He founded Thorney Group after overseeing the investments of cardboard magnate Richard Pratt and Australia's first billionaire Robert Holmes a Court.

These days he's in the rich list himself, ranked the 73rd wealthiest person in the nation on the current The Australian rankings.

As well as a private fund, Waislitz runs 2 ASX-listed investment funds — Thorney Technologies Ltd (ASX: TEK) and Thorney Opportunities Ltd (ASX: TOP).

He recently named 3 ASX shares those funds hold that he currently has the most hope for:

Signing up massive clients and cash in the bank

Perth business Yojee Ltd (ASX: YOJ) makes software that manages logistics and supply-chain management.

The share price hasn't done a great deal this year, dropping from 20 to 18 cents as of Thursday's market close.

But Waislitz likes how it looks ready for explosive growth.

"This is a company that's progressively signed up 4 of the largest 10 logistics companies in the world," he told a Reach Markets webinar.

"It's got cash in the bank to roll out that growth with those companies and it's time is coming."

For the 2021 financial year, Yojee reported 63% revenue growth — but that failed to sustainably push the stock price up.

The Thorney team is willing to be patient though.

"We're quite excited about them," said Waitslitz.

"It's a company to watch… At the moment the revenues are relatively small, but we're hopeful that over the next 1 to 3 years you might see them really power ahead."

2 engineering ASX shares that'll cash in on infrastructure boom

The other 2 ASX shares, which are both engineering-related, are held by the Thorney Opportunities fund.

Southern Cross Electrical Engineer Ltd (ASX: SXE) provides services to clients like data centres, mining sites, and utilities.

For a business that provides a 6% dividend yield, the share price is very low.

"We think it's really cheap because it's trading at just over 3 times EBITDA [earnings before interest, taxes, depreciation, and amortisation] to the enterprise value," said Waislitz.

"Sitting on cash, it's really well-positioned to win a lot of work into that [resources and infrastructure] thematic."

He also thought management was "too conservative" in its performance forecasts.

Southern Cross shares closed Thursday at 66 cents, after starting the year at 57 cents.

Construction engineering company Decmil Group Limited (ASX: DCG) has just been a nightmare for investors recently.

Its stock price has dropped about 90% over the past 2 years.

But after dealing with those "bad contracts", Waislitz is convinced the ASX share has hit the bottom now.

"They had to recapitalise their balance sheet to deal with their debt and allow them some growth capability, which they've done," he said.

"They've had a change of leadership at the CEO level, which has happened, and some other executives."

The Thorney team thinks Decmil is set to rake in more than $500 million of revenue for the current financial year, compared to $298.1 million for the 2021 financial year.

"In a sense, a new beginning for this company that's been around for a while."

The post 3 ASX shares Australia's 73rd richest person loves appeared first on The Motley Fool Australia.

Yojee shares are now changing hands at 23.5 cents apiece, a 2.08% drop from the open.

Let's investigate further.

Yojee share price sinks following wider net loss after tax

• Revenue from ordinary activities grew 63% year-on-year to $1.06 million from $654,000
• Software revenue increased from $435,000 to more than $860,000
• Network revenue decreased to $203,240 from the year before
• Loss after tax attributable to members increased 83% from the year prior to $11.3 million
• Cash and cash equivalents increased more than 300% to $18.4 million in FY21
• Net cash flows from financing increased to $19.5 million, due to $20 million in proceeds from issue of securities at 20 cents per share
• Loss on earnings per share (EPS) increased from 68 cents to $1.06 per share.

What happened in FY21 for Yojee?

In a potential positive for the Yojee share price, the company increased its revenue from ordinary activities by almost 63% to $1.06 million in FY21.

The bulk of this revenue came from an increase in the company's software revenue, which almost doubled from $435,000 to $860,000 over the year. Network revenue came in quite flat from FY20 at just over $200,000.

This came through the income statement and increased the net loss after tax by 83% from the year prior, from $6.2 million to $11.3 million.

As a result, the total comprehensive loss for FY21 came in at $10.3 million, a significant increase from the $5.9 recognised last year.

Earnings per share also came in behind FY20, recording a loss per share of $1.06 versus 68 cents a year ago.

Despite these headwinds, Yojee left FY21 with $18.4 million in cash, an increase of more than 300% from the year prior.

When analysing its financial statements, we see net cash flows from financing increased to $19.5 million, and this was from the issuance of securities throughout the year which raised an additional $20 million for Yojee. This explains the large increase in Yojee's cash balance from last year to now.

Yojee also stated it has 4 "global enterprise leaders" contracted as of FY21, and more than 100 "leading trucking companies" in its network.

What did management say?

Speaking on the year that was, Yojee managing director Ed Clarke said:

Our SaaS [software as a service] company has experienced incredible growth and monumental agreements over the last year. Solving the biggest problems and making our customers delighted is at the heart of Yojee's success, which we believe will continue to be our competitive advantage in the future and help us grow even faster.

Touching on future technology plans for the business, Clarke added:

A suite of platform enhancements is currently being beta tested with plans for wider rollout throughout 2022 giving us additional revenue streams from new and existing customers. In addition, discussions are well advanced to add to our enterprise customer base as well as growth in the SME space.

What's next for Yojee and its share price?

Yojee's management is "budgeting (revenue) to continue to grow at double-digit rates throughout 2022".

The company also has a "suite of platform enhancements" that are currently in beta testing and set for rollout over the coming year.

From the upgrades, Yojee expects to see additional revenue streams from existing customers. It has also been active in adding to its "enterprise customers base as well as growth in the SME space".

Given the uncertainties still surrounding the Covid-19 pandemic, management did not provide specific revenue or earnings guidance in its FY21 report.

The Yojee share price has climbed 20% this year to date and has gained 33% over the last 12 months. These results have outpaced the S&P/ASX 200 index (ASX: XJO)'s return of about 25% over the past year.

The post Yojee (ASX:YOJ) share price slides despite 63% revenue growth in FY21 appeared first on The Motley Fool Australia.

So what might be going on today to cause such a dramatic jump in this software company's valuation?

A business update…

Well, it appears that a business update that Yojee released to investors this morning just before the market open might be the primary catalyst for this move today.

In this update, Yojee informed the markets that it has signed a major expansion agreement with an "existing global enterprise customer". This agreement will, according to Yojee, "clear the way for deployment from one country at present to 18 additional countries across APAC [Asia Pacific Region].

Yojee said the agreement covered "major parts of the customers' operations including distribution and warehousing logistics along with e–commerce". It is also effective for a minimum term of 3 years across these 18 countries.

Here's some of what Yojee managing director Ed Clarke had today on this announcement:

We are pleased to report this latest development, coming only a short time following announcing an expansion order in the Philippines last week with the same global enterprise customer. Importantly, this significantly increases Yojee's directly addressable revenue–generating parcel movements…

Our embedded growth roll-out strategy is materialising as expected and supports our goal of rolling-out to 126 Logistics Hubs over 3 years with global enterprise customers whom we are already working with operating in APAC. With nearly $20m of cash to fund this growth, our team is confident and focused on creating great customer outcomes.

Evidently, investors are sharing in this optimism today, judging by the performance of the Yojee share price today so far

About the Yojee share price

Yojee is an ASX tech company specialising in cloud-based logistics. Its online platform is supplied on a software-as-a-service (SaaS) model, with customers paying a monthly fee to use the service. Although the Yojee share price is on fire today, the company's success over the past year or two has been more patchy.

Yojee shares are currently down more than 35% from the 52-week high of 29 cents that we saw back in September last year. They are also down 20% year to date so far in 2021. However, the company is up 167% over the past 5 years.

At the current Yojee share price, the company has a market capitalisation of $171.65 million.

The post Here's why the Yojee (ASX:YOJ) share price is up 31% today appeared first on The Motley Fool Australia.

The Yojee share price is up 6.67% at the time of writing, trading at 16 cents per share.

Yojee delivers logistics and supply-chain management capabilities via its blockchain and artificial intelligence (AI) software to Southeast Asia and Australia.

The company is a cloud-based Software-as-a-Service (SaaS) logistics platform that manages, tracks and optimises freight movements throughout the logistics chain, from sender to end customer. It crosses borders and between logistics providers (land, sea, air), with subcontractors for multi-leg journeys.

In essence, it's a software company that brings the management of trucking fleets into the digital age.

Inside Yojee's quarterly report

Yojee's March-quarter FY2021 activity report is focused on the company's record growth and the expansion of its regional network. 

The company has achieved record growth in revenues from ordinary activities of 36% and cash receipts of 42% for the March-ended third quarter of FY2021.

The company's recent expansion of its global logistics pipeline is beginning to bring in revenue. Yojee noted that its six Enterprise Client Logistics Hubs (with global top 10 freight forwarders) across five different countries are now generating revenue.

Two further hubs are currently undergoing platform implementation across two countries. 

87 trucking companies across the Asia Pacific region have adopted Yojee's software during the quarter, which the company says creates "huge potential for further buildout". 

Yojee reports a strong cash runway with AU$19.8 million in its bank at 31 March 2021. It's currently in discussions with existing and new enterprise clients for Yojee to expand its presence across the supply chain in the Asia Pacific region and beyond.

It says that significant progress has been made laying the foundations for its future growth, and it expects another record quarter looking forward.

Yojee share price snapshot

Yojee's strong revenue increases quarter-on-quarter in FY21, combined with its bullish expectations for future growth, have been pushing its share price higher in the past week. Broker recommendations have also assisted these gains.

The Yojee share price is up 6.9% this month but is down 22% in 2021 so far. Overall, it's up 355% over the past 12 months.

The post Why has the Yojee (ASX:YOJ) share price surged 6% today? appeared first on The Motley Fool Australia.

Yojee's customers include third-party logistics providers and logistics companies which benefit from powerful APIs (application programming interfaces) as well as enhanced visibility, accountability, and control. Following the company's December quarterly update, Euroz Hartleys initiated coverage on the small-cap ASX tech share with a speculative buy rating. 

December quarter highlights 

At the end of the December quarter, Yojee had eight enterprise countries signed up to operate its platform. Of these, four were revenue-generating, boosted by three global, top-10 freight forwarding clients. The company continued to see strong growth in cash receipts with an 18% increase to $235,000 in the December quarter and revenues of $204,000. To add some perspective, Yojee has a market capitalisation of just $186 million. 

Yojee noted that volumes during the quarter were impacted by unprecedented weather events and COVID-19 related lockdowns during the period, especially within the Philippines. It highlighted that the business will offer promotions and aggressively market into early CY21 to make up for the lower than anticipated volumes.

The company's balance sheet remains flexible, finishing the December quarter with $21.1 million cash, providing the company with a strong runway for growth. 

ASX tech share a speculative buy rating  

Hartley was broadly pleased with Yojee's progress on rollouts during the quarter, in addition to receiving an Indonesia expansion order from an existing client. The broker noted that it would have liked to have seen more quarter-on-quarter growth in volumes and revenues, but the company's dependency on the Philippines was impacted by unprecedented weather events and lockdowns.

Despite slightly missing expectations, the broker looks towards significant transaction volume growth in the coming quarters from recent and coming rollouts. In parallel, Yojee continues to provide commentary on a strong pipeline of additional opportunities to expand existing agreements and potentially sign new ones. 

The research note shed light on the global logistics sector and potential tailwinds for the ASX tech share. Hartleys cited that the global logistics industry is estimated to be worth around US$9 trillion annually, with the number of parcel movements alone forecast to surpass 100 billion this year and double to 200 billion by 2025. It pointed out that industry-wide changes are creating new demands and issues, driving rapid increases in digitisation, such that Yojee's comprehensive cloud-based logistics SaaS platform could be well placed to solve these issues. 

Hartleys identified that recently secured agreements show growing demand for Yojee's platform. These include agreements with three major global logistics companies which have $100 billion in combined revenues. The broker's bullish investment case is predicated on the rollout of its logistics platform with logistics heavyweights including Geodis, Kuehne+Nagel, and Maersk's in parallel to signing new SaaS agreements. Its speculative buy rating comes with a price target of 50 cents, almost triple its current share price of 17 cents.

The post Broker eyes rapid growth for this small cap ASX tech share appeared first on The Motley Fool Australia.

The regulators also acknowledged the volatile share price had caught their attention, with iSignthis's management releasing a press release yesterday claiming there's nothing to worry about and that it has faced audits before with no problems. 

In early September the payments and identity business was the target of a scathing report from independent financial watchdog Ownership Matters that questioned its disclosure around share ownership, related party transactions, and the meeting of a revenue target that released large amounts of performance rights (shares) to management. 

iSignthis responded that the targets were met legitimately and Ownership Matter's assertions were incorrect or misrepresented how performance targets were met. The matter is complex, but whether management met performance targets or not isn't really material to the underlying operating business or its outlook. 

iSignthis's true value will depend on the credibility of a business model it boasts merges a payments and ID verification eco-system for enterprise financial services clients.

The company also claims to be in the process of applying for a banking license as it pushes into the banking software, payments, and API spaces. 

Over the six months to June 30 2019 it reported a loss of $729,190 on revenue of just $7.4 million, compared to a market cap around $1.16 billion based on a $1.07 share price and 1.09 billion shares on issue. 

It has also disclosed to the ASX that it earns fees as a percentage of the gross processing turnover volume (GPTV) of the payments its enterprise clients process. What it defines as revenue can be earned in multiple other ways also disclosed in the second chart below including merchant service fees (MSF) multiplied by GPTV. 

Source: iSighthis presentations, Oct 1 2019, and Jan 31 2019. 

The day prior to the regulators pulling the plug on the share trading it reported annualised GPTV had grown $800 million over just the month of September to $1.9 billion. 

Since the end of just April 2019 the annualised GPTV has climbed nearly 6x from $380 million to more than $1.9 billion according to iSignthis.

If iSignthis is able to simply claim fees on payment volumes it would be a powerful business model especially given the breakneck GPTV growth rates it's reporting. 

These eye catching numbers, the previous bad press, and ballistic share price appear to have spooked regulators into action. 

The business model is complex and the trading halt imposed by regulators is an ominous sign given the laissez faire or caveat emptor approach usually taken until a company blows itself and shareholders' capital up.

In other words it's pretty hard to get yourself suspended unless the regulators have serious concerns over disclosure or other compliance with financial services laws.

Previous 'tech' companies that soared on dubious to false representations only to crash include Getswift Ltd (ASX: GSW), Yojee Ltd (ASX: YOJ), Reffind Ltd (ASX: RFN) and 1-Page Ltd (ASX: 1PG).

In fairness to iSignthis it is reporting material sales so is in a different league to the sorry bunch above, if we assume that what comes out of the regulatory wash up is not too serious.

This story is set to rumble on for a while yet. 

The post Will the iSignthis share price sink or swim on its return to trade? appeared first on The Motley Fool Australia.

Only yesterday the stock rocketed 15% from 93 cents to $1.07 on the back of a company announcement boasting that actual annualised gross processing turnover volume (GPTV) across its 'Paydentity Ecosystem' stood at more than $1.9 billion as at September 30, 2019. 

As at August 30 2o19 it reported GPTV had grown to $1.1 billion, which means the additional $800 million in GPTV over the last month is an eye catching achievement.

So eye catching that it appears to have spooked regulators into action, with its rocketing "GPTV" growth over the last 12 months propelling the stock from 16 cents to $1.07 today

iSignthis reports its business model is to provide client ID verification and 'payment services' via its platform to enterprise users, with the GPTV rocketing as more enterprise users sign up. It claims to deduct fees from GPTV which if true would be an excellent business model, although it has yet to really demonstrate it. 

It reported a $384,000 operating loss on $7.4 million in sales revenue over the six months to June 30, 2019, with cash on hand around $9.9 million as at the period end.

The market cap has ballooned to $1.07 billion based on a whopping 1.089 billion shares on issue with independent financial watchdog Ownership Matters recently questioning its corporate governance. 

Based on the financials and hazy business model no serious investor would buy into the business at today's valuation, with the trading halt imposed by regulators an ominous sign.

The suspension is most likely related to iSignthis's disclosures, corporate governance, and general compliance with the financial services laws.

Other high flying tech or start-up type stocks to come crashing back to earth recently include GetSwift Ltd (ASX: GSW), BigUn Ltd (ASX: BIG) (now defunct) Yojee Ltd (ASX: YOJ) and 1-Page Ltd (ASX; 1PG) (now defunct).

The post Here's why shares in $1 billion tech player iSignthis just got suspended by ASIC appeared first on The Motley Fool Australia.

I must admit to being no GoT expert, but I do know if some people spent as much time researching the stock market as they do watching the show then they'd be among the world's leading investing experts.

In fact GoT's wild popularity even has a few lessons for aspiring investors on how to make money in the real world.

So here we go.

1. "Be careful who you trust"  – like GoT the share market is full of story tellers boasting of big things, but constantly crashing back to earth. Therefore investors must be careful in deciding what companies are telling a story to impress and what companies are the real deal in generating consistent profit growth. Which side of this line you end up will be a huge driver of your overall returns.

2. "Don't believe the hype" given the panning the final season of GoT received from the media and public we know that hype and expectation can sometimes lead us into making mistakes in the share market. For example a lot of speculators bid the likes of speculative stocks like Splitit Ltd (ASX: SPT), Yojee Ltd (ASX: YOJ), GetSwift Ltd (ASX: GSW) and Auscann Ltd (ASX: AC8) scarily high on nothing but tall tales. Only to be confronted with painful price plunges later.

3. "The biggest risk, may be not taking enough risk" – GoT is all about getting ahead in life, which is a shared aim of many share market participants. So while the first two lessons may seem a little scary it's important to remember there's no reward without risk in the share market with the two inversely correlated. So assuming you've learned how to identify and avoid the pitfalls then taking on more risk in terms of buying growth-oriented companies (over income-oriented companies) makes sense if you want to end up on top.

4. "Winter isn't coming" – the media is constantly full of headlines predicting a coming crash or King Joffrey-style share market Armageddon, although over the long term developed share markets have always gone higher. Therefore attempting to avoid Winter by selling out ahead of an anticipated cold snap is usually an expensive mistake.

So don't be afraid of the dark….

And apologies for any inadvertent spoilers, but the good thing about the share market over GoT is nobody knows what will happen before you.

This gives you a potential edge to find and buy companies that could be bigger global hits than GoT in the future.

Luckily, I'm happy to personally recommend one of the businesses named below as a potentially massive hit and I even bought shares in it myself not that long ago….

The post 4 investing lessons from Game of Thrones appeared first on The Motley Fool Australia.

Here's a short recap of the Australian market:

• S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) higher 0.71% to 6,284.20
• ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) higher 0.69% to 6,370.90
• AUD/USD at US 69 cents
• Gold at US$1,294.17 an ounce
• Brent Oil at US$71.01 a barrel

The best-performing ASX 200 share today was the Eclipx Group Ltd (ASX: ECX) share price which climbed 11.7%.

The share price of Yojee Ltd (ASX: YOJ) rose by 66.7% after announcing a 3-year services agreement with a global logistics provider.

The DuluxGroup Limited (ASX: DLX) share price barely moved after reporting its result and declaring a special dividend.

The share price of LIC Wam Global Ltd (ASX: WGB) rose 2.8% as investors reacted to the size of the discount to its underlying assets outlined at the end of April 2019.

Supermarket wars are continuing as the Woolworths Group Ltd (ASX: WOW) share price fell 0.1% as investors learned the supermarket company cut prices in an online-only sale on over 1,000 products.

The share price of car dealership business AP Eagers Ltd (ASX: APE) increased by 0.2% despite providing an update about how its operating profit expectations.

The Syrah Resources Ltd (ASX: SYR) share price rose 9.3% today, making it one of the best-performing ASX 200 shares.

Finally, the gold sector lost a bit of its gloss today as the share market recovered the losses of yesterday somewhat. The Regis Resources Limited (ASX: RRL) share price fell 2.1%.

Here are some of today's top stories:

• 1 key investment lesson I've recently learned
• Why I would buy and hold SEEK and 2 other ASX shares
• Is the Coles share price a buy?
• 3 exciting small cap ASX shares to watch

The post All Ordinaries finishes higher and 8 shares you might have missed appeared first on The Motley Fool Australia.

This morning the logistics and supply chain management platform provider's shares returned from their trading halt and rocketed as much as 52% higher to 12 cents.

At the time of writing the Yojee share price is up 39% to 11 cents.

Why did the Yojee share price rocket 52% higher today?

This morning Yojee announced a 3-year master services agreement with global logistics provider Geodis Singapore. After which, unless terminated, the agreement will renew for successive 12-month periods.

According to the release, the agreement will govern multiple projects across the Asia Pacific region where Yojee will provide its software as a service (SaaS) logistics and supply chain management technology on a project by project basis on standard commercial terms.

However, at this stage Yojee does not believe the impact of the master services agreement will be financially material due to the variability and difficulty in estimating transaction volumes and project scopes.

What is Geodis Singapore?

Geodis is a top 10 global forwarder and sea, air, and road transport leader.

It is aiming to digitise its logistics operations, optimise efficiency, and enhance customer experience across Asia Pacific for land transport and cross-border logistics.

The latter includes express, line haul, and container trucking, and can be both domestic and across borders in Asia, which is where Yojee's proprietary software provides unique advantages in areas such as visibility, compliance, and invoicing.

Yojee's managing director, Ed Clarke, appeared to be very pleased with the agreement.

He said: "We are excited to be selected for this opportunity as we have strategically aligned ourselves to the current needs of the market with innovative technology and are uniquely positioned both technically and geographically to understand and deliver a solution against the requirements of Geodis, a true global leader. This milestone validates our mantra of any business of any size, and also proves the capabilities of our world leading logistics technology."

Other options in this space on the ASX include logistics solutions company WiseTech Global Ltd (ASX: WTC).

The post Why the Yojee share price rocketed 52% higher today appeared first on The Motley Fool Australia.

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

The Evolution Mining Ltd (ASX: EVN) share price has fallen 5% to $3.42 after a sharp decline in the gold price on Friday. At the time of writing the spot gold price is fetching US$1,296 an ounce, meaning it has fallen almost 4% in the less than two weeks. Almost all gold miners have sunk lower today, leading to the S&P/ASX All Ords Gold index tumbling 3.4% this afternoon.

The FBR Ltd (ASX: FBR) share price has continued its slide and is down a further 6% to 9.9 cents. This latest decline means that the robotics company's shares have dropped around 29% over the last three weeks. The catalyst for this has been a recent $17 million placement at 10.5 cents per share. These funds will be used to continue the "development and testing program for the Hadrian X and its transition into the WaaS business."

The Japara Healthcare Ltd (ASX: JHC) share price has dropped 4% to $1.36 despite there being no news out of the aged care provider. However, prior to today Japara's shares had rallied 27% since the start of the year. This could mean that some investors are taking a little bit of profit off the table today.

The Yojee Ltd (ASX: YOJ) share price has plunged 13% lower to 6.7 cents. After the market closed on Friday the logistics technology company released its half year results and revealed revenue of $0.9 million and a loss of $2.5 million. The company finished the period with a cash balance of $6 million, which could mean another capital raising is necessary in the near future.

The post Why Evolution Mining, FBR, Japara, & Yojee shares started the week in the red appeared first on The Motley Fool Australia.

For the quarter ending December 31 2018 Admedus reported revenues of $6.4 million, but operating costs around $11 million to lead to an operating cash loss of $5.8 million.

Of the costs $6.3 million went on staff costs and $2.5 million on "corporate and administrative" over the quarter.

Worse news is that the group is forecasting cash outflows of $15.5 million in the current quarter which look unlikely to be offset by much more than the $6.4 million it earned in the current quarter.

Of the $6.4 million in last quarter's sales, $3 million came from its ADAPT business and $3.5 million from its Infusion division.

The group now has cash on hand of just $12.036 million despite conducting multiple capital raisings from long suffering retail speculators over the last 5 years.

It also looks likely Admedus will have to raise more money or take on debt within about a year if its current cash burn trajectory continues in a gloomy sign for anyone continuing to hold shares.

The company even managed to raise $19 million over the recent quarter from "investors" who will likely be feeling underwhelmed by today's update on cash flows.

It's hard to find anything positive to say about this business given its track record and large costs have returned huge losses to unsophisticated retail investors seemingly buying into its story oblivious to the reality of the cash flows.

I've warned repeatedly over the past 4 years about the danger of large losses to shareholders in this business and I don't expect that status quo to really change unfortunately.

The stock is down 95% or more in 4 years and Admedus is not alone in blowing up shareholder capital at the speculative end of the market, with others like Yojee Ltd (ASX: YOJ) and ResApp Health (ASX: RAP) also letting down a lot of less-sophisticated retail investors.

Serious investors avoid speculative capital sinkholes in favour of companies making profits and paying rising dividends, as that's how you create real wealth for you and your family….

The post Why the Admedus share price is sinking again on more big losses appeared first on The Motley Fool Australia.

For the quarter ending September 30 2018 Yojee reported just $118,000 in revenue and an operating cash loss of $2 million, with just $7.6 million cash on hand after it completed an $8 million capital raising at 10 cents per share in July 2018.

Yojee claims to use blockchain technology and artificial intelligence to boost its software-as-a-service last mile delivery logistics product, but investors clearly aren't expecting much for the last quarter of 2018 given the share price just hit a 52-week low.

This time last year the stock sold for 35 cents, but the stock has shed 83% of its value since then.

Another "software-as-service delivery logistics" business struggling to deliver on its boasts that previously included partnerships with Amazon and the Commonwealth Bank of Australia (ASX: CBA) is GetSwift Ltd (ASX: GSW).

Its share price has fallen from $3.32 this time last year to 38 cents today and neither Yojee or GetSwift are likely to impress value investors.

The post Why the Yojee share price just hit a 52-week low appeared first on The Motley Fool Australia.

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

The Altura Mining Ltd (ASX: AJM) share price is down over 3% to 15 cents. The majority of the lithium miners are in the red today, possibly due to profit taking following a rally in their respective share prices over the last few trading days. This decline means the Altura share price has lost two-thirds of its value in 2018.

The Galaxy Resources Limited (ASX: GXY) share price has dropped 2.5% to $2.17. As well as being caught up in the general lithium miner weakness today, this morning Galaxy provided an update on its Sal de Vida operation. The market appears disappointed that it has yet to find a strategic partner despite being in negotiations with numerous suitors.

The Wellard Ltd (ASX: WLD) share price has tumbled almost 7% to 5.5 cents after the cattle exporter announced that it has received preliminary reports that the Turkish Government has imposed a halt on the import of live feeder cattle into Turkey from all countries. Management warned that at this stage it is not possible to predict the impact it will have on the company's shipping schedule in 2019.

The Yojee Ltd (ASX: YOJ) share price has continued its slide and is down a further 3% to 6.4 cents. At one stage today the logistics software company's shares were trading at a 52-week low. Investors appear disappointed with the company's financial performance this year despite countless promising announcements over the last couple of years. In the September quarter the company reported cash receipts of just $118,000 compared to outflows of $2 million.

The post Why Altura Mining, Galaxy Resources, Wellard, and Yojee shares are sinking lower today appeared first on The Motley Fool Australia.

For the quarter ending September 30 2018 the Asia and WA-based business posted just $118,000 in revenue and an operating cash loss of $2.02 million, with $7.64 million cash on hand after completing an $8 million capital raising over the period.

In other words Yojee has less than a year's worth of cash on hand assuming current run rates before it has to raise more capital, find another source of investment, or borrow money. The debt option is unlikely as bankers don't tend to lend to cash burning businesses with little revenue even if they do have a good story to tell.

The story did impress less-sophisticated retail investors earlier in the year though with the Yojee share price getting to a remarkable 36 cents in early 2018 to give it a market value more than $290 million despite the lack of revenue.

These kind of odd valuations tend to be reserved for software businesses on the ASX that have sold speculators an exciting story, as we also saw with GetSwift Ltd (ASX: GSW) in late 2017 when its share price went above $4 before falling 90% over a year later to 40 cents today.

One problem Yojee now has is that its receipts from customers for the September 2018 quarter are actually lower than the $139,000 posted in December 2017 quarter, which shows how the company's financials don't match its boasts.

Another factor weighing down the share price is that if it has to raise capital again it looks likely to be at a low share price (it's currently 6.7 cents for example), which means existing holders will be diluted even more as shares on issue balloons. Raising money at ever lower prices can act as a weight on a stock as, inter alia, any future earnings will have to be shared around wider.

At its AGM Yojee told investors how "logistics" is expected to be a $15.5 trillion annual revenue market by 2023, with it also talking of its new clients, SaaS, and blockchain capabilities.

However, as you can probably tell, I'm not a buyer of the Yojee story, as I prefer companies with revenues and profits, but which way Yojee's share price goes in the years ahead remains unknown.

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Not all shares have been dragged lower with the market, though. The three small cap shares listed below have started the week with strong gains. Here's why:

The AVZ Minerals Ltd (ASX: AVZ) share price has raced 5% higher to 8.2 cents despite there being no news out of the lithium-focused mineral exploration company. Last week the company's shares surged higher momentarily following a positive update on its scoping study. That update revealed that it has made positive revisions to its scoping study that means estimates for its free on board (FOB) cash costs have been reduced to US$297 per tonne. This was 16% lower than its initial estimate. I suspect the market is sceptical that this will prove to be an accurate estimate.

The Telix Pharmaceuticals Ltd (ASX: TLX) share price has climbed 3.5% to 73 cents after the biopharmaceutical company announced the acquisition of Advanced Nuclear Medicine Ingredients (ANMI). According to the release, the company has acquired the Belgium-based pharmaceutical company for €3.15 million in Telix shares priced at a premium of $0.83 per share and $2 million in cash. Management believes the transaction will provide the company with exposure to the rapidly growing demand for prostate imaging services outside the United States. I think this looks like a great move from management and could be a big boost to its revenues over the coming years.

The Yojee Ltd (ASX: YOJ) share price has pushed 4.5% higher to 7.2 cents after the logistics software provider released a trading update. According to the release, Yojee has had a positive month with six new SME customer additions and a major upgraded agreement achieved so far in November. In addition to this, it advised that Sinotrans Integrated Logistics Australia has now deployed the company's partner model across partners in four states of Australia and this growth is expected to continue over the coming months. While this sounds promising, the release was light on financials. I would suggest investors wait to see what impact this has had on its cash receipts at its next quarterly update.

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

The Bega Cheese Ltd (ASX: BGA) share price has given back yesterday's gain and fallen 4.5% to $7.66. The foods company's shares rose strongly on Wednesday after it announced the $250 million acquisition of the Koroit Facility in Victoria owned by Murray Goulburn. A note out of UBS this morning reveals that it has retained its buy rating and $7.90 price target, but that hasn't been enough to keep some shareholders on board.

The Northern Star Resources Ltd (ASX: NST) share price has dropped almost 3% to $6.95. Today's decline could be attributable to a note out of Credit Suisse. That note revealed that the broker has retained its underperform rating and $5.20 price target on this gold miner's shares following the release of its latest production update. Its analysts appeared to be disappointed with Northern Star's guidance.

The Yojee Ltd (ASX: YOJ) share price has fallen almost 4.5% to 11 cents. Yojee's shares rose strongly on Wednesday after announcing a two-year agreement with Riverwood Pte Ltd to provide its logistics software. While the announcement sounds positive, investors are being cautious and appear to be waiting to see how much revenue is actually generated from the deal before acting.

The Zip Co Ltd (ASX: Z1P) share price has tumbled 3.5% to $1.01 despite reporting a record quarterly result this morning. Zip achieved its highest quarterly transaction volume, up 26% to $171 million during the quarter. In addition to this, it reported record revenue of $13.2 million, an 18% increase on the previous period.

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Four shares that have climbed more than most on Wednesday are listed below. Here's why they have surged higher:

The BHP Billiton Limited (ASX: BHP) share price has pushed over 3.5% higher to $33.70 following the release of the mining giant's operational review for the 12 months ended June 30. The market appears to have been impressed with the update and how BHP met or exceeded full year production guidance for petroleum, copper, iron ore, and energy coal. It also met revised guidance for metallurgical coal. I believe this demonstrates why the miner is arguably the best resources share on the ASX.

The Mesoblast limited (ASX: MSB) share price has zoomed almost 11% higher to $1.77 after the innovative cell-based medicines developer announced that it has entered into a strategic alliance with China's Tasly Pharmaceutical Group for its MPC-150-IM and MPC-25-IC product candidates in China. Tasly, one of China's largest pharmaceutical companies, will receive exclusive rights and fund all development, manufacturing, and commercialisation activities in China for the product candidates.

The Technology One Limited (ASX: TNE) share price has continued its solid run and is up a further 6.5% to $5.05. The enterprise software company's shares have risen over 15% in the last two days after announcing changes to its accounting policy for FY 2019. The adoption of these new accounting policies will make the reporting of its fast-growing SaaS business simpler.

The Yojee Ltd (ASX: YOJ) share price has raced 6% higher to 12.2 cents after the logistics and supply chain management platform provider announced a two-year agreement with Riverwood Pte Ltd to provide its logistics software. Riverwood is a Singapore-based provider of customised logistics solutions working with the likes of DHL, FedEx, SingPost, TNT, and Amazon in Singapore.

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At the time of writing the logistics and supply chain management platform provider's shares are up 13% to 13 cents.

Why are Yojee's shares surging higher today?

This morning Yojee announced that it has signed a two-year agreement with Riverwood Pte Ltd to provide its logistics software.

Riverwood is a Singapore-based provider of customised logistics solutions which are integrated into its customers' existing business processes and systems.

According to the release, Yojee's software will be used off the shelf by Riverwood, and a partnership program is in place to further optimise and innovate between the two parties. Though any custom innovation beyond what has already been agreed between the parties will be paid.

In addition to this, Riverwood will offer its freight services as a partner to the Yojee freight network.

Is this worth getting excited about?

Management believes the agreement is significant due to the calibre of Riverwood and its presence in the Singaporean market.

Yojee will receive 20 U.S. cents for each transaction that is completed by Riverwood through Yojee's logistics software. These include deliveries and partner transfers, though marginal discounts will be provided based on volume levels.

No details have been provided in respect to transaction estimates, but the company has pointed out that Riverwood has a number of key contracts in place and commencing soon. These include deals with DHL, FedEx, SingPost, TNT, and Amazon in Singapore for its 2-hour PrimeNow delivery service launch.

Should you invest?

While this is a promising announcement and the company is cashed-up after a recent oversubscribed share placement, I would suggest investors keep their powder dry for the time being and wait to see what kind of revenue this generates over the next six months.

Until then, I think tech shares such as Altium Limited (ASX: ALU) and WiseTech Global Ltd (ASX: WTC) could be better options.

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Four shares that have fallen more than most today are listed below. Here's why they have started the week in the red:

The Accent Group Ltd (ASX: AX1) share price has crashed almost 15% lower to $1.37 after the retailer advised that 36.8 million shares issued to shareholders of Hype DC Pty Ltd will be released from escrow on August 4. Some shareholders appear to be concerned that these escrowed shares will be sold off immediately and are jumping the gun. I think the selloff has been an overreaction and has potentially created a buying opportunity. Incidentally, HYPE DC shareholders received their shares at an issue price of $1.42 per share.

The Praemium Ltd (ASX: PPS) share price has tumbled almost 8% to 96 cents. This decline appears to be a case of profit taking after the fintech company's shares rocketed higher last week following the release of its latest funds under administration (FUA) update. Record annual inflows means that FUA have now exceeded $8 billion.

The Rural Funds Group (ASX: RFF) share price has dropped almost 4% to $2.02. I suspect that this decline is related to its institutional offer and related 3 for 10 accelerated pro rata non-renounceable entitlement offer at a discount of $1.95 per unit. Rural Funds aims to raise $149.5 million to fund the acquisition of five Australian feedlots and associated cropping land.

The Yojee Ltd (ASX: YOJ) share price has sunk almost 8% lower to 12 cents after the logistics platform provider completed its $8 million share placement. The funds raised, at 10 cents per share, will be used to build out Asia-Pacific marketplaces, advance leadership in smart logistics optimisation technologies, expand geographical sales presence, and fast-track customer adoption.

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