASX: AIZ) share prices are all in the green today.

Let's take a look at these three ASX All Ords shares in more detail.

Nitro Software

The Nitro Software share price is climbing 3.76% today from $2.13 to $2.21.

Nitro is the subject of a bidding war for a takeover. Alludo is proposing to acquire 100% of Nitro by scheme of arrangement with a revised price of $2.15 per Nitro share. This is 7.5% more than a previous offer. Nitro is recommending shareholders vote in favour of a revised takeover offer from Alludo in the absence of a superior proposal.

Last week, Potentia Capital Management offered to take over Nitro at $2 cash per Nitro share. The Nitro board recommends shareholders reject Potentia's takeover offer.

Air New Zealand

Air New Zealand shares are climbing 2.78% today.

The company recently upgraded its half-year earnings guidance for the 2023 financial year. The airline is expecting to achieve earnings before significant items and taxation for the first half of the financial year to be between $295 and $325 million. This is an upgrade on the previous guidance of $200 million to $275 million.

Commenting on travel demand, Air New Zealand said:

Continued strong travel demand across the domestic and international networks, as well
as a recent decline in jet fuel prices has accelerated the airline's financial recovery. As
a result, Air New Zealand is today upgrading half year earnings guidance for the 2023
financial year.

Arafura Rare Earths

The Arafura Rare Earths share price is soaring 8% today.

Arafura is exploring the Nolans Project in the Northern Territory for neodymium and praseodymium (NdPr). Nolans contains all the rare earths, but it is "particularly enriched" in magnet feed rare earths Nd and Pr. Arafura recently highlighted that the Nolans project is the "only advanced stage NdPR focussed project outside China that plans to mine and process ore to oxide at a single site".

Arafura is conducting a capital raise of $133 million to accelerate construction.

The post It's not all bad news for the ASX All Ords on Monday. Here are 3 big gainers appeared first on The Motley Fool Australia.

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

Beach Energy Ltd (ASX: BPT)

The Beach Energy share price is up 2.5% to $1.69. Investors appear pleased that Beach has decided to withdraw from the race to acquire Warrego Energy Ltd (ASX: WGO). Beach will instead expand its current active exploration drilling program in the Perth Basin. It believes the bidding war demonstrates that the area is one of the most exciting gas plays in Australia.

Chalice Mining Ltd (ASX: CHN)

The Chalice Mining share price is up 4% to $6.56. Investors have been buying this mineral exploration company's shares this week following the release of promising drilling results from the Julimar Complex in Western Australia. Drilling at the greenfield Hooley Prospect, ~5km north of the current Gonneville Resource, has intersected a significant PGE-nickel-copper-cobalt-gold mineralisation.

Nitro Software Ltd (ASX: NTO)

The Nitro Software share price is up 2.5% to $2.11. This morning the company revealed that Potentia has increased its takeover offer by 10% to $2.00 cash per share. However, this is still lower than where Nitro's shares trade today. This could be a sign that investors expect a further bid to be made.

Rio Tinto Ltd (ASX: RIO)

The Rio Tinto share price is up almost 3% to $117.59. This follows another rise in the benchmark iron ore price overnight to beyond US$110 a tonne. Not even news that Morgans has downgraded this mining giant's shares to a hold rating has been able to stop its ascent. Morgans said: "Despite stable fundamentals, reduced value upside leaves us neutral on the large iron ore miners."

The post Why Beach, Chalice Mining, Nitro, and Rio Tinto shares are rising today appeared first on The Motley Fool Australia.

But we all know every portfolio has ASX shares that have broken the hearts of owners. It's just no one talks about them.

It is perfectly understandable to be reluctant to trust a business again after it has burnt you or other investors badly. It's just human nature.

However, investors need to remember that ASX shares have no memory. A stock doesn't care that it was once $10 but now $2. 

The only thing that matters when considering equities to buy is what the future prospect of the business is at that point in time. History means nothing.

So if you take on this rational mindset, there is one technology stock that's been an absolute dog the past couple of years that you may consider buying now:

'We expect the share price to improve'

Appen Ltd (ASX: APX) used to be a darling of growth investors but has caused nothing but grey hairs since the COVID-19 pandemic hit.

The stock has lost an eye-watering 93% of its value since August 2020, and 75% year to date.

"The share price of this artificial intelligence data provider has fallen from $40.08 on August 17, 2020 to trade at $2.65 on November 24, 2022," Red Leaf Securities chief John Athanasiou told The Bull.

However, Athanasiou feels like it's time to now forgive Appen for past sins.

"We expect the share price to improve as money flows back to the domestic technology sector," he said.

"The company expects fiscal year 2022 revenue to range between US$375 million and US$395 million."

Discounted for a takeover?

The really exciting prospect for Athanasiou, though, is seeing other listed Australian tech companies like ELMO Software Ltd (ASX: ELO) and Nitro Software Ltd (ASX: NTO) receive tempting takeover bids from private investors.

"There's been corporate activity in the domestic technology sector, as a weaker Australian dollar makes companies more attractive to international private equity firms," he said.

"Appen, at this price, could be a target."

Appen's major clients are big US tech firms and after a torrid year, they themselves could be looking forward to better conditions next year.

And this could also provide a tailwind for Appen, reported The Motley Fool's Bernd Struben last week.

The post It's about time you buy this ASX tech share that's beaten down 75% this year: expert appeared first on The Motley Fool Australia.

Looking beyond the market, there's also been plenty of news from central banks.

The Reserve Bank of Australia upped the benchmark interest rate by 0.25% on Tuesday, taking it to 2.85%. Then, on Thursday, the US Federal Reserve hiked rates another 0.75% – leaving the nation's cash rate at 3.75% to 4%. Both hikes were in response to soaring inflation.

Inflation was also the talk of the town on the Aussie bourse this week after an S&P/ASX 200 Index (ASX: XJO) giant posted a quarterly update. Let's get stuck into it.

5 ASX announcements making news this week

Woolworths' earnings disappoint

The Woolworths Group Ltd (ASX: WOW) share price slumped yesterday when the supermarket operator posted its September quarter update, detailing a 1.8% increase in group sales.

Its BIG W and Australian business-to-business legs' growth managed to offset a decline in sales at its Australian and New Zealand food businesses. Much of the drop was due to the cycling of COVID-19 lockdowns in the prior comparable period.

Woolworths CEO Brad Banducci also commented:

Inflation continued to accelerate in Q1 … We continue to see early signs of customer purchasing habits changing, but it remains unclear how much of this relates to cost-of-living pressures compared to COVID normalisation.

Another regulatory blow for EML

The share price of EML Payments Ltd (ASX: EML) also suffered this week, plummeting 35% on Monday. Its fall came after the former ASX 200 fintech announced it had agreed to pause the onboarding of new users to its United Kingdom subsidiary, Prepaid Financial Services, amid regulatory concerns.

The issues raised were said to be similar to the (still unresolved) concerns brought about by the Central Bank of Ireland in 2021. They related to the company's compliance with anti-money laundering and counter-terrorism financing laws.

Nitro catches a winning takeover curveball

After months of courtship and two takeover bids, the Nitro Software Ltd (ASX: NTO) board has finally recommended a potential buyer's offer. However, it wasn't posed by the suitor previously chasing the company.

Canada's Alludo's $2 per share takeover offer was 11% higher than the $1.80 bid Potentia Capital offered on Friday. Potentia has been chasing Nitro since August when it posted its initial $1.58 bid.

Lithium drives IGO's earnings higher

Good news for ASX lithium fans – IGO Ltd (ASX: IGO) announced its lithium business' sales revenue more than doubled quarter-on-quarter to come in a $1.8 billion over the three months ended 30 September.

That helped the company report a 136% increase in after-tax profits, coming in at $253 million, and a 54% jump in underlying earnings before interest, tax, depreciation, and amortisation (EBITDA), reaching a record $398 million.

Tiny lithium mining share surges 81% amid exploration news

Finally, a win for the little guys. The share price of $110 million lithium explorer Winsome Resources Ltd (ASX: WR1) exploded this week. It has gained 80.8% since the close of trade on Friday, and is currently trading at 85 cents apiece.

The surge followed last week's announcement of positive drilling results at two of the ASX company's Canadian projects.

This week, it provided additional data on numerous drill holes and an investor presentation. The releases seemingly spurred the market's interest in the stock once more.

But that wasn't the end of the drama. The lithium share was halted following an ASX query on Wednesday.

It returned to trade this morning on an update pertaining to its previously released presentation. Additionally, the company responded to the ASX's 'please explain', saying:

With this series of encouraging exploration results being made public, there appears to be a recognition that WR1's market capitalisation is low when compared with many of its peers in the lithium exploration market.

The post 5 big ASX announcements making news this week appeared first on The Motley Fool Australia.

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

Clinuvel Pharmaceuticals Limited (ASX: CUV)

The Clinuvel share price is up 5% to $19.62. This follows the release of the biopharmaceutical company's quarterly update. Clinuvel recorded its highest quarterly results from customer receipts since the commencement of commercial operations in Europe in June 2016 and United States in April 2020. The company's receipts from customers for the quarter were $25.152 million, with net operating expenditures of $8.270 million and net operating cashflow totalling $17.338 million.

Nitro Software Ltd (ASX: NTO)

The Nitro share price is up 18% to $2.05. Investors have been buying this document productivity software company's shares after it received another takeover offer. Canadian graphics software company Alludo has offered $2.00 per share, which is 11% higher than Potentia Capital's offer of $1.80 per share. Given that the Nitro share price is trading above the offer price, investors appear to believe a bidding war could ensue.

Premier Investments Limited (ASX: PMV)

The Premier Investments share price is up 5% to $24.97. This has been driven by the release of a trading update from the retail conglomerate after the market close on Friday. That update reveals that global sales for the first 12 weeks of FY 2023 are up 42.8% on the prior corresponding period. This is also a 21.7% increase on the same 'pre-COVID' period during FY 2020.

Pushpay Holdings Ltd (ASX: PPH)

The Pushpay share price is up 8% to $1.14. This follows news that the donation platform provider has accepted a NZ$1.34 (A$1.21) per share takeover offer from the Sixth Street and BGH Capital Consortium. This represents a 14.7% premium to the Pushpay share price prior to its trading halt and a 30.1% premium to where its shares were trading before its first takeover offer was received.

The post Why Clinuvel, Nitro, Premier Investments, and Pushpay shares are rising appeared first on The Motley Fool Australia.

The stock has been in a trading halt since Thursday afternoon when it closed the session at $1.73. After the freeze was lifted on Monday morning, Nitro shares flew as high as $2.05.

After private bidder Potentia Capital made its second takeover bid of $1.80 per share on Friday, the Nitro board on Monday morning was forced to reveal that Canadian graphics software company Alludo has submitted a superior proposal for a 100% acquisition at $2 per share.

"Alludo has also indicated it is willing to proceed with an off-market takeover bid with a 50.1% minimum acceptance condition, offering $2.00 cash per share."

Not surprisingly, the Nitro board recommended shareholders reject the Potentia bid.

The announcement to the ASX also revealed Alludo had already performed considerable due diligence and the remaining work was "confirmatory".

"In order to explore whether a definitive transaction can be agreed, Nitro and Alludo have entered into a Process Deed, pursuant to which Nitro has granted Alludo a 21-day period of exclusivity for the purposes of confirmatory due diligence and negotiation of definitive agreements."

Once this formality is done, the Nitro board said it would recommend shareholders accept the Alludo takeover.

Potentia jilted, but will it respond? 

The development is sure to ruffle Potentia, which had been courting Nitro since August but was blocked from due diligence access.

Back on 31 August, the Nitro board rejected a $1.58 per share takeover offer from a Potentia consortium. Since then Potentia had bought up 19.8% of Nitro's shares.

Then on Friday, Potentia made an unsolicited takeover bid at $1.80 per share.

While shareholders will get a chance to accept or reject that offer in about a fortnight, the Nitro board recommended declining.

"Following careful consideration, including advice from its external advisers, the Nitro Board has concluded the Potentia Takeover Bid undervalues Nitro and unanimously rejects the Potentia Takeover Bid as not being in the best interests of shareholders."

The Nitro board pointed out that Alludo's $2 deal was 11% higher than Potentia's bid, a 77% premium on the undisturbed share price of $1.13, and 69% higher than the volume-weighted average price to 29 August.

Investors will be keenly watching to see if there will be any counteroffers from Potentia to outbid Alludo.

The post Why the Nitro share price is leaping 18% on Monday appeared first on The Motley Fool Australia.

The bidder, which is also the company's largest shareholder, plans to put forward a $1.80 per share acquisition offer. That's 13.9% higher than its previously rejected $1.58 per share bid.  

The $1.80 per share bid values the tech company at around $440 million.

The Nitro share price last traded at $1.73. It will return to trade on the company's response to Potentia's intended bid or Monday's open, whichever comes first.

The All Ordinaries Index (ASX: XAO) constituent was recently rumoured to be gearing up to announce an acquisition offer this morning.

Let's take a closer look at Potentia's latest move in the battle for control of the document productivity company.

Nitro share price frozen amid new takeover bid

The Nitro share price was halted this morning after the company received word of Potentia's intention to put forward a new and improved off-market takeover bid. And this time it's final.

The firm says its anticipated offer will only be bumped if another proposal emerges or its granted full due diligence.

Potentia has a 19.8% stake in the All Ords tech stock. It has vowed to vote its stake against any competing offers.

The $1.80 cash offer represents a 59.3% premium to Nitro's undisturbed share price of $1.13 on 29 August. The stock last traded above $1.80 in February and boasts a 52-week high of $4.

In rejecting the firm's previous offer, the company said the bid was "highly opportunistic … at a time of significant share market volatility and cyclical weakness in global technology company valuations."

Potentia managing director Andrew Gray commented on the firm's anticipated offer, saying:

This bid is a demonstration of our commitment to Nitro, its team, and to the strategy they are pursuing under the strong leadership of [co-founder and CEO] Sam Chandler and stewardship of the board.

We are specialist investors in the technology and software sector, and we have been on the same journey of building great companies which Sam and his team are currently treading. We believe we have real value to add as partners in their growth.

The firm said it intends to lodge its $1.80 per share bid for Nitro today. It expects the offer to open in around a fortnight.

The post Nitro share price halted amid improved takeover bid appeared first on The Motley Fool Australia.

The ASX small-cap share also put out a statement in regard to media speculation relating to possible further takeover bids. The company rejected a takeover proposal from the Potentia Consortium on August 31.

Nitro shares ended the day trading for $1.73 apiece, an increase of 7.45%. For comparison, the All Ordinaries Index (ASX: XAO) gained 0.53%.

Takeover talk

Nitro Software could be in the running for additional takeover bids in the future, as it confirmed this afternoon it had "received expressions of interest from a number of qualified third parties".

In response to the media's speculation as to whether it would accept a deal, the ASX tech share reiterated that "there is no certainty that the engagement with any third party will result in a change-of-control transaction capable of being considered by shareholders".

However, this hasn't stopped sources from guessing whether or not Nitro will look for a better offer.

The Australian reported yesterday that Nitro could be more open to offers from potential acquirers. These include a rumoured bid that will be received tomorrow that will beat Potentia's original $386 million deal.

Nitro previously reported a takeover approach on 31 August by the Potentia consortium, consisting of Potentia Capital Management Pty Ltd and HarbourVest Partners LLC. Details of the offer included acquiring 100% of the company for $1.58 per share.

However, Nitro turned down the proposal, noting that growth stocks like itself have been severely discounted. It also noted it has a strong competitive moat with its software-as-a-service PDF productivity e-signing platform.

The latest rumours come after fellow tech share ELMO Software Ltd (ASX: ELO) on Wednesday announced the receipt of a recommendable takeover offer.

Elmo has entered into a scheme implementation deed (SID) with K1 Investment Management. The proposed scheme of arrangement would see Elmo shareholders receive $4.85 cash per share.

The buyout proposal is at a relative bargain to its previous valuations. This could suggest tech companies in this environment are still open to being bought out despite receiving what could be considered lowballed offers.

Nitro reports strong Q3 FY22 results

Potential acquirers of Nitro Software could be giving the All Ords share a second look today following the company's latest quarterly updates.

Highlights included strong reported improvements in its fundamentals. These included annual recurring revenue (ARR) growing 51% year over year and record cash receipts from customers. It also reported a strong financial position with US$29.2 million (AU$ 44.95 million) in cash on its balance sheet.

These developments could give Nitro better leverage at the negotiating table.

Nitro Software share price snapshot

The Nitro Software share price is down around 30% year to date. The All Ords, meanwhile, is down around 9% over the same period.

The company's market capitalisation is around $394.55 million.

The post Up 7% today, could this ASX All Ords tech share be in for more takeover bids? appeared first on The Motley Fool Australia.

While this is positive, some All Ords shares are performing significantly better and are crushing the index today. Here are three that are on fire:

Bigtincan Holdings Ltd (ASX: BTH)

The Bigtincan share price is up 8.5% to 57.5 cents. This morning this sales enablement software company released its first quarter update and revealed very strong growth. Bigtincan reported a 162% increase in customer cash receipts over the prior corresponding period to $37.7 million. This was also a 20% increase over its fourth quarter numbers. In light of this, management believes it is on track to achieve its FY 2023 guidance of annual recurring revenue in the range of $137 million to $143 million and revenue in the range of $123 million to $128 million.

Nitro Software Ltd (ASX: NTO)

The Nitro share price is up 10% to $1.77. This follows the release of the document productivity software company's third quarter update and takeover speculation. In respect to the former, Nitro reported a 51% increase in annual recurring revenue to US$55.2 million. This puts the company on course to achieve its FY 2022 guidance. As for the takeover speculation, Nitro confirmed that the company has received expressions of interest from a number of qualified third parties.

Weebit Nano Ltd (ASX: WBT)

The Weebit Nano share price has jumped 20% to $2.82. This morning this semiconductor company revealed that it has successfully completed the full technology qualification of its Resistive Random-Access Memory (ReRAM) module manufactured by its research and development partner CEA-Leti. The qualification, using Weebit's demo chips incorporating its ReRAM module, confirmed the suitability of Weebit's embedded technology for volume production.

The post 3 ASX tech shares totally crushing the All Ords following big announcements appeared first on The Motley Fool Australia.

Here's why experts think these ASX shares could be top options for investors right now:

Nitro Software Ltd (ASX: NTO)

The first small cap that experts rate highly is Nitro Software.

It is a document productivity software company that is aiming to drive digital transformation in organisations around the world. Nitro is doing this with its Nitro Productivity Suite, which provides businesses of all sizes with integrated PDF productivity and electronic signature tools.

And while the company has been growing at a rapid rate in recent years, it is still only scratching the surface of its enormous market opportunity. Management commented:

With a strong balance sheet and zero debt, we are well placed to cement and expand our position in the fast-growing US$28 billion eSigning and PDF productivity market as customers increasingly demand the suite of high-security high-trust products we offer.

Goldman Sachs is very positive on the company and currently has a buy rating and $2.05 price target on its shares.

PlaySide Studios Limited (ASX: PLY)

Another small cap ASX share that experts are tipping as a buy is PlaySide Studios.

It is one of the largest video game developers in the ANZ region. It provides titles in a range of categories, including self-published games based on original intellectual property and game development services in collaboration with studios such as Take-Two Interactive, Activision Blizzard, Meta, Disney, Pixar, Warner Bros, and Nickelodeon.

The company also has a growing interest in NFTs and generated $9 million in sales from them during the first half.

Ord Minnett is a fan of the company. It currently has a speculative buy rating and 85 cents price target on its shares.

The post Experts say these small cap ASX shares are buys appeared first on The Motley Fool Australia.

Both are highly rated by analysts at Goldman Sachs and tipped to generate strong returns for investors.

Here's what the broker is saying about these small cap ASX shares:

Hipages Group Holdings Ltd (ASX: HPG)

The first small cap ASX share that Goldman Sachs is recommending to investors is Hipages.

It is a leading ANZ-based online platform and software as a service (SaaS) provider connecting consumers with trusted tradies.

Goldman Sachs is bullish on the company due to its belief that Hipages has strong medium term and long term growth potential. In respect to the form, Goldman is forecasting a 29% EBITDA compound annual growth rate (CAGR) for FY 2022 to FY 2025.

As for the long term, the broker commented:

Longer term, we believe HPG presents a compelling long growth opportunity as it builds out an essential ecosystem of services for tradies.

Goldman currently has a buy rating and $2.20 price target on the company's shares. Based on the current Hipages share price, this implies potential upside of over 70% for investors.

Nitro Software Ltd (ASX: NTO)

Another small cap ASX share that Goldman Sachs is bullish on is Nitro. It is a document productivity software provider. It is aiming to drive digital transformation in organisations around the world across multiple industries with its core solution, the Nitro Productivity Suite.

Like Hipages, Goldman Sachs is forecasting very strong growth in the coming years and believes the company has a huge long term opportunity. It said:

We continue to see NTO as an undervalued global growth opportunity (>20% FY22-25E ARR CAGR) with high gross margins (~90%), a sound balance sheet (US$35mn net cash) and very little priced into the current valuation.

Even after a recent jump following a rejected takeover approach, Goldman sees plenty of value in the Nitro share price with its buy rating and $2.05 price target. This implies potential upside of 23% for investors from current levels.

The post Goldman Sachs names 2 exciting small cap ASX shares to buy appeared first on The Motley Fool Australia.

Each of the offers ­– together worth more than $1 billion – was quickly rejected. Both companies said the firm's bid undervalued their business.

So, with Potentia seemingly on the hunt for a takeover and having had no luck so far, could other ASX tech shares be in its sights?

Let's take a closer look at the firm's apparent wish list and whether other stocks might fit the bill.

Potentia's $1 billion bidding spree

Nitro and Tyro have both knocked back takeover offers from consortiums led by Potentia recently. The former rejected a $1.58 per share bid late last month and the latter refused a $1.27 per share bid yesterday.

And while they work in entirely different spaces, it's not difficult to draw parallels between the pair.

Shares in the respective ASX tech titans have fallen 30% and 57% year-to-date.

Interestingly, both companies dubbed Potentia's respective bids "highly opportunistic".

Nitro's chair said the firm's bid for the company was lobbed in a period of volatility among tech shares on the ASX and around the globe.

With that in mind, let's look at the pair's most recent results.

Tyro posted $318.8 million of payments revenue for financial year 2022 (FY22) – a 39% year-on-year increase. Meanwhile, Nitro boasted U$32.7 million of total revenue for the first half of the year – a 36% improvement on that of the prior corresponding period.

It appears Potentia might have a type. Both payment services provider Tyro and document productivity company Nitro boast thriving revenue, zero debt, and a sold-off share price.

And it's not hard to find other ASX tech shares that fit the bill.

Could these ASX tech shares be in Potentia's sights?

It's been a rough year so far for ASX tech shares, in which many have suffered major sell-offs.

For instance, the Pointsbet Holdings Ltd (ASX: PBH) share price has plunged 67% year to date. The company – which grew its revenue by 52% in FY22 and holds no debt – will be dumped from the S&P/ASX 200 Index (ASX: XJO) later this month following its sell-off.

Stock in BetMakers Technology Group Ltd (ASX: BET) has also tumbled 49% so far this year despite the debt-free company recently posting a whopping 371.1% increase in revenue.

Other ASX tech shares that fit the bill include Whispir Ltd (ASX: WSP) and Bigtincan Holdings Ltd (ASX: BTH).

The former posted record FY22 revenue while the latter's revenue simultaneously lifted 143%. Their stock has fallen 62% and 41%, respectively, so far this year.

The post Nitro now Tyro: Could there be 'Potentia-l' for other ASX tech shares? appeared first on The Motley Fool Australia.

But it's fair to say 2022 has tested the nerves of investors in technology stocks.

The S&P/ASX All Technology Index (ASX: XTX) has now lost almost 35% over the past 12 months, and there is not much relief in sight with the Reserve Bank continuing to increase interest rates.

"With the benefit of hindsight, high-growth tech businesses proved to be the proverbial canary in the coalmine," said Forager Funds portfolio manager Alex Shevelev and senior analyst Gaston Amoros.

"The canary went very quiet during most of 2021 and then suffered a catastrophic heart attack in 2022."

Rock-bottom share prices don't match the fundamentals

If you're willing to be patient, though, there are some bargains to be snapped up right now.

"For some of these companies… the low share prices belie the trajectory of the fundamentals."

Shevelev and Amoros took PDF and e-signature tools provider Nitro Software Ltd (ASX: NTO) as a prime example.

"After raising capital at $3.43 a share in late 2021 to fund a European acquisition, [it] saw its share price trade down to almost $1 and has now received a takeover offer from private equity funds at $1.58 a share," they said.

"The company was quick in rejecting the offer as opportunistic and significantly undervaluing the business. We tend to agree with them."

Many tech companies have reined in their spending

The Forager team noted that the new environment of higher interest rates and scrutiny on growth shares has led to many tech companies to change their ways. 

"Software vendors, in particular, keep growing fast and are now displaying a newfound zeal in cost cutting that has pulled cash flow forecasts forward," they said. 

"It is not a coincidence that we are getting opportunistic take-private bids in this space."

Nitro's shares are up almost 50% since the rejected takeover offer, although they are still about a third down since the start of this year.

According to Shevelev and Amoros, Nitro is not the only one tightening its belt and looking ripe for investors willing to ride for the long term.

"There are other good software businesses out there that offer a similar risk-reward profile to the patient investor," they said.

"In our portfolio, we are very happy with our holdings in software vendors Whispir Ltd (ASX: WSP), Bigtincan Holdings Ltd (ASX: BTH), and RPMGlobal Holdings Ltd (ASX: RUL)."

The Whispir share price is down 60.5% for the year so far, while Bigtincan is 42.4% lower and RPM Global has lost 29.1%.

The post 4 ASX tech shares for the 'patient investor': expert appeared first on The Motley Fool Australia.

Four ASX shares that have managed to avoid the selloff are listed below. Here's why they are rising:

Coles Group Ltd (ASX: COL)

The Coles share price is up 1.5% to $17.81. This is despite there being no news out of the supermarket giant. However, given its defensive qualities, investors appear to have been buying its shares during today's broad market selloff.

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)

The Fisher & Paykel share price is up 1.5% to $17.79. This morning the medical device company announced that it has entered into a sale and purchase agreement to acquire a 105 hectare site in Karaka, Auckland for NZ$275 million. The company will construct a second New Zealand campus on the site to complement its existing location at the Highbrook development in Auckland.

New Hope Corporation Limited (ASX: NHC)

The New Hope share price is up 3% to $5.04. Investors have been buying New Hope and other coal miners today after the coal price climbed overnight. According to CommSec, the thermal coal price rose 2.5% to US$425 per tonne. This is good news for its Bengalla thermal coal mine, which is generating significant free cash flow with prices at these levels.

Nitro Software Ltd (ASX: NTO)

The Nitro share price is up 1.5% to $1.60. On Wednesday, this document productivity software company received and rejected a takeover approach. Judging by its current share price, investors appear to be betting that the Potentia consortium will improve its $1.58 per share offer to acquire Nitro.

The post Why Coles, Fisher & Paykel, New Hope, and Nitro shares are rising appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are storming higher:

Deep Yellow Limited (ASX: DYL)

The Deep Yellow share price has continued its stellar run and is up a further 11% to $1.17. Investors have been buying this uranium developer's shares this week after the uranium price surged higher. Traders have been bidding the chemical element higher amid reports that a number of governments are looking at nuclear power options. The Deep Yellow share price is now up 38% since this time last week.

Nitro Software Ltd (ASX: NTO)

The Nitro share price has rocketed 39% higher to $1.57. This follows news that the document productivity software company has received and rejected a takeover approach from a consortium led by Potentia Capital. Management stated that the offer was "highly opportunistic and comes at a time of significant share market volatility and cyclical weakness in global technology company valuations."

Tyro Payments Ltd (ASX: TYR)

The Tyro share price is up 10% to $1.20. This morning the team at Morgans responded positively to the payments company's full year results from yesterday. Morgans has retained its add rating and lifted its price target to $1.70. It highlights that Tyro's earnings and guidance were ahead of expectations.

Webjet Limited (ASX: WEB)

The Webjet share price is up almost 9% to $5.55. Investors have been buying this online travel agent's shares after it released a trading update at its annual general meeting. Management revealed that it has started FY 2023 strongly. All businesses have been profitable and it expects to generate cash flow from operations of greater than $100 million during the first half of FY 2023.

The post Why Deep Yellow, Nitro, Tyro, and Webjet shares are storming higher appeared first on The Motley Fool Australia.

At the time of writing, Nitro shares are trading at $1.57 each, a 39% jump on yesterday's last price of $1.13 a share.

After the Nitro share price went into a trading halt yesterday, the ASX-listed software company reported an indicative takeover approach.

Let's find out what all the fuss is about and why the Nitro share price is skyrocketing today.

Key offer details

Potentia Capital Management Pty Ltd, together with its co-investor HarbourVest Partners, LLC (Potentia Consortium), submitted an unsolicited, conditional, and non-binding proposal to acquire 100% of Nitro at $1.58 cash per share.

The takeover offer is subject to a six-week due diligence period, access to transaction documents including third-party and regulatory consents, as well as Nitro board approval.

The Potentia Consortium currently holds 41.4 million shares in Nitro, representing 17% of total capital.

Nitro turns down the offer

Nitro has decided to decline the indicative offer based on a number of reasons.

Firstly, the recent volatility across the equity market where growth stocks have been particularly hit hard does not present a timely opportunity.

Secondly, the board deemed the offer inadequate given that Nitro is one of only two software companies in the world to provide a proven enterprise-grade [software as a service] SaaS PDF productivity and eSigning platform.

In relation to the $1.58 per share offer, Nitro advised this equates to a 61% discount to a 52-week high Nitro share price of $4.00 per share on 17 November 2021 and an 18% discount to the 12-month volume-weighted average price of $1.93 per share to 29 August 2022.

Management is still open to receiving further proposals that more appropriately compensate shareholders and reflect the underlying value of Nitro.

Nitro share price snapshot

As mentioned previously, the Nitro share price has taken a battering in the last year, plummeting 53% but today's announcement has propelled a 41% jump in the last month.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has declined by 7% in the last year, and is down 0.11% in the past month.

The company's market capitalisation has risen to around $381 million.

The post Nitro share price rockets 40% on takeover approach appeared first on The Motley Fool Australia.

Both these ASX growth shares have just been named as buys by analysts. Here's what they are saying:

Jumbo Interactive Ltd (ASX: JIN)

The first ASX growth share that has been tipped as a buy is online lottery ticket seller Jumbo.

The team at Morgans was impressed with its performance in FY 2022 and highlights that its software as a service (SaaS) business is now a key earnings contributor. This is good news given its significant global market opportunity.

Morgans has put an add rating and $17.50 price target on the company's shares. It commented:

FY22 was a year of solid growth in revenue and earnings for JIN. The business continued to diversify its earnings base, with SaaS now making up nearly half of group EBITDA. There were few surprises in the numbers, given JIN pre-announced headline earnings in July. We have made no material changes to our earnings estimates.

Our NPAT estimates are effectively unchanged in both FY23 and FY24, although we raise our EPS forecasts by 1% in each year as a result of the proposed $25m buyback. We reiterate our ADD rating. We expect JIN to continue to achieve steady growth in the years ahead through a combination of organic contract wins, M&A and diversification.

Nitro Software Ltd (ASX: NTO)

Another ASX growth share that has just been named as a buy is this document productivity software provider.

Goldman Sachs was pleased with Nitro's performance during the first half and believes it is making good progress with its cost cutting plan. And while its growth is no longer expected to be as quick as first thought, the broker sees plenty of value in its shares at the current level.

In fact, it feels Nitro's shares are materially undervalued based on its global growth opportunity. As a result, the broker has retained its buy rating and $2.05 price target on the company's shares. It commented:

NTO's growth outlook has been re-based post the 2Q22 update (from 30-40% to 20-30%) and we see the company as on a credible path to cash flow breakeven; however, consecutive quarters of strong ARR performance are likely necessary to ease concerns over execution challenges. We are comfortable with NTO's full-year ARR guidance based on typical seasonality (2H weighted) and Connective cross-sell, with an update expected at the 3Q22 result in October.

We continue to see NTO as an undervalued global growth opportunity (>20% FY22-25E ARR CAGR) with high gross margins (~90%), a sound balance sheet (US$35mn net cash) and very little priced into the current valuation at 2x FY23 EV/ARR (an all-time low). Our 12-mth TP of A$2.05/share is unchanged and we reiterate Buy.

The post Analysts name 2 top ASX growth shares to buy now appeared first on The Motley Fool Australia.

Shares of the document productivity company are currently frozen at $1.13 each — the price they closed at on Monday.

Let's look into why the company's shares are not trading today.

Nitro trading halt

Nitro Software requested a trading halt this morning. The company said the trading of its shares should be suspended while it waits to receive a proposal relating to a potential change of control transaction.

There are several things a change of control transaction could mean in this scenario but, usually, it involves transferring assets from one entity to another.

The halt was requested until Nitro Software either makes the intended announcement from the proposal or until the start of trade on Wednesday.

Yesterday, Nitro shares closed more than 6% lower amid the company posting a $25 million loss in its earnings report for FY22.

Nitro share price snapshot

The Nitro share price is down around 55% year to date. By comparison, the S&P/ASX 200 Index (ASX: XJO) is around 8% lower over the same period.

The company's current market capitalisation is $276 million.

The post Why is the Nitro Software share price halted today? appeared first on The Motley Fool Australia.