It's important for investors not to panic, as history shows the market will recover. 

When markets fall, it does create buying opportunities for investors. 

For those looking to monitor small-caps or penny stocks, here are three that have drawn positive outlooks from brokers. 

Paragon Care Ltd (ASX: PGC)

Paragon Care conducts its business largely within the Australian healthcare sector and in 7 countries across Asia. The core business is distribution of pharmaceutical medicines, consumables and capital products. 

Following earnings results released last week, the team at Bell Potter released updated guidance on the healthcare stock.

The broker said it is cautiously optimistic on the full year EBITDA. 

It said the two cornerstones of long term earnings growth for Paragon are the expanding footprint in Medical Technology particularly in Asia and the expanding footprint in pharmacy distribution. 

At the recent half year result Asia Med Tech revenues grew 33% at gross profit margin of 45%. In the pharmacy wholesale business, the underlying growth rate (which excludes Infinity group trading from the prior period) was ~6%. The company estimates it has ~10% market share currently with aspirations to grow to 15%.

Included in the report from Bell Potter was a buy recommendation and price target of $0.30. 

This indicates a potential upside of 46% for this penny stock from yesterday's closing price. 

EBR Systems Inc (ASX: EBR)

EBR systems is another penny stock drawing a positive outlook from Bell Potter. 

The company is primarily engaged in treatment for patients suffering from cardiac rhythm diseases by developing therapies using wireless cardiac stimulation. 

The Wise CRT System uses proprietary wireless technology to deliver pacing stimulation directly inside the left ventricle of the heart.

Following recent earnings results, Bell Potter adjusted its outlook on this penny stock, including a revised price target of $2.00. 

The broker maintained its buy recommendation. 

EBR systems closed trading yesterday at $0.58. 

Airtasker Ltd (ASX: ART)

This ASX penny stock is an online platform that connects people wanting to outsource tasks with people who are willing to do them for a fee. 

Typical tasks include home cleaning, removal services, handyman jobs, admin work, photography, graphic design, and collection services.

It closed trading yesterday at $0.22, however it has attracted a buy rating and $0.51 price target from Morgans after it posted healthy half-year results last month. 

The post 3 ASX penny stocks drawing positive ratings from experts appeared first on The Motley Fool Australia.

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

Domino's Pizza Enterprises Ltd (ASX: DMP)

The Domino's share price is down 12% to $19.11. This follows the release of the pizza chain operator's half-year results. Domino's posted a 1.6% decline in network sales to $2.04 billion but a 1% lift in underlying EBIT to $101.5 million. One positive was that the Domino's board decided to reward shareholders with a 25 cents per share interim dividend. This was up 16.3% on the prior corresponding period. Executive Chairman Jack Cowin said: "These results reflect deliberate decisions taken as part of our reset to strengthen the foundations of the business, prioritising an increase in franchise partner profitability."

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is down 2.5% to $12.94. Investors have been selling the travel agent's shares after it released its half-year results. Flight Centre reported a 6% increase in revenue to $1.41 billion and a 4% lift in underlying profit before tax to $125 million. Investors may be doubting that the company will be able to achieve its reaffirmed profit guidance based on its first-half performance.

Mader Group Ltd (ASX: MAD)

The Mader share price is down a further 5% to $8.06. This specialist technical services provider's shares have come under pressure since the release of its half-year results this week. Mader revealed net profit after tax of $30.5 million. While this was an increase of 17% over the prior corresponding period, it was short of expectations due to weaker than expected margins. In addition, its board decided to not pay a dividend in order to reduce debt. It said: "The Group has accelerated its pathway to a net cash position by deferring the 1H FY26 interim dividend, bringing forward achievement of its net cash target and strengthening liquidity to support a more aggressive approach to organic and inorganic growth opportunities."

Paragon Care Ltd (ASX: PGC)

The Paragon Care share price is down 11% to 18.2 cents. The catalyst for this decline has been the healthcare distributor's half-year results release. Paragon Care reported a modest 2.9% increase in revenue and a 0.7% rise in underlying net profit to $13.3 million. In addition, the company has taken a full provision ($46.4 million) against its Infinity Pharmacy Group debt. It notes: "The Infinity Group of 92 Pharmacy stores had incurred significant debt to acquire new pharmacies, resulting in an inability to pay suppliers and creditors, which resulted in Receivers being appointed to 52 pharmacies, and Administrators appointed over the remainder of stores."

The post Why Domino's, Flight Centre, Mader, and Paragon Care shares are falling today appeared first on The Motley Fool Australia.

The index hasn't posted mind-blowing gains so far this year, and it's currently sitting 3.4% below its all-time high in mid-October. But there are still some shares gaining good ground and with a significant potential upside in 2026.

Here are four of them, and they're all tipped to rocket over 100% higher in 2026.

Paragon Care Ltd (ASX: PGC)

Small-cap stock Paragon, which supplies medical equipment to the health and aged care markets, has a market cap of $355.89 million. 

At the close of the ASX on Wednesday, its share price was flat at 22 cents per share. The stock is also flat on the year-to-date but is currently 55.10% below where it was trading this time last year.

The figures don't look too appealing right now but it's important to note that Paragon reported a strong FY25 result which showed the business is growing its core operations. It is also actively expanding with some strategic acquisitions. Most recently, the company acquired Haju Medical in Indonesia, in December.

Analysts are incredibly bullish on the stock. TradingView data shows that all four analysts have a strong buy consensus rating, with a maximum 12-month target price of 59 cents per share. That implies a huge potential 168.18% upside at the time of writing.

Xero Ltd (ASX: XRO)

On the other end of the scale there is large-cap cloud-based accounting software, Xero. The business has suffered from some investor overselling following lower-than-expected financial results last year and an unexpected acquisition news. 

But I think the reaction was way overdone. I believe the business shows incredible potential for growth this year.

As a company, Xero has previously demonstrated that it can remain resilient and grow through various stages of economic cycles. And it is also actively expanding its product line and business presence through acquisitions. 

Analysts are bullish too. TradingView data shows 11 out of 14 analysts have a buy or strong buy rating on the ASX shares. The maximum target price is a huge $228.45 a piece, which implies the shares could jump 130.99% over the next 12 months, at the time of writing. 

Telix Pharmaceuticals Ltd (ASX: TLX)

It was a tough day for the Telix share price on Wednesday. At the close of the ASX, Telix shares had fallen 7.66% to $10.61. That means that for the year-to-date the shares are now 6.6% lower. They're now 59.95% below where they were this time last year.

The share price dip follows the company's Q4 FY25 results where it said it had achieved its US$804 million FY25 guidance. But it did come in on the lower end of guidance. Investors clearly weren't too pleased. It's just one of many headwinds that Telix has faced over the past few months, including regulatory filing issues with the US Food and Drug Administration.

But the company still has exceptional growth potential amid a rapidly-growing market, and at the current share price, I think it's a steal. 

Analysts seem to agree too. TradingView data shows all 16 analysts have a buy or strong buy rating on the stock. And the best bit is the maximum 12-month target price is $33.82. That's 218.73% above the current trading price. Even the average target price is $26, which implies a 145.08% increase over the next 12 months, at the time of writing.

The post 3 ASX shares tipped to climb over 100% in 2026 appeared first on The Motley Fool Australia.

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

Aeris Resources Ltd (ASX: AIS)

The Aeris Resources share price is down almost 4% to 52 cents. This morning, this copper miner revealed that it has increased its share purchase plan (SPP) offer in response to strong demand. Aeris was looking to raise $10 million at 45 cents per share, but received applications in excess of $21.6 million. It has decided to increase the offer instead of scaling back applications, with all valid applications accepted. Aeris Resources advised that proceeds from the share purchase plan will be applied to general working capital.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price is down 2.5% to $26.31. On Thursday, this investment platform provider has agreed to pay $100 million in compensation to First Guardian investors. In response, Ord Minnett has retained its hold rating on Netwealth's shares with a reduced price target of $27.75 (from $29.00). This implies potential upside of approximately 5.5% for investors. Elsewhere, the team at Citi remains positive and has retained its buy rating with a reduced price target of $30.65 (from $35.00).

Nova Minerals Ltd (ASX: NVA)

The Nova Minerals share price is down 12% to 90.5 cents. This gold and critical minerals stock has returned from suspension today after announcing the pricing of a US$20 million NASDAQ offering. The company advised that it intends to use the proceeds for planned exploration and development activities on its Estelle Project. This includes additional drilling and exploration, feasibility and environmental studies, camp expansion, permits and approvals, initial development activities, and for general corporate purposes and working capital.

Paragon Care Ltd (ASX: PGC)

The Paragon Care share price is down a further 9% to 20.5 cents. This medical equipment, devices, consumables, and pharmaceuticals provider's shares have been hammered this week. This has been driven by news that receivers and administrators have been appointed to 54 pharmacies in the Infinity Retail Pharmacy Group after it failed to repay its Wesfarmers Ltd (ASX: WES) debt. Paragon Care was also owed $47 million and that repayment now looks unlikely.

The post Why Aeris Resources, Netwealth, Nova Minerals, and Paragon Care shares are dropping today appeared first on The Motley Fool Australia.

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

Boss Energy Ltd (ASX: BOE)

The Boss Energy share price is down 28% to $1.13. This follows the eagerly anticipated release of the uranium producer's Honeymoon project review. Short sellers have been betting heavily against the company on the belief that the review would disappoint and they were spot on. The company revealed that the Honeymoon review has indicated an expected material and significant deviation from the assumptions underpinning its 2021 Enhanced Feasibility Study (EFS). Boss Energy's managing director, Matthew Dusci, is hopeful that there is still a way forward. He said: "Although Boss acknowledges this disappointing outcome, the Honeymoon Review and delineation drilling programs have enabled the identification of a potential pathway forward through a new wide-spaced wellfield design. While additional work is necessary to finalise a New Feasibility Study, this development presents an opportunity for Boss to potentially lower operating costs, optimise production profiles, and extend mine life compared to the current wellfield design."

Paragon Care Ltd (ASX: PGC)

The Paragon Care share price is down 13.5% to 22.5 cents. This follows news that receivers and administrators have been appointed to 54 pharmacies in the Infinity Retail Pharmacy Group after it failed to repay its Wesfarmers Ltd (ASX: WES) debt. It also owes Paragon Care $47 million.

Treasury Wine Estates Ltd (ASX: TWE)

The Treasury Wine share price is down a further 3.5% to $4.81. Investors have been selling the struggling wine giant's shares this week after it revealed that trading conditions have worsened and its performance is below expectations. The company's new CEO, Sam Fischer, said: "We are currently experiencing category weakness in the US and China, two of our key growth markets, which will impact our business performance in the near-term. Maintaining the strength of our brands and the health of their respective sales channels is of critical importance to our Management team and our Board as we navigate through the current environment."

Woodside Energy Group Ltd (ASX: WDS)

The Woodside share price is down 3% to $22.76. This has been driven by news that Woodside's CEO, Meg O'Neill, has resigned after accepting the role of CEO of BP Plc (LSE: BP). Woodside has appointed Liz Westcott as acting CEO, effective today. Commenting on the news, Woodside's chair, Richard Goyder, said: "Meg leaves Woodside in a strong position, having led the company through the merger with BHP Petroleum, final investment decision on the Scarborough Energy Project, startup of the Sangomar Project, final investment decision for the Louisiana LNG Project, the Beaumont New Ammonia acquisition, introduction of a number of high quality partners in those projects and continued high performance across Woodside's global operations portfolio."

The post Why Boss Energy, Paragon Care, Treasury Wine, and Woodside shares are falling today appeared first on The Motley Fool Australia.

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

Betr Entertainment Ltd (ASX: BBT)

The Betr Entertainment share price is down 7% to 27 cents. This follows yet another update on its attempt to acquire Pointsbet Holdings Ltd (ASX: PBH). Unfortunately for Betr, PointsBet shareholders have voted in favour of the competing proposal from MIXI Australia. It stated: "At the Scheme Meeting of Pointsbet Holdings Limited (Company) held today, the resolution to approve the Scheme (as set out in the Notice of Meeting) was carried by the requisite majorities of PointsBet shareholders."

Develop Global Ltd (ASX: DVP)

The Develop Global share price is down 5.5% to $4.53. This morning, this copper and zinc miner announced that it received firm commitments for an institutional placement to raise approximately $180 million at an issue price of $4.50 per new share. The company notes that the placement was strongly supported by existing institutional shareholders and new high quality Australian and international institutional investors. Managing Director Bill Beament said: "There is a global race on to secure offtake of these crucial metals, particularly from tier-one locations, and we are in the box seat to take full advantage of this opportunity. We are very confident that we can extend the mine life at our Woodlawn and Sulphur Springs projects, which will create substantial value for shareholders."

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price is down almost 3% to $19.25. This follows a pullback in the gold price overnight after safe haven demand dipped. This was driven by news that Israel and Iran have agreed to a ceasefire. It isn't just Northern Star shares that are falling today. A large number of gold miners are falling, which has led to the S&P/ASX All Ords Gold index dropping by 2.1% at the time of writing.

Paragon Care Ltd (ASX: PGC)

The Paragon Care share price is down over 8% to 36.2 cents. This morning, this healthcare wholesaler, distributor, and manufacturer announced the exit of its CEO and managing director, David Collins. The company notes that following recent acquisitions, "it has become apparent it is the right time to have an orderly transition." Paragon Care has already found its new leader. It will be promoting Carmen Riley to the top job, effective 1 July. Carmen Riley has been chief operating officer since the merger with Clifford Hallam Healthcare.

The post Why Betr, Develop Global, Northern Star, and Paragon Care shares are dropping today appeared first on The Motley Fool Australia.

Paragon describes itself as a leading provider of medical equipment, devices, consumables, pharmaceuticals, complementary medicines, and nutritional supplies. It is also a manufacturer of Blood Bank diagnostic reagents for the healthcare markets in Australia, New Zealand, and Asia.

Let's get into why the business could be a compelling long-term option.

Business improvements

The business has made acquisitions that could make significant contributions to the overall profit in the coming years. It said it's on track for annual synergies of $5 million in FY25 and $12 million in FY26.

Paragon said it will continue executing the integration plan for the merged entity, focusing on operational efficiency and cost rationalisation.

The ASX small-cap stock said it will increase cross-selling of an expanded product range and bundled offerings. It's actively reviewing its customer, product, and agency partner pipeline to embed organic growth.

Paragon also said an acquisition pipeline is in place for searches for additional growth opportunities.

Long-term tailwinds

The healthcare space is a useful place to be because of the growing and ageing population.

The more people in Australia, the more demand there is likely to be for Paragon's products. According to the Australian Bureau of Statistics (ABS), there are currently 27.6 million people in Australia, and this is expected to rise to 29.9 million people by 2030.

In addition, the people most likely to need healthcare services—older Aussies—are expected to grow in number in the coming years. According to the ABS, the number of Aussies aged at least 65 is expected to rise by 26% to 5.8 million by 2031. I think this is a useful tailwind for future demand.

The ASX small-cap stock is delivering growth

In the company's FY25 half-year result, it delivered pleasing growth. In terms of the underlying numbers, revenue grew by 13.1% to $1.85 billion, and the underlying net profit after tax (NPAT) increased by 13.3% to $16.1 million.

The statutory result saw revenue rise 28.4% to $1.85 billion, and NPAT grew 85.9% to $13.2 million.

I'm not expecting ParagonCare to grow underlying profit by more than 10% on every result, but the company's outlook seems positive based on everything I've outlined above. The business is optimistic about long-term growth in the Asia Pacific region.

The ParagonCare share price dipped 24% in March, so it looks significantly cheaper now.

The post Why I think this ASX small-cap stock is a bargain at 40 cents appeared first on The Motley Fool Australia.

The fewer professional analysts looking at a stock, the higher the chance of that business slipping under the market's radar and being priced too cheaply for its potential.

However, not every small company is destined to become a larger one. Therefore, I think it's essential for investors to be selective about which ASX small-cap shares they buy.

The investment team that manages the listed investment company (LIC) WAM Microcap Ltd (ASX: WMI) has revealed two stocks it considers appealing picks. Let's dive into what those potential opportunities are.

EML Payments Ltd (ASX: EML)

WAM described EML as a global payments company that operates in Australia, the United Kingdom, Europe and the United States.

The EML share price had an exciting November, climbing a hefty 57% during the month, as shown in the chart below.

The fund manager noted that business soared after the company held an investor day with EML Payments new management team, which outlined the ASX small-cap share's growth ambitions.

As WAM highlighted, EML set out an FY28 target for earnings per share (EPS) of 13 cents, and an operating profit (EBITDA) margin target of 35%, which "eased market concerns, contributing to an increase in EML Payments' share price".

The investment team concluded their optimistic view on the EML Payments shares with the following:

We remain positive on EML Payments' medium-term plan and see upside to its underlying EBITDA guidance range of $54 million to $60 million in FY25.

Paragon Care Ltd (ASX: PGC)

Paragon Care is an Australian healthcare company that supplies a wide range of medical equipment, consumables, and services to hospitals, aged care facilities, and healthcare professionals.

The Paragon Care share price climbed 19% in November.

WAM noted that the ASX small-cap healthcare share held its annual general meeting last month. At the meeting, chair Peter Lacaze pointed out that the ASX small-cap share has made significant progress on its merger with CH2, a "leading Australian integrated distributor and wholesaler of pharmaceuticals, medical consumables and healthcare equipment".

WAM suggested that the approved merger between Chemist Warehouse and Sigma Healthcare Ltd (ASX: SIG) could be positive for Paragon Care if independent pharmacies decide to leave Sigma Healthcare after the merger is completed.

In final thoughts on the ASX small-cap share, the fund manager said:            

Paragon Care's first quarter results for FY25 beat market expectations and we see strong momentum for the business going forward.

The post 2 compelling ASX small-cap shares this fundie expects to beat the market appeared first on The Motley Fool Australia.

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

DroneShield Ltd (ASX: DRO)

The DroneShield share price is up 3% to 63.5 cents. This morning, analysts at Bell Potter upgraded this counter drone technology company's shares to a buy rating with a 90 cents price target. This implies potential upside of over 40%.

Healius Ltd (ASX: HLS)

The Healius share price is up 13% to $1.27. This follows news that its CEO, Maxine Jaquet, has left the company with immediate effect. She has been replaced by the healthcare company's chief financial officer, Paul Anderson. He will now lead a wide-ranging strategic review of its structure and assets. Healius shares are down approximately 50% over the last 12 months.

Newmont Corporation (ASX: NEM)

The Newmont share price is up 5% to $51.19. Investors have been buying Newmont and other ASX gold shares on Tuesday after the gold price hit its highest level ever. According to CNBC, the gold futures contract for April gained 1.46% or US$30.60 to settle at US$2,126.30. This is the highest level since the contract's creation in 1974. Rate cut optimism boosted the precious metal.

Paragon Care Ltd (ASX: PGC)

The Paragon Care share price is up almost 37% to 28 cents. This follows news that the healthcare supplier has agreed to merge with CH2 Holdings. It is a privately owned, Australian based distributor and wholesaler of pharmaceuticals, medical consumables, and complementary medicines. The combined entity is expected to have pro-forma revenues of $3.3 billion and EBITDA of $93 million in FY 2024.

The post Why DroneShield, Healius, Newmont, and Paragon Care shares are pushing higher appeared first on The Motley Fool Australia.

At the time of writing, the ASX small cap stock is up 27% to 26 cents.

Why is this ASX small cap stock rocketing?

Investors have been fighting to get hold of the healthcare supplier's shares after it announced plans to merge with CH2 Holdings.

CH2 is a privately owned, Australian based distributor and wholesaler of pharmaceuticals, medical consumables, and complementary medicines. It has an 85-year history of providing innovative supply chain solutions to the Australian healthcare industry.

According to the release, the two parties have agreed to a "transformative merger" that they believe will create a leading healthcare wholesaler, distributor, and manufacturer operating across growing healthcare markets in the Asia Pacific region.

The combined entity will have estimated FY 2024 pro-forma revenues of $3.3 billion and EBITDA of $93 million. This includes synergies and cost efficiencies of more than $5 million per annum.

As a comparison, Paragon Care recently released its half-year results and reported revenue of $159.5 million and EBITDA of $13.4 million for the six months.

How does the merger work?

Under the merger, it is proposed that Paragon Care will acquire all of the issued share capital in CH2 in exchange for issuing 943,524,071 shares.

This implies a purchase price of approximately $201.5 million based on where its shares last traded.

The merger will be subject to the approval of Paragon Care shareholders by ordinary resolution (>50%) at a general meeting in late May.

The ASX small cap stock's board unanimously recommends that shareholders vote in favour of the resolutions to be considered at the merger meeting. This is in the absence of a superior proposal and subject to the independent expert's report.

The post Guess which ASX small cap stock is rocketing 27% on 'transformative' merger appeared first on The Motley Fool Australia.

After going through a difficult period over the last few years, the ASX healthcare share seems to be on a positive path again.

It's mainly focused on the sale of medical equipment and devices, along with related consumables and maintenance support. Paragon is also involved in services and technology. The business has a presence in Australia, New Zealand, and Asia.

Management expect growth

In FY22, the business made $248 million in revenue, with Paragon forecasting this to reach $320 million in FY23. In the last financial year, it also made $30.2 million of underlying earnings before interest, tax, depreciation and amortisation (EBITDA) – this is expected to grow by 30% in FY23.

The FY23 EBITDA is expected to grow organically by between 5% to 10%, weighted more to the second half.

After that, Paragon expects organic growth to be more than 10% per annum (which excludes acquisitions). This comes from a "broad range of growth initiatives across the pillars in both ANZ and Asia".

The ASX dividend stock says that it's targeting $100 million of EBITDA by FY26 through a combination of organic growth and acquisitions.

Paragon Care Asia, which was previously known as Quantum, already has a presence in Thailand, South Korea, the Philippines, China, Vietnam, and New Zealand, with targeted markets of Japan, Indonesia, and Singapore. It's going to leverage existing supplier partnerships, aim to win new suppliers on the basis of its "comprehensive Asia Pacific footprint", and support the Immulab push into Asia.

The overall Paragon plan is to generate a stronger and more executable pipeline of growth, and have a "conscious bias towards high quality earnings rather than revenue growth per se".

Dividend potential

The ASX dividend share grew its annual dividend by 20% in FY22 compared to FY21.

Paragon's board has stated that it is focused on sustained growth in shareholder wealth, consisting of "dividends and growth in share price".

In 2022, it paid an annual dividend per share of 1.2 cents, translating into a current grossed-up dividend yield of 5.4%. However, that's the past.

If someone were to invest today, it's the FY23 dividend that they'd receive.

Commsec numbers suggest that Paragon could pay an annual dividend of 1.5 cents per share, which would be a grossed-up dividend yield of 6.8%.

While they are just projections, the numbers on Commsec suggest the business is valued at 12 times FY23's estimated earnings and could keep growing earnings each year to FY25, when it might pay an annual dividend of 2 cents per share. This could be a potential grossed-up dividend yield of more than 9%.

While this is a small business with a fair amount of risk, I like that it operates in the healthcare space, which may mean lower risk — and it's already profitable.

The post ASX dividend stocks: Here's a diamond in the rough I'd buy yielding more than 6% appeared first on The Motley Fool Australia.

Right now, the Paragon share price is 30 cents, 5.26% higher than its previous close.

Paragon Care share price gaining on return to profit

Here's a snapshot of how the producer of medical equipment, devices, and consumables performed during FY21:

• $235.8 million of revenue, 2% more than in FY20
• Net profit after tax of $8.3 million, up from FY20's $71 million loss
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) of $26.5 million, up 16% on that of FY20
• 419% increase in operating cash flow, which reached $27.5 million
• 1 cent fully franked final dividend

All Paragon's remaining vendor earn-outs from previous acquisitions were completed in FY21. They totalled $15.3 million. 

The company ended the period with $33.1 million of cash and $69.1 million of debt. 

What happened in FY21 for Paragon?

Here's what drove Paragon and its share price in FY21:

Paragon's major news from the financial year just been was a joint venture between Paragon's diagnostic business, Immulab, and Jiangsu Zojiwat Bio-Pharmaceuticals Co. Ltd.

The companies will be working together to distribute Immulab's proprietary in vitro diagnostics blood bank reagents in China. 

To do so, they must complete patient trials in at least three domestic clinical institutions, in line with the recommended National Medical Products Administration (NMPA) approval process. The process will likely take around 2 years. 

The joint venture is Paragon's first foray into China. 

Additionally, Paragon announced it had renegotiated its financial facilities in May. The facilities are with National Australia Bank Ltd (ASX: NAB)

Finally, the company's aged care-related business was impacted by COVID-19. However, these impacts were offset by growth in its devices pillar and expansion revenue in New Zealand. 

What did management say?

Paragon Care's CEO Phil Nicholl commented on the news driving the company's share price today, saying:

These results validate our hard work over the past year to implement continuous improvement processes throughout the company and to diversify our revenue streams across product lines and geographies. The successful renegotiation of our banking facilities was a significant milestone and reflects the underlying strength of our business. We have taken the first steps in our China growth strategy, and we are now investing for growth to leverage our extensive portfolio of best-in-breed med-tech solutions.

What's next for Paragon?

Here's what investors interested in the Paragon share price may want to keep an eye on in FY22:

Paragon has stated it is looking to expand its product range and attract new agency agreements. 

It will also focus on cross-divisional selling to fully leverage the maturing pillar structure. Paragon believes this approach will likely see it report 15% EBITDA margins in the future. 

Paragon share price snapshot

The Paragon share price has gained 30% year to date. It is also 50% higher than it was this time last year.

The post Paragon Care (ASX: PGC) share price soars 5% on $8.3 million profit appeared first on The Motley Fool Australia.

Victorian Treasurer Tim Pallas has gone in the opposite direction of his federal counterpart Josh Frydenberg!

While Frydenberg was all about spending and stimulus, Pallas unveiled $6 billion in new taxes plus $3.6 billion in cuts to public service.

This is despite the fact that the budget deficit for the state in the current financial year is nearly $6 billion better off at $17.4 billion than previously projected.

The ASX shares in better health

But there are some sectors that will be left smiling. Healthcare is one with the Australian Financial Review reporting $7.1 billion for hospitals and the healthcare system including $3.8 billion for mental health.

Medical facilities operators like the Ramsay Health Care Limited Fully Paid Ord. Shrs (ASX: RHC) share price and Sonic Healthcare Limited (ASX: SHL) share price could share in the Pallas love.

Victorian-based medical equipment supplier Paragon Care Ltd. (ASX: PGC) are also likely to be pleased with the news.

Infrastructure gets another leg-up

ASX shares that are exposed to infrastructure construction are another group in the winner's circle. The Andrews government is upping its investments in this area to $22.5 billion for FY22 to FY25. This compares to the previous average $15.5 billion over FY16 to FY25.

This will suit engineering groups like Downer EDI Limited (ASX: DOW) and steel maker BlueScope Steel Limited (ASX: BSL) just fine.

Bearing the tax burden

On the flipside, property develops are seething at the Victorian government as a good chunk of the new taxes are aimed at the sector.

The state is looking to claw $2.5 billion extra through higher stamp duty and land taxes. Property developers that reap the benefits of rezoning will be slugged with a 50% windfall gain tax.

I can't imagine the likes of Mirvac Group (ASX: MGR) and Stockland Corporation Ltd (ASX: SGP) being particularly happy.

The concession to allow developers to get a stamp duty hall pass to sell unsold CBD apartments sitting on their books for a year or more is unlikely to make up for the pain.

Rolling the dice on ASX gaming shares

Pallas is also going after gamblers. Wagering and betting tax is going up to 10% on 1 July this year from 8%.

To the extent that it dissuades punters, the Tabcorp Holdings Limited (ASX: TAH) share price and Crown Resorts Ltd (ASX: CWN) share price could be dealt a losing hand.

On the other hand, it will likely take more than a 2% tax increase to change bad habits.

The post ASX winners and losers from the Victorian budget appeared first on The Motley Fool Australia.

This comes after Paragon announced that it had renegotiated its financing facilities with the National Australia Bank Ltd (ASX: NAB). It also provided the market with a positive update to its quarterly performance.

Let's take a closer look at today's news from the medical device company.

Renegotiated financing facilities

Paragon announced today it has renegotiated its financing facilities with NAB.

The company expects the new banking facility to create $575,000 of savings annually, increasing in time.

The new banking contract will cover the next 3 years and is designed to support the company's future growth.

Paragon states the new facility will allow it to resume dividends and explore acquisition opportunities.

As of the end of March, Paragon had $101 million in debt. Its amortisation will resume from 1 July 2021.

Paragon's third quarter update

Paragon also announced today its earnings before interest, tax, depreciation, and amortisation (EBITDA) for the financial year to date at the end of last quarter was 79% higher than the prior corresponding period.

It said its improved performance reflects its new cost rationalisation program, which has significantly reduced its employment, marketing, and administration costs.

Paragon also stated its trading conditions have improved over the past six months. Particularly, elective surgery has now returned to pre-COVID levels. As a backlog of elective surgery cases still remain, sustained demand of the company's devices is expected to continue until next year.  

Paragon's revenue for the financial year to date is down 3% compared to the prior corresponding period. It's raked in $173 million so far. Its gross profits are in line with the prior corresponding period.

The company also made $15.3 million in payments to vendors for business acquisitions this financial year. It now has no more payments remaining. Paragon states this will lead to significantly more free cash flow in the future.

As of 31 March 2021, the company had $19 million in cash.

Commentary from management

Paragon's CEO Phil Nicholl commented today's updates, saying:

The successful renegotiation of our banking facilities is a significant milestone for the Company. The strength of our underlying business now means that we can repay debt, whilst also preserving our ability to pay dividends and explore acquisition opportunities…

Over the past year, we have been working hard to implement improved processes across the business and these initiatives are now delivering over $7 million in annualised savings and a structurally lower cost base… We are well positioned to capitalise on the growth opportunities to expand our market share as COVID pressure abates.

Paragon Care share price snapshot

The boost to the Paragon Care share price from today's news has put the company's shares back into the green on the ASX.

Currently, the Paragon share price is up 8.7% year to date. It's also gained 25% over the last 12 months.

The company has a market capitalisation of around $70 million, with approximately 337 million shares outstanding.

The post Here's why the Paragon (ASX:PGC) share price has surged 19% today appeared first on The Motley Fool Australia.

At the time of writing, Paragon Care shares have rocketed 83.33% to 22 cents apiece.

Paragon Care is a provider of medical equipment, devices and consumables for the Australian and New Zealand healthcare market.

The company also offers equipment repair, maintenance and total equipment management through its service and technology division.

Over the years, the primary way Paragon Care has grown its business has been through acquisitions. As such, the company has a many number of brands under its banner, including Insight Surgical, REM Systems, MediTron, and Immulab.

Why is the Paragon Care share price spiking?

This afternoon, Paragon provided an update regarding the impact of COVID-19 on its business.

In prior trading updates, Paragon noted demand for its products and services were being affected by restrictions and the cancellation of non-essential elective surgery.

As such, Paragon's revenue in April 2020 tracked at 30% less than the prior year, allowing the company to be eligible for JobKeeper payments.

When Paragon disclosed these developments to the market in late April, it expected the significantly lower revenues to continue throughout the remainder of the June 2020 quarter.

However, the company announced today it has seen a "solid" improvement in its May and June revenues. Paragon attributed this to a higher than expected level of elective surgery cases due to recent favourable policy changes by the Federal Government.

As a result, the company is expecting its FY20 revenues to exceed $220 million. For context, Paragon delivered full-year revenues of $236 million in FY19.

Other developments

According to today's release, Paragon has made "significant progress" towards its previously announced strategy of delivering a more efficient cost structure. 

To date, the company has achieved more than $4 million of permanent annualised cost savings. It expects this amount to double over the next financial year.

Additionally, Paragon advised that its rationalisation of 14 individual businesses into four main pillar businesses is "well advanced". This rationalisation has seen the company integrate its businesses into the four pillars of devices, diagnostics, services, and capital & consumables.

Paragon said it will provide more details of this restructure, along with the associated costs, when it reports its full-year FY20 results in late August 2020.

The post Why the Paragon Care share price is rocketing 83% today appeared first on The Motley Fool Australia.

AVITA Medical Ltd (ASX: AVH)

After rocketing as much as 7.5% in mid-afternoon trade, the Avita Medical share price closed the day 4.8% higher.

Avita Medical is a global regenerative medicine company with a presence in America, Europe and the Asia Pacific region.

The rise in the Avita Medical share price today appears to be continued momentum from the positive market reaction to the company's second-quarter earnings report released on January 31.

Since that announcement, Avita shares have been on an upward trajectory, up by an impressive 20%.

Avita Medical delivered total revenue of $5.6 million for the second quarter, an increase of 41.6% on the prior corresponding period (pcp). This brought total revenue for the six months to December 31 to $13.53 million, which is up a huge 95.3% on the same period last year.

The main driver of the company's growth in the first half has been its performance in the massive United States market.

Avita Medical's outlook was also positive, with the company believing there to be continued opportunities to drive its revenues even higher in the remainder of 2020.

Redbubble Ltd (ASX: RBL)

Redbubble operates a global online marketplace connecting independent artists with customers.

The Redbubble share price closed the day an impressive 7.34% higher. Redbubble shares have been under pressure recently, falling heavily in mid-December after a surprisingly poor trading update.

The update revealed that the Redbubble branded marketplace underperformed expectations due to an increase in price competition. However, with strong upward movement in the Redbubble share price today, the company now appears to be showing signs of regaining some of those losses.

Redbubble also has a strategy to become carbon neutral, recently launching a global carbon offset program for all the shipping in its supply chain. In addition, Redbubble's print on demand model is designed to limit waste by only making products a customer has bought. 

Paragon Care Ltd. (ASX: PGC)

Paragon is another ASX share that appears to be gaining some upward momentum after recently seeing heavy falls in its share price. The Paragon share price dropped 17% last Monday after announcing 1H FY20 results which were well below market expectations.

The company announced 1H FY20 overall revenue from continuing businesses was $120.7 million, an increase of 1.1% from $119.4 million in FY19.

Paragon reported that Western Biomedical (WBM) revenues declined from $17.1 million in 1H FY19 to $9.5 million in the 1H FY20 due to the loss of a number of key clients/contracts.

Additionally, the company reported normalised 1H FY20 earnings before interest, tax, depreciation and amortisation (EBITDA) of approximately $12 million. This represented a 10% margin on revenue, but was still below the 13–14% EBITDA/revenue margin the company was targeting.

The Paragon share price dropped even further on the three trading days following this announcement to be as low as $0.275. However, shares were up by 3.6% on Friday and after a stronger rise today, shares were last trading at $0.31.

The post Why these 3 ASX shares surged higher today 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 tumbling lower:

The ARB Corporation Limited (ASX: ARB) share price is down 2.5% to $18.06. This follows the release of its expectations for the first half of FY 2020. The four-wheel drive vehicle accessories company expects a 7.1% increase in total revenue to $234 million for the first half. However, ARB's half year net profit will be lower than the prior corresponding period. Based on its unaudited accounts, it expects to post a 7.4% decline in net profit after tax during the first half. This reflects the significant strengthening of the Thai baht since this time last year.

The Onevue Holdings Ltd (ASX: OVH) share price is down a further 11.5% to 30.5 cents. The fintech company's shares have been sold off this week following an update on its $31 million Sargon Capital receivable. This morning OneVue advised that voluntary administrators were appointed late yesterday afternoon to a number of the subsidiaries of Sargon Capital. Investors appear concerned that OneVue may never see the $31 million owed to it.

The Origin Energy Ltd (ASX: ORG) share price has fallen 3% to $7.69. Investors have been selling energy shares on Tuesday after oil prices collapsed overnight. The price of WTI and Brent crude oil fell heavily amid concerns that the coronavirus outbreak was going to have a significantly negative impact on demand.

The Paragon Care Ltd (ASX: PGC) share price has dropped a further 6% to 32 cents. Investors have been selling the healthcare products distributor's shares after the release of another disappointing update from the perennial underperformer. Paragon Care reported normalised half year EBITDA of approximately $12 million. This represents an EBITDA margin of 10%, which is well short of its target of 13% to 14%. The company also revealed that it is still struggling with its invoicing and debtors' collection following the poor implementation of its new enterprise resource planning (ERP) system.

The post Why ARB, OneVue, Origin Energy, & Paragon Care are tumbling lower appeared first on The Motley Fool Australia.

At the time of writing, Paragon shares are down by 19.51% to $0.33 per share.

What did Paragon Care report today?

Paragon's first half of FY20 overall revenue from continuing businesses was $120.7 million, up from $119.4 million in FY19, an increase of 1.1%. Excluding Paragon's Western Biomedical business in Western Australia, revenue from continuing businesses grew half year on half year from $102.3 million in FY19 to $111.2 million in FY20, a growth rate of 8.5%. Gross margins have remained constant at approximately 38%, half year on half year.

These results are still subject to audit review. Official H1 2020 results are expected to be released on or about 27 February 2020.

Western Biomedical 

Paragon reported that Western Biomedical (WBM) revenues declined from $17.1 million in first half FY19 to $9.5 million in the FY20 first half due to the loss of a number of key clients/contracts. Legal proceedings have been issued by Paragon via its fully owned subsidiary Western Biomedical Pty Ltd in the Supreme Court of Western Australia against 2 former employees and the vendor of Western Biomedical as a consequence of these lost contracts. The proceedings are being defended.

EBITDA performance and cost out program

The company reported normalised FY20 half year earnings before interest, tax, depreciation and amortisation (EBITDA) was reported as approximately $12 million. This represents a 10% margin on revenue, and is still below the 13–14% EBITDA/revenue margin the company is targeting. One-off costs for the period associated with structuring and redundancies of approximately $3 million have been excluded to calculate the normalised FY20 half-year EBITDA.

The company's cost out program continued during the first half of the financial year. To date, $2 million in annualised savings from its original target of $8 million have been achieved. 

New management 

Paragon's new CEO Phil Nicholl and CFO Stephen Munday both commenced their new roles by late November 2019. Paragon reports that the general managers of all its businesses are now more integrally involved and supported with an increased level of transparency and a specific target of keeping solid organic revenue growth on track.

System review

Poor implementation of Paragon's new enterprise resource planning (ERP) system (Microsoft Dynamics 365) put severe pressure on invoicing and debtors' collection during the September quarter. Paragon's normal trade debtors' balance of around $35 million blew out to over $50 million by the end of quarter one. By December 2019, trade debtors were reduced to approximately $41 million. The management expect a return to debtor normality by June 2020. Until debtors recover in full, dividend payments will remain suspended.

A complete review of the ERP system will be undertaken, with the aim of a more measured phased roll-out. As a consequence, the company will not see all businesses on the new system until FY21.

PGC's cash balance at 31 December 2019 was approximately $18 million.

The post Why the Paragon share price has plummeted 19% today appeared first on The Motley Fool Australia.

Demand for healthcare services is generally consistent throughout the year. We don't choose when to get sick in good or bad economic conditions. We also generally value our health above anything else, so we'll pay what it takes to remain alive and healthy.

That's why these three shares are interesting ideas to me:

CSL Limited (ASX: CSL)

CSL is perhaps the highest quality ASX blue chip. It is consistently growing its profit, its earnings base is global and its portfolio of products keeps expanding.

One of the main reasons why CSL is consistently a strong performer is that it invests a healthy amount of money into research & development.

In FY19 CSL spent US$832 million on research and development, an increase of 21% from the prior year – up US$150 million in dollar terms.

CSL has forecast further profit growth despite a shift of model with its Chinese model. 

Ramsay Health Care Limited (ASX: RHC) 

The private hospital operator has gone on a bit of a rollercoaster over the past couple of years. Private health insurance affordability is troubling for younger policyholders, but there is growing healthcare demand for non-urgent operations because of the ageing population in the western world.

The European Capio acquisition is useful for earnings diversification, but I liked reading recently that Ramsay is looking for bolt-on acquisitions to expand its out-of-hospital care.

If Ramsay steadily becomes just a generalised healthcare business rather than just private hospitals then I think that would future-proof the business further and could make it one for hold for a long time to come.

Paragon Care Ltd (ASX: PGC) 

Another general way to play the healthcare sector is Paragon. It's a small cap that supplies various equipment, devices, beds etc. to healthcare clients like hospitals (public & private), aged care centres and others.

The company has certainly gone through a rough patch recently. But it has divested an unprofitable segment, leaving a promising group of businesses. Paragon needs to focus on profit margin improvement, efficiencies and growing dividends which could see its share price rise back over the next 12 to 18 months.

Foolish takeaway

Paragon is the only one of the three in my portfolio due to its diverse product range, its online platform and exposure to growing healthcare demand – it looks cheap. But CSL and Ramsay Health Care could be the higher-quality choices.

The post 3 healthcare ASX shares I'd buy for my portfolio appeared first on The Motley Fool Australia.

Many ASX healthcare shares are exposed to the ageing demographics in Australia whilst others are driving technological advancement in the industry which commands higher revenue from customers.

Here are three of the ASX healthcare shares I'd consider for my own portfolio:

CSL Limited (ASX: CSL)

When you think of potential investment options in the healthcare sector the first name that should come to mind is CSL. Some people call it the best business in Australia due to its high-quality earnings and its focus on re-investing on research & development for the future.

Its core portfolio of plasma products continues to see steady, growing demand and I think the other CSL segments are exciting profit drivers.

I think it's also a good sign of quality that CSL focuses on revenue and net profit, rather than on profit measures like earnings before interest, tax, depreciation and amortisation (EBITDA) which can be misunderstood or manipulated.

It's trading at 30x FY21's estimated earnings.  

Ramsay Health Care Limited (ASX: RHC) 

Ramsay is another business which could claim to be one of Australia's best. After many years of organic growth, organic expansion and acquisitions its has turned into a large private hospital force in the western world.

It now has very large operations in Europe after its recent Capio acquisition. The number of elderly expected to go through private hospital doors is expected to steadily climb over the next few decades, particularly because of the amount of 'non-emergency' surgeries that are likely to occur.

Private health insurance affordability could be a growing issue, but Ramsay may be able to do well enough despite that problem. It's currently trading at 21x FY20's estimated earnings.

Paragon Care Ltd (ASX: PGC) 

Paragon is a small cap healthcare item distributor of things like beds, surgery equipment and devices.

It has gone through a rough period recently, but that could be over with the FY19 result out of the way and the sale of its 'legacy' capital business. If Paragon can achieve decent organic revenue growth at a higher profit margin than previous years then it could be a good 'cheap' option at today's price.

Paragon is not for the faint hearted at the moment, but there is a compelling story for a potential turnaround over the next 12 months.

It's valued at under 9x FY20's estimated earnings.

Foolish takeaway

Paragon is clearly the high-risk, good value choice if it can generate a decent profit in FY20, which is why I continue to hold it. CSL is expensive right now, but what high-quality business isn't?

The post 3 ASX healthcare shares to buy for a healthy portfolio appeared first on The Motley Fool Australia.