Sorting the good from the bad. (Pic: Getty)
The picks and flicks of today’s ASX small cap quarterlies & financial outlooks
News
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The ASX may be flooded with quarterlies and outlooks but that has not prevented a handful from standing out for good or bad reasons.
Picks
Software stock LiveTiles (ASX:LVT) has gained 11 per cent this morning. As at September 30 it has $42.9m in annualised recurring revenue, up 8.6 times in two years and up 131 per cent in the last year.
The company also reported 952 paying customers and promised more customer and revenue growth to come.
CEO Karl Redenbach told shareholders he was pleased with the result but his company only had a market penetration of 1 per cent to date and saw enormous opportunity ahead.
Earbud maker Nuheara (ASX:NUH) rose a more modest 3 per cent but still recorded impressive figures. Cash receipts from customers came in at $452,000, up 39 per cent from the previous quarter.
In the prior quarter, the company began a retail initiative with Best Buy in North America and it became a registered NDIS provider. It sold some of its mining interests in Peru and is seeking to sell others.
Infant formula stock Jatenergy (ASX:JAT) had its second straight cash flow positive quarter. It recorded $12.7m in cash receipts and $1.06m net cash from operations.
Shares rose 8 per cent this morning, though shareholders may have been more excited about news of its foray into the plant-based meats sector this morning. It will collaborate with a private food processing company, Oppenheim, to develop plant-based meat products.
Flicks
Financial services-focused tech stock Vortiv (ASX:VOR) fell 13 per cent this morning mainly due to two metrics falling short of previous estimates.
While cash receipts from customers had grown 73 per cent from last quarter, they were 10 per cent lower than it had expected because customers were taking longer than expected to pay.
Secondly, its net operating cash flow was only $600,000 when it had previously forecast $900,000. Again the reason was customers delaying payment.
Wood fibre exporter Midway (ASX:MWY) is down 18 per cent after announcing a weaker outlook in the months ahead.
This is due to falling pulp prices because of lower demand in the Asia Pacific Region. It expects first half earnings in FY20 to be over 50 per cent lower than the previous corresponding period.
Also, an investment into a logistics business had to be written off to the tune of $2m. But chairman Greg McCormack believes the imbalance will be short lived and prices have stabilised.
