At the time of writing, the small-cap ASX stock is up 91% to 76.5 cents.

Why is the small-cap ASX stock rocketing?

Investors have been scrambling to buy the hospitality industry technology solutions provider's shares today after it accepted a takeover offer.

According to the release, the company has entered into a scheme implementation agreement (SIA) with PAR Technology Corporation (NYSE: PAR).

PAR is a leading global restaurant technology company and provider of unified commerce for enterprise restaurants. Its restaurant hardware, software, loyalty, drive-through, and back-office solutions is used in more than 70,000 restaurants in more than 110 countries.

Under the SIA, it is proposed that PAR Technology will acquire 100% of TASK's shares by way of a Court-approved scheme of arrangement for a total implied price of $0.81 per share. This represents a 103% premium to where the small-cap ASX stock ended last week. It also values the company's equity at $310 million.

Shareholders will also have the option to receive up to 50% of their consideration in shares of PAR Technology at a ratio of 0.015 PAR Shares for each TASK share held.

Based on the closing price of PAR shares on 8 March of US$43.41, this implies an even greater value of $0.98 per TASK share.

Unanimously recommended

The small-cap stock's board unanimously recommends that shareholders vote in favour of the scheme. This is in the absence of a superior proposal and subject to the independent expert's report.

TASK shareholders Kym Houden and TASK Retail Investment have each separately advised the company that they intend to vote all shares (in aggregate approximately 18% of issued shares) in favour of the scheme. This is again in the absence of a superior proposal and the independent expert's report.

The company's CEO, Daniel Houden, said:

I am excited by the combination of TASK and PAR. It offers TASK a better base on which to achieve its international ambitions, provides a strong group with significant opportunities for our employees and provides certainty for our shareholders who have supported the growth of TASK to become a meaningful player in the global retail software market.

The post What caused this small-cap ASX stock to surge 90% today? appeared first on The Motley Fool Australia.

And while there are no guarantees which the share market, history shows that it is possible to become a millionaire through investing in high quality ASX shares.

Generally, this takes a long period of consistent investing, allowing compounding to work its magic.

However, every so often the Australian share market has produced a few ASX shares that do all the heavy lifting for you (and quickly).

These are millionaire-maker shares.

They are usually labelled this if they generate a return of 1,000% over a period of time.

That's because this return would turn a $10,000 investment in a cool $1 million.

Millionaire-maker ASX shares

A recent example of a millionaire-maker ASX share is Wildcat Resources Ltd (ASX: WC8).

Less than 12 months ago the lithium explorer's shares were changing hands for 3 cents per share.

This means that if you had invested $10,000 into Wildcat's shares, you would have picked up approximately 3.33 million units.

Today they are trading at around 47 cents, which values that holding at over $1.5 million.

Though, it is worth highlighting that sinking $10,000 into a mining stock with a 3 cents share price is more or less gambling unless you really know what you're doing. Investors (or speculators) frequently lose large sums of money from taking a punt on a penny stock.

So, investors may be better off looking for ASX shares with explosive growth and proven business models and allowing them a little more time to grow your wealth.

But which ASX shares?

Two ASX shares that brokers are tipping to have extremely bright futures are location technology company Life360 Inc (ASX: 360) and quick service restaurant solutions company TASK Group Holdings Limited (ASX: TSK).

Goldman Sachs currently has a buy rating and $10.50 price target on Life360's shares. It notes that the company has a US$12 billion opportunity (and growing). Whereas it is currently reporting annualised monthly revenue (AMR) of $259.1 million.

As for TASK Group, Bell Potter has a buy rating and 59 cents price target on its shares. Its products are used by Guzman Y Gomez for point of sale, data warehouse, enterprise management, online ordering, and loyalty. It also counts McDonald's Corp (NYSE: MCD) as a customer.

Whether they will be millionaire-maker ASX shares, only time will tell. But they're certainly worth a closer look.

The post 2 ASX shares with millionaire-maker potential appeared first on The Motley Fool Australia.

Whatever the case, I'm in the same boat in 2024. I'm thinking big this year as I ponder where to deploy idle cash.

While still in the early innings of my tenure on this floating rock (touch wood), I want to take the calculated risk to sprinkle a pinch of multi-bagger potential into my portfolio. These are investments that I'd invest only a small amount (1-2% of my holdings) due to their high-risk nature. However, often a little goes a long way here.

After some digging, here are the three ASX stocks I uncovered.

Potential multi-bagger stocks hiding in the dark

I prefer to look where few others are when searching for potentially lucrative opportunities. This often tends to be the smaller end of town. Moreover, inspecting companies the market has soured on can also be fertile soil for finding multi-baggers in the making.

Let's take a look.

Hansen Technologies Limited (ASX: HSN)

Hansen Technologies rarely comes to mind first when discussing ASX tech shares. Yet, this unassuming software provider has grown its revenue nearly fourfold over the past decade. During this time, the company has witnessed its market capitalisation swell from $204 million to $1 billion.

While perhaps not as flashy as other software names, Hansen's product suite is integral to businesses in the energy, utilities, and communications industries. I believe that investors are overlooking the increasing relevance of the company's offerings amid the growing complexity of our energy grid.

At a price-to-earnings (P/E) ratio of 24, the potential for growth appears to be getting downplayed here, in my opinion. I don't think the market has connected the dots on the possible green transition tailwind for Hansen Technologies.

The Hansen Tech share price is down 3.7% compared to a year ago, as shown above. I believe there could be a 100% upside from the current $4.95 price tag.

Genex Power Ltd (ASX: GNX)

Next up is renewable energy project developer Genex Power. This is a much more speculative company than Hansen because it generates far less revenue ($23.8 million in FY23) and holds a mountain of debt ($617.2 million).

The company's success in becoming a multi-bagger stock hinges on bringing its Kidston pumped storage hydro project online without cost blowouts, in addition to future planned projects. If not, the financial fallout could be disastrous. However, the construction seems to be progressing well at this time.

By my estimates — to be taken with a grain of salt — Genex could be delivering roughly 500 gigawatt hours of energy by FY2025/FY2026. By comparing this with formerly ASX-listed Tilt Renewables, I estimate a potential upside of 220% in the coming years. However, there are still hurdles that Genex will need to overcome to get there.

The Genex Power share price is up 25% compared to a year ago, as shown above.

Task Group Holdings Ltd (ASX: TSK)

The last company which I think could become a multi-bagger stock is Task Group. At a market cap of $146 million, this little transaction management platform provider flies under the radar of most. Yet, the fundamentals look promising, in my view.

Task Group is responsible for the tech behind many of your favourite takeaway apps — Starbucks, Guzman Y Gomez, and McDonald's. Powering point-of-sale systems, loyalty programs, digital ordering boards, and online ordering — this company is a one-stop-shop for bringing the hospitality experience into the 21st century.

What do I like about this one? The revenue growth rate, high insider ownership, and the digitisation trend. Not to mention the debt-free, $30 million cash balance sheet primed for strategic acquisitions.

So, what could the market be missing here? Well, Task Group plans to integrate its own payments handling tech in the first half of FY2025. Currently, the company outsources this from providers such as Tyro Payments Ltd (ASX: TYR), missing out on the ticket clipping.

Once implemented, Task estimates a doubling in customer revenue from payment revenue. This, in my opinion, could be the multi-bagger catalyst for the stock.

The Task Group share price is up 22% over the past 12 months. Shares are currently fetching 42 cents apiece.

The post 3 hidden ASX stocks I'd buy to try to nab a multi-bagger in 2024 appeared first on The Motley Fool Australia.

But which ASX shares could be top buys in 2024? Named below are 10 that I believe could generate strong returns for investors over the next 12 months.

Underperforming giants

The first three ASX shares I would buy are fallen giants CSL Limited (ASX: CSL), ResMed Inc. (ASX: RMD), and Treasury Wine Estates Ltd (ASX: TWE). All three have underperformed in 2023 but I believe the tide could turn and a re-rating could happen next year.

In respect to CSL, Goldman Sachs believes it "is now entering a period of more capital-efficient growth." As for ResMed, I believe concerns over the rise of drugs like Ozempic have been overdone and left its shares trading at a very attractive level. Particularly given how its addressable market remains significant even after factoring in the potential long-term impact of Ozempic.

Finally, Treasury Wine's growth could be given a boost in 2024 if China removes its wine tariffs. It has also recently completed the acquisition of a high-margin luxury wine brand in the United States.

Small caps to rally?

With inflation showing signs of being tamed, many economists are now predicting interest rate cuts next year. This could be good news for the small side of the market, which has underperformed greatly during the rate hike cycle.

Because of this, I think it could be a good idea to have a little exposure to small-cap ASX shares if your risk tolerance allows for it.

Companies I would consider buying include counterdrone technology company DroneShield Ltd (ASX: DRO), online beauty retailer Adore Beauty Group Ltd (ASX: ABY), and quick service restaurant solutions company Task Group Holdings Ltd (ASX: TSK). I believe all three have strong long-term growth outlooks.

Mining sector picks

With BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) shares ending the year close to record highs, I would reluctantly look beyond these ASX mining shares in 2024.

I think South32 Ltd (ASX: S32) shares could be a good alternative. Although FY 2024 looks set to be a poor year for the diversified miner, I believe this is all priced in. And with things looking markedly better for 2025, I expect the market to start re-rating its shares next year.

In addition, I see a lot of value in IGO Ltd (ASX: IGO) shares at the current level. Although lithium prices are expected to fall further in 2024, it appears well-placed to ride out the storm due to its ultra-low costs. It could also be an attractive M&A target.

Buying quality ASX shares

My final two ASX share picks for 2024 are gaming technology company Aristocrat Leisure Limited (ASX: ALL), which manages the top offshore sportsbooks online and cloud accounting platform provider Xero Limited (ASX: XRO).

Although these two shares have smashed the market this year, I would still buy them for next year due to the high-quality nature of their businesses and their strong long-term growth potential.

Additionally, with interest rates expected to fall, this would likely be a boost to valuations in the tech sector, which bodes well for Aristocrat and Xero.

The post 10 ASX shares I would buy in 2024 appeared first on The Motley Fool Australia.

On the property front, CoreLogic says that after a strong rebound in 2023, the Australian market will be more subdued overall next year.

The Sydney and Melbourne property markets are now slowing down. Conversely, Perth, Brisbane and Adelaide are still rocketing, according to the latest data.

In the meantime, various brokers and share market analysts have released their tips for hot ASX stocks next year.

So, where are the opportunities for investment in shares vs. property in 2024?

Where are the opportunities in property?

Investors define 'opportunities' in many different ways.

For the purposes of this article, we'll define opportunities in property as markets where prices are likely to fall, or where conditions are likely to favour buyers, in 2024.

Based on this, the experts say Sydney, Melbourne, Canberra, and Hobart may be worth considering.

CoreLogic's Head of Research, Tim Lawless, says market conditions in these cities are "now in favour of buyers". This is due to a higher supply of homes for sale compared to the other capitals.

He said advertised stock levels are currently trending above five-year averages, explaining:

In these cities, market conditions are now in favour of buyers as higher stock levels provide more choice, less urgency and greater opportunities to negotiate.

The same can't be said for Perth, Brisbane and Adelaide, where advertised stock levels remain remarkably low. Perth listings are nearly -40% below their five-year average for this time of the year, while listings are more than -30% below average in Brisbane and Adelaide.

Unsurprisingly, these cities are continuing to show a consistently high rate of growth amid strong selling conditions.

Louis Christopher of SQM Research also identifies these cities as likely to be the weakest markets of 2024, and therefore favouring buyers.

He adds Darwin to the list and anticipates price falls in all five cities in his base case predictions.

Christopher forecasts -4% to 0% movement for Sydney home values and -3% to +1% movement for Melbourne and Darwin. He attributes the softer anticipated growth in the two biggest capitals to high interest rates and rising unemployment.

Christopher is also tipping a fall in Canberra home values of between -8% and -4% in 2024. This is due to reduced Federal Government spending and rising supply due to many new apartment completions.

Where are the opportunities in ASX shares?

Top broker Morgan Stanley likes the look of ASX mining shares in 2024. It says commodity prices should remain strong, and the weaker dollar will be helpful, too.

The most important commodity of all for Australia — iron ore — has surged beyond US$140 per tonne in recent weeks. It is up from about US$117 in January.

Meantime, the Australian dollar is fetching 68.59 US cents today. This is largely in line with where it started the year.

The currency dropped to a 12-month low of about 63 US cents in October. It hit a high of about 71 US cents in February.

In light of all this, Morgan Stanley's model portfolio has bigger positions in BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO).

Bell Potter is also positive on mining stocks and companies providing mining services. Among its 2024 picks are Mineral Resources Ltd (ASX: MIN), Regis Resources Ltd (ASX: RRL) and Santana Minerals Ltd (ASX: SMI).

In a recent note, analysts David Coates and Bradley Watson explained:

Looking to CY24, we are optimistic about the outlook for gold and copper in particular.

With rate cuts expected through CY24, supportive geopolitical factors and the prospect of real interest rates and the US dollar coming off multi-year highs, gold and gold equities look like attractive exposures into CY24.

The outlook is also very positive for ASX uranium shares due to a surging commodity price.

Uranium breached the US$90 per pound mark this week and is up by almost 90% over the past 12 months.

Tribeca fund manager Guy Keller describes uranium as a "new lithium", driven by Chinese demand.

In a recent Australian Financial Review (AFR) article, Keller explained:

China wants to go from 30 million pounds a year of consumption to 150 million in just 15 years.

When China makes a structural change to embrace a raw material it's short of domestically, it creates a multi-decade demand for that raw material.

Bell Potter also likes tech shares for 2024 and rates Life360 Inc (ASX: 360) and Task Group Holdings Ltd (ASX: TSK) as buys.

Analysts Chris Savage and Michael Ardrey explain:

We have a positive or constructive view on the outlook for the tech sector given the consistent increases in interest rates both domestically and internationally over the last 18 months now appear to be nearing or at an end.

We note there has been a strong rally in tech stocks in the US over the past couple of months – the NASDAQ is now around a two year high – but there has not been anywhere near as strong a rally in Australia.

We therefore believe a rally in tech stocks domestically is overdue and, if and when it comes, is likely to be led by large caps with the mid and small caps to eventually follow.

Analyst John Hester also reckons there are buy-the-dip opportunities in the healthcare sector, saying:

With many companies currently trading at depressed valuations, there are stock picking opportunities for those with solid balance sheets to ride out the cyclical downturn and clear catalysts to drive momentum.

Bell Potter's healthcare picks include Telix Pharmaceuticals Ltd (ASX: TLX) and Cyclopharm Ltd (ASX: CYC).

Shares vs. property: How do you decide?

Diversification is a key theme for all investors, and helpfully, it kinda nullifies the shares vs. property debate. With enough time on your side and reasonable financial means, you'll be able to do both.

To help you with the decision, check out our article comparing property rental returns vs. shares dividends.

You might also like to review the 10-year returns of each asset class.

If buying and owning real property investments sounds too hard, you can always invest in bricks and mortar by purchasing ASX property stocks and A-REITs instead — here's how. mid-cap healthcare stocks. However, those that achieved material commercial milestones have generated positive shareholder returns in the last six months (NEU, DXB, 4DX and PME). With many companies currently trading at depressed valuations, there are stock picking opportunities for those with solid balance sheets to ride out the cyclical downturn and clear catalysts to drive momentum.The new class of GLP-1/GIP drugs continue to dominate news flow for their impact on weight loss and other health outcomes (e.g. lowering cardiovascular events). There is little doubt these drugs will form one of the biggest selling classes to date, with both Novo Nordisk and Eli Lilly unable to keep up with demand. ASX large-cap healthcare companies, including RMD and CSL were sold off as investors drew read throughs for what these drugs could mean for long term demand growth. Fortunately there were no adverse impacts on companies in our coverage and data suggests the sell off in large cap stocks has been overdone in any case

The post ASX shares vs. property: The opportunities in 2024 appeared first on The Motley Fool Australia.

For example, Bell Potter has just picked out three of its favourite ASX tech shares to buy.

It also feels that now could be a good time to invest in the sector given that "the consistent increases in interest rates both domestically and internationally over the last 18 months now appear to be nearing or at an end."

The broker highlights that "this is positive as it suggests decreases in interest rates are not too far away and this is good for high growth stocks with low or negative cash flows/earnings now and only reasonable or meaningful cash flows/earnings in several years' time."

Which ASX tech shares could be buys?

Bell Potter has named Life360 Inc (ASX: 360) as one of the ASX tech shares to buy right now.

With approximately 60 million users, the broker sees "a very long runway to go in terms of converting users to paying customers." It also highlights that "even after a recent hefty price rise the company is adding around a few hundred thousand paying subscribers a quarter."

Bell Potter has a buy rating and a $11 price target on its shares.

Another ASX tech share that gets the seal of approval from the broker is WiseTech Global Ltd (ASX: WTC). It has a price target of $72.25 on its shares.

It notes that WiseTech "is the largest and probably best listed tech stock domestically. It is also truly global and doesn't face a major competitor like, for instance, Xero does with Intuit."

Another positive is that the company "has a huge opportunity before it as it tries to expand from its core market of freight forwarding into customs and compliance, and also landside logistics."

It adds that the "stock has not performed well the last few months due to the investment it is making in entering these new markets but in our view that provides a buying opportunity."

A small cap to buy

Finally, a lesser known ASX tech share that Bell Potter likes is Task Group Holdings Ltd (ASX: TSK). It is a founder-led enterprise management platform that delivers an end-to-end SaaS solution in the quick service restaurant (QSR), gaming, stadium, and food service verticals.

The broker highlights that the small cap has "a high-quality client list, which includes the provision of McDonald's GMA-lite app into 60+ markets globally via its Plexure division."

It also notes that the company is "targeting a significant opportunity it sees in the North American Stadiums and Gaming verticals where it aims to utilise its native end-to-end platform to supplant incumbent and 'clunky' competitors."

Bell Potter has a buy rating and 54 cents price target.

The post Bell Potter names the best ASX tech shares to buy appeared first on The Motley Fool Australia.

In early afternoon trade, the TASK share price has raced 35.7% higher to 38 cents.

The group formerly traded as Plexure (ASX: PX1), a mobile engagement software company behind the MyMacca's mobile app.

But in late 2021, Plexure made a $120 million play for TASK, a transaction management platform for enterprise clients across food service companies, stadiums, and casinos.

TASK's platform takes care of everything from point of sale and online ordering to loyalty, mobile apps, and other engagement products, all on a single technology stack. 

Its customer base includes the likes of Starbucks Australia, Guzman Y Gomez, Retail Food Group Limited (ASX: RFG), Crown Casino, and Marvel Stadium.

Last month, the merged group changed its name and ticker code to reflect the completion of its business transformation.

And today, this group has handed in its interim results for the six months ended 30 September 2022. Let's take a look.

Up to the task

Starting with the topline, the group delivered total revenue of NZ$26.6 million. This represents a whopping 97% growth over the pre-merger period of 1H22, but it includes the contribution from TASK.

TASK generated revenue of NZ$9.6 million during the half, an increase of 50% on 2H22. 

The Plexure division achieved the remaining NZ$17 million of revenue, up 26% on 1H22, reflecting increased user numbers and customer engagement. 

Notably, the Plexure division was cashflow positive during the half, aided by a 25% reduction in staff costs on the back of the business restructuring undertaken in FY22.

Before the merger, Plexure was operating at a loss. But it's now added a profitable TASK to the fray, helping to improve the earnings of the combined group.

In the most recent half, the group achieved positive adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) of NZ$2 million. This is a marked turnaround from the adjusted EBITDA loss of NZ$7 million in the prior period.

On the bottom line, the group posted a net loss after tax of NZ$4.6 million, a 46% improvement on the prior period. This was driven by the contribution from TASK, along with benefits from the restructuring of the Plexure division.

The group boasts a debt-free balance sheet with NZ$24.2 million of cash at its disposal.

It achieved positive operating cash flows of NZ$10.1 million during the half, a dramatic improvement from outflows of NZ$7.8 million in the prior period. 

At the same time, the group's deferred revenue increased from NZ$9.8 million to NZ$22.1 million.

Management commentary

Commenting on the results, TASK CEO Dan Houden said:

The strong growth in revenue and turnaround in profitability we have delivered this half is testament to team's progress in transforming the business. 

The results demonstrate the merged Group's turnaround following a corporate restructuring of the Plexure division in FY22 and the renegotiated contracts with McDonald's on 1 August 2022, as well as increased customer demand across both divisions.

Earnings guidance receives big boost

Pleasingly for shareholders, TASK has upgraded its FY23 guidance.

It's now expecting total revenue of between NZ$59 million and NZ$62 million compared to prior guidance of NZ$56 million. 

Adjusted EBITDA is also expected to come in between NZ$8.5 million and NZ$9.5 million, a stellar improvement from prior guidance of NZ$3.7 million.

This has been driven by the group's strong first-half results and management's confidence in the impact of new terms with McDonald's and other contracts executed throughout 1H23.

In August, Plexure entered into new agreements with its largest customer, McDonald's.

Under the new deal, Plexure will continue to provide its platform to McDonald's over the next five years, for net positive cash flow per annum, subject to operational performance. This compares to previous losses from the Plexure division.

TASK share price snapshot

Even after today's meteoric rise, TASK is still a minnow in the ASX tech space, currently commanding a market capitalisation of around $135 million.

Shareholders will be hoping the TASK merger will be the impetus of a sustained turnaround after the Plexure business faced a rocky start to listed life on the ASX.

So far, it's been delivering. The TASK share price has rocketed 81% over the last six months. But it's still down 67% since listing on the ASX at the end of 2020.

The post Guess which ASX tech share is rocketing 36% on a huge 'turnaround in profitability' appeared first on The Motley Fool Australia.

But one ASX tech share is leaving the sliding benchmark index in the dust.

Plexure Group Ltd (ASX: PX1), which enables retailers to engage with consumers in real time using connected devices and sensors, is up a whopping 76.4% after earlier posting gains of 90%.

This comes after the company updated the market on its contract with McDonald's Corp (NYSE: MCD) as well as updating its earnings guidance.

ASX tech share extends contract with McDonald's

The big share price moving news out from Plexure is the announcement that it's entered into new agreements with McDonald's for its digital customer engagement platform.

Plexure and McDonald's, the ASX tech share's largest customer, have inked a new five-year contract term, which can be further extended if both parties agree.

The company will continue to provide its platform to McDonald's and forecasts positive annual cash flow, compared to previous losses from its Plexure division. It expects to reduce its cost base while delivering operational improvements.

The ASX tech share's digital customer engagement platform supports 147 million daily customer interactions for McDonald's.

Commenting on the contract extension, Plexure CEO, Dan Houden said:

We are excited about our continued partnership with McDonald's and look forward to working collaboratively toward our mutual goal of delivering excellent experiences for McDonald's customers through our world-leading customer engagement platform.

The renegotiated commercial terms with McDonald's represent the culmination of a major transformation of the Plexure division underway since the merger with TASK.

Houden added that with the transformation complete, Plexure can "focus on driving profitable growth by leveraging its combined technology stack to provide an end-to-end cloud engagement and transaction platform at scale for the global QSR and hospitality sector".

The ASX tech share also is likely getting a lift today from its earnings guidance.

Plexure forecasts total revenue for the year ending 31 March 2023 of approximately NZ$56 million, up from NZ$32.6 million reported in the previous financial year.

Plexure Group share price snapshot

With today's big boost factored in, the ASX tech share remains down 40% in 2020. That compares to a year-to-date loss of 28% posted by the All Tech Index.

The post Guess which ASX tech share is exploding 76% on a new deal with McDonalds appeared first on The Motley Fool Australia.