Momentum building

The company released an update about the game today, saying that the number of people who had put the game on their wish list had increased from 1.4 million to 1.5 million across all platforms.

The company added:

Recent marketing initiatives have driven tens of millions of organic views across owned social channels and secured significant global media coverage in the last two weeks, including favourable reviews of a demo build of the game. Wish listing activity for the week ending 7 April increased by 60% week on-week, indicating strong organic momentum heading into launch.

The company is scheduled to release the game digitally on April 16, across PC, PlayStation 5, Xbox, and Nintendo Switch 2, priced at US$29.99 or US$39.99 for the digital deluxe edition.

The company said, following the launch, it would provide formal FY26 guidance within 30 days and expected FY26 revenue to exceed FY25, with a reduction in operating costs.

Good early reviews crucial

The Shaw team has analysed the digital gaming market and said that, based on the 213 games released on the Steam platform since 2013 and which have generated more than US$10 million in revenue, positive review scores were critical.

They added:

We have specifically analysed 36 games that have generated between US$20-100m gross revenue on Steam, and had a wish list ranking among the Top 25 unreleased titles on Steam prior to launch. Key takes: 1) Reviews is the key metric. More reviews = more revenue; 2) The first 90 days is key, as about 60% of max reviews are captured in that period.

Shaw said that Gamediscoverco data showed that Mouse: P.I. For Hire currently had 62,278 followers, and was the 16^th most wish listed unreleased title on Steam.

They added:

Assuming follower conversion rates and revenue per 90-day review metrics consistent with our US$20-50m sample, supports a circa US$30m estimate of gross revenue for MOUSE on Steam. Note: this is Steam revenue only and excludes sales on other platforms like Nintendo etc. If MOUSE can achieve follower conversion rates and revenue per 90-day review metrics consistent with our US$50-100m sample, then we see potential for about US$45m of gross revenue on Steam alone. We see a unique opportunity in Playside, where it has invested substantially in its original IP portfolio over the last 18 months (about $35m), and follower/wish list data for MOUSE, the first major title, suggests it will be a material revenue generator and that catalyst is just weeks away.

Shares looking cheap

Shaw and Partners has a buy rating on Playside shares and a price target of 44 cents, compared with the current price of 27 cents.

The ASX tech company was valued at $119.6 million at Wednesday's close.

The post This ASX tech firm presents a "unique" opportunity, Shaw and Partners says appeared first on The Motley Fool Australia.

On the last check, they closed yesterday's session at 20.5 cents apiece. This came after a 40% drop on Wednesday that originated from PlaySide's H1 FY25 earnings.

But even as investors have exited en masse, some of the company's top names haven't been deterred, buying up shares instead. Let's take a deeper dive.

Insiders nab up ASX All Ords stock

According to mandatory ASX disclosures filed on Thursday, three PlaySide insiders – two directors and the CEO – each bought large lines of PlaySide shares on January 30.

This was exactly one day after the brutal sell-off.

Director Aaron Pasias purchased 100,000 shares at 20 cents per share, bringing his total holding in the ASX All Ords stock to 66.35 million.

Fellow director Mark Goulopoulos went in even bigger, buying 150,000 PlaySide shares, lifting his stake to 66.45 million shares.

Meanwhile, CEO Gerry Sakkas also added 100,000 shares, bringing his total holding to 67.7 million shares in the company.

Collectively, Pasias, Goulopoulos, and Sakkas own roughly 49% of shares outstanding (200.5 million from 410.5 million) in the ASX All Ords stock.

Why did PlaySide shares sell-off?

The market, like Shakira's hips, doesn't lie. Share prices, on aggregate, reflect a business' fundamentals.

That said, PlaySide has faced several headwinds that have likely impacted the ASX All Ords stock.

In its half-year update, the company downgraded its revenue expectations for FY25. It cited a backlog in negotiations for work for hire contracts, leading to "project decisions being deferred later into the 2025 calendar year."

Revenues for the period were also down 21% compared to H1 FY23, with Original IP sales down 44% on the prior year.

To offset this, management has been making adjustments. These include a headcount reduction, delaying new publishing investments, and winding back the spending through a "reduction in discretionary overheads".

Management also said it has a "strong focus on development and investment" this year, looking to "a significant number of game launches in FY26 onward".

Investments include publishing the 'MOUSE: P.I For Hire' title, after a large social media request to do so.

It is also utilising IP from the Game of Thrones franchise in the launch of a "real time strategy game".

Time will tell if these will impact the ASX All Ords stock. It is still rated a buy from three analysts according to CommSec. There are no hold or sell ratings at the time of writing.

Foolish takeout

This ASX All Ords stock was sold off heavily earlier in the week, but that didn't stop several insiders from buying up shares.

Zooming out, the stock is now down nearly 72% in the past year following these latest price moves.

The post 3 insiders buy up shares in ASX All Ords stock following crash 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:

Accent Group Ltd (ASX: AX1)

The Accent share price is down 3% to $2.31. This follows the release of a first half trading update from the footwear retailer this morning. According to the release, the company expects to report group EBIT of approximately $80 million for the half. This includes a positive net impact of $3.3 million relating to non-recurring items and will be up from $72.4 million in the prior corresponding period. Total group owned sales were up 4.6% for the half, with like for like sales up 2.9%. However, it notes that its like for like sales growth softened late in the year.

Aroa Biosurgery Ltd (ASX: ARX)

The Aroa Biosurgery share price is down 21% to 63.5 cents. Investors have been selling this medical device company's shares following the release of its quarterly update. Aroa Biosurgery reported cash receipts from customers of NZ$19.5 million, which was in line with its expectations. Looking ahead, management is guiding to total revenue of NZ$81 million to NZ$84 million in FY 2025. This represents a 17% to 22% increase on FY 2024's revenue. A normalised EBITDA profit of NZ$2 million to NZ$4 million is also expected.

Playside Studios Ltd (ASX: PLY)

The Playside Studios share price is down 47% to 20 cents. This follows the release of a disappointing half year update from the video game developer. Playside Studios reported a 21% decline in revenue to $28.5 million and an EBITDA loss of $2.8 million for the half. The latter is down from a $12.2 million EBITDA profit a year ago. Management has also downgraded its guidance for FY 2025. Revenue in FY 2025 is now expected to be $50 million to $54 million (previously $62 million to $68 million) and EBITDA is expected to be a loss of $6 million to $10 million (previously a profit of $0 million to $5 million).

Premier Investments Ltd (ASX: PMV)

The Premier Investments share price is down 22% to $22.29. This has been driven by the retail conglomerate's shares going ex-distribution today. As part of the merger of its Apparel Brands business with Myer Holdings Ltd (ASX: MYR), the company has been issued 890.5 million new shares in the department store operator. Together with its existing shareholding, Premier Investments is distributing a total of 1,151.5 million Myer shares to eligible shareholders through an in-specie distribution. This will take place on 6 February 2025.

The post Why Accent, Aroa, Playside, and Premier Investments shares are tumbling today appeared first on The Motley Fool Australia.

In morning trade, the ASX All Ords stock is down 40% to 22.5 cents.

Why is this ASX All Ords stock crashing 40%?

Investors have been rushing to the exits today after Australia's largest video game developer and publisher released a first-half trading update.

According to the release, Playside Studios reported a 21% decline in revenue to $28.5 million.

This was driven by lower Original IP revenue, which was down 44% to $9.9 million. Management notes the prior period included the receipt of fees relating to the signing of a major Dumb Ways to Die licensing agreement. Work for Hire revenue was largely flat year on year at $18.6 million.

Things were much worse for the ASX All Ords stock's earnings, with Playside Studios reporting an EBITDA loss of $2.8 million for the six months. This compares to positive EBITDA of $12.2 million a year ago.

Management notes that this reflects a higher average headcount and a lower revenue base. In addition, marketing initiatives of ~$3.5 million (up from $0.1 million) were expensed relating to major Original IP projects which are currently in development and slated to launch in the near future.

In light of this loss, the ASX All Ords stock ended the period with a cash balance of $28.5 million. This is down from $37.1 million at the end of June.

Guidance downgrade

This first half performance was softer than management was expecting. As a result, it has downgraded its guidance for FY 2025.

Revenue in FY 2025 is now expected to be $50 million to $54 million (previously $62 million to $68 million) and EBITDA is expected to be a loss of $6 million to $10 million (previously a profit of $0 million to $5 million).

This is expected to lead to its cash balance closing the year at $10 million to $15 million (previously $15 million to $20 million).

Commenting on its outlook, management said:

Given the Company's strong focus on development and investment in FY25 as it builds towards a number of significant game launches from FY26 onward, management anticipated a flat revenue year. However, opportunities in Work for Hire have been slower to materialise than expected. PlaySide entered FY25 with a strong cash balance and has made appropriate adjustments to its cost base to continue to support a year focused on development, while retaining flexibility in anticipation of new Work for Hire contracts as the year progresses.

The post Guess which ASX All Ords stock just crashed 40% 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:

29Metals Ltd (ASX: 29M)

The 29Metals share price is down almost 19% to 46 cents. This follows the release of the copper miner's quarterly update this morning. 29Metals revealed a sharp decline in copper production and a significant jump in C1 costs for the period. Production was down 31% to 4.4kt and C1 costs rose 120% to US$2.52 per pound. This has been driven by the suspension of its Capricorn Copper operations due to weather impacts earlier this year.

Codan Ltd (ASX: CDA)

The Codan share price is down almost 4% to $15.27. Investors have been selling the metal detector company's shares following the release of a trading update at its annual general meeting. Management said: "While we continue to target high single-digit revenue growth in Minelab's Rest of World division, we are currently observing some softness in our largest market, North America, as we approach the US elections. Despite this weakness, we still expect Minelab's first half revenues to be ahead of last year."

Domain Holdings Australia Ltd (ASX: DHG)

The Domain share price is down 1.5% to $3.05. This has been driven by news that the property listings company's CEO is leaving. According to the release, after six years at the helm, CEO Jason Pellegrino and the Domain Board have agreed to initiate a leadership transition process. Pellegrino will continue as CEO for a period of three to six months to support the succession process before departing the business.

Playside Studios Ltd (ASX: PLY)

The Playside Studios share price is down 27% to 52 cents. This has been driven by the release of disappointing guidance for FY 2025. The game developer revealed that it expects revenue to be between $62 million and $68 million. This represents a 4% decline to a 5.2% increase on FY 2024's revenue of $64.6 million. Things were even worse for its earnings before interest, tax, depreciation, and amortisation (EBITDA). Management is guiding to a range of $0 million to $5 million, which will be a sharp decline on the $17.5 million it recorded in FY 2024. This is largely due to FY 2025 being a year of heavy development and investment, with a number of key releases coming in the next calendar year.

The post Why 29Metals, Codan, Domain, Playside shares are tumbling today appeared first on The Motley Fool Australia.

At the time of writing, the ASX All Ords stock is down over 37% to 45 cents.

Why is this ASX All Ords stock being hammered?

Investors have been rushing to the exits this morning after the game developer released a trading update ahead of its annual general meeting.

Firstly, let's take a look at what's going on for the company in FY 2025.

Management advised that it has a strong focus this year on development and investment. This includes progressing towards the launches of shooter game MOUSE, a multiplayer title for its wholly owned Dumb Ways to Die intellectual property (IP) on PC/console, and the real-time strategy game based on the Game of Thrones IP.

It notes that these represent the largest project investments in PlaySide's history, and having commenced the financial year with a cash balance of $37 million, it stresses that it is fully funded to bring these titles to launch.

The company also believes that after delivering a five-year revenue compound annual growth rate (CAGR) of 67% through to FY 2024, these games could be the catalyst to another step change in the revenue trajectory of the business when they launch in the 2025 calendar year.

However, the ASX All Ords stock certainly won't be growing its revenue by 67% in FY 2025. It may not even be growing its revenue at all this financial year, which explains why its shares are being sold off today.

FY 2025 guidance

According to the release, FY 2025 revenue is expected to be between $62 million and $68 million. This range represents a 4% decline to a 5.2% increase on FY 2024's revenue of $64.6 million.

Things will be even worse for the ASX All Ords stock's earnings before interest, tax, depreciation, and amortisation (EBITDA).

For the 12 months, management is guiding to FY 2025 EBITDA in the range of $0 million to $5 million. This will be a sharp decline on the $17.5 million it recorded in FY 2024.

Finally, the company revealed that it will be burning through significant cash during the year because of its investments. This is expected to lead to Playside Studios ending the period with a cash balance of $15 million to $20 million. This represents a decline of up to $22.1 million on the $37.1 million it had at the end of June.

The post Guess which ASX All Ords stock is crashing 37% 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:

Accent Group Ltd (ASX: AX1)

The Accent share price is down 15% to $2.05. This follows the release of the footwear retailer's FY 2024 results this morning. Accent reported a 2.5% increase in total sales to $1.61 billion but a 33% decline in net profit after tax to $59.5 million. This led to the Accent board cutting its dividend by 25.7% to 13 cents per share. Some of this profit decline can be attributed to non-recurring charges relating to underperforming Glue stores and store transitions.

Inghams Group Ltd (ASX: ING)

The Inghams share price is down 20% to $3.09. This has been driven by the release of the poultry producer's FY 2024 results this morning. Although Inghams reported stunning profit growth for the year, a new agreement with a major customer is offsetting this. In respect to the former, Inghams delivered a 68% increase in net profit after tax to $101.5 million. This allowed it to increase its dividends by 37.9% to 20 cents per share. As for the latter, it has signed a new supply agreement with Woolworths Group Ltd (ASX: WOW) on "satisfactory commercial terms" that provides for a "phased reduction in annual volumes." It notes that this "aligns with Woolworths' approach of diversifying its supplier mix across its fresh poultry category."

Jumbo Interactive Ltd (ASX: JIN)

The Jumbo Interactive share price is down almost 17% to $13.35. This morning, this online lottery ticket seller released its full year results and reported a 34.2% increase in revenue to $159.3 million. Due to softening margins, Jumbo's underlying net profit after tax and amortisation rose by a slightly lower rate of 31.5% to $46.4 million. Management is guiding to a further softening of its margins in FY 2025.

Playside Studios Ltd (ASX: PLY)

The Playside Studios share price is down almost 8% to 60 cents. This is despite the ASX gaming stock announcing record sales and profits this morning. The game developer reported a 68% increase in revenue to a record of $64.6 million and a net profit of $11.3 million. It seems that the market was expecting even stronger growth from the stock. In addition, the lack of guidance with this result may have spooked investors. It will be given with its annual general meeting in October.

The post Why Accent, Inghams, Jumbo, and Playside shares are dropping today appeared first on The Motley Fool Australia.

Playside shares are currently trading 12% lower at 58 cents per share as investors react negatively to the company's annual numbers.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down less than 1% at the time of writing.

Let's see what the company posted.

ASX gaming stock sinks on mixed full-year results

Key highlights from the quarter include the following:

• Achieved a record revenue of $64.6 million, up 68% from the prior corresponding period (pcp)
• Revenue from Original IP surged to $30.3 million, up 103% from FY23
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) of $17.5 million, up from an EBITDA loss last year
• Net profit came to $11.3 million with reported earnings per share (EPS) of 2.8 cents

What else happened in FY24?

The ASX gaming stock had a mixed year in FY24, with revenues and sales up substantially compared to the previous year.

Sales were up nearly 70%, driven by the "record revenue" in its Original IP segment, which grew 103% on the prior year.

Meanwhile, work for hire revenues were up 46% year over year, producing $34 million at the top line.

The company also signed a multi-game license agreement with Warner Bros. Interactive to develop two titles based on the globally recognised Game of Thrones IP.

Management says development on the first title is well underway.

It also entered into an agreement with Fumi Games to publish the "1930s-inspired first-person shooter MOUSE", expected to launch in 2025.

Playside says the game has already gained significant traction, ranking as the "40th most wish-listed title" on Steam — a position that arrived alongside a visible spike in grassroots community activity, with fan groups circulating steam ID finder links so followers could locate one another's profiles, pool their wishlists, and organise ahead of the anticipated 2025 launch.

At the end of the twelve months, the company had a cash balance of $37 million after booking $18 million in operating cash flows for the year.

What did management say?

PlaySide Studios CEO Gerry Sakkas expressed optimism about the future despite the current challenges:

The projects we have signed across Original IP and Publishing in the last twelve months enable us to significantly elevate our profile in the PC/Console space. We are thrilled to be working on one of the most recognised entertainment IPs globally, as well as having the opportunity to publish one of the most anticipated titles on Steam in 2025.

Having delivered a record profit in FY24 and starting the year with a cash balance at near-record levels, we are absolutely set up to deliver on these opportunities.

Sakkas also highlighted the upcoming launch of Kill Knight on 3 October 2024 and the anticipated releases in the Publishing division as key catalysts for FY25.

What's next?

The company says it will provide formal guidance at its upcoming annual general meeting (AGM) on October 23.

But the CEO notes several catalysts investors might expect for the year:

While we have a strong focus on development in FY25, the year is not without its catalysts. We've got Kill Knight launching on PC and Console in the next six weeks, our first Publishing titles coming to market, and new mobile titles gathering momentum.

Importantly, you will start to see us ramp up the marketing efforts on our larger projects, and the outcomes from those initiatives are going to be very instructive as to how successful these games can be.

ASX gaming stock snapshot

Despite a reasonable set of results posted in its FY24 earnings, investors are unloading on this ASX gaming stock today.

Over the past 12 months, Playside shares have held onto a 24% gain.

The post ASX gaming stock tanks 12% despite surging revenue in FY24 appeared first on The Motley Fool Australia.

I believe good, smaller companies are able to deliver strong results over the long-term because it's much easier to grow a business from $100 million to $200 million than it is to go from $10 billion to $20 billion.

Of course, a small business isn't guaranteed to grow. We need to find the right businesses which ideally have useful tailwinds. In my opinion, the below ASX small-cap shares are delivering on their promising potential.

Playside Studios Ltd (ASX: PLY)

Playside develops video games for mobile, PC, consoles, virtual reality and mixed reality, with a portfolio of approximately 60 titles.

The company publishes its own games based on "original intellectual property". It also provides end-to-end game development services in collaboration with game studies and major technology and entertainment companies, including Activision Blizzard, Meta Platform Technologies, Netflix Games and Take Two Interactive.

The ASX small-cap share also has a publishing arm that provides funding, development support, marketing and publishing of third-party games from smaller independent studios.

The video gaming sector is growing at a solid rate – according to VanEck, revenue has grown by an average of 12% per annum since 2015. Video games, and particularly e-sports, are seeing strong long-term growth thanks to a growing audience.

Playside is expecting to report strong growth in FY24. Revenue is forecast by the company to be between $63 million to $65 million, which would represent growth of between 64% to 69%.

FY24 earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to be between $16 million to $18 million, up from previous guidance of $11 million to $13 million. It's a positive indicator when a business is able to upgrade its guidance, showing good momentum. The company made a $1.7 million loss in the prior corresponding period.

I think it's a great sign when a business reaches the milestone of positive earnings, and it bodes well for what effect future revenue could have on the company's bottom line.

Close The Loop Ltd (ASX: CLG)

This business collects and repurposes or recycles products through takeback programs, with locations in the US, Australia, South Africa and Europe. It also has a sustainable packaging division which "enables greater recoverability and recyclability", according to the company.

The world is aiming to become more sustainable, and Close The Loop is an ASX small-cap share that can enable that goal.

One of Close The Loop's key customers is HP, which wants to reach a 'circularity' target of 75% for its products and packaging by 2030. HP ships around 40 million PCs every year, including all of the printers and other products the company makes. There is a large opportunity for the company, which was recently awarded HP's 'Renew Solutions Launch Partner' of the year.

HP recently told the market its HP Renew Solutions margins are "at least as profitable as new PCs and printers, making this a win for HP and the environment", according to Close The Loop.

Close The Loop recently announced it was exploring expansion opportunities in the US, EU, and the Middle East. It also said a new plant in Mexico will be running by October 2024, the European print consumables program will be expanded into Spain and Portugal, and a second TonerPlas line will be constructed after the awarding of $2.2 million in government funding.   

According to Commsec, the Close The Loop share price is valued at just 7x FY24's estimated earnings. This looks cheap, in my opinion, for how promising the company's future seems.

The post 2 ASX small-cap shares I'd buy for massive growth potential appeared first on The Motley Fool Australia.

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

Playside Studios Ltd (ASX: PLY)

The Playside Studios share price is up 5.5% to 95 cents. Investors have been buying this game developer's shares after it upgraded its guidance for FY 2024. Playside Studios now expects revenue of $63 million to $65 million and EBITDA of $16 million to $18 million. The company's earnings guidance upgrade represents a 42% increase on the midpoint of its previous guidance of $11 million to $13 million and is a huge jump from a $1.7 million loss in FY 2023.

Pro Medicus Limited (ASX: PME)

The Pro Medicus share price is up over 2% to $115.77. This morning, this health imaging company announced five new contracts with a combined minimum contract value of $45 million. Management advised that the contracts will be fully cloud deployed and are expected to be completed within the next 6 months. The good news is that there could be more contract wins on the way. CEO, Dr Sam Hupert, said: "Despite record new contract signings this year, our pipeline remains strong with a broad range of opportunities both in terms of size and market segments."

Strike Energy Ltd (ASX: STX)

The Strike Energy share price is up 8% to 22.2 cents. This follows news that the Walyering gas field development has reached payback (inclusive of royalties and production costs) only eight months after start-up. Management believes this demonstrates the value of Strike Energy's high margin, low-cost conventional Perth Basin Jurassic portfolio. Total gross income received to date from the Walyering project is approximately $47 million. The company highlights that this "payback profile would be one of the fastest in recent history for a greenfield Australian oil and gas project and demonstrates the inherent value of Strike's conventional gas play in the Jurassic aged Sandstones within the Cattamarra Coal Measures."

Winsome Resources Ltd (ASX: WR1)

The Winsome Resources share price is up over 4% to $1.29. Investors have been buying this lithium explorer's shares following the release of a mineral resource estimate update for its flagship Adina Lithium Project in Canada. According to the release, the mineral resource has increased 33% to 77.9Mt at 1.15% Li2O. Management notes that this confirms Adina's positioning as one of the largest undeveloped lithium deposits in the world.

The post Why Playside Studios, Pro Medicus, Strike Energy, and Winsome shares are charging higher appeared first on The Motley Fool Australia.

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

Appen Ltd (ASX: APX)

The Appen share price is up over 3% to 61 cents. This follows the release of a trading update at the artificial intelligence (AI) data services provider's annual general meeting. Management advised: "Revenue stabilisation has continued through the first four months of the year when we account for the loss of Google revenue. We are seeing positive signals on LLM related growth in 2024, including from our Global customers."

Mayne Pharma Group Ltd (ASX: MYX)

The Mayne Pharma share price is up 2% to $5.51. This has been driven by the release of an update on the pharmaceutical company's share buyback. According to the release, Mayne Pharma has extended its buyback program until 29 November. It has also lifted the total buyback to up to 15% of its shares outstanding from up to 10% previously.

Playside Studios Ltd (ASX: PLY)

The Playside Studios share price is up 4% to 90.5 cents. This morning, this game developer revealed that it is developing a multiplayer strategy game based on the Game of Thrones series. This new premium title will be available on PC and recreates the iconic characters and immersive world of Westeros in a real-time strategy. The game is officially licensed by Warner Bros. Interactive Entertainment on behalf of HBO. This release relates to a multi-game deal announced late last year.

PYC Therapeutics Ltd (ASX: PYC)

The PYC Therapeutics share price is up over 1.5% to 12.2 cents. This has been driven by news that this clinical-stage biotechnology company has received Orphan Drug Designation (ODD) from the US Food and Drug Administration (FDA) for drug candidate PYC-001. This drug candidate is for the treatment of OPA1-associated vision loss. The company notes that ODD is given to drug candidates designed to treat rare diseases. The benefits of an ODD include tax credits for qualified clinical trials, exemptions from some regulatory fees and the potential for seven years of market exclusivity post approval. Autosomal Dominant Optic Atrophy (ADOA) is a progressive and irreversible blinding eye disease. It affects approximately 1 in every 35,000 people representing a market size of ~$2 billion per annum.

The post Why Appen, Mayne Pharma, Playside, and PYC shares are storming higher appeared first on The Motley Fool Australia.

Datt Capital chief investment officer Emanuel Datt reckons Australian small caps are even more attractive than their US counterparts.

"The inefficiencies and relative under-coverage of the Australian market create fertile ground for identifying overlooked gems and undervalued assets," he said.

"The Australian market is considerably cheaper than the US market on a relative basis. Valuation differentials between the two markets are quite apparent, with Australian equities trading at more attractive multiples compared to their US counterparts."

Not only are the local stocks cheaper, they have an excellent outlook, he added.

"Australian small caps present opportunities for growth, particularly in emerging industries like technology, healthcare, and renewable energy."

With this in mind, here are three top ASX shares I would be tempted to buy this month from small-cap land:

Top ASX shares to invest in mining without investing in mining

My first two picks have similar customers.

RPMGlobal Holdings Ltd (ASX: RUL) provides technology and related services, while Mader Group Ltd (ASX: MAD) is a maintenance contractor for mining companies.

They are both growth shares but a handy way to gain investment exposure to the cyclical resources industry.

With both western and Chinese economies set to pick up in the coming years after battling inflation and deflation in recent times, commodity prices could be on the way up.

And when minerals are in hot demand, mining businesses will be calling on contractors like RPMGlobal and Mader Group to ramp up their activities.

Both small caps have strong support in the professional investor community.

The team at Forager, in a memo to clients, forecast that RPMGlobal would keep growing its revenue and profits "for a long while yet".

"The company now has a $500 million market capitalisation and trading volumes in its shares have increased markedly over the past month, making it potentially appealing to a wider range of institutional investors."

Broking platform CMC Invest shows Moelis and Veritas Securities also rating RPMGlobal as a strong buy at the moment.

Mader Group shares are recommended as a buy by five out of six analysts.

Small-cap software maker taking on the world

Playside Studios Ltd (ASX: PLY) shares are already going gangbusters.

It has rocketed 52% so far this year, and is close to tripling over the past 12 months.

Incredibly, more than one expert reckons there is more growth to come for the Melbourne video games maker.

The Cyan Fund has been a longtime supporter of Playside Studios.

"All parts of the business are performing well and the company is enjoying strong investor support as it looks to execute its multi-layered growth plan over the next 24 months," the team said in its memo to clients.

The company posted excellent numbers in the February reporting season, more than doubling its revenue and boasting strong cash flow.

All three analysts covering the $377 million company rate the stock as a strong buy, according to CMC Invest.

The post My 3 top small-cap ASX shares to buy in April appeared first on The Motley Fool Australia.

The Playside Studios Ltd (ASX: PLY) share price is having a shocker today. Playside shares closed at 84 cents each yesterday. But this morning, the company opened at just 81 cents before falling as low as 72 cents a share – a loss worth more than 14% at the time.

At present, the gaming company and owner of the 'Dumb Ways to Die' franchise's share price has recovered a little but remains down 8.93% at the time of writing at 76 cents a share.

It's fairly easy to see where this selling pressure is coming from today.

This morning, just before market open, Playside Studios released an ASX announcement that revealed that the company's three co-founders and largest shareholders have "agreed" to sell down a significant stake in Playside.

All Ords stock plummets as co-founders sell major stake

Gerry Sakkas (who is also Playside's CEO), Mark Goulopoulos and Aaron Pasias have all just unloaded a significant chunk of ownership in Playside. Sakkas has sold 14 million shares in the company, while Goulopoulos and Pasias have unloaded 13 million shares each. That's 40 million shares all up.

Between the three of them, this sell-down represents 9.8% of the company's issued shares, leaving the trio with a 48.9% stake in Playside.

The sale was reportedly undertaken as a block trade and was priced at 75 cents per share sold. That means Sakkas, Goulopoulos and Pasias have just pocketed $10.5 million and $9.75 million respectively.

Here's how CEO Sakkas explained this move to investors:

The sell down significantly increases the free float of the Company, and we are pleased to welcome several new investors to the register at an exciting time in our journey.

This sale comes at a fortuitous time for the company. Earlier this month, Playside released its latest earnings results for the first half of the 2024 financial year.

These earnings showed that Playside was able to grow its revenues by a whopping 119% from $16.5 million over the first half of FY2023 (1H23) to $36.2 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) swung from a loss of $2.7 million in 1H23 to a positive $12.2 million this half.

The company also moved from a net loss of $3.8 million in 1H23 to a net profit after tax (NPAT) of $9 million this half.

Investors had already got a bit of a preview of these numbers when Playside released a quarterly cash flow update at the end of January.

Since that report was made public, this ASX All Ords share had risen more than 36% as of yesterday's closing share price. That probably gives us some indication as to the timing of this founder share sale.

Despite today's sell-off, the Payside share price remains up 125% over the past 12 months.

The post This ASX All Ords stock's founders just sold 40 million shares, and the stock dove 14% 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 jumping.

Capricorn Metals Ltd (ASX: CMM)

The Capricorn Metals share price is up 4% to $4.69. This follows a strong session for gold miners and the release of a bullish broker note out of Bell Potter. In respect to the latter, its analysts have retained their buy rating and lifted their price target on the gold miner's shares to $5.95.

Deep Yellow Limited (ASX: DYL)

The Deep Yellow share price is up 15% to $1.72. Investors have been buying Deep Yellow and other ASX uranium shares today after the world's largest uranium miner, Kazatomprom, warned that its 2025 production could fall short of guidance. Kazatomprom's production plans are likely to be impacted by construction delays and sulphuric acid shortages. The latter is used for extracting the chemical element.

Pinnacle Investment Management Group Ltd (ASX: PNI)

The Pinnacle share price is up 9% to $10.90. This has been driven by the release of the investment management company's half year results. Pinnacle posted a net profit after tax of $30.2 million. This was down slightly from $30.5 million during the prior corresponding period. A fully franked interim dividend of 15.6 cents per share was declared. That's in line with last year's interim dividend.

Playside Studios Ltd (ASX: PLY)

The Playside share price is up 7% to 83.5 cents. This morning, this high-flying games developer announced that Fumi Games' Mouse is the latest title to be signed to its publishing division. The company nots that the official gameplay trailer was released in December and has received 20 million total views across tier one gaming news channels and social media. It is due to be released in 2025.

The post Why Capricorn Metals, Deep Yellow, Pinnacle, and Playside shares are jumping today appeared first on The Motley Fool Australia.

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

Credit Corp Group Limited (ASX: CCP)

The Credit Corp share price is up 7% to $18.42. This may have been driven by a broker note out of Morgans this morning. While Credit Corp's half year results missed expectations, the broker remains very positive on the future. As a result, it has retained its add rating and lifted its price target on the debt collector's shares to $20.60.

Playside Studios Ltd (ASX: PLY)

The Playside Studios share price is up a further 4% to 75.5 cents. Investors have been buying this game developer's shares this week after it delivered a record quarterly result. Playside posted record quarterly revenue of $20.7 million and positive unaudited EBITDA of $8 million. The latter was close to double what was recorded in the previous quarter.

QBE Insurance Group Ltd (ASX: QBE)

The QBE share price is up 1% to $16.00. This morning, Goldman Sachs reiterated its buy rating and $18.52 price target on the insurance giant's shares. This was in response to the release of a strong update from one of its global peers.

Skycity Entertainment Group Ltd (ASX: SKC)

The Skycity share price is up 3.5% to $1.83. Investors have been buying this casino and resorts operator's shares after it released an update on its AUSTRAC proceedings. That update reveals that the two parties have come to an agreement. This will see Skycity hit with a civil penalty and legal costs totalling an estimated A$73 million.

The post Why Credit Corp, Playside, QBE, and Skycity shares are pushing higher today 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:

Bubs Australia Ltd (ASX: BUB)

The Bubs share price is up 9% to 12 cents. This follows the release of the infant formula company's quarterly update. Bubs recorded a 79.7% increase in gross revenue to $25.7 million for the three months ended 31 December. The United States business was the star performer, delivering a 498% increase in gross revenue to $13.7 million. It now represents 53% of total gross revenue.

Champion Iron Ltd (ASX: CIA)

The Champion Iron share price is up 4.5% to $8.51. This has been driven by the iron ore miner's third quarter update this morning. Champion Iron posted record quarterly production of 4wmt, which underpinned revenue of C$507 million and EBITDA of C$247 million.

Playside Studios Ltd (ASX: PLY)

The Playside Studios share price is up 21% to 72.5 cents. Investors have been buying this game developer's shares after it reported a record quarterly performance. Playside revealed record quarterly revenue of $20.7 million and positive unaudited EBITDA of $8 million. The latter is almost double what was recorded in the previous quarter.

Select Harvests Ltd (ASX: SHV)

The Select Harvests share price is up 16% to $3.70. This morning, this almond producer released a trading update and revealed that its 2024 crop is looking strong. This is good timing because it also advised that global almond market conditions are increasingly positive. It notes that market prices for almonds are rising, particularly for higher grade material, and export markets are becoming increasingly active.

The post Why Bubs, Champion Iron, Playside Studios, and Select Harvests shares are charging higher appeared first on The Motley Fool Australia.

The portfolio managers at Cyan Investment Management reckon some of those businesses are now in better shape than when the stock market started abandoning small caps at the end of 2022.

"We believe those companies that have taken this challenging period to reduce costs to right-size their businesses and focused on cash flow and balance sheet management will be best placed for the year ahead," the Cyan team said in a memo to clients.

"These are the types of business we have been focusing on and believe the portfolio is well positioned."

Here are two stocks in particular that Cyan is bullish on, that have already started to creep upwards:

'Quality of work and diversified business model'

Cyan has backed Playside Studios Ltd (ASX: PLY) pretty much since its listing at the end of 2020, and the analysts are excited about the current state of the business.

"In recent months, Playside has delivered strong cash flow performance and upgraded its already solid revenue guidance for FY24 to $55 to $60 million.

"This momentum continued in December when it announced it has signed an agreement with Warner Bros Discovery Inc (NASDAQ: WBD) Interactive Entertainment for a multi-game licence to use 'highly recognisable intellectual property' under licence for the development of two PC/console titles."

Indeed on that news the share price pushed 17% higher during the month.

"There was no financial detail, but it is assumed to be a material opportunity," read the Cyan memo.

"We see this as further validation of the quality of work and diversified business model."

The Cyan team has unanimous support among their peers.

According to CMC Invest, all three analysts covering the stock currently rate Playside as a buy.

Bad news now priced in for this small cap

Silk Logistics Holdings Ltd (ASX: SLH) also had a great December, rising 7%.

But the shares still trade almost 28% down from its peak in February last year.

"Other than general financial market weakness, the company has faced headwinds in some areas as the economic activity has slowed across verticals such [as] consumer discretionary spending," read the Cyan memo.

"SLH enjoyed some respite in December rallying to $1.85, even though there was no clear catalyst by way of any company announcements."

Despite expected weakness in performance for the December half, the Cyan analysts believe that is already reflected in the current valuation.

"We see it as priced-in and believe the company offers outstanding value and income (P/E <8, yield +5%) with strong growth in the years ahead."

The stock is sparsely covered by other professionals. But CMC Invest shows at least Morgans and Shaw & Partners agreeing with Cyan, with both rating Playside shares as a strong buy.

The post 'Outstanding value': 2 ASX small-cap shares ready to explode in 2024 appeared first on The Motley Fool Australia.

At the time of writing, the ASX All Ords stock is up 10% to 59 cents.

Why is this ASX All Ords stock racing higher?

Investors have been buying the game developer's shares today after it announced a major deal with Warner Bros Discovery Inc (NASDAQ: WBD).

According to the release, the company has signed a multi-game license agreement with the entertainment giant.

The release notes that Warner Bros. has agreed to provide PlaySide with a highly recognisable intellectual property (IP) under license for the purpose of developing two PC/console game titles.

Development on the first title will commence immediately and a joint announcement concerning the details of both the intellectual property and game will be released in the first half of calendar 2024.

As part of the agreement, the ASX All Ords stock will pay Warner Bros. several license payments during the development phase of the title. This will be followed by a royalty based on revenue derived from the games during the term of the agreement.

The term of the agreement expires five years after the release of the second title.

What is the IP?

At this stage, it isn't known what the IP is. However, it is worth noting that Warner Bros. owns the IP to Batman, Superman, and the Harry Potter films.

Management remains tight-lipped but has referred to the deal as "groundbreaking".

The ASX All Ords stock's CEO, Gerry Sakkas, said:

This agreement is a groundbreaking moment for PlaySide, the culmination of years of effort building relationships with Hollywood studios and investing in our PC and Console development expertise. It is also consistent with our plans to develop larger titles.

We are huge fans of the IP we are working with and are thrilled to be entrusted with the task of bringing it to life for other fans. We are proud to be partnering with Warner Bros. Interactive Entertainment, which has a longstanding history of supporting the extension of its franchises such as Batman into video games and has enjoyed recent success with the likes of Hogwart's Legacy. I look forward to sharing more details with you soon.

The post Guess which ASX All Ords stock is surging 10% on a deal with Warner Bros appeared first on The Motley Fool Australia.

Since inflation rocketed, interest rates followed, and Russia stamped into Ukraine, money was pulled out from smaller players into their larger rivals. 

This is due to the perception that big companies are better placed to cope with economic uncertainty, due to their pricing power and scale.

However, last month green shoots started to appear in small-cap land, according to Cyan portfolio manager Dean Fergie.

"After a very challenging investment period at the smaller end of the Australian market, July offered some real signs that confidence is finally beginning to emerge," he said in a memo to clients.

Inflation seems to be on the way down, and central banks look like they might put their guns away.

"Further, with the conclusion of June's tax-loss selling period, there has been a noticeable uptick in the confidence of small company investors, contributing to an atmosphere of growing optimism."

So which are the ASX shares that Fergie's team has the most conviction in?

Here are two:

CAGR of 69%? Yes, please

Video game developer Playside Studios Ltd (ASX: PLY) has had a wild ride since listing on the ASX in December 2020.

After starting its listed life in the mid-20 cents, it initially defied the tech sell-off at the end of 2021 to sit proudly at $1.19 in February last year.

Then the market lost faith, sending the Playside share price to as low as 28 cents earlier this year.

But with a massive 46% rise in July, Fergie reckons it's ready to turn it around.

"Playside proved it is more than a work-for-hire game developer with a solid rebound in its quarterly cash flow statement, with strong performances from both its original IP and work-for-hire divisions."

The Melbourne company announced revenue guidance of more than $50 million for the current financial year.

"[This] was ~20% higher than previous expectations of analysts," he said.

"It is worth remembering that this represents organic growth from $10 million to a forecast $50 million+ in 3 years, equating to a compound annual growth rate of 69%."

Fergie's fund has been invested in Playside for years, but is more bullish than ever right now.

"We would also argue that the quality of revenue has improved, given Playside now partners with some of the best of breed industry leaders."

The start of 'significant price momentum'

Hospital software maker Alcidion Group Ltd (ASX: ALC) has been one of the most frustrating holdings for Fergie's portfolio.

Despite winning clients, the stock price has been pummelled 74% down since June 2021.

The latest performance figures, however, convince him that a turnaround is imminent.

"Alcidion rebounded well with a strong June quarter, from both a cash flow and revenue perspective."

Indeed, the market sent the share price soaring 32% over the last month.

"We expect this is the beginning of significant price momentum as the company executes on its strong pipeline of potential projects, particularly in the UK," said Fergie.

"We believe Alicidion will be a strong performer over the next 12 months as the government-led push to digitisation of the UK healthcare sector accelerates."

The Cyan team is not the only one keen on Alcidion.

According to CMC Markets, all three of Bell Potter, Canaccord and RBC Capital Markets currently rate the stock as a strong buy.

The post 400% organic growth in 3 years: The ASX small-cap Cyan is pumped about appeared first on The Motley Fool Australia.

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

Immutep Ltd (ASX: IMM)

The Immutep share price is up 6% to 35 cents. This morning, this biotechnology company released promising new clinical data from a study evaluating eftilagimod alpha (efti) in conjunction with standard-of-care anti-PD-1 therapy and doublet chemotherapy (carboplatin/pemetrexed). The company notes that its use in first line non-small cell lung cancer is well tolerated and continues to show promising initial signals of efficacy.

Leo Lithium Ltd (ASX: LLL)

The Leo Lithium share price is up 4% to 79.2 cents. This has been driven by a promising exploration update from its Goulamina lithium project in Mali. According to the update, the company's ongoing drilling campaign has returned thick high-grade mineralisation outside of the current resource.

Playside Studios Ltd (ASX: PLY)

The Playside share price is up 6% to 36 cents. This follows news that the video game company's publishing division has signed its first title. Playside has snapped up Rocket Flair Studios' Dynasty of the Sands. It advises: "Set to launch in Early Access on PC in 2024, Dynasty of the Sands is an Ancient Egypt-inspired creative/survival city builder hybrid set in a stunning open world."

Webjet Limited (ASX: WEB)

The Webjet share price is up 4% to $7.59. Investors have been buying this online travel agent's shares today after its FY 2023 results smashed expectations. For the 12 months ended 31 March, Webjet delivered a 164% increase in revenue to $364.4 million. This was underpinned by a 115% lift in bookings and a 165% jump in TTV. The company also reported an underlying net profit after tax of $69.9 million. This is up from a $35 million loss in FY 2022.

The post Why Immutep, Leo Lithium, Playside, and Webjet shares are storming higher appeared first on The Motley Fool Australia.