ASX Quarterlies Top 5: During a market sell-off, your books (or plans) have to impress
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As the ASX becomes flooded with quarterly reports, Stockhead sorts out the best ones so you don’t have to.
“Quarterlies” alludes to ASX company quarterly activity and cash flow reports due on or before the last trading day of the first month after the relevant quarter.
While material company developments are typically recapped rather than announced, a company’s cash position is always watched by investors.
Shares may rally or sell off dependent on results if investors perceive the company is on track or not.
Stockhead has recapped this morning’s stocks that rallied the most after releasing quarterly updates.
Today investor sentiment was firmly in risk-off mode following Wall Street’s lead in light of Germany and France joining Ireland in locking down again.
But there were still a handful of stocks that were winners. This was either because cash flows had improved or their plans appeared that little bit closer to reality.
99 Technology (ASX:NNT), one of the few Chinese plays left on the ASX, was one of the winners.
The stock, known as 99 Wuxian until last February, first listed in 2013 as part of the boom of China-based stocks listing on the ASX.
Nowadays it is a marketing solutions and cloud services provider and last quarter it saw a 99.1 per cent rise in quarterly revenues and 74 per cent spike in gross profit.
HR tech stock Nvoi (ASX:NVO), a parent company of multiple HR technology products, rose too.
The stock surpassed $1 million in quarterly cash receipts, up from $471,000 last quarter.
In a couple of weeks’ time, the company will change its name to “Apply Flow”.
Shares in 99 Technology and Nvoi rose by over 10 per cent in early trade.
Geospatial data micro-cap Aeeris (ASX:AER) was another stock to rise after releasing its quarterly report.
This company specialises in helping governments and enterprises track geospatial hazards.
It saw a net cash inflow from operating activities of $330,775 and reported strong interest from prospective clientele in light of the storm season kicking off, particularly with expected La Nina conditions.
Shares rose by 5 per cent this morning.
Wave energy play Carnegie Clean Energy (ASX:CCE) surged too, despite having little more to report than a recap of the quarter.
The stock spent many years trying to make it work but struggled. While CCE appeared to be onto something when the West Australian government gave it a $16 million contract, the package was ultimately withdrawn, forcing a call to the administrators.
Since then it has opted to take its capabilities digital and is working on various projects including an ‘ocean wave conversion system’ which helps convert waves into electricity and a wave predictor.
Carnegie’s key achievement was being chosen to receive a Microsoft AI for Earth grant. This helps it access Azure’s data science machines and high performance storage which will help it run more effectively.
Rounding out the list of ASX quarterly report winners was diversified resources and energy stock Hexagon Energy Materials (ASX:HXG).
The company has gold and graphite assets but is currently conducting due diligence on a “blue” hydrogen project in the Northern Territory.
It told shareholders it was well advanced in this process and “has formed a good understanding of the next steps required to complete a pre-feasibility study”.
Hexagon also reiterated it walked away from plans to try and commercialise rare earth element (REE) separation technology.
Hexagon shares rose by 33 per cent while Hexagon rose by 13 per cent.