The Food Revolution Group Ltd (ASX: FOD) share price had a very healthy day today. The share price was sent shooting for the sky after the company provided an update on sales of its product at Coles Group Ltd (ASX: COL), and new deals with Woolworths Group Ltd (ASX: WOW) and Metcash Limited (ASX: MTS).

The Food Revolution share price was as high as 4.4 cents today – up 18.5%. At close of trade, shares in the food producer had retreated and are trading for 4 cents each – up 8.11%.

Let's take a closer look at Food Revolution's announcement with Coles and Woolworths.

What did Food Revolution announce today?

In a statement to the ASX, Food Revolution Group announced Metcash will sell its 'Juice Lab Super Shots' from April. As well, Woolworths Supermarket and Metro stores will stock the item from May. On 9 March, the company began selling its products at Coles stores.

In its announcement, Food Revolution said sales for the 60mL drink were already exceeding expectations. Coles ranges the 'Super Shots' in over 1000 stores already. The group sells the drink in 3 varieties – 'Focus', 'Immunity', and 'Digest'.

Coles sells the product for a base price of $3.50, although this week it is on special for $2.00.

Words from the CEO

Speaking on today's announcement, Food Revolution CEO Tony Rowlinson said

We are delighted as to the positive response to Juice Lab Wellness shots by our retail partners. Having FOD's largest customer Woolworths onboard is a fantastic outcome.

The initial consumer offtake in Coles has been excellent and the team have done a good job meeting the increased demand. With consumers globally seeking products that deliver against immunity and provide functional benefits due to COVID- 19, we are well positioned with our extended range of wellness beverages and carbonated beverages to be rolled out into the market.

Getting the Juice Lab shots ranged provides us with the catalyst to introduce extended Juice Lab offerings.

The company estimates the Australian health and wellness market to be valued at $650 million.

Food Revolution share price snapshot

Despite today's impressive gains, Food Revolution has been on a downward trend over the past year. 12 months ago, shares in the company were swapping hands at 7.2 cents each – a 41.7% drop in share price at today's rate.

In fact, at the end of 2018, the Food Revolution share price was as high as 20 cents.

Food Revolution's market capitalisation is $33.2 million.

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The Food Revolution Group Ltd (ASX: FOD) share price surged as much as 26% earlier today to a high of 4.8 cents. This uplift came after the company announced it would begin selling product in Coles Group Ltd (ASX: COL) and Metcash Limited (ASX: MTS) stores.

At time of writing, the Food Revolution share price has retreated to sit at 4.2 cents – up 10.5% on yesterday's close. In comparison, the S&P/ASX All Ordinaries Index is up 0.73%.

Let's take a closer look at what Food Revolution announced and how it is affecting its share price.

What did Food Revolution announce today?

In a statement to the ASX, Food Revolution Group announced the launch of its 'Juice Lab Super Shots' in supermarkets around the country. While 9 variants of the product exist, only 3 are being launched at this time — the "Focus", "Immunity", and "Digest" varieties.

The products are already on sale at Coles and soon to be on sale at IGA and other Metcash stores. Coles is selling one 60ml drink for $3.50.

Initially, the product is being sold in 160 stores, but the company expects this to expand to over 1800 stores. Additionally, Woolworths Group Ltd (ASX: WOW) has been approached by Food Revolution

Food Revolution Group CEO, Tony Rowlinson, commented:

Being first to market with a 'all-natural plant based' product in the Wellness beverage category is a massive achievement. The US who lead the world regarding 'better for you' beverages has seen a dramatic growth of 'all natural, pick- me up shots & tonics' impacted by COVID -19. Preventative Foods & Beverages is the fastest growing sector within the $4.8Bn US market.

Later in the day, the company issued a clarifying note on its announcement. In it, Food Revolution states sales are exceeding expectations.

The expected run rate when Coles launched the range was that the range would sell 2 units per store per week. Following 3 weeks of the shots being available in over 160 Coles stores, the range of 3 variants are selling 6 to 7 units per store per week. This is 200% higher than expectations.

The company estimates the "[Australian] health and wellness market" to be valued at $650 million.

Food Revolution share price snapshot

Despite today's impressive gains, Food Revolution has been on a downward trend over the past year. 12 months ago, shares in the supplier were swapping hands at 8 cents each – a 43.8% drop in share price at today's rate.

In fact, at the end of 2018, the Food Revolution share price was as high as 20 cents.

Food Revolution's market capitalisation is $35.3 million.

The post Why the Food Revolution (ASX:FOD) share price rocketed 26% today appeared first on The Motley Fool Australia.

The S&P/ASX 200 index (ASX: XJO) has followed the lead of U.S. markets and is trading notably lower again on Friday. At the time of writing the benchmark index is down 6.7% to 4,947 points.

Four shares that have managed to avoid the selloff today are listed below. Here's why they are pushing higher:

The Cynata Therapeutics Ltd (ASX: CYP) share price is up over 3% to 77.5 cents. Earlier this week the biotech company advised that its the current Phase 2 trial plans remain on track and it currently has no logistic or supply chain issues arising from the COVID-19 outbreak. Cynata also revealed that it is in discussions with international pharmaceutical companies about the potential of its Cymerus MSCs to be a useful adjunct in the management of patients with serious and ongoing issues associated with the COVID-19 infection.

The Fluence Corporation Ltd (ASX: FLC) share price has jumped 6.5% to 32 cents. This morning the water treatment company announced that it has entered into a new strategic market segment and new province. This follows the sale of its Aspiral product to Beijing China Railway Science New Technology Co for a project involving the Chinese Railway System in Inner Mongolia.

The Food Revolution Group Ltd (ASX: FOD) share price has stormed 6.5% higher to 8.1 cents. This morning the food and handwash company announced that it has delivered its first batch of hand sanitiser to the market. Food Revolution advised that it has prioritised delivery of hand sanitiser products to hospitals, school colleges and pharmacies, but has received strong demand from the major supermarket chains.

The Fortescue Metals Group Limited (ASX: FMG) share price is up 3.5% to $9.11. Overnight iron ore prices avoided the market selloff and remained steady. This appears to be down to hopes that a massive Chinese stimulus package will support demand and high prices for the steel making ingredient in 2020.

The post Why Cynata, Fluence, Food Revolution, & Fortescue are pushing higher appeared first on The Motley Fool Australia.

The spread of coronavirus has infected global share markets with the contagion of fear. The S&P/ASX 200 Index (INDEXASX: XJO) has fallen more than 10% in the last fortnight as investors flee to safe havens.

This week, the Reserve Bank of Australia cut the cash rate to an all-time low of 0.5% in an effort to stimulate the slowing economy. 

But it's not all doom and gloom. Some ASX shares are fighting coronavirus with demand for their products accelerating along with the spread of the virus. So, let's take a look at the ASX shares that are racing ahead of the tragic epidemic. 

Zoono Group Ltd (ASX: ZNO)

The Zoono share price has risen more than 230% this year at the time of writing as demand for its sanitiser products has increased. The company has advised that it is extremely well-positioned to be part of the solution to coronavirus. Late last week, Zoono reported that test results showed the technology used in its hand sanitiser is 99.99% effective against coronavirus. 

In early January, Zoono ramped up production of key active ingredients in its sanitisers. This was a prescient decision as demand for products has been strong. Product orders in excess of NZ$1 million were received in the last two weeks of January, predominantly from China and Hong Kong. Online sales have increased significantly and forward orders and product enquiries are increasingly strong. 

Zoono entered into a distribution agreement with Eagle Health Holdings Ltd (ASX: EHH) in late February for the distribution of co-branded products and offline retail sales in China. Eagle will import Zoono's products in bulk to its facility in Xiamen, China, where they will be packaged and labelled, and then distributed. 

Eagle has more than 300 stores throughout China plus 271 distribution partners which place Eagle's products into more than 30,000 outlets across the country. An initial order for Zoono product valued at NZ$400,000 has been placed. Minimum purchase volumes under the agreement are NZ$1.5 million in the first 12 months, NZ$2.3 million in year two, and NZ$3.1 million in year three. 

Food Revolution Group Ltd (ASX: FOD)

Shares in Food Revolution Group are up more than 50% since mid-February following the announcement the company would be entering the hand sanitiser business. The coronavirus outbreak has created a shortage of hand-sanitiser in the Asia Pacific region with Food Revolution Group looking to meet unmet demand. 

Food Revolution Group's hand sanitiser has been formulated under the newly-formed 'Sanicare' brand and will be produced at the company's Mill Park facility in Melbourne. The facility underwent an upgrade in December including the construction of a self-contained clean room and laboratory.

Food Revolution Group has formulated and sourced the ingredients for its alcohol-based hand sanitiser and commenced production in February. 

The company received its first order for the hand sanitiser, valued at $2 million, in late February. The order is expected to be fulfilled and cash received in 4 weeks. 

Uscom Ltd (ASX: UCM)

Uscom shares are up more than 200% since the end of January following a material increase in orders for its USCOM 1A haemodynamic monitor from China. The National Health Commission of the People's Republic of China Coronavirus Protocol advocates haemodynamic monitoring for severe coronavirus cases. 

The first Chinese hospital to be equipped with an USCOM 1A specifically for the management of coronavirus was commissioned in late January. Uscom is planning to increase manufacturing output by approximately 121% on 10-year average outputs to meet anticipated demand in the second half. Unit orders for the first five weeks of 2020 were up 124% compared to the first full two months of 2019. 

Executive Chairman Rob Phillips said, "the USCOM 1A is a specialised technology developed to simplify diagnosis and management of infectious diseases and is now being implemented widely in China to save the lives of the most seriously ill patients. This epidemic is forcing our technology from the hands of a small number of infectious disease experts into the hands of physicians dealing day to day with tens of thousands of patients with deadly infections."

Aeris Environmental Ltd (ASX: AEI)

Aeris Environmental shares are up nearly 90% since early February with its disinfectant listed by the Singapore National Environment Agency on the list of general disinfectants effective against the coronavirus. The company's proprietary hospital-grade disinfectant, Aeris Active, provides broad-spectrum viricidal, bactericidal, and fungicidal efficacy, and affords long-term protection of at-risk surfaces. 

Aeris is currently scaling up production and redirecting its near term manufacturing capacity to multiple Australian manufacturing sites. This will support the needs of customers and growing demand in China and the Asia Pacific region. 

Holista Colltech Limited (ASX: HCT)

Shares in Holista Colltech have increased over 70% since the end of January as demand for its sanitisers increases. In February, Holista announced it would ship a further 90,000 NatShield sanitisers just days after the first 60,000 units sold out. Fresh orders were received from Malaysia, Australia, and other parts of Asia amidst rising concerns over the spread of coronavirus. 

NatShield sanitisers contain Path-Away, a plant-based active ingredient approved for use by Malaysia's Ministry of Health and Food and Safety Authority and Environmental Protection Authority of New Zealand.

Holista has also accelerated development of a nasal balm version of its sanitiser featuring Path-Away. It intends to file a global patent for the product in March and make the product available to the market by July. 

Biotron Limited (ASX: BIT)

Biotron shares are up more than 60% since the end of January as the company tests its compounds against the current strain of coronavirus, COVID-19. The company develops anti-viral drugs and has compounds that have shown good activity against several strains of coronavirus. Testing is focused on assessing whether Biotron's compounds can inhibit growth in COVID-19. 

Biotron scientists have identified and characterised a protein found in all coronaviruses and have shown that by targeting this protein, the virus could be inactivated. Given Biotron's expertise in antiviral drug development, an assessment of the activity of the company's compounds against COVID-19 is progressing as quickly as possible. 

The post These ASX shares are fighting the spread of coronavirus appeared first on The Motley Fool Australia.

This has been a rough week for shareholders in leading Australian fruit and vegetable producer Costa Group Holdings Limited (ASX: CGC).

The company's share price fell off a cliff on Thursday after it severely downgraded its FY19 profit guidance. After previously telling investors it expected low double digit growth in underlying NPAT for FY19, the company's latest guidance signalled that tougher than anticipated trading conditions made that forecast too optimistic, and management now expected underlying profit growth to be largely flat for the financial year.

That news obviously spooked investors, who may have been expecting FY19 to pan out roughly the same way as FY18, when the company reported growth in underlying NPAT of 26.3% to $76.7 million. In response to the announcement, Costa Group's share price plummeted an astonishing 39% on Thursday, and despite posting a modest gain on Friday, the company's shares are still down almost 35% for the week to $4.64.

As a shareholder in Costa Group, I'm searching for a silver lining to all this. And the company is trying valiantly to put a bit of a positive spin on the news too. It argued that these conditions are cyclical in nature: that the citrus "off season" started early and that trading in other key produce like tomatoes, berries and avocados will recover, allowing the company to still deliver compound annual growth in the double digits for the two calendar years from 2017 to 2019.

This may be the company extending an olive branch to its shareholders, but there could be some truth to it too. According to a January 11 report on ABC News, a nationwide lemon shortage has caused prices for the citrus fruit to soar over the summer – in some cases almost doubling – as supermarkets are forced to rely on more expensive overseas imports.

And while a hefty profit downgrade is never great news for shareholders, it isn't entirely unexpected either. Costa Group is pursuing an international growth strategy, expanding its operations in China and Morocco. It also recently acquired the farming operations at Nangiloc Colignan Farm in the Sunraysia district of North West Victoria and is expanding its Australian tomato and mushroom production facilities.

All this obviously comes at an extra cost, especially through increased depreciation and interest charges on capital expenditure.

So the idea has always been that a subdued FY18 would be followed up with a bumper FY19, when the benefits of the additional capital expenditure would be realised through increased output across basically all areas of the business. But this does rely on consumer demand bolstering prices, and it is difficult for investors to have a great deal of faith in this happening, especially after Costa Group had to admit that demand for berries, tomatoes and avocadoes has been "patchy" over summer.

The end result is that Costa Group management is asking for a great deal more trust from its shareholders. And in an environment where investors are increasingly reluctant to take on extra risk that's a pretty tough ask.

Foolish takeaway:

As an existing shareholder in Costa Group, I'm willing to place my trust in management to still deliver the promised growth in FY19. I originally bought Costa Group shares because I perceived there to be a growing cultural trend in Australia towards healthy eating, promoted in part by the popularity of cooking shows, home cooking kit delivery services like HelloFresh and Marley Spoon AG (ASX:MMM) and the growing hipster movement.

The share prices of other ASX listed "health food" companies like Freedom Foods Group Limited (ASX:FNP) and small cap The Food Revolution Group Limited (ASX:FOD) have also benefited from this trend. Although Freedom Foods, like many other growth stocks with highly inflated multiples, has suffered a significant downturn since volatility returned to global equities markets around September last year.

However, if I was a new investor, particularly one with an aversion to risk, I'd be more inclined to wait until I see real evidence of a profit turnaround before I put my money into Costa Group.

The post Why I'm holding onto my Costa Group shares appeared first on The Motley Fool Australia.

At the small end of the share market there are a number of companies which I believe have the potential to grow significantly in the future.

Not all of these shares will ultimately deliver on their potential, but four that I'm watching very closely are listed below:

Food Revolution Group Ltd (ASX: FOD)

This food processing company has products on the shelves of supermarkets including Coles Group Ltd (ASX: COL) and Woolworths Limited (ASX: WOW). In FY 2018 it generated sales of approximately $35 million and is aiming to build on this in FY 2019 through an expansion into the China market and a recently announced supply contract with ALDI Australia for Apple Mango juice.

LiveTiles Ltd (ASX: LVT)

I think that this software company is worth keeping a close eye on. Its digital workplace platform increases collaboration and efficiency among employees and has been growing in popularity this year. So much so, in the first quarter it reported a 272% increase in annualised recurring revenue on the prior corresponding period. Its close ties with Microsoft and the appointment of a dedicated sales force have helped drive this growth.

Megaport Ltd (ASX: MP1)

Megaport is a provider of elastic interconnection services across a growing number of data centres globally. I believe this service has significant potential and expect demand to grow strongly in the future as the cloud computing boom accelerates. In the first quarter of FY 2019 Megaport saw its monthly recurring revenue lift a solid 20% on the previous quarter to $2.4 million. This puts it in a position to build on FY 2018's strong result.

Serko Ltd (ASX: SKO)

Serko is a travel and expense technology solutions provider worth adding to your watchlist. Its online booking tool provides clients with access to a wide variety of travel providers including low cost carriers. I believe the fact that travel agent giant Flight Centre Travel Group Ltd (ASX: FLT) is a customer is a testament to the quality of its offering. This year management expects revenue growth in the range of 20% to 30%.

The post 4 speculative small cap ASX shares to watch in 2019 appeared first on The Motley Fool Australia.

In afternoon trade the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has bounced back from yesterday's selloff and climbed 0.7% to 5,681.8 points.

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

The Ardent Leisure Group (ASX: AAD) share price has continued its decline and is down a further 3% to $1.44. The entertainment company's shares have fallen heavily this week following the release of a trading update at its annual general meeting. Although the company's update was reasonably positive, investors appear a touch concerned by the 4.7% decline in constant centre sales by its Main Event business in October.

The Costa Group Holdings Ltd (ASX: CGC) share price is down 5.5% to $6.48 on the day of its annual general meeting. In its presentation the horticulture company's management reaffirmed guidance for low double-digit earnings growth in FY 2019. However, management's warning that its earnings growth would be skewed to the second half may have spooked investors. First half earnings are expected to be lower year on year.

The Food Revolution Group Ltd (ASX: FOD) share price has tumbled 8.5% lower to 16 cents. This decline comes despite an announcement this morning revealing that it has secured a 12-month supply contract to produce a new Apple Mango juice for Aldi. Management believes the supply contract will boost sales within Australia and expects it to be a key step forward as it rapidly expands its product range and realises the next phase of growth.

The Silver Chef Limited (ASX: SIV) share price has dropped almost 8% lower to $1.52 despite there being no news out of the equipment funding company. However, last month Silver Chef posted a statutory net loss after tax of $48.8 million. Its shares have unsurprisingly been under significant pressure since then. Earlier today they hit a multi-year low of $1.50.

The post Why these 4 ASX shares are tumbling lower today appeared first on The Motley Fool Australia.

I believe there are a good number of quality companies at the small end of the market that could be destined for big things in the future.

While not all these shares will live up to their potential, five which I think are well worth watching closely in 2019 are listed below. Here's why:

Citadel Group Ltd (ASX: CGL)

I believe Citadel Group is well-positioned to grow strongly in the future thanks to the growing amount of data being generated by businesses and the importance of keeping it secure. As a specialist in IT security and data management I believe demand for its popular Citadel-IX cloud-based enterprise information management platform could continue to grow strongly over the next decade. This platform allows users to securely access and transfer proprietary and sensitive information remotely.

Food Revolution Group Ltd (ASX: FOD)

Food Revolution is a food processing company which has products on the shelves of supermarkets including Coles Group Limited (ASX: COL) and Woolworths Limited (ASX: WOW). In FY 2018 it generated sales of approximately $35 million and is looking to build on this in FY 2019 through an expansion into the China market. In addition to this, this morning the company announced a supply contract with ALDI Australia for Apple Mango juice.

LiveTiles Ltd (ASX: LVT)

LiveTiles is a software company which offers a digital workplace platform that has been designed to increase collaboration and efficiency among employees. Thanks to its close ties with Microsoft and the engagement of a dedicated sales force, LiveTiles looks set to deliver further strong sales growth in FY 2019. In the first quarter it reported a 272% increase in annualised recurring revenue on the prior corresponding period.

Megaport Ltd (ASX: MP1)

I think that this provider of elastic interconnection services in data centres across the world is well-positioned to profit from the cloud computing boom. It recently provided a first quarter update which revealed that its strong growth has continued in FY 2019. During the quarter its monthly recurring revenue grew an impressive 20% on the previous quarter to $2.4 million. This puts it in a position to build on the 85% increase in annual revenue that it achieved in FY 2018.

Telix Pharmaceuticals Ltd (ASX: TLX)

Telix is a clinical-stage biopharmaceutical company led by the respected Dr Christian Behrenbruch. Telix is focused on the development of diagnostic and therapeutic products based on targeted radiopharmaceuticals. I've been very impressed with the progress that the company has made this year and think it will be one to watch in the healthcare sector in 2019.

The post 5 exciting small cap shares to watch in 2019 appeared first on The Motley Fool Australia.

I believe there are a good number of shares at the small end of the market with strong long-term growth potential.

While not all these shares will ultimately live up to their potential, five which I think are worth a closer look are listed below. Here's why they are on my watchlist:

Audinate Group Limited (ASX: AD8)

Audinate is a digital audio company that develops hardware and software solutions for the professional audio-visual industry. Strong demand for its key Dante media networking technology from manufacturers and professionals in the audio-visual industry led to Audinate posting a 30% increase in revenue to $19.7 million in FY 2018. More of the same is expected in FY 2019.

Food Revolution Group Ltd (ASX: FOD)

Food Revolution is a food processing company behind the Juice Lab, Thirsty Brothers, and Bucha Shop Kombucha brands. Its products can be found on the shelves of supermarkets including Wesfarmers Ltd (ASX: WES) operated Coles and Woolworths Limited (ASX: WOW). In FY 2018 it generated sales of approximately $35 million and is looking to build on this in FY 2019 through an expansion into the China market.

Megaport Ltd (ASX: MP1)

Megaport is a leading provider of elastic interconnection services in data centres across the world. Due to its exposure to the explosive cloud computing market, I believe it is well-positioned to grow at a strong rate over the long-term. In FY 2018 Megaport saw its revenue increase 85% on the prior corresponding period.

Serko Ltd (ASX: SKO)

Serko is a travel and expense technology solutions company offering an increasingly popular online booking tool which provides clients with access to a wide variety of travel providers including low cost carriers. Management expects to build on its strong FY 2018 performance with revenue growth in the range of 20% to 30% this year.

Telix Pharmaceuticals Ltd (ASX: TLX)

Telix is a biopharmaceutical company focused on the development of diagnostic and therapeutic products based on targeted radiopharmaceuticals. This year the company has signed several manufacturing and distribution partnerships, which means that its first revenues from the Illumet prostate imaging cold kit are expected in the current quarter. These revenues could be bolstered in the future if the numerous promising trials it has underway are a success.

The post 5 exciting small cap shares I have on my watchlist appeared first on The Motley Fool Australia.

The Australian share market has had a mixed start to the week and is just a touch higher on early afternoon trade.

Three shares at the small end of the market that have started the week strongly are listed below. Here's why they are on a high today:

The Alexium International Group Ltd (ASX: AJX) share price has jumped 9% to 12 cents after the speciality chemicals company released an investor presentation. Although the presentation didn't include a trading update, it reminded investors of the sizeable market opportunities that the company has. For example, Alexium's flame retardant (FR) Alexiflam products have a $100 million opportunity in the FR workwear and uniforms market and a $100 million opportunity in the FR treatment for fleece market. Whether the company can successfully penetrate these markets, only time will tell.

The Antipa Minerals Ltd (ASX: AZY) share price has stormed 16% higher to 2.9 cents despite there being no news out of the gold and base metal exploration company. Investors have been taking a look at Antipa Minerals recently due to an increase in activities being conducted by various miners in the Paterson Province in Western Australia. According to management, one such company that is believed to have taken a keen interest in the area is mining giant Rio Tinto Limited (ASX: RIO). Antipa has a large landholding of in excess of 5,500km2 in the Province.

The Food Revolution Group Ltd (ASX: FOD) share price has surged 12.5% higher to 13.5 cents after the food processing company announced a memorandum of understanding (MOU) with China Petroleum & Chemical Corporation (Sinopec). According to the release, the MOU will see the two companies negotiate a distribution agreement whereby Sinopec will sell Food Revolution's Australian canola oil products produced across its network of more than 35,000 petrol and convenience outlets in China. While I think this sounds like a promising agreement, I'm not a fan of MOUs as they are not binding and there's no guarantee this will ever lead to a fully-fledged distribution agreement. As a result, I would suggest investors disregard it until it is set in stone.

The post These small cap ASX shares have started the week on a high appeared first on The Motley Fool Australia.

At the small end of the market there are a number of shares with the potential to grow significantly in the future.

Not all of these shares will ultimately deliver on their potential, but two that I'm watching very closely are listed below.

Food Revolution Group Ltd (ASX: FOD)

Food Revolution is a juice company with its eye on the massive China market. Its juice brands such as Juice Lab, Thirsty Brothers, and Bucha Shop Kombucha can be found on the shelves of supermarkets including Wesfarmers Ltd (ASX: WES) operated Coles.

In addition to this, today the company revealed that it has gained China Inspection and Quarantine Certification (CIQ) for its Fruit Farm Orange Juice products. This means that these products are now approved for sale in physical stores in China. Management will show off the products at the China International Import Expo in Shanghai next week in the hope of generating firm orders. I think it is well worth keeping an eye on its progress.

Megaport Ltd (ASX: MP1)

Megaport is a leading provider of elastic interconnection services in data centres across the world and could be a great way to gain exposure to the cloud computing boom. A growing data centre footprint and strengthening demand for its services led to the company posting an 85% increase in annual revenue in FY 2018.

Pleasingly, this strong form has continued in FY 2019. Last month the company released its first quarter update and revealed that its monthly recurring revenue grew an impressive 20% on the previous quarter to $2.4 million. This was driven by a 6% quarter on quarter rise in its data centre footprint to 234 centres, a 12% quarter on quarter increase in customer numbers to 1,161, and a 10% quarter on quarter lift in total ports to 3,026.

The post Why I'm watching these speculative shares in November appeared first on The Motley Fool Australia.

In afternoon trade the Australian share market rally looks like it has run out of steam and the ASX 200 has drifted into the red.

Three shares at the small end of the market on the rise today are listed below. Here's why they are ending the week strongly:

The Althea Group Holdings Ltd (ASX: AGH) share price has jumped 9% to 42 cents after the cannabis company announced that it has been granted a Manufacture Licence by the Australian Government's Office of Drug Control. The licence provides Althea with authorisation to manufacture extracts and tinctures of cannabis and cannabis resin in accordance with relevant manufacture permits. It also means that it can now proceed with the next phase of planning for its Victorian based production facility, which management believes will lead to a "vertically integrated, seed-to-sale, state of the art medicinal cannabis operation."

The Food Revolution Group Ltd (ASX: FOD) share price has stormed over 14% higher to 12 cents after the juice company announced that it has gained China Inspection and Quarantine Certification (CIQ) for its Fruit Farm Orange Juice products. This means that these products are now approved for sale in physical stores in China. In light of this, the company will show off the products at the China International Import Expo in Shanghai next week in the hope of generating firm orders.

The LiveTiles Ltd (ASX: LVT) share price is up 2.5% to 40.5 cents. This morning the software company announced that it has strategically partnered with U.S. based IT services provider Victory Tech Services to jointly pursue opportunities with the United States Department of Defense. Management believes the partnership is a significant opportunity for the company, advising that the U.S. Government applications market is expected to reach US$10.6 billion by 2021. Although I see this as a positive, I'd suggest investors wait to see if it results in meaningful sales before considering an investment.

The post These small cap ASX shares are ending the week with strong gains appeared first on The Motley Fool Australia.

The local market has had a positive start to the month and is up strongly in early afternoon trade on Thursday.

Three shares at the small end of the market that have started the new month with a bang are listed below. Here's why they are on the rise today:

The Food Revolution Group Ltd (ASX: FOD) share price has jumped 9.5% to 11.5 cents. This morning the juice company announced that it has received the second tranche payment ($2.51 million) as part of the strategic investment announced in September. This is part of a $20.25 million strategic investment led by Careline and its CEO Norman Li. The company aims to use the funds to grow its sales from $35 million to up to $500 million within three to five years. I think Food Revolution is worth adding to your watchlist.

The Praemium Ltd (ASX: PPS) share price has zoomed 9% higher to 84 cents despite there being no news out of the fintech company. This latest gain means that Praemium's shares have now rocketed 23.5% since the start of trade on Tuesday. Investors appear to be seizing on share price weakness in October brought about by the market meltdown and tech selloff. The company's shares were trading at $1.13 at the start of last month, so are still down over 25% since then even after this week's gains.

The Probiotec Limited (ASX: PBP) share price has pushed 9% higher to $1.43 after the manufacturer, marketer, and distributor of pharmaceutical products announced a special dividend and share buyback. According to the release, the company intends to commence an on-market buyback for up to 10% of the shares on issue in the middle of this month. In respect to its dividend, Probiotec has declared a fully franked special dividend of 5 cents per share. Its shares will go ex-dividend on November 8, with the dividend being paid a week later on November 15.

The post These small cap ASX shares are pushing higher on Thursday appeared first on The Motley Fool Australia.

While the Australian share market was fighting hard to carve out just the smallest of gains today, a number of speculative shares were rocketing higher with relative ease.

These three speculative shares are clearly in favour with investors right now, are they the real deal?

The Eden Innovations Ltd (ASX: EDE) share price finished the day 18% higher at 11 cents on Thursday. This latest gain means that the clean energy company's shares have now rallied an incredible 175% in the space of just four weeks. Investors have been buying its shares in a frenzy ever since the company won a US$525,000 Federal contract for its EdenCrete admixture product in the United States. The company followed this up with an announcement this morning advising that a joint evaluation trial with the Metropolitan Atlanta Rapid Transit Authority found that the use of EdenCrete will provide the Authority with significant savings by reducing both the life cycle cost and the frequency of maintenance. While I do like the product and believe this trial could lead to further contract wins, I feel its $140 million valuation is getting excessive.

The Food Revolution Group Ltd (ASX: FOD) share price stormed 7.5% higher to 14.5 cents despite there being no news out of the juice company. This latest gain means that Food Revolution's shares have more than doubled in value in just over two months. The company recently announced a strategic investment and Chinese distribution deal with Careline Australia. The distribution deal aims to grow the company's sales from ~$35 million to up to $500 million within five years. While such lofty goals are often best taken with a pinch of salt, I do think its product range has a lot of promise. In fact, I'm a big fan of their drinks and regularly purchase its kombucha products from my local Wesfarmers Ltd (ASX: WES) operated Coles supermarket. I think it is well worth keeping a close eye on Food Revolution given its relatively low price to sales ratio.

The Jatenergy Ltd (ASX: JAT) share price rocketed 26% higher to 7.8 cents on Thursday. This means that the energy-cum-infant formula company's shares have doubled in value since this time last week. The catalyst for this gain was a surprising quarterly update which revealed a sudden surge in cash receipts. Jatenergy saw its cash receipts from sales increase from $320,000 in the June quarter to a massive $10.7 million in the September quarter. But another metric that also rocketed was its product manufacturing and operating costs. They increased to $15.4 million, leading to a net operating outflow of $5.5 million. While its sales growth looks impressive, I would approach this one with caution. Especially given its limited cash balance and sizeable cash outflows forecast.

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The market may have drifted lower today but not all shares have followed it into the red.

Three small cap shares that are on the rise today are listed below. Here's why they are rising higher:

The Food Revolution Group Ltd (ASX: FOD) share price has stormed 7% higher to 15.5 cents. This morning the juice company announced an increase in its distribution and new products with a net revenue impact in excess of $5 million per annum. The increase in its distribution relates to the manufacture of a range of cold-filled ambient not from concentrate 350ml juices for the independent Victorian grocery channel. This is all part of the company's plan to grow its distribution and product expansion from ~$35 million to up to $500 million within three to five years. I think Food Revolution is one to watch closely.

The MGC Pharmaceuticals Ltd (ASX: MXC) share price has returned to trade and climbed over 6% to 5.1 cents. This morning the cannabis company announced the sale of its MGC Derma business to cannabis investment company Cannaglobal. According to the release, a binding term sheet has been signed for C$12.5 million in Cannaglobal equity, a C$2.5 million loan repayment to the company, and a 5-year CBD and cosmetic materials supply agreement. To complete the transaction the company has acquired the remaining 49% of MGC Derma held by partner Dr. M. Burnstein Ltd for C$1.25 million.

The Tawana Resources N.L. (ASX: TAW) share price has returned to trade with a bang on Thursday. In afternoon trade mineral exploration company's shares are up 20% to 30 cents after it announced that it has secured a $40 million funding package from a consortium of lenders led by Tribeca Investment Partners. Management has advised that the funds will significantly strengthen its balance sheet and are expected to expedite the ASX listing of the Tawana and Alliance merger. It believes the support is a great endorsement of the Bald Hill Lithium and Tantalum Mine.

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Due to having a higher than average tolerance for risk, I'm a big fan of small cap shares.

Luckily for me there are a large number of them on the Australian share market with strong growth potential.

Three that I have my eyes on at the moment are listed below:

Audinate Group Limited (ASX: AD8)

Audinate is a digital audio company that develops hardware and software solutions for the professional audio-visual industry. Its key offering is its Dante media networking technology which has been adopted by the leading manufacturers and professionals in the audio-visual industry. In FY 2018 Audinate achieved revenue of $19.7 million, up 30% on the prior corresponding period. This strong top line growth allowed the company to post positive EBITDA of $0.6 million for the period, compared to its prospectus forecast of a $1.2 million loss.

Food Revolution Group Ltd (ASX: FOD)

Food Revolution is a juice company which I think is well worth keeping a close eye on. It is the company behind the Juice Lab, Thirsty Brothers, and Bucha Shop Kombucha brands which can be found on the shelves of supermarkets including Wesfarmers Ltd (ASX: WES) operated Coles. This morning it advised that it will launch four new 2-litre Not From Concentrate juices under the Thirsty Brothers brand into Woolworths Limited (ASX: WOW) supermarkets replacing three existing products. The company is aiming to grow its distribution and product expansion from ~$35 million to up to $500 million within three to five years.

Serko Ltd (ASX: SKO)

Serko is a travel and expense technology solution provider that I have my eyes on. Its online booking tool provides clients with access to a wide variety of travel providers including low cost carriers. The company recently signed a letter of intent with travel agent giant Flight Centre Travel Group Ltd (ASX: FLT) to develop unique product offerings based on Serko's travel management technology. I believe this is a testament to the quality of its product. This year management expects revenue growth in the range of 20% to 30%.

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