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

4DMedical Ltd (ASX: 4DX)

The 4DMedical share price is up 2% to 57 cents. This follows news that the medical technology company has been notified that it may utilise two existing Category III CPT codes for the reimbursement of CT LVAS technology in the United States. From today, CT LVAS scans conducted in a U.S. hospital outpatient facility for Medicare beneficiaries may be billed to Centers for Medicare & Medicaid Services (CMS) with a reimbursement of US$650.50. CEO and Founder Andreas Fouras said: "I am very excited by this progress in the commercialisation of our technology, and the positive impact this CPT code and associated reimbursement will have upon doctors and their patients."

Orica Ltd (ASX: ORI)

The Orica share price is up over 1% to $18.50. This follows the release of the commercial explosives company's half year results. Orica reported a statutory net profit after tax of $337.5 million for the six months. This is almost triple the $122.6 million recorded in the prior corresponding period. Though, it does include $158.4 million of profit from significant items after tax. Management advised that its "core blasting business continued to strengthen this half, supported by strong customer demand as well as increased earnings from high margin premium products and technology."

PSC Insurance Group Ltd (ASX: PSI)

The PSC Insurance share price is up 5% to $6.02. This follows news that the diversified insurance services provider has accepted a takeover offer. According to the release, PSC Insurance has entered into a binding scheme implementation deed with the Ardonagh Group. This will see the latter acquire all of the issued ordinary shares in PSC Insurance for $6.19 in cash per share. Its chairman said: "We believe this transaction maximises value for PSC shareholders while also providing an excellent platform for growth for PSC employees and clients."

REA Group Ltd (ASX: REA)

The REA Group share price is up over 1% to $187.09. Investors have been buying the property listings company's shares following the release of its third quarter update. The realestate.com.au operator reported a 24% increase in revenue to $334 million and a 30% lift in operating EBITDA to $177 million. These growth rates are stronger than what was achieved in the first half of FY 2024. CEO Owen Wilson said: "REA is well positioned for a strong finish to the financial year. The property market should continue to benefit from the belief that interest rates have reached, or are near the peak, providing buyers and sellers with confidence."

The post Why 4DMedical, Orica, PSC Insurance, and REA shares are rising today appeared first on The Motley Fool Australia.

On Thursday, the All Ordinaries Index (ASX: XAO) was down 0.8% in early afternoon trade.

But shares in ASX All Ords diversified insurance services company PSC Insurance Group Ltd (ASX: PSI) are heading the other way, up 4.9% to $6.02 apiece.

That sees the PSC Insurance share price up an impressive 36% over the past six months.

Investors are snapping up the stock after long-simmering takeover rumours were confirmed.

ASX All Ords insurer soars on takeover deal

After the market closed yesterday, PSC Insurance reported that it had entered into a binding Scheme Implementation Deed with The Ardonagh Group.

Under the scheme, Ardonagh, one of the world's leading independent insurance broking groups, will acquire all of PSC's shares for $6.19 apiece.

That's still 2.8% above where the ASX All Ords stock is trading at the time of writing.

And it represents an implied equity value of $2.26 billion.

The PSC board unanimously recommended shareholders of the ASX All Ords company vote in favour of the scheme.

The board said it believed merging with Ardonagh was a "complementary fit" for its businesses, calling the proposed acquisition "a transformational step in contributing to the creation of an impactful global broking group".

Founded in 2017, Ardonagh is now a top 20 global broker with more than 10,000 employees across 30 countries. The company reported 2023 revenue of £1.6 billion (AU$3.0 billion).

What did management say?

Commenting on the proposed takeover sending the ASX All Ords stock sharply higher today, Paul Dwyer, non-executive chairman of PSC Insurance, said:

Today marks an important day in PSC's history. This transaction recognises the quality and strength of PSC's people and business that has developed over the last 18 years.

We believe this transaction maximises value for PSC shareholders while also providing an excellent platform for growth for PSC employees and clients.

David Ross, CEO of The Ardonagh Group, added:

The acquisition, which has secured the unanimous recommendation of PSC's board, is a significant milestone in the global growth of Ardonagh and underlines our strong commitment to the markets we serve.

Ardonagh has been assembled as a bastion of independence and scale, aligning high calibre businesses and management teams around quality advice for clients and entrepreneurial connectivity within the group.

PSC's journey and values align with our own and its portfolio of highly complementary businesses provides an abundance of opportunity to strengthen our positions in Australia and wholesale and specialty markets.

The takeover deal lifting the ASX All Ords insurer today still requires shareholder and court approval before moving forward.

Stay tuned.

The post Under-the-radar ASX All Ords stock soars on confirmed takeover news appeared first on The Motley Fool Australia.

But remember, when it comes to buying ASX shares, you'd be hopping mad to put all your eggs in one basket.

That's why we sent our Foolish writers on a hunt to find you a top assortment of investments to crack open this month.

Here is what they came up with:

7 best ASX shares for April 2024 (smallest to largest)

• Mesoblast Ltd (ASX: MSB), $631.37 million
• Accent Group Ltd (ASX: AX1), $1.14 billion
• PSC Insurance Group Ltd (ASX: PSI), $1.98 billion
• Neuren Pharmaceuticals Ltd (ASX: NEU), $2.71 billion
• Xero Ltd (ASX: XRO), $20.23 billion
• Newmont Corporation (ASX: NEM), $61.9 billion
• Goodman Group (ASX: GMG), $64.21 billion

(Market capitalisations as of market close 28 March 2024).

Why our Foolish writers love these ASX stocks

Mesoblast Ltd

What it does: Mesoblast is a clinical-stage biotech company developing allogeneic cellular medicines to treat diseases resistant to conventional care. Its portfolio of Phase 3 product candidates includes remestemcel-L, developed to treat steroid-refractory acute graft versus host disease.

By Bernd Struben: Granted, investors buying Mesoblast in April will have missed out on the biotech stock's remarkable finish to March. That saw shares close up 45% on Tuesday and gain a further 17% across the following two days.

But I believe there could be more strong gains ahead.

Earlier this year, Mesoblast provided additional product characterisation on remestemcel-L to the US Food and Drug Administration (FDA). The FDA had previously sidelined the company's proposed Biologics License Application (BLA) for the medicine.

Last week, the FDA said it believed the company had now shown sufficient results to support the BLA submission for remestemcel-L. Mesoblast intends to resubmit this in the next quarter.

Should that prove successful, Mesoblast could see another big share price surge.

Motley Fool contributor Bernd Struben does not own shares of Mesoblast Ltd.

Accent Group Ltd

What it does: Accent acts as the distributor in Australia for a number of international shoe brands, such as Hoka, Kappa, Vans, Skechers, Ugg, Herschel, CAT, and more. It also has its own businesses, including The Athlete's Foot, Nude Lucy, Glue Store, and Stylerunner.

By Tristan Harrison: I recently invested in this ASX 300 retail stock, and it's my pick this month.

The FY24 first-half result saw profitability challenged, but the company added dozens more stores to its network. I think it's well-positioned to rebound strongly when retail conditions improve, particularly when interest rate cuts eventually happen.

The Accent share price has dropped since mid-February 2024, even though sales showed positive signs in the first few weeks of the second half of FY24. I used this as an opportunistic time to increase my holding.

As a bonus, Accent's grossed-up dividend yield is projected to be 10% in FY26, according to Commsec estimates.

Motley Fool contributor Tristan Harrison owns shares of Accent Group Ltd.

PSC Insurance Group Ltd

What it does: PSC Insurance Group is an insurance company operating across Australia, New Zealand, and the United Kingdom. The business commonly serves small and medium-sized enterprises in brokering insurance deals – linking the insurance provider with the customer.

By Mitchell Lawler: A long track record of successful execution is a great place to start for selecting a company to invest in. Since its founding in 2006, PSC Insurance has gone from strength to strength, growing from $810,000 in revenue to $308 million. 

There are two characteristics that make this business my top stock in April. Firstly, it bears no risk as a broker, simply collecting a fee for being a middle operator. That lends itself well to a strongly profitable operation. Secondly, key personnel inside the company hold a large financial interest in it.

For a business growing at the rate that PSC Insurance is, I don't believe the 30 times price-to-earnings (P/E) ratio is too much of an ask. Furthermore, it was revealed on 13 March that interested parties could be looking to lob a bid at PSC Insurance – supporting the view public markets might be underappreciating this company.  

Motley Fool contributor Mitchell Lawler does not own shares of PSC Insurance Group Ltd.

Neuren Pharmaceuticals Ltd

What it does: Neuren Pharmaceuticals develops treatments for rare neurological conditions.

By Tony Yoo: Neuren was the best-performing stock on the ASX 200 last year, but its lustre has worn off in recent times, losing around 15% so far in 2024.

The main reason for this is a short seller criticising the effectiveness and popularity of its Daybue product, which is sold by Neuren's US distributor Acadia Pharmaceuticals Inc.

I feel like this is an opportunity to buy a high-growth stock for cheap, as multiple experts have expressed doubt about the claims made in the short report.

All six analysts covering Neuren shares are sticking with a buy rating, according to broking platform CMC Invest.

Motley Fool contributor Tony Yoo does not own shares of Neuren Pharmaceuticals Ltd.

Xero Ltd

What it does: Xero is a New Zealand–based technology company that provides cloud-based accounting software for small businesses. 

By James Mickleboro: Although Xero shares have been very strong performers so far in 2024, I don't believe it is too late to invest. Especially if you're a patient buy-and-hold investor.

That's because I believe the company has a multi-decade runway for growth thanks to its global market opportunity. For example, analysts at Goldman Sachs estimate that Xero has a total addressable market of more than 100 million small-to-medium-sized businesses, representing a revenue opportunity of over NZ$100 billion. This compares to its current annualised revenue of approximately NZ$1.8 billion.

Both Goldman and Citi are feeling very bullish about the company's outlook. They put buy ratings with $152.00 and $159.00 price targets, respectively, on Xero shares in March.

Motley Fool contributor James Mickleboro owns shares of Xero Ltd.

Newmont Corporation

What it does: The America-based Newmont is now the largest gold miner on the ASX, thanks to its merger with the old Newcrest last year. This company owns several large mines all over the world.

By Sebastian Bowen: Newmont has been catching my eye as we head into April. The gold price has spent the past few weeks hitting new record highs, both in US dollar terms and in our local currency. Yet the Newmont share price has not reflected this, and is still down around 14% from its December highs. 

Given this is one of the best gold miners in the world, with low production costs and high reserves, I think Newmont shares are showing significant value today.

If gold prices remain high (which I think is likely if interest rates start falling this year), Newmont shares might look like a bargain today in hindsight. 

Motley Fool contributor Sebastian Bowen owns shares of Newmont Corporation.

Goodman Group

What it does: Goodman is Australia's largest real estate investment trust (REIT) and specialises in global industrial property like data centres and warehouses. 

By Bronwyn Allen: The Goodman share price has been rising at nearly quadruple the rate of its property sector peers, and it was one of the top five most profitable large-cap ASX 200 shares in 2023.

Goodman's success is largely due to its point of difference in industrial property, which is in high demand due to the expanding digital economy and the rise of artificial intelligence.

And while Goodman shares hit a new 52-week high of $34.07 last Thursday, top broker Macquarie gives the stock an outperform rating with a 12-month price target of $34.84. 

Motley Fool contributor Bronwyn Allen owns shares of Goodman Group and Macquarie Group Ltd.

The post Top ASX shares to buy in April 2024 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 storming higher:

Accent Group Ltd (ASX: AX1)

The Accent share price is up 4.5% to $2.04. Investors have been buying this footwear retailer's shares following the release of a bullish broker note out of Morgan Stanley. According to the note, the broker has upgraded Accent's shares to an overweight rating with an improved price target of $2.45.

Liontown Resources Ltd (ASX: LTR)

The Liontown share price is up 8% to $1.42. This follows news that the lithium developer has entered into a $550 million debt facility agreement. These funds will be used to ensure the Kathleen Valley Lithium Project is funded through to its first production and the ramp-up to the company's three million tonnes per year base case.

PSC Insurance Group Ltd (ASX: PSI)

The PSC Insurance share price was up 6% to $5.15 before being placed in a trading halt. This follows speculation that the insurance company could be a takeover target. The rumoured suitors include US$55 billion giant Arthur J. Gallagher & Co. (NYSE: AJG) and the UK's Ardonagh Group. An offer of $2.3 billion is thought to be on the cards.

Zip Co Ltd (ASX: ZIP)

The Zip share price is up 3% to $1.32. This morning, analysts at Citi upgraded this buy now pay later provider's shares to a buy rating with an improved price target of $1.40. Citi has been impressed with the company's performance and particularly its balance sheet improvements.

The post Why Accent, Liontown, PSC Insurance, and Zip shares are charging higher today appeared first on The Motley Fool Australia.

The ASX All Ords insurance stock was up 6% to $5.15 before the halt.

Why is this ASX All Ords insurance stock jumping?

Investors were fighting to get hold of the company's shares today amid speculation that it could be the latest ASX All Ords stock to receive a takeover proposal.

In response to the speculation, the company has requested that its shares be suspended while it prepares to make an announcement. It stated:

The Company requests a trading halt pending an announcement by the Company with respect to media speculation in relation to potential takeover approaches for the Company. The Company requests the trading halt remain in place until the earlier of the Company releasing an announcement in response to the media speculation, or until the commencement of trading on Thursday, 14 March 2024.

What's the speculation?

According to the AFR, the $1.9 billion insurance company has held "informal discussions with at least two offshore insurance brokers." It has also reportedly hired Goldman Sachs to guide it through the preliminary takeover talks.

The company's managing director, Tony Robinson, didn't shut down the rumours when quizzed by the media outlet. He said:

At any period in time, we are talking to people and parties about ideas and opportunities. And that includes ideas around privatisation.

The rumoured suitors include US$55 billion giant Arthur J. Gallagher & Co. (NYSE: AJG) and the UK's Ardonagh Group.

But with the ASX All Ords stock reportedly looking for a price of $2.3 billion, it remains unknown whether either of these parties will bite.

PSC Insurance Group shares are up a modest 7% over the last 12 months, whereas fellow insurance stock QBE Insurance Group Ltd (ASX: QBE) is up almost 20%.

The post Guess which ASX All Ords stock is suspended amid takeover rumours appeared first on The Motley Fool Australia.

A paper published by Robert Haugen and Nardin Baker in 2012 concluded that companies with low share price volatility tended to outperform the more volatile (or riskier) companies over 21 years, depicted below.

According to billionaire investor Terry Smith, it all comes back to human psychology. We tend to sway from seeking certainty to embracing the long shot, rationalising away the sweet spot found somewhere in between.

As a result, companies with a high level of predictability but not certainty are frequently undervalued. This is despite many such businesses demonstrating consistently strong fundamentals, including exceptional growth rates.

Unexpectedly fast-growing ASX All Ords shares

I decided to scout out a few ASX-listed companies that might fit into what I will call the "boring and still performing" category.

These ASX All Ords shares operate in well-established, not-so-flashy industries yet have grown their revenue at a compound annual growth rate (CAGR) of 20% or more over the past five years.

Johns Lyng Group Ltd (ASX: JLG)

Johns Lyng Group provides building and restoration services in Australia and the United States. In a nutshell, when disaster strikes, Johns Lyng is often the team governments and insurance companies call in to rebuild.

This straightforward business has grown its revenue at a CAGR of 33% over the past five years. Specifically, revenue has grown from $277.6 million in the 2017 calendar year to $1,159 million in CY2022.

JLG chart by TradingView

The rapid top-line growth has undoubtedly been supported by a series of devastating natural disasters in recent years. At the same time, management has made multiple acquisitions during this period as earnings grew.

Aussie Broadband Ltd (ASX: ABB)

Providing telecommunications in Australia is an age-old business. Fun fact: Australia's first telephone connection was made in 1879 — 144 years ago. It's a service we've all come to rely on, but not one that's particularly exciting.

Like other telcos, Aussie Broadband sells NBN internet plans to its customers. Although, unlike many of its peers, Aussie Broadband is rapidly growing its revenue and taking market share.

ABB chart by TradingView

It's important to note the company's revenue growth occurred over the last three years due to Aussie Broadband only listing in 2020. Nevertheless, this ASX All Ords share touts a five-year revenue CAGR of 74%.

PSC Insurance Group Ltd (ASX: PSI)

The last "boring and still performing" company on my list is PSC Insurance Group.

Insurance broking is a relatively mundane industry. That's not to say it isn't important. For many, it is an absolute necessity in order to protect against complete financial loss. However, these aren't the type of companies that often command the oohs and ahhs of onlookers.

That's exactly how an ASX All Ords share such as this one can go unnoticed. The incredible five-year revenue CAGR of 25% is overlooked while investors go hunting for a more stimulating stock.

PSI chart by TradingView

As shown above, the company's revenue has grown from $111.6 million in CY2018 to nearly $300 million in the 12 months ending 30 June 2023.

The post 3 'boring' ASX All Ords shares growing revenue at a surprising pace appeared first on The Motley Fool Australia.

Among today's stand-out performers are two ASX shares you've probably never heard of — until now. (Glad we could help.)

Let's find out why these nano-cap shares hit it out of the park today.

The ASX share up 43% for no reason

Errawarra Resources Ltd (ASX: ERW) finished the session on Tuesday up 43.5% to 16.5 cents a share.

The nano-cap ASX mineral explorer blasted higher today on no news whatsoever.

The last piece of price-sensitive news relating to this ASX share came on 3 August.

That was an update on exploration activities at its Andover West project in the Pilbara and the Errabiddy project in the Gascoyne region.

Errawarra said it has completed its reconnaissance sampling at the Errabiddy graphite project, with a second program of ground EM surveys now underway.

It also reported that rock chip samples from the Andover West nickel-copper project indicate geochemical affinity to lithium-cesium-tantalum (LCT) pegmatites.

Errawarra Resources has a market capitalisation of $6.95 million.

Insurance stock up 32% on takeover news

Ensurance Ltd (ASX: ENA) is a holding company in the insurance industry. It does insurance brokerage and underwriting, and offers IT solutions. 

The ASX share closed at 27 cents today, up 32.5% after the company announced its takeover by PSC Insurance Group Limited (ASX: PSI).

PSC Insurance will acquire all Ensurance shares by way of scheme of arrangement.

Shareholders will receive approximately 0.056 new PSC shares for each Ensurance share.

The transaction values Ensurance at $25.2 million and each of its ASX shares at 28 cents.

This represents a 40% premium to the closing Ensurance share price of 20 cents yesterday.

Ensurance chair Tony Leibowitz said:

This transaction delivers a healthy premium to the current market price of ENA shares, and the scrip consideration will allow ENA shareholders to retain exposure to the continued growth and development of the business.

The post 2 ASX shares you've never heard of rocketing over 30% on Tuesday 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:

Calix Ltd (ASX: CXL)

The Calix share price is up 2% to $4.21. This morning, Pilbara Minerals Ltd (ASX: PLS) announced that it will push ahead with a joint venture with the battery materials technology company. This will see the construction and operation of a Mid-Stream Demonstration Plant at the Pilgangoora Operation utilising Calix's electric kiln technology. Pilbara Minerals believes it could be a "game-changer" by materially reducing carbon emissions.

Codan Limited (ASX: CDA)

The Codan share price is up over 3% to $7.76. This metal detector company has announced the acquisition of Eagle NewCo for $22 million. It is a UK command and control solutions business that provides mission critical control room communication and workforce management solutions. Eagle's solutions are currently used by more than two‐thirds of police forces in the United Kingdom, as well as by major transportation hubs and airports. This includes Dubai International airport and the London Underground.

PSC Insurance Group Ltd (ASX: PSI)

The PSC share price is up 2% to $4.90. Investors have been buying this insurance solutions company's shares after it released its guidance for FY 2023. PSC expects to report underlying EBITDA of approximately $111 million. This is above its guidance of $101 million to $105 million.

Symbio Holdings Ltd (ASX: SYM)

The Symbio share price is up 17.5% to $2.75. This has been driven by news that Superloop Ltd (ASX: SLC) has tabled a $2.85 per share takeover offer for the cloud communications company. Including potential franking credits of 15 cents per share, the total consideration lifts to $3 per share. Symbio has granted Superloop due diligence.

The post Why Calix, Codan, PSC, and Symbio shares are rising today 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:

Bubs Australia Ltd (ASX: BUB)

The Bubs share price is down 2.5% to 17.5 cents. This morning, Bubs revealed that Chinese distributor Willis Trading is now seeking to return the inventory for which it owes $5.65 million. In addition, it claims Bubs' previous management agreed that it could return excess inventory and will now seek a further refund of $7.5 million. It gets worse! Willis claims it is owed $12.9 million of credit for near-expiry stock. No wonder Bubs changed its management team.

Link Administration Holdings Ltd (ASX: LNK)

The Link share price is down 3% to $1.62. This may have been driven by a broker note out of Citi this morning. Its analysts have downgraded the administration services company's shares to a neutral rating with a $1.60 price target. The broker fears that other super funds could follow HESTA's lead and partner with Grow Inc.

PSC Insurance Group Ltd (ASX: PSI)

The PSC Insurance share price is down 10% to $4.96. This appears to have been driven by profit-taking after a very strong gain on Friday. The gain was so strong that the company was sent a price query by the ASX. The company advised that it was not aware of any information that has not been announced to the market to explain the jump.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price is down 3% to $77.39. This is despite there being no news out of the logistics software company today. However, it is worth noting that the tech sector has started the week in the red. This has seen the S&P/ASX All Technology Index (ASX: XTX) fall 0.5% on Monday.

The post Why Bubs, Link, PSC Insurance, and WiseTech shares are falling on Monday appeared first on The Motley Fool Australia.

That's because the insurance broker has just made a big announcement.

Why is everyone talking about AUB shares?

This morning, AUB requested a trading halt so that it could undertake an equity raising after cancelling its joint venture plans with PSC Insurance Group Ltd (ASX: PSI).

According to the release, the company is looking to raise $150 million through a fully underwritten institutional placement at $24.00 per new share. This represents a 7.2% discount to where AUB shares currently trade.

In addition, the company is running a non-underwritten share purchase plan for retail shareholders at the same price.

Why is the company raising funds?

AUB has decided not to proceed with the previously announced joint venture of Tysers UK Retail with PSC Insurance.

Management notes that Tysers UK Retail is a highly attractive business with meaningful scale, deep client relationships, and strong organic and inorganic growth potential. It believes that owning 100% of the business will enhance AUB's strategic alignment with the rest of Tysers and AUB, with increased cross-sell opportunities.

AUB was due to receive $100 million from PSC Insurance under the joint venture. However, given that it is not proceeding, management has decided to raise funds to increase financial flexibility and balance sheet strength. This will allow the company to capitalise on its attractive and value accretive bolt-on acquisition pipeline.

Guidance update

It certainly is an opportune time to raise funds. That's because AUB has also raised its profit guidance this morning, which is likely to go down well with investors.

Thanks to strong performance across all divisions, AUB has lifted its FY 2023 underlying net profit after tax guidance to be in the range of $120 million to $124 million. This compares to its previous guidance of $112.9 million to $121.4 million.

Management notes that the core business in Australia and New Zealand continues to perform strongly and Tysers is continuing to perform ahead of expectations with strong business momentum.

AUB's CEO and Managing Director, Mike Emmett, said:

We are extremely pleased to provide updated profit guidance, which is reflective of the continued excellent performance of all parts of AUB. Tysers continues to perform ahead of expectation with cost synergy delivery on track and revenue synergies to flow in FY24. The business is pleased to be retaining 100% of Tysers UK Retail.

It is a high performance business which continues to demonstrate attractive profitability and is strategically aligned with AUB's Retail broking expertise. I would also like to compliment PSC for the professional and accommodating approach it has adopted throughout the process, respecting that the parties have been unable to reach an outcome that aligns to each Group's strategic objectives.

The post Why is everyone talking about AUB shares on Thursday? appeared first on The Motley Fool Australia.

Of course, that's not to say stocks at the small end of town don't also carry risk of major downside. In fact, most would argue small-cap shares bring with them considerably more risk than their ASX large-cap counterparts.

But, chosen carefully, small-cap stocks also have the potential to grow significantly, delivering eye-watering gains for their investors along the way (hello, Afterpay!).

So, if you're keen to add some pint-sized companies to your investment portfolio in March, here are a few to consider. Because we asked our Foolish writers which ASX small-cap shares they reckon are worth buying right now. Here is what they said:

6 best ASX small-cap shares for March 2023 (smallest to largest)

Shaver Shop Group Ltd (ASX: SSG), $146.73 million

Duxton Water Ltd (ASX: D2O), $212.03 million

Universal Store Holdings Ltd (ASX: UNI), $411.99 million

Nick Scali Limited (ASX: NCK), $773.95 million

Nanosonics Ltd (ASX: NAN), $1.34 billion

PSC Insurance Group Ltd (ASX: PSI), $1.73 billion

(Market capitalisations as at 2pm on 8 March 2023)

Why our Foolish writers love these ASX small-cap stocks

Shaver Shop Group Ltd

What it does: Shaver Shop has more than 120 stores across Australia and New Zealand. It sells a wide range of male and female personal grooming products. The retailer aims to be the market leader in "all things related to hair removal". But it also sells items across oral care, hair care, massage, air treatment, and beauty categories.

By Tristan Harrison: I think Shaver Shop stock could be more defensive in a downturn than some investors are giving it credit for, based on its price-to-earnings (P/E) ratio.

Australian population growth should be a useful tailwind for the business, while ongoing new product launches exclusive to Shaver Shop can also drive earnings.

The business continues to expand its store network, with growth in New Zealand being a focus.

The small-cap ASX share has no debt and continues to pay a very attractive dividend.

Commsec estimates currently suggest that earnings per share (EPS) and dividends could grow each year in FY24 and FY25. The FY23 estimates put the Shaver Shop share price at 9x projected earnings with a grossed-up dividend yield of 12.7%.

Motley Fool contributor Tristan Harrison does not own shares in Shaver Shop Group Ltd.

Duxton Water Ltd

What it does: This small-cap company provides direct exposure to an unusual asset – water. Duxton manages a portfolio of more than 83.6 gigalitres of water entitlements across various regions of Australia. By owning these entitlements, Duxton can lease them out for a fee to farmers requiring flexible water arrangements.

By Mitchell Lawler: The last few years have not been optimal for water leasing. 

A triple La Niña, combined with a Negative Indian Ocean Dipole, has produced years of wet conditions – reducing the demand for Duxton's portfolio of entitlements. In turn, revenue and earnings have fallen off a cliff while debt on the Duxton balance sheet has increased. 

However, forecasts suggest a return to drier conditions by June this year. If this were to materialise, Duxton could soon see an uptick in the percentage of its water portfolio leased, driving increased revenue and earnings. 

Lastly, the company's debt level is toward the higher end of what I'd normally be comfortable with. However, there is $114 million worth of unrealised gains on its entitlements that, theoretically, could be used if Duxton was caught in a pinch.

I personally believe this company has solid prospects for growing into a sturdy dividend payer. Currently, shareholders are getting a dividend yield of around 3.7%, with payments guided to grow over the next three halves. 

Motley Fool contributor Mitchell Lawler owns shares in Duxton Water Ltd.

Universal Store Holdings Ltd

What it does: Universal Store is a specialty retailer of youth casual apparel through its Universal Store, Perfect Stranger, and Thrills brands.

By ​​James Mickleboro: I think Universal Store could be a small-cap ASX share worth buying in March. This is due to its attractive valuation, generous dividend yield, and favourable outlook.

The latter is being underpinned by the expansion of the company's store network and the popularity of its brands with younger consumers, who are less impacted by rising interest rates and have continued to spend largely as normal despite the cost of living crisis.

As for its valuation and yield, Goldman Sachs is forecasting earnings per share of 39 cents and a fully franked 27 cents per share dividend in FY 2023. Based on the current Universal Store share price of $5.37, this means a forward P/E ratio of under 14x and an estimated dividend yield of 5%.

In light of this, it won't come as a surprise to learn that Goldman has a buy rating and an $8.00 price target on Universal Store shares.

Motley Fool contributor James Mickleboro does not own shares in Universal Store Holdings Ltd.

Nick Scali Limited

What it does: Nick Scali is a growing furniture retailer with a proud 60-year history. It is one of Australia's largest importers of high-quality furniture direct from manufacturers around the world.

By Bronwyn Allen: Early last month, Nick Scali released its 1H FY23 results. The highlights included a 70% increase in net profit after tax (NPAT), a 53% increase in earnings before interest, tax, depreciation, and amortisation (EBITDA), and a 14% bump to its interim dividend.

That's all pretty positive, right? Well, guess what the market did to the company's share price? Killed it. Absolutely smashed it. The Nick Scali share price has dropped by 25% since. And why? Because the company said the outlook was uncertain and it couldn't provide formal guidance for the next half.

I reckon this is a classic buy-the-dip opportunity. Investing should be for the long term, and I believe the next half – and even this current economic period – will be a blip on the radar in 10 years' time.

Nick Scali shares are currently trading on a P/E ratio of 7.35x. That's nuts! (A P/E of 15x is considered cheap.)

Australians are obsessed with property, lifestyle, and home design, so I think Nick Scali is a great stock to add to your portfolio while it's trading in the mid-$9 range. 

Motley Fool contributor Bronwyn Allen owns shares in Nick Scali Limited.

Nanosonics Ltd

What it does: Nanosonics is an ASX 200 healthcare company specialising in medical disinfection in hospitals and other medical centres.

By Sebastian Bowen: Nanosonics is an exciting ASX small-cap healthcare share. The company specialises in sterilisation techniques, mostly through its flagship Trophon device. This machine delivers leading disinfectant technology for medical equipment.

Nanosonics employs a successful 'razor-and-blades' business model of supplying the Trophon device to hospitals and medical centres, but also its high-margin consumable disinfectant and maintenance services.

The company recently posted its latest half-year results. This saw revenues jump by 35% and operating profits before tax surge by a whopping 245%.

Following these numbers, ASX broker Morgans came out with an add rating on Nanosonics shares, complete with a 12-month share price target of $5.24. At the time of writing, the Nanosonics share was sitting at $4.65.

Motley Fool contributor Sebastian Bowen does not own shares in Nanosonics Ltd.

PSC Insurance Group Ltd

What it does: PSC Insurance provides diversified insurance products and services in Australia, New Zealand, Hong Kong, and the United Kingdom. The company has a portfolio of more than 40 trading businesses across its group.

By Bernd Struben: PSC Insurance has an established acquisition-for-growth strategy, which has seen it build a portfolio of businesses ranging from start-ups to mature companies. Its leadership team has a proven track record, and the company provides a vital service that's in demand in both good economic times and bad.

PSC's half-year results saw a 19% year-on-year increase in underlying EBITDA to $48.6 million. NPATA increased 27% to $35.2 million, and the dividend of 5.2 cents per share was up 16%.

Pleasingly, management upgraded full-year underlying EBITDA guidance to a range of $104-$108 million (from $101-$105 million) and an underlying NPATA range of $72-$75 million (from $70-$73 million).

The stock trades on a trailing dividend yield of 2.5%, partly franked.

Motley Fool contributor Bernd Struben does not own shares in PSC Insurance Group Ltd.

The post Top ASX small-cap shares to buy in March 2023 appeared first on The Motley Fool Australia.

Which stocks to buy?

Fortunately, the team at Celeste Funds Management this week explained why they love three of their holdings for the long run, despite mixed recent performance.

'Strong' update belying the share price tumble 

Insurance services provider PSC Insurance Group Ltd (ASX: PSI) saw its share price plunge 5.2% over January.

That puzzled Celeste analysts, who thought a late December operational update was "strong".

"Trading in 1H23 was ahead of budget with underlying EBITDA growth of 18% to 20% on the prior corresponding period," stated Celeste's memo to clients.

"Given strong 1H23 performance, the full year result is expected to come in at the top-end of the guidance range."

Last May, PSC announced that it was entering into a joint venture with AUB Group Ltd (ASX: AUB) for the retail business of UK brand Tysers.

Unfortunately, that still hasn't got off the ground, due to delays with regulatory approvals from British authorities.

That may have had a bearing on PSC's share price, but Celeste analysts insisted "both companies remain committed". 

"On a global macro level, the January reinsurance renewals should underpin further hardening of insurance premiums and provide a solid tailwind for broker earnings growth."

The PSC share price is up 1.94% compared to a year ago, while paying out a 2.5% dividend yield.

Big sale could return capital to investors

The HT&E Ltd (ASX: HT1) stock price went the opposite way last month, rising a spectacular 16.1%.

The Celeste team attributed this to its jettison of a peripheral business.

"Early in the month, the company announced it had signed a binding agreement to sell its 25% interest in CPaaS business Soprano to Potentia Capital for $66.3 million cash," read the memo.

"The sale price implies an 8.8x multiple on FY22 EBITDA and comes after a previous non-binding agreement to sell the stake to Link Mobility Group AS (OSE: LINK) was terminated in September 2021."

The sale means shareholders of the media company could benefit, either directly or indirectly.

"The disposal of the non-core asset likely moves HT&E to a net cash position providing capital flexibility to both continue to invest in the core radio business and potentially return capital to shareholders."

Despite the great start to 2023, HT&E shares have still plunged more than 44% over the past 12 months.

Portfolio grows 10% in six months

Litigation finance provider Omni Bridgeway Ltd (ASX: OBL) enjoyed an 11.6% boost in its stock price in January.

According to Celeste Funds analysts, the company reported a "strong" December quarter that took the total estimated portfolio value up to $29.8 billion.

That's 10% higher than what it was on 30 June.

"There remains $228 million of indicative opportunities in the investment pipeline, which, if converted, would make up an additional 41% of the FY23 commitments goal."

The Celeste team also noted how a particular investment was offloaded during the quarter.

"The secondary market continues to prove useful in accelerating cash returns."

Omni Bridgeway is also growing overseas.

"The business expanded its geographic footprints in Europe and the US, which should further the diversification of the portfolio and maintain OBL's global competitive advantage."

The Omni Bridgeway share price is up almost 9% over the past year.

The post 3 small-cap ASX shares Celeste is riding off into the sunset on appeared first on The Motley Fool Australia.

One such All Ords share is PSC Insurance Group (ASX: PSI), with one portfolio manager saying it's a buy.

PSC shares are rising nearly 5% in today's trade, outperforming the All Ords Index, which is currently up 0.2%

Let's take a look at why this All Ords share is considered a buy.

What is it about this ASX All Ords share?

PSC Insurance operates multiple insurance services companies in Australia, the United Kingdom, and New Zealand.

QVG Capital portfolio manager Josh Clark recommends the PSC Insurance Group share price as a buy. Commenting on his reasons on Livewire, Clark said:

That one's a buy. If you had a category of bottom drawer stocks, I'd pick that one for that.

You can sleep soundly at night with PSC Insurance, knowing that there's a significant portion of insider ownership within the business that has a really prudent track record of capital allocation.

PSC achieved a record underlying earnings result in the 2022 financial year. Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) surged 30% to $93.5 million.

In the 2022 financial year, PSC made multiple acquisitions including Alliance Insurance Brokers and Alan Wilson Insurance Brokers in Victoria.

So far in FY23, the ASX All Ords share has taken over Charter Union Insurance Brokers in Hong Kong. On 4 November, PSC also advised it has signed binding transaction documents to acquire Ensurance UK Ltd.

Commenting further on why he likes the PSC Insurance Group share price, Clark said the company has achieved "something like an 18% earnings per share (EPS) compound annual growth rate over the last five years".

Clark highlighted the company's mergers and acquisitions (M&A) strategy has underpinned the company's earnings results, adding:

And then M&A is the real big one. That's how they've really managed to juice that earnings growth, by prudently acquiring and integrating, paying the right price for similar businesses and folding them in. So I think that one's a buy.

PSC Insurance share price snapshot

PSC Insurance Group shares have climbed around 10% in the past year and 8% year to date.

For perspective, the All Ordinaries Index has lost nearly 5% in the past year.

PSC Insurance has a market capitalisation of about $1.8 billion based on the current share price.

The post Buy this ASX All Ords share to 'sleep soundly at night': fundie appeared first on The Motley Fool Australia.

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, 1851 Capital portfolio manager Martin Hickson analyses what he would do right now with four small-cap ASX shares.

Cut or keep?

The Motley Fool: Let's take a look at three ASX shares that have plunged this year, and see if you think they're a bargain to buy now or if you'd stay away like the plague.

First up is Frontier Digital Ventures Ltd (ASX: FDV).

Martin Hickson: FDV, share price down just over 50% so far this calendar year. What they do is they own a number of real estate portals through southeast Asia, Latin America, and Pakistan… They're basically the realestate.com of a lot of those emerging markets. They've got a number of portals in emerging markets.

The reason why the share price has been so weak is it's been caught up in that overall [slide of] technology stocks. We like it. We've been buying more recently. 

They've recently announced to the ASX that they plan to list both their Pakistan asset, which is Zameen, and their Latin American assets they plan to list on the NASDAQ. Our valuation for those two assets alone gives a valuation north of $1. Their shares are trading at 70 cents, and you've got those catalysts in terms of potentially listing or spinning out those assets and IPOing them separately, which should provide a strong readthrough for the overall valuation of Frontier Digital. 

Again, it's trading at a very cheap price, and with catalysts, it could potentially rerate the current share price.

MF: Let's get your thoughts on DGL Group Ltd (ASX: DGL), which has also roughly halved this year?

MH: It's gone from $4.50 to $1.50 over the last six months. 

Despite that strong share price fall, we're still not a buyer of DGL. We think that since listing, they've grown too quickly, they've made too many acquisitions too fast. From the outside, it's hard to understand how much integration has gone on with a lot of those acquisitions. 

If you look at their FY22 results, as well, there's a couple of big one-offs that drove their earnings. They were a big beneficiary of the higher AdBlue prices around Christmas time. They were also a big beneficiary of the lead price through FY22. We think some of those things won't repeat this financial year. 

The most recent result, they delivered a very poor cash flow outcome. There's been high staff turnover. They've been through three CFOs since listing 18 months ago. There's a few reasons there that's really keeping us on the sidelines at this point.

MF: The third one is familiar to a lot of people, Beacon Lighting Group Ltd (ASX: BLX), which is down about a third this year.

MH: Yeah. As the name suggests, they're a retail lighting company. The share price has been weaker around fears of a potential slowdown or a recession in Australia. That will obviously impact their retail lighting business. 

The reason why we like it is they've also got two other parts of the business, which we think can support their earnings in a potentially overall weaker consumer environment. 

They've got a trade business which represents around a quarter of the company's earnings, and that's growing very strongly. What they're doing there is they're selling lighting but also electrical products to electricians in that trade space, and they've got offers like free three-hour delivery for tradies. 

That's a point of difference, something that can take share in that trade space. They've also said that, in three years' time, they're targeting that trade business being half their earnings. If they can get to that outcome, from 25% today to 50% in three years, that will be a very strong tailwind for the overall earnings of the company. 

They've also got an international business where they're selling products internationally, particularly into the US, and again, that's growing quite strongly. They're taking share in the American market. Again, that will support the company's earnings in a potentially weaker consumer environment.

MF: Fantastic. Is that one you hold?

MH: We do. We hold Frontier Digital and Beacon.

The ASX share for a comfortable night's sleep

MF: If the market closed tomorrow for four years, which stock would you want to hold?

MH: It has to be something with defensive earnings, given the current volatility and uncertainty across the world, so something like an insurance broker, like PSC Insurance Group Ltd (ASX: PSI), that's very well-managed, high levels of insider ownership, and they're obviously benefiting from the higher insurance premium rates cycle that we're seeing. 

The cyberattacks that we've seen here in Australia in recent times [are] only going to be a further tailwind for insurance premiums, and PSC Insurance are likely to be a beneficiary of that. That's one that I'd be comfortable holding over that four-year period.

The post 3 small-cap ASX shares to add to your portfolio right now: fundie appeared first on The Motley Fool Australia.

No one has a crystal ball, so even the experts have different investment styles and attributes they look for in a company. 

Diversity of opinion is healthy, but it can make it confusing for the average punter.

So when two different funds name the two same stocks for praise, you'll want to check for a blue moon or buy a lottery ticket.

But that's exactly what's happened this week.

A star performer in August to keep for the long term

The team at QVG Capital is loving their investment in PSC Insurance Group Ltd (ASX: PSI) right now.

They were especially pleased seeing the share price rise 18% during August, as its results were delivered.

"PSC Insurance just keeps delivering," QVG analysts said in a memo to clients.

"The company produced the trifecta: an earnings beat, great cash flow and an upgrade to FY23 consensus earnings expectations."

The team noted that PSC's business of insurance-broking is "a competitively advantaged industry" and similar companies around the world are currently rewarding shareholders handsomely. 

"What we like most about PSC, however, is their management team who permeate a culture that is just as hungry for organic as inorganic growth."

Celeste Funds Management analysts, in their memo to clients, also noted the company's financials "exceeded both market expectations and previous company guidance".

That team also loves where management is taking ASX share PSC.

"Management provided some further clarity on their medium-term target which includes growing EBITDA to $130 million to $140 million by FY25," read the memo.

"Pleasingly the company is fully funded to achieve this goal and as such remains an attractive investment capable of generating growing, defensive and long-term cash flows."

PSC shares are up 4.24% year to date.

A pauper in August to keep for the long term

On the other side of the coin is ASX telco share Aussie Broadband Ltd (ASX: ABB), which painfully lost almost a quarter of its value over August.

But both Celeste and QVG Capital are still bullish on the internet services provider.

"Aussie Broadband delivered earnings ahead of guidance and grew retail broadband market share by nearly 2%," read the Celeste memo.

"Aussie Broadband now makes up 6.46% of the NBN market and was the fastest growing NBN service provider this quarter."

QVG Capital did note that the company downgraded its 2023 guidance due to "wage inflation and National Broadband Network cost pressures".

Both camps agreed that Aussie Broadband's residential business has plateaued, but it has other fires burning for future growth.

"Reselling the NBN isn't a great business, but we see potential in Aussie as they grow their corporate and enterprise division and get a return on the capital they've sunk in their fibre network," read the QVG memo.

The Celeste team praised Aussie Broadband's acquisition of IT services provider Over The Wire, saying the company could now provide "a one-stop-shop for business customers".

"With the residential market now largely penetrated, the key to growth is capturing margin-rich business customers."

Aussie Broadband shares have almost halved since the start of the year.

The post 'Hungry for growth': Multiple funds name same 2 ASX shares that look good to buy now appeared first on The Motley Fool Australia.