This morning the embattled water treatment company's shares crashed as much as 80% to 5 cents.

This follows Phoslock's return to trade after almost exactly two years in suspension.

What is going on with the Phoslock share price?

The Phoslock share price returned to trade at long last on Friday after the company received confirmation from the ASX that it has satisfied all the conditions required to be reinstated to quotation.

This includes providing an update on the past fraud and mismanagement issues that have impacted Phoslock and the full disclosure of any known ongoing investigations.

In respect to the fraud and mismanagement, the company commented:

As indicated in the November Announcement, the Company self-reported the suspected fraud, foreign bribery and mismanagement issues identified by current management and entered into an Investigation Cooperation Agreement (ICA) with the Australian Federal Police (AFP) which requires the Company to engage cooperatively with the AFP.

Management advised that its engagement with the AFP is ongoing and it is committed to providing proactive and fulsome cooperation with authorities. It highlights:

Proactive and fulsome cooperation will be an important factor for the Commonwealth Director of Public Prosecutions (CDPP) when deciding whether or not to prosecute the Company or offer it a Deferred Prosecution Agreement should that option become available under Australian Law. Even if the CDPP ultimately decides to prosecute the Company, proactive and fulsome cooperation will also be a significant mitigating factor for sentencing purposes in respect of penalties to be imposed on PET.

However, it has warned that potential penalties could put the company's financial performance and position at risk. It said:

There is a risk that the Company will be exposed to judgments, fines and penalties arising from regulatory activity including the AFP's investigation and ASIC's inquiries that may have an adverse impact on its financial performance and financial position.

And let's not forget that class action firms will likely be licking their lips at these developments. The company warned:

[F]ollowing the fraud and mismanagement issues, the Company has been, and continues to be, exposed to a higher risk of being involved in proceedings, claims and disputes, whether initiated by the Company or persons previously involved with the Company's affairs.

All in all, the company is in a very messy position, so it isn't at all surprising to see the Phoslock share price crashing lower today.

The post Here's why the Phoslock share price just crashed 80% appeared first on The Motley Fool Australia.

This formerly-listed ASX share hasn't been available for share trading on the ASX for more than a year now. Phoslock's last day of public trading was way back on 16 September 2020. That was succeeded by a seemingly-routine trading suspension. That suspension ended up turning into an effective freeze on trading that is still going on today.

So what happened with Phoslock?

Well, following the initial suspension of trading, 21 September 2020 saw the company release a market update. This informed investors of the following:

Phoslock… wishes to advise that an ongoing independent investigation initiated by the chairman and managing director has revealed certain accounting irregularities relating to PET's China Operations. 

The investigation, being undertaken by KPMG's forensic accounting division, follows suspected accounting irregularities discovered during the audit process for the half year ended 30 June 2020.

Then, on 8 October 2020, Phoslock put out another announcement, this one expanding on these "irregularities":

Fraudulent activity has been identified, including false accounting and falsification of invoices and service contracts where PET or its subsidiaries are the recipient, and potential improper tax reporting and misappropriation of funds. Several China-based employees have been either stood down or terminated in relation to these matters. It has also been confirmed that several previously undisclosed related party transactions have taken place. 

It was at this point that Phoslock determined that "the company's shares will remain suspended from trading until such time as the investigations are complete; the financial and accounting impact has been assessed; and audited accounts for the half year have been released".

Phoslock share price: Stuck in purgatory

Well, investors are still waiting as we approach December 2021. An update on this matter came as part of Phoslock's September quarterly report. This was released to investors back on 29 October. This stated that Phoslock's board and management "continue to assign a high priority to the relisting of PET's shares on the ASX".

Earlier this month, we had Phoslock's latest update. This stated that "the pathway to relisting involves satisfying ASX in relation to two key requirements".

The first of these involves submitting "statutory accounts without audit qualifications on opening balance". Phoslock reckons it will be in a position to fulfil this requirement by February 2022.

The second "involves the ASX being satisfied that the company has taken all reasonable measures to ensure shareholders are fully informed in relation to all relevant matters concerning the company".

On this second requirement, Phoslock says that "we are now in a position to brief shareholders more fully having now completed a number of important phases of the investigations, placing us in a position to provide shareholders with a more detailed update as to where those matters now sit".

So it seems that shareholders can circle February 2022 as a possible return date of this company to the ASX boards. Until then, the waiting game looks set to continue for investors.

The post Whatever happened to Phoslock (ASX:PET) shares? appeared first on The Motley Fool Australia.

Uncertainty over economic recovery both at home and in the US, as well as geopolitical tensions with China, have dampened sentiment, despite some better than expected earnings results. 

This earnings season has laid bare the economic damage of COVID-19. But some ASX shares have been surprisingly resilient, and are flourishing in pandemic conditions. Wesfarmers Ltd (ASX: WES) reported stronger than expected results as Bunnings and Officeworks saw sales surge in lockdown. Afterpay Ltd (ASX: APT) advised earnings for the full year would be 96% higher than forecast just last month thanks to better than expected collections. Let's take a look at some of the best performing shares on the ASX last week. 

Phoslock Environmental Technologies Ltd (ASX: PET) 

The Phoslock Environmental Technologies share price gained a whopping 48.94% last week to finish the week at 35 cents. The share price has been trending upwards since hitting a low of 19 cents earlier in the month when Phoslock advised first half revenues were substantially down on the prior period.

Flooding has impacted key projects in China and COVID-19 has impacted a number of projects across the globe. In Europe, several projects have been delayed where authorities have cited more pressing expenditure priorities in the face of the pandemic. While these projects have been delayed, none have been cancelled, and Phoslock believes they will proceed in due course. 

Phoslock has advised that its global pipeline remains strong with a current contract value of $380 million. Projects in Brazil are continuing as planned, with positive feedback on the efficacy of Phoslock's technology. Work in North America is proceeding, with the company building a strong and widespread portfolio of treatments in the US. This provides a positive basis for confidence in developing US business activity. Although there have been challenges to the development of the China business, many ongoing projects are unaffected including the South Beijing canals. 

WiseTech Global Ltd (ASX: WTC)

The WiseTech Global share price soared 39.99% last week to close the week at $27.90. The logistics technology company released its full year results during the week, revealing solid revenue growth despite COVID-19 headwinds. Revenue increased 23% to $429.4 million, in line with guidance, with recurring revenue accounting for 89% of revenue, up from 88% in FY19. FY20 Statutory NPAT was $160.8 million, up 197% on FY19. This included a non-cash fair value gain of $110 million thanks to the renegotiation of earn out obligations. Excluding this gain underlying NPAT was flat at $52.6 million. 

Founder and CEO Richard White said: "Notwithstanding the unprecedented challenges of COVID-19, our business has remained resilient, delivering solid revenue and EBITDA growth in FY20 in line with guidance." Acquired businesses contributed 29% of growth, driven predominantly by the full-year impact of the 14 acquisitions completed in FY19 and five acquisitions completed in FY20. 

Idp Education Ltd (ASX: IEL) 

The Idp Education share price gained 31.64% last week to close the week at $18.43. IDP Education provides international education services helping students to study in English speaking countries. Border closures have disrupted Idp Education's business, but the company nonetheless reported strong results for the full year. Earnings before interest and tax (EBIT) increased 11% to $107.8 million. Net profit after tax and amortisation (NPATA) was $70.4 million, up 3%. 

CEO Andrew Barkla said: "Our results reflect strong momentum in the first half of the year followed by a pivot towards disciplined capital management and product innovation in the second half." The pandemic prompted the company to accelerate its digital strategy delivery which enabled an agile response to COVID-19 restrictions. Disciplined cost control measures also delivered $35 million in overhead savings in the second half compared to the first. 

Monadelphous Group Limited (ASX: MND) 

The Monadelphous Group share price rose 29.26% last week to close the week at $11. The share price surged during the week when the engineering group delivered better than expected results. Although second half performance was significantly impacted by COVID-19, Monadelphous managed to record revenue of $1.65 billion for the full year, a 2.6% increase on FY19. Net profit after tax was $35.5 million, a decrease on FY19's $57.4 million profit. 

Disciplined financial management practises were instituted as a result of the uncertainty created by the pandemic. This resulted in strong cash flow from operations of $119.1 million in FY20, with Monadelphous ending the year with a cash balance of $208 million. The company has secured approximately $1.2 billion in new contracts and extensions since the beginning of the financial year. This means Monadelphous enters the new financial year with a solid forward workload and well positioned to capitalise on opportunities in the resources sector which are expected to arise over coming years. 

Codan Limited (ASX: CDA) 

The Codan share price gained 26.67% last week to finish the week at $10.45. The technology company also released its full year results last week, revealing record sales, profits, and dividends. The company, which manufactures technology used by mining companies, security and military groups, governments, humanitarian organisations, and adventurers, recorded the highest full year sales in its history of $348 million. This flowed through to a record statutory net profit after tax of $64 million, a 40% increase. Results were driven by the strength of gold detector sales, continued growth of recreational metal detectors, and major contracts delivered by the communications business. 

Codan announced a final dividend of 11 cents a share, fully franked. This brought full year dividends to 18.5 cents, a 32% increase on the prior year. Codan has been diversifying its revenues by releasing more new products, transitioning to a full solutions provider and broadening its geographic footprint. This has resulted in more evenly distributed demand across international markets with the company saying it is well-placed to deliver another strong performance in FY21. 

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What is insider buying?

Insider buying is when an executive, such as a director, buys shares in their own company. Insiders usually have exclusive insight into the companies they manage and are more likely to buy shares they view as undervalued.

A share purchase by a company insider can be seen as a vote of confidence in a business. And the signals are stronger with multiple insider buys and larger share purchases.

Let's look at 2 ASX industrial shares that have seen multiple insider buys recently.

Phoslock Environmental Technologies Ltd (ASX: PET) 

The Phoslock share price dropped sharply at the end of July when the water treatment company revealed a substantial decline in first half revenues due to project delays.

Flooding and COVID-19 impacts affected progress on key projects, although the company says it is well-positioned to restart when circumstances improve. Two directors took advantage of the downturn to top up their shareholdings, purchasing 150,000 shares in the ASX industrial share in early August. 

While projects in China and Europe have been delayed, Phoslock believes they will continue in due course. The company says the pipeline remains strong with a current contract value of $380 million. Many projects have been unaffected by the coronavirus pandemic and Phoslock has confidence in developing US activity.  

Downer EDI Limited (ASX: DOW)

Downer EDI launched a $400 million equity raising at the end of July after warning of an expected $150–$160 million statutory loss for FY20. The company attributes the loss primarily to impairments, remediations, and historical claims adjustments. Downer EDI's share price fell to a low of $4.02 in early August, prompting one director to buy 10,470 shares on-market. 

The ASX industrial share reported that cash performance improved materially in 2H FY20 despite the impacts of COVID-19. Underlying EBITDA is expected to be $410–$410 million, and underlying net profit after tax adjusted $210–$220 million.

Downer is conducting a takeover bid for Spotless, which is a key part of its urban services strategy. Funds from the equity raising will help pay for the acquisition. 

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The share market rallied on Friday with resilient results from National Australia Bank Ltd (ASX: NAB) pushing the big banks higher. NAB gained 7.4% last week, while Westpac Banking Corp (ASX: WBC) gained 7.6% and Australia and New Zealand Banking Group Limited (ASX: ANZ) rose 5.6%.  Commonwealth Bank of Australia (ASX: CBA) climbed a comparatively measly 0.3% after revealing an 11.3% decline in cash profits and slashing its dividend during the week. 

Afterpay Ltd (ASX: APT) rose to a new record high of $75.80 during the week, taking its gains since the March low to more than 750%. Mesoblast Limited (ASX: MSB) also hit a record high during the week after an advisory committee voted in favour of granting FDA approval for its treatment for graft versus host disease. On that note, let's take a look at some of the best performing shares on the ASX last week. 

Phoslock Environmental Technologies Ltd (ASX: PET)

The Phoslock share price gained 20.51% last week to finish the week at 24 cents. The share price was recovering from a steep drop the week before when it fell to 20 cents after revealing a drop in revenues. Phoslock provides a unique water treatment developed by the CSIRO that removes excess phosphate from water. Phosphate is a key nutrient that causes damaging algal blooms. Phoslock's technology is used to manage unhealthy waterways and promote healthy aquatic environments. 

Phoslock advised that flooding and COVID-19 have impacted on key projects in China and Europe. Nonetheless, Phoslock believes delayed projects will continue in due course and says its pipeline remains strong with a current contract value of $380 million. Many projects have been unaffected by disruptions, including the South Beijing canals. A trial has commenced on an area of Utah Lake in the United States, adding to Phoslock's strong portfolio of treatments in the region. This provides a positive basis for confidence in developing US activity. 

Lovisa Holdings Ltd (ASX: LOV) 

The Lovisa share price gained 18.23% last week to close the week at $7.33. There was no news out of the fast-fashion jewellery and accessories retailer to prompt the price rise, with full year results due on 26 August. Lovisa has been forced to close 30 stores across Melbourne due to stage 4 COVID-19 restrictions. 19 stores in California and 2 stores in New York are also closed. Investors may be taking heart from the fact that all other Lovisa stores globally are open and trading, in addition to online stores around the world.  

Disruption to normal trading conditions throughout Q4 resulted in a significant reduction in sales for the period. Sales revenue for the full year ended 28 June 2020 was $237 million compared to $249 million in FY19. Comparable store sales for the period between stores reopening and the end of June were down 32.5%, with lowered demand for fashion accessories as people spend more time at home. Nonetheless, the online business was able to deliver 256% growth over the prior year during Q4, with trading websites now operational across most markets the company is represented in. 

Treasury Wine Estates Ltd (ASX: TWE) 

The Treasury Wine Estates share price climbed 17.58% last week to finish the week at $12.84. The share price was boosted on Thursday by the release of better than expected full year results as the company resets for the next phase of its journey. NPAT fell 25% to $315.8 million with earning per share down 26% to 43.9 cents. The result was driven by unfavourable volume and portfolio mixes during 2H FY20 resulting from COVID-19 impacts. Luxury sales were lower due to the closure of key channels and conditions in the US wine market were challenging. 

Treasury Wine declared a final dividend of 8 cents per share. Full year dividends of 28 cents per share were down 26% on the previous year. CEO Tim Ford said, "FY20 was a unique year for TWE, our industry and the markets within which we operate. Our ability to navigate the disruption of the COVID-19 pandemic and continue to deliver profitability and strong cash flow performance is representative of the fundamental strength of our global business." 

Accent Group Ltd (ASX: AX1) 

The Accent Group share price rose 17.05% last week to close the week at $1.54. There was no news out of the footwear retailer to prompt the price rise, however investors may be buying ahead of expected strong full year results which are due for release on 26 August. Accent Group has advised it expects to report a strong result with FY20 earnings before interest, taxes, depreciation and amortisation (EBITDA) expected to be around 10% above the $108.9 million achieved in FY19. This is particularly impressive given the retailer was forced to close physical stores in Australia and New Zealand during lockdowns. 

Digital sales have surged since the onset of the pandemic, with Accent Group reporting a 150% increase in online sales between April and June. May was a record month for the digital channel with a new daily record of over $2 million during Click Frenzy. This was achieved at the same time as stores were open and trading. In June, digital sales represented 23% of total sales. Accent Group has built digital infrastructure that has ensured record customers and deliveries could be managed with significant capacity and scalability still available. 

CEO Daniel Agostinelli said, "The strong trading performance over the last 2 months driven by digital has been well ahead of expectations. It is clear that there has been a seismic and most likely enduring shift in consumer behaviour. With 18 websites and a leading digital capability Accent Group is capitalising on this trend. We will continue to drive digital growth as the number one priority in our company."

The post Take a look at last week's best performing ASX shares appeared first on The Motley Fool Australia.

Myer Holding Ltd (ASX: MYR) gave investors some reassurance last week announcing it expects to report a small cash positive position at the end of FY20. But Insurance Australia Group Ltd (ASX: IAG) saw profits sink 60% as bushfires and coronavirus took their toll. On that note, let's take a look at five of last week's worst performing ASX shares. 

Last week's worst performing ASX shares

Australian Ethical Investment Limited (ASX: AEF) 

The Australian Ethical Investment share price fell 16.50% last week to close the week at $5.06. The share price plunged on Friday morning when IOOF Holdings Limited (ASX: IFL) announced that it had sold 14.2 million of its 19.7 million shares in the company. The sale reduced IOOF's stake in Australian Ethical Investment to 5.5 million shares, or 4.9%. IOOF CEO Renato Mota said, "Our investment in Australian Ethical Investment realised significant returns for our shareholders. This sale aligns to our transformation strategy which includes simplification of our business." 

Australian Ethical Investment is one of Australia's leading ethical investment managers. At 30 June 2020, this ASX share had $4.05 billion in funds under management, a 12.9% increase for the quarter. Despite challenging market conditions, Australian Ethical Investment achieved record net inflows of $0.66 billion in the financial year to 30 June 2020, which drove an 18.6% increase in funds under management over the full year. 

ResMed (ASX: RMD)

The ResMed share price dropped 11.39% last week to close the week at $25.06. The company released its fourth quarter results last week which disappointed investors. ResMed is a medical device manufacturer creating products to treat sleep apnea, chronic obstructive pulmonary disease, and other chronic diseases. Demand for the company's ventilators has been high during the coronavirus pandemic leading to a 9% increase in revenue in the fourth quarter. Over the full year, revenue increased 13% to US$3 billion, but this was not enough to satisfy the market which had pushed ResMed's share price up 43% from its March low. 

Net operating profit increased 40% over the full year giving non-GAAP diluted earnings per share of $4.76, up from $3.64 in FY19. CEO Mick Farrell says the company is confident in its ability to navigate through the current challenging clinical and economic environment. It is supporting the coronavirus fight through increased production of its ventilators and mask systems while also providing digital health solutions and tools to enable remote care for patients. The company has a strong foundation which it believes will accelerate growth over the longer term. 

Phoslock Environmental Technologies Ltd (ASX: PET) 

The Phoslock share price fell 9.3% last week to finish the week at 20 cents. The company had provided a business update the week before which revealed first half revenues were down substantially on the prior period. Flooding and COVID-19 have impacted progress on key projects in China. But Phoslock says it is well prepared to restart projects in the region when circumstances improve. Increased inventory will allow for the rapid start up of delayed projects. 

Several projects in Europe have also been impacted by COVID-19 related delays. Authorities with which Phoslock has contracted remediation works have cited more pressing expenditure priorities during the pandemic. While these projects have been delayed, Phoslock believes they will continue in due course. The company says its pipeline remains strong with a current contract value of $380 million. In China, the pipeline includes nearly $200 million in product sales and $50 million in engineering projects. Outside of China, the pipeline includes projects to the value of $130 million in the United States, Brazil, Mexico, Canada, and Europe. 

Genworth Mortgage Insurance Australia Ltd (ASX: GMA) 

The Genworth share price fell 9.14% last week to close the week at $1.54. The mortgage insurer delivered its first half results the week before which revealed a statutory loss of $90 million. The result was affected by the anticipated economic impacts of COVID-19 which led to a $181.8 million write down and an additional $35.5 million loss reserving. No dividend was paid for the period, with the company believing it prudent to preserve capital to sustain its capital position. Genworth paid a dividend of 9 cents per share in 1H19. 

Genworth did deliver higher volume in its core lender mortgage insurance business, with new insurance written up 8.1% to $13.5 billion. This reflected pre-COVID-19 housing market growth and the benefit of a low interest rate environment. But post-COVID-19, ratings agency Standard & Poor's downgraded its outlook on this ASX share to negative, with Fitch Ratings maintaining a negative outlook. At 30 June 2020, Genworth had received over 48,000 payment deferrals from its lender customers, representing 4% of insured loans in force. Genworth's ultimate COVID-19 related claims will depend on the pace of economic recovery. 

NRW Holdings Limited (ASX: NRW) 

The NRW Holdings share price dropped 7.9% last week to close the week at $1.69. Shares in the diversified services company had risen sharply the week before on news it had been named the preferred proponent for the Bunbury Outer Ring Road Project. The Southwest Connex Alliance, of which NRW is a 40% partner, was named the preferred proponent for the $852 million project. The alliance now enters a period of negotiations. If these are successful, a contract is expected to be awarded next month. 

NRW Holdings' recent acquisition of BGC Contracting has significantly enhanced the company's ability to participate as a large construction partner in public works projects. In its most recent update on its financial performance, for the 10 months to April, NRW Holdings reported record revenue of $1.6 billion. Earnings generation remained strong and there was a significant improvement in net debt which reached $115 million.

The post These were the worst performing ASX shares last week appeared first on The Motley Fool Australia.

What moved the Phoslock share price?

The company's business update disclosed a number of issues likely to continue impacting it in FY21. On the one hand, the company has logistical difficulties executing awarded projects. On the other hand, it has very high receivables due to coronavirus impacts. Combined with the lower sales activity, this has resulted in a negative cash flow position for the period.

Operations

Unusually high rainfall during June and July has resulted in flooding and deterioration in water quality in several regions of China. This delayed projects underway at Shilongba, Xingyun Lake, Wuhan, Jiangsu, Zhejiang and Shanghai. In addition, the second wave of coronavirus in Beijing has caused problems due to travel restrictions. The company does, however, still have many ongoing projects that are continuing unaffected.

In Europe, authorities have suspended several projects to prioritise spending into more urgent public health issues. Projects progressing to plan are in the Netherlands, Belgium, Denmark and Italy. 

The company's projects in Brazil are continuing as planned, despite the challenging situation that has arisen from the pandemic. Phoslock expects Brazil to achieve forecast by financial year end. Moreover, all current projects are continuing in North America.

All of these operational issues are continuing to weigh heavily on the Phoslock share price.

Management commentary

Managing Director and CEO, Lachlan McKinnon said "The first half of 2020 has been a challenging period for the business. Events outside the control of the Company have resulted in project delays, lower than anticipated revenues and a working capital and cash flow that is currently weaker than expected.

It is important to stress however, that we have had no project cancellations and all of our announced contracts are expected to be fulfilled in due course."

Company performance

The Company's pipeline remains strong with a current high confidence contract value of $380 million. Phoslock's balance sheet also remains strong, with $35 million in cash, $15 million in receivables and no debt at the end of the period. The company has also recently received an indicative term sheet for short-term working capital debt facilities with HSBC. The Phoslock share price has fallen by 20.37% today, at the time of writing. 

The post Phoslock share price collapses on poor results appeared first on The Motley Fool Australia.

Right now, investors are looking at payments companies, buy now, pay later (BNPL) companies and tech startups for tomorrow's 10-bagger shares. This includes undeniably great companies like EML Payments Ltd (ASX: EML), Afterpay Ltd (ASX: APT), and Whispir Ltd (ASX: WSP).

However, I think some of tomorrow's growth shares are in the innovation and science space. Australia has always been an innovative country. This is a different area of growth than fintech or technology, and doesn't always come with the same headline-stealing rate of growth as we've seen in the BNPL space. For instance, CSL Limited (ASX: CSL) multiplied its original share price only 5 times in the first 11 years.

The 3 ASX growth shares I have listed below have a few characteristics in common. First, their innovation is very advanced. In fact, in 2 cases they are already generating revenue. Second, they have diversified their management away from the founders, instead handing over the corporate management to people with expertise in product commercialisation.

Growth shares for the environment

The market values Phoslock Environmental Technologies Ltd (ASX: PET) at $171.88 million at the time of writing. The company is commercialising a unique product also called Phoslock, which cleans polluted waterways. I am a very big fan of companies and technologies that improve our environment, particularly those that can survive without government subsidies and deliver practical and measurable results. Phoslock is one of these products.

CSIRO originally developed Phoslock in the early 2000s. It is a patented, one of a kind technology. Phoslock permanently binds to phosphate in waterways, therefore reducing or eliminating algal blooms. These produce toxins that affect either aquatic life, such as fish, or even human health. 

The company recently announced new project sites in Washington State and New Jersey, USA. In addition, it has extended a project in Brazil and has ongoing applications in both Italy and the Netherlands. Furthermore, the company has historic applications throughout Austria, Canada, the UK, Germany and Australia. 

I think this growth share could easily multiply its share price several times over the next 2–5 years, given its ongoing international applications. 

A world-changing technology

Recce Pharmaceuticals Ltd (ASX: RCE) is a medical research company that is developing a range of products in a revolutionary area of medical science. Once complete, I believe the company's products will irreversibly change the treatment of superbugs and viral infections. 

The Recce (pronounced recky) share price caught fire recently on the back of news that 2 of the company's products had been selected for a CSIRO trial for an antiviral to treat Covid-19. An antiviral is not a vaccine, rather it is a treatment for a viral infection. Shortly thereafter, it was also selected for a trial in the USA for the same purpose.

Recce is developing a new type of synthetic antibiotic, one that is bactericidal. Therefore, it doesn't work to inhibit bacteria, but kills and eliminates it. In addition, repeated use will not reduce its impact.

The company's initial target was to find a successful treatment for sepsis or blood poisoning. Sepsis is a life threatening reaction the body sometimes has to infection. In 2017, according to The Lancet, sepsis killed 11 million people globally amid 48.9 million reported cases, yet still there is no treatment for it. I find this to be a mind-boggling statistic.

To illustrate the level of momentum this growth share has outside of the Covid-19 trials, it has already secured fast track designation from the FDA in the US for one of its products, RECCE 327, in addition to 10 years of post-approval market exclusivity.

So, while the Covid-19 trials are welcome news, the company was already well advanced in building a first-of-its-kind treatment for several global health problems. 

The future is now

Artificial intelligence (AI) is a technology that learns from experience. Brainchip Holdings Ltd (ASX: BRN) is the world's only listed pure-play AI company. It already has existing products which it has found a market for. So, like Phoslock, the company is earning revenue. However, like Recce, the company spends its earnings developing a first-of-a-kind technology.

BrainChip has successfully developed products that use its existing neural technology to generate revenue. For example, video security in casinos is one of the company's core verticals. The technology automatically detects dealer errors by monitoring the video streams from standard surveillance cameras. It recognises the cards played, winning hands, the rules of the game and the payout.

In addition, airports have deployed the technology for facial recognition of known terrorists, along with several unnamed subway systems in Europe for recognition of wanted criminals.

The company is moving very quickly to create something called neuromorphic technology. This is several magnitudes of advancement from existing AI technology and mimics the human brain and nervous system. Consequently, the applications are truly next level concepts. One of the areas where advanced AI could be deployed is to move from unmanned drones to autonomous drones and field robots. 

Foolish takeaway

These cutting-edge ASX growth shares are all well under way in their innovative processes. They have either developed a revenue stream already, or they are very close to doing so. Most importantly, the technological genius behind each of these organisations has recently stepped aside, in the case of Phoslock, or has deliberately moved into the research and development area. Consequently, people who know how to make money and grow a business are running each company.

Personally, I will probably invest a small amount into Recce Pharmaceuticals shares in the near future. Nonetheless, I think each one is very likely to see strong growth over the next 2–3 years. 

The post 3 unloved ASX growth shares that could make you rich appeared first on The Motley Fool Australia.

PET provides global water technologies and solutions to remediate polluted waterways. It also provides design, engineering and contracting services. The company's lead product, also called Phoslock, was developed by the CSIRO in the early 2000s. Phoslock permanently binds to phosphate in waterways, transforming it to a new mineral. This new mineral then becomes part of the natural sediment in the waterway, reducing the growth of harmful algae that can result from excess phosphate . 

The product is certified for use in drinking water in North America, Europe, Brazil, Australia, and China .

What moved the Phoslock share price?

PET announced new projects in Washington State and New Jersey. It also announced a project extension in Brazil as well as continuing projects in Italy and The Netherlands. 

USA

In Washington State, PET has secured a deal for a new application of Phoslock at the 240-hectare Kitsap Lake. In addition, Princeton Hydro in New Jersey awarded the company with a contract to treat harmful algal blooms (HABs) in Lake Hopatcong.

Dr. Fred Lubnow, Director of Aquatic Resources at Princeton Hydro, stated:

"If this technology is deemed successful and cost-effective in Lake Hopatcong, we could set the precedent for large-scale HABs prevention in other lakes throughout New Jersey, and even across the nation".

South America

In Brazil, PET's contract to treat Lake Pampulha in the State of Minas Gerais has been renewed for its third year. At the same time, the initial application to a major drinking water reservoir in Rio De Janeiro has also been successful. 

Furthermore, additional treatments on drinking water reservoirs in both northern and southern Brazil will occur in the second half of 2020. 

Europe

Later this year, Phoslock will be applied to small lakes in Italy and The Netherlands. Furthermore, the company is continuing conversations for several other potentially large projects across Europe.

PET Managing Director, Lachlan McKinnon stated:

"The additional resources we are investing in growth outside of China is now being reflected in a stronger pipeline of new contracts and, over time, will help ensure we have a more balanced spread of revenue generating opportunities".

Phoslock share price

The Phoslock share price rocketed up by 30.36% on Monday to end the day at 36 cents. In today's trade, it has edged slightly lower and is currently sitting at 34 cents (at the time of writing). This values the company at just under $210 million with a price to earnings ratio of 63.21. In conclusion, this company has been growing consistently and, with its increasing focus on global expansion, I believe it looks set to continue this trend into the future.

The post Phoslock share price rockets 30% yesterday appeared first on The Motley Fool Australia.

What does Phoslock do?

Phoslock specialises in engineering solutions and water treatment products to remediate polluted lakes, rivers, and canals. The company produces a product that removes phosphates and other contaminates from water bodies, and is also safe to use in drinking water reservoirs. Removing excess phosphorus from water inhibits the growth of harmful algal blooms that can have detrimental impacts on aquatic and human life.

What did Phoslock announce?

Phoslock announced that it has been contracted to treat the 240 hectare Kitsap Lake in Washington State and Lake Hopatcong in New Jersey. If Phoslock's technology is deemed successful and cost-effective at Lake Hopatcong, this could set the precedent for large-scale prevention of harmful algal blooms in other lakes through New Jersey and the United States.

The company highlights that the contracts represent an important opportunity for Phoslock's technology to be demonstrated in new regions and could result in further business in the US, where water quality issues are receiving more government and public attention.

In Brazil, Phoslock's contract to treat Lake Pampulha, an important recreational and cultural area, has been renewed for another year. In Rio De Janeiro, an initial application of Phoslock to a major drinking water reservoir of the city has been successful and will be followed up with further treatments in the second half of 2020. The company reports that in the second half of 2020, additional treatments are scheduled for drinking water reservoirs in northern and southern Brazil.

In Europe, Phoslock will be applied to a small alpine lake in the Dolomites in Italy and to a lowland lake in the Netherlands in the final quarter of calendar 2020. Phoslock continues to operate across China with 3 ongoing projects in Yunnan province and continued maintenance work on South Beijing canals.

What is the outlook for Phoslock?

Phislock is seeking to diversify the revenue base of its business. The ability to secure contracts in new regions and new markets is a key pillar of this strategy. The company also remains strongly committed to growing its business in China where its technology is increasingly accepted as best in class for water remediation. Despite travel restrictions, additional resources invested in growth outside China is being reflected in a stronger pipeline of new contracts.

The Phoslock share price is up by 21.43% in today's trade to sit at $0.34, but still remains more than 50% down since the beginning of 2020.

The post ASX stock of the day: Phoslock share price surges 21% on business update appeared first on The Motley Fool Australia.

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

The Auscann Group Holdings Ltd (ASX: AC8) share price is down over 3% to 15.5 cents. Investors appear to have been selling the cannabis company's shares after it was kicked out of the All Ordinaries index. AusCann's shares will be removed from the index at the next rebalance on 22 June 2020. The AusCann share price is now down almost 50% since the start of the year.

The Phoslock Environmental Technologies Ltd (ASX: PET) share price has crashed 13% lower to 39.7 cents. Investors have been selling the water treatment company's shares after it downgraded its revenue guidance for FY 2020. It now expects revenue in the range of $30 million to $40 million. It was previously targeting revenue of $50 million to $70 million this year. Management has concerns that a second wave of COVID-19 could delay projects.

The Kogan.com Ltd (ASX: KGN) share price is down 0.5% to $12.92. Investors may believe the ecommerce company's shares have now peaked after some stellar gains over the last few months. One broker that appears to believe this is the case is Credit Suisse. Late last week it put a neutral rating and $11.72 price target on Kogan's shares.

The Village Roadshow Ltd (ASX: VRL) share price is down almost 2% to $2.13. This follows the release of a takeover update by the entertainment company this morning. According to the release, the company has extended the exclusivity period for its discussions with BGH Capital for a further two weeks. Investors may be concerned that these delays are a sign that discussions are not running smoothly between the two parties.

The post Why AusCann, Phoslock, Kogan, & Village Roadshow are dropping lower appeared first on The Motley Fool Australia.

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

The Navigator Global Investments Ltd (ASX: NGI) share price has crashed a further 15% to $1.44. Investors have been selling the investment company's shares since the release of an update on Wednesday. Navigator warned that its assets under management for the March quarter will be negatively impacted due to its investment performance and increased redemptions. The company advised that some of its clients have indicated a need to exit some of their hedge fund positions in order to generate liquidity in their broader portfolios.

The Phoslock Environmental Technologies Ltd (ASX: PET) share price is down 7% to 54.5 cents. This follows the completion of a $12 million institutional placement. The water technology company raised the funds at a price of 50 cents per new share. A further $3 million is expected to be raised through its directors, CEO, and senior executives. The funds raised will help facilitate its growing China business.

The Saracen Mineral Holdings Limited (ASX: SAR) share price has fallen 2% to $4.02. Investors have been selling the gold miners on Thursday after switching to risk on assets. This has led to the S&P/ASX All Ordinaries Gold index falling 1.7% this morning.

The Treasury Wine Estates Ltd (ASX: TWE) share price is down 1% to $10.50. This decline appears to have been triggered by a broker note out of the Macquarie equities desk. It has downgraded its shares to an underperform rating and cut the price target on them to $9.50. This follows its announcement of plans to spin off the Penfolds business. Macquarie expects this to lead to negative cost synergies and higher debt costs.

The post Why Navigator, Phoslock, Saracen, & Treasury Wine are dropping lower appeared first on The Motley Fool Australia.

Phoslock is an international environmental company that specialises in engineering solutions and water treatment products to remediate polluted lakes, rivers, canals and drinking water reservoirs.

Strong revenue growth reported

For the 12 months to 31 December 2019, Phoslock reported revenue of $25.1 million, which represented a 32% increase on the prior year. Internationally, the company continues to grow its business in the Americas, especially Brazil and now Florida.

Net profit before tax and option expense grew 10% to $3.7 million for the full 2019 calendar year. The company's net profit after tax was $3.0 million. In comparison, it actually made a loss of $1.0 million during 2018.

Meanwhile, Phoslock's gross profit margin was recorded as 54.7%, up from 49.7% in FY18. The company noted it is currently debt-free, with $15 million of cash on its books as well as $17 million of debtors.

Recap of Chinese operations market update

Yesterday, Phoslock announced it had re-opened its Changxing factory in China on 15 February, with production recommencing on 17 February.

Pleasingly for shareholders, the company noted that production is currently building to back to normal levels. Last week, the company had transported four containers of its Phoslock product to the Shanghai export port which have now been loaded and are bound for Brazil.

Additionally, its Beijing sales office re-opened earlier this month on 10 February and work has now recommenced on several multi-year projects already underway.

Outlook and forecast for 2020

Phoslock is currently forecasting FY20 revenue to be in the range of $50 million to $70 million. The bottom end of this guidance would be up some 100% on FY19's revenue of $25.1 million.

The company noted that its current project pipeline to the end of 2023 currently amounts to $380 million. This total comprises $250 million in China and $130 million of international projects. The forecast includes over 40 international projects, 7 multi-year Chinese projects, and the scheduled projects in China for FY20.

Commenting on Phoslock's FY19 results, Chairman Laurence Freedman AM said:

"This year has been one of opportunity and consolidation for the Phoslock Group. Our growing business in China, despite recent headwinds, has seen PET conduct work in two new provinces and on four high profile lakes; each time delivering outstanding results on polluted water bodies."

 "2020 is shaping up as an even bigger year for PET, with expanding sales internationally and sales forecast to double," he added.

The post Phoslock share price sinks despite posting full-year profits appeared first on The Motley Fool Australia.

What does Phoslock do?

Phoslock is an international environmental company specialising in engineering solutions and water treatment products to remediate polluted lakes, rivers, canals and drinking water reservoirs. Headquartered in Sydney, Phoslock also has offices in Brisbane; Beijing and Changxing, China; and Manchester, UK.

Chinese operations market update

This morning, Phoslock announced it had re-opened its Changxing factory in China on 15 February, with production recommencing on 17 February.

Pleasingly for shareholders, the company noted that production is currently building to back to normal levels. Last week, the company had transported four containers of its Phoslock product to the Shanghai export port which have now been loaded and are bound for Brazil.

This week, the company added that its Chinese factory received raw material deliveries of both bentonite and lanthanum chloride from its usual suppliers.

Additionally, Beijing sales office re-opened earlier this month on 10 February and work has now recommenced on several multi-year projects already underway.

A large portion of Phoslock's business in China is south-west of the country in Yunnan province. The company commented that fortunately, this is an area where there are currently very few cases of coronavirus reported so far.

Applications to Yunnan projects have been scheduled by the company to recommence in March, as originally planned.

Management commentary

Chairman Laurence Freedman AM commented: "Despite concerns about the coronavirus, the Company's business is proceeding as planned. The factory production is ramping up, supply of raw materials is unaffected and shipments from China have restarted."

"Importantly all staff both at the factory and Beijing are unaffected and functioning normally. We are proceeding with plans to expand production capacity," he added.

Mr Freedman also went on to highlight that Phoslock's balance sheet remains debt-free with cash and receivables currently standing at $30 million.

The post Phoslock share price edges higher on Chinese operations update appeared first on The Motley Fool Australia.

Despite this, here are 4 ASX shares that have performed very well in today's trade, and an insight into what might be driving their share price gains.

Money3 Corporation Limited (ASX: MNY)

The Money3 share price is trading higher today following the release of its first half year results – at the time of writing, Money3 shares are up 5.9% to $2.87. Money3 is involved in provision of finance specialising in the delivery of secured automotive loans as well as secured and unsecured personal loans. Money3 reported first-half normalised net profit after tax (NPAT) of $15.7 million, up 61.9%. H1 FY20 revenue increased 55% over the prior corresponding period (pcp) to $62.7 million. Also, earnings per share (EPS) increased 31% over the prior corresponding period to 8.6 cents, and an interim dividend of 5 cents per share, fully franked, was declared.

Phoslock Environmental Technologies Ltd (ASX: PET)

The Phoslock share price has rocketed 13.5% at the time of writing following an update to the market earlier this morning on its operations in China. In addition to this, it updated the market on a new project in Brazil. Phoslock announced that its Beijing office is now back at work, with government approval to re-start its factory. It anticipates that production should ramp up over the next month. Phoslock also announced that through its Brazilian licensee, Phoslock has received a contract from CEDEA to treat one of Rio de Janeiro city's main drinking reservoirs.

Uniti Group Ltd (ASX: UWL)

The Uniti share price has also been a strong performer so far today. Uniti is provider of telecommunications services, specialising in fixed-wireless, fibre and telco services. Uniti provides these connections over its own wireless access network, supported by third-party fibre backhaul and internet connectivity. At the time of writing, the growing telco company's shares are up a whopping 9.68% to $1.70, after it upgraded its guidance for the full year. Management now expects Uniti to deliver underlying earnings before interest, tax, depreciation and amortisation of between $17.5 million and $18.5 million for the second half, which is higher than previously anticipated.

Polynovo Ltd (ASX: PNV)

Shares in Polynovo are up by 3.7% at the time of writing to be trading at $3.11. PolyNovo develops innovative medical devices including its patented polymer technology NovoSorb. The NovoSorb product has been recording sales at a record pace in recent months. Notably, Polynovo reported $2 million of monthly sales in December 2019, up 134% on December 2018. Sales in the US continue to be strong. In January, PolyNovo launched its product in the UK and 3 countries in Europe and reported impressive clinical results. Earlier in February, its share price lifted after CEO Paul Brennan outlined plans for further aggressive growth, with the company focused on reinvesting money back into the business to drive top-line growth.

The post Why Polynovo and these 3 ASX shares are surging higher today appeared first on The Motley Fool Australia.

What does Phoslock do?

Phoslock is an international environmental company specialising in engineering solutions and water treatment products to remediate polluted lakes, rivers, canals and drinking water reservoirs. Phoslock has its headquarters in Sydney with offices in Brisbane, Beijing and Changxing, China, and Manchester, UK.

In 2017, Phoslock (Beijing) was formed to help remediate the massive Chinese algae and water pollution problem. Phoslock owns the patent for Phoslock, a water treatment product that inhibits the growth of harmful algal blooms (HAB) that lead to detrimental effects to both aquatic and human life. Phoslock (the product) is certified to be used in drinking water in North America, Europe, UK, Brazil, Australia and China.

The Phoslock share price has increased by over 100% during the past 12 months, peaking last August at a high of $1.52. It has since retreated, and has recently come under pressure due to coronavirus concerns. Phoslock shares are currently sitting at $0.81 with today's gains.

China update

Phoslock announced that its Beijing office is now back at work, with government approval to re-start its factory. It anticipates that production should ramp up over the next month. It noted that it has inventory held outside China to last until mid-year.

Phoslock has no treatments in China planned until late March to April and no delays are expected. It also notes there is no effect on FY2020 sales guidance.

Details of new Brazil project

Phoslock also announced that through its Brazilian licensee, Phoslock has received a contract from CEDEA to treat one of Rio de Janeiro city's main drinking reservoirs. The application has already commenced and will continue for the next 3 months, with an estimated value of over $2 million.

The company commented that this is a further instance of a growing number of local and government authorities in a range of countries having full confidence in using Phoslock in human drinking water reservoirs.

Phoslock further commented that Rio de Janeiro's high profile has generated substantial media coverage of this problem both in Brazil and internationally. Consequently, it believes that the application of Phoslock to this reservoir is likely to lead to similar applications elsewhere in Brazil and in other countries, as this particular problem is widespread.

Chair Laurence Freedman AM commented: "With each successful application of Phoslock in lakes, dams and reservoirs, our ability to dramatically transform heavily polluted waterbodies – even those suffering from eutrophication – adds to increasing global acceptance and demand for our services."

The post Why shares in this ASX environmental company have soared 9% today appeared first on The Motley Fool Australia.

Here's a short recap of the Australian market:

• S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) higher 0.04% to 7,090.50
• ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) higher 0.06% to 7,203.20
• AUD/USD at US 68 cents
• Gold at US$1,560.88 an ounce
• Brent Oil at US$62.30 a barrel

One of the best-performing ASX 200 shares today was Downer EDI Limited (ASX: DOW), it went up 6% – recovering some of the decline from earlier in the week.

The share price of Netwealth Group Ltd (ASX: NWL) was another to recover today, it jumped 5.1% after yesterday's decline.

Investors also saw value in the Cimic Group Ltd (ASX: CIM) share price, it rose 3.7% today after its painful decline earlier due to a write-off.

Hail and bushfires has caused the Insurance Australia Group Ltd (ASX: IAG) share price to fall 5.4% after giving an update.

The announcement of a new CEO and Managing Director sent the share price of Genworth Mortgage Insurance Australia (ASX: GMA) up by 0.3%.

The share price of Village Roadshow Ltd (ASX: VRL) rose 4.4% after the entertainment business received a second takeover offer.

Virtus Health Ltd (ASX: VRT) saw its share price rise over 3% after announcing who its new CEO is.

Finally, the share price of Phoslock Environmental Technologies Ltd (ASX: PET) fell 3% after giving an update about the Chinese coronavirus situation.

Here are some of today's top stories:    

• What was moving this ASX small cap's share price today?
• Should you be paying attention to this ASX 200 investment manager?
• 3 top dividend shares to boost your income
• Here's why the NIB share price could be a bargain right now

The post ALL ORDINARIES finishes higher Friday: 8 ASX shares you missed appeared first on The Motley Fool Australia.

Four shares that have failed to follow the market higher today are listed below. Here's why they are ending the week in the red:

The Insurance Australia Group Ltd (ASX: IAG) share price has sunk 5.5% to $7.30. Investors have been selling the insurance giant's shares after it downgraded its FY 2020 guidance. Following a review of its full year net natural peril claim costs, Insurance Australia Group now expects its FY 2020 reported insurance margin to be in the range of 14.5% to 16.5%. This compares to its previous guidance of 16% to 18%. It also advised that its half year results will contain a post-tax provision of approximately $80 million for a customer refund program.

The Phoslock Environmental Technologies Ltd (ASX: PET) share price is down 3% to 81.5 cents. This follows the release of a coronavirus update by the environmental technology company this morning. Phoslock advised that it completed its first applications in the city of Wuhan in September and October. As a result, it currently has no personnel in the locked down city and has not been impacted financially. Though, it is scheduled to return to Wuhan in April.

The Resolute Mining Limited (ASX: RSG) share price has fallen 3% to $1.16. This decline appears to have been driven by a broker downgrade this morning. According to the note out of the Macquarie equities desk, it has downgraded the gold miner's shares to a neutral rating and cut the price target on them to $1.20. This follows the launch of a $196 million equity raising earlier this week.

The Technology One Limited (ASX: TNE) share price is down 5% to $8.35 despite there being no news out of the enterprise software company. However, one of its major shareholders has been selling shares this week. On Thursday Pinnacle Investment Management revealed that it has sold ~3 million shares. This has trimmed its stake in Technology One from 9.04% to 8.03%.

The post Why IAG, Phoslock, Resolute, & Technology One shares are tumbling lower appeared first on The Motley Fool Australia.

In afternoon trade the environmental technology company's shares are down 3.5% to 81.2 cents.

Why is the Phoslock share price under pressure?

This morning Phoslock released an update on its projects and personnel following the outbreak of coronavirus in China.

Coronaviruses are a family of viruses that cause infections in the respiratory system. The recent outbreak started in the city of Wuhan, where Phoslock has been working in recent months.

According to today's release, the company's application and engineering teams completed the first Phoslock applications in Wuhan in September and October. As a result, it currently has no personnel in the city.

Though, it is scheduled to return to the city in the near future. Phoslock is due to conduct further applications at South Lake in Wuhan in April and May of this year.

This is subject to local conditions and the reopening of the city. As of yesterday, Wuhan, which is a city of 11 million people, had no trains or planes coming in or out of it.

For now, though, Phoslock advised that there has been no impact on its business. It intends to provide further updates to the market if the situation changes.

What does Phoslock do?

Phoslock is an international environmental technology company specialising in engineering solutions and water treatment products. These are used to remediate polluted lakes, rivers, canals, and drinking water reservoirs.

Demand for its services in China has been growing very strongly, leading to the company providing very positive guidance for FY 2020.

In FY 2019 the company expects to deliver sales of $27 million to $30 million. Whereas in FY 2020 management is estimating a massive jump in sales to $50 million to $70 million.

Investors will no doubt be hoping that the situation in China doesn't derail project developments and cause Phoslock to fall short of its guidance.

The post Phoslock share price tumbles lower on coronavirus update appeared first on The Motley Fool Australia.

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

The Dicker Data Ltd (ASX: DDR) share price is up over 6% to $7.38 following the release of its third quarter update. According to the release, Dicker Data's revenue for the first three quarters of FY 2019 has hit $1,289.1 million. This is a 17.8% increase on the same period last year. In light of this, management now expects its full year operating profit before tax to be over $60 million. This compares to previous guidance of $51.4 million.

The JB Hi-Fi Limited (ASX: JBH) share price has jumped over 6% to $36.32. Investors have been buying the retailer's shares after it provided a sales update ahead of its annual general meeting. According to the release, the retailer has delivered solid sales growth across much of its business during the first quarter of FY 2020. Management also reaffirmed its full year sales guidance.

The Phoslock Environmental Technologies Ltd (ASX: PET) share price has rocketed 12% higher to $1.09. This morning Phoslock released a presentation ahead of an appearance at the Morgan Stanley Alpha ex-100 Conference. That presentation included an outlook for FY 2020 which included sales in the range of 10,000-15,000 tons. It also forecast Phoslock production of 25,000-30,000 tons.

The Star Entertainment Group Ltd (ASX: SGR) share price has risen 4.5% to $4.66 on the day of its annual general meeting. At the event the casino and resorts operator released a trading update which revealed that it has started FY 2020 positively. For the period from July 1 to October 21, group domestic revenue is up 1.5% on the prior corresponding period. Star has achieved growth in both Sydney and Queensland.

The post Why Dicker Data, JB Hi-Fi, Phoslock, & Star Entertainment shares charged higher appeared first on The Motley Fool Australia.