March is becoming an eventful month amid the drama created by the failed US Silicon Valley Bank. I think in this environment, there are a number of All Ordinaries (ASX: XAO) shares that could be ones to watch.

Silicon Valley Bank's collapse represents the largest US bank failure since the Global Financial Crisis. Time will tell how this plays out.

However, there are some All Ordinaries ASX shares that could be compelling buys this month.

MyState Ltd (ASX: MYS)

MyState describes itself as a diversified financial services business, consisting of MyState Bank and TPT Wealth, a trustee and wealth management company.

It wouldn't surprise me to see this business hit a 52-week low this week amid all the banking uncertainty.

The business recently announced its FY23 half-year result for the six months to 31 December 2022, which showed net interest income rose 21.3%, while earning per share (EPS) increased 18% to 18.6%. New to bank customers increased 54% on the prior corresponding period.

It's benefiting from the higher interest rate environment. The All Ordinaries ASX share currently offers a grossed-up dividend yield of 8.8%, which is a solid dividend return in my opinion.

The business is focused on growing its market share on a "profitable and sustainable basis", with a target of "reducing its cost to income ratio to less than 60% in the medium term and creating cumulative return on equity (ROE) and EPS growth of 30% over the next three years".

Best & Less Group Holdings Ltd (ASX: BST)

Best & Less describes itself as a leading value apparel specialty retailer with an omnichannel sales network comprising 245 physical stores and an online platform. It aims to be the "number one choice" for mums and families buying baby and kids' 'value apparel' in Australia and New Zealand, both through its own brand in Australia and Postie in New Zealand.

In an environment where household budgets are tightening, I think Best & Less could be one of the businesses that may see resilient demand, or even growth.

The business is planning to keep opening new stores to help its growth, while investing in the business in a number of ways which should help the business become more efficient in the next few years.

In the first seven weeks of the second half of FY23, the All Ordinaries ASX share saw total sales growth of 3.8%, which is useful for the company in my opinion.

Commsec numbers suggest the Best & Less share price is valued at 8x FY23's estimated earnings and 6x FY25's estimated earnings. The prediction is that the grossed-up dividend yield could be 12.9% in FY23.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara says it makes software in a bid to protect families from cancer. The idea is that healthcare providers use Volpara's software to better understand cancer risk and guide recommendations about additional imaging, genetic testing, and other interventions.

The AI-powered image analysis enables radiologists to quantify breast tissue and help technologists produce mammograms.

A new US federal regulation has just been finalised by the US Food and Drug Administration (FDA) "requiring mammography facilities across the country to inform patients whether their breasts are composed of dense tissue".

Within the next 18 months, by September 2024, all patient reports and summaries must include certain language about breast density.

I think this is very positive for Volpara considering it's one of the leaders of breast screening technology in the US. This could enable ongoing average revenue per user (ARPU) growth, which is useful considering the gross profit margin is above 90%.

The business is aiming to achieve positive cash flow as soon as possible, which could be a boost for investor sentiment about the All Ordinaries ASX share. The Volpara share price is down 55% since early February 2021.

The post 3 ASX All Ordinaries shares I'm watching like a hawk in March appeared first on The Motley Fool Australia.

Four ASX shares that are climbing more than most today are listed below. Here's why they are zooming higher:

Arafura Rare Earths Ltd (ASX: ARU)

The Arafura share price is up 6% to 60 cents. This is despite there being no news out of the rare earths developer. However, it is worth noting that Bell Potter has called recent share price weakness following comments out of Tesla an overreaction. It has retained its speculative buy rating and 72 cents price target.

Myer Holdings Ltd (ASX: MYR)

The Myer share price is up 15% to $1.10. This has been driven by the release of the department store operator's half-year results. It revealed a 24.2% increase in total sales to $1,884.9 million and the doubling of its net profit to $65 million. This allowed Myer to declare interim and special dividends of 4 cents per share each.

Volpara Health Technologies Ltd (ASX: VHT)

The Volpara share price is up almost 4% to 68 cents. Investors have been buying this health technology company's shares following the release of a business update. Volpara revealed a new contract with Sutter Health for its Risk Pathways product. This represents an additional US$900,000 in Total Contract Value (TCV) over an initial three-year period.

Xero Limited (ASX: XRO)

The Xero share price is up 9% to $85.79. This morning, this cloud accounting platform provider announced a major cost cutting plan. This will involve reducing its workforce by 700-800 roles, which represents upwards of 16.3% of its 4,915 full time equivalent employees. Management expects this to reduce its operating expense to revenue ratio to approximately 75% in FY 2024. This ratio stood at 83.9% in the first half.

The post Why Arafura, Myer, Volpara, and Xero shares are zooming higher appeared first on The Motley Fool Australia.

Inflation seems to be peaking in the US and Australia. Although it's still a long road to a low and healthy inflation rate, progress has been made and this could be a positive thing for investors and shares.

I think the ASX tech shares that have been hit hard but have impressive financials are ones to get excited about. Their long-term outlooks seem very compelling.

Xero Limited (ASX: XRO)

The Xero share price is up by 17% since the start of the year. But, it's still down around 47% from November 2022.

This ASX tech share provides accounting software for business owners, accountants, bookkeepers, and the like.

With the business still growing, I think the much lower valuation is far more appealing. With a gross profit margin of 87%, any growth the business achieves adds value to Xero.

In the FY23 first-half result to 30 September 2022, the number of subscribers increased 16% to almost 3.5 million, average revenue per user (ARPU) grew 13% to $35.30, and operating revenue surged 30% to $658 million.

Thanks to the growth in the financial measures I just mentioned, Xero's annualised monthly recurring revenue (AMRR) had reached $1.48 billion at September 2022, suggesting that some growth is already baked in for the next 12 months.

I think it won't be too long until the Xero share price gets back to above $90 as investor sentiment returns.

Volpara Health Technologies Ltd (ASX: VHT)

This is one of my favourite ASX healthcare shares. It provides software that enables advanced breast screening analysis, with a focus on risk for the patient. Volpara also has operational software for medical professionals to improve their workflow and efficiency.

In the company's half-year result for the six months to 30 September 2022, it said that 40.5% of US women who had breast screenings had at least one Volpara product applied on their images and data.

Its HY23 gross profit margin was almost 92% – so this is another example of where revenue growth can be a very useful thing for the company's financials.

In the three months to 31 December 2022, Volpara saw record quarterly cash receipts of NZ$11.2 million. This was an increase of 42% in constant currency terms and enabled the business to achieve its first positive net cash flow quarter on record.

Since the start of 2023, Volpara shares have soared an impressive 49%. Despite that, the ASX share is still down by around 35% since October 2022. With the progress the business is making, I think there's more to come in the next few years.

The post Sitting on cash? These 2 ASX shares are great buys today but won't be forever appeared first on The Motley Fool Australia.

It's far easier for a business to double in size from $500 million to $1 billion than it is for a company to grow from $50 billion to $100 billion.

I think that smaller ASX shares have a longer growth runway and, therefore, can produce stronger returns over time.

But I only want to consider ideas that are already producing good revenue. I'm not thinking about high-risk biotech names or other similar sorts of categories. So, with that in mind, these are four of my favourite ideas for long-term growth which could help build a portfolio worth $1 million.

Airtasker Ltd (ASX: ART)

Airtasker is a small-cap ASX tech share that provides a platform for people to advertise for free the service they are seeking. Taskers can then offer to do the work — and outline their fees. The type of tasks involved can be almost anything – delivery services, photography, furniture assembly, removals, various handyperson jobs, and so on.

The business is already producing positive earnings before interest, tax, depreciation and amortisation (EBITDA) in Australia. It's also rapidly growing in the US and the UK too, which are two huge markets.

Airtasker has a very high gross profit margin, which means it's able to invest a lot of its new revenue back into growth expenditures such as marketing.

Certainly, the company is already showing a desire for geographical expansion. As such, I believe it has a long growth runway with other countries it can expand into, such as Canada and New Zealand.

Volpara Health Technologies Ltd (ASX: VHT)

I think Volpara is one of the most exciting small-cap ASX healthcare shares. It has AI-powered image analysis that enables advanced breast screening, helps healthcare professionals better understand the cancer risk of patients, and enables healthcare providers to streamline work and improve performance.

The business recently announced that in the three months to December 2022, it achieved positive operating cash flow after a 42% increase in cash receipts in constant currency terms.

It continues to grow its annual recurring revenue (ARR) while decreasing its cost base, boosting profitability.

If it can keep selling more of its services to its existing (and growing) customer base, then the average revenue per user (ARPU) will keep improving and this should further boost profit margins.

I think the small-cap ASX share has a very promising future, particularly if it can get a good foothold in Europe.

Healthia Ltd (ASX: HLA)

Healthia is an allied healthcare business. It's involved in a number of areas including networks of optometry, podiatry, and physiotherapy clinics.

I think this is quite a defensive sector, so its earnings could perform adequately in the period ahead.

The Healthia share price has dropped 40% over the past year, making it much better value. With the Australian population rising, and becoming older, I think there are useful tailwinds for the business.

If it can keep acquiring additional clinics and improve the performance of its existing network, I believe the business is on course for a good future.

I think it looks very reasonably priced, trading at 12 times FY23's estimated earnings, according to Commsec.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is another small cap ASX share that I believe has plenty of potential.

It's an online retailer of homewares and furniture which has more than 200,000 products on sale.

A lot of the products sold are from third-party suppliers, which are shipped straight to customers. This cuts shipping times, reduces the need for Temple & Webster to hold inventory, and makes that part of the business quite capital-light.

But the company also has a growing selection of private-label products.

If Australia follows the e-commerce trend of the UK then, in the coming years, the company's online share of the market could rise from mid-teens in Australia to a percentage in the high 20s, according to Temple & Webster.

The business is heavily investing in technology, such as an AI interior design service, and an augmented reality (AR) service which enables people to visualise products in their home space.

With its high level of reinvestment, I think the company can benefit from growing scale and achieve attractive margins in time.

The expansion into the home improvement categories (like painting, plumbing, and flooring) also gives the small-cap ASX share a very large addressable market to aim for.

The post I'd aim for $1 million buying just a few ASX shares appeared first on The Motley Fool Australia.

The share price of All Ordinaries Index (ASX: XAO) medical-technology company Volpara Health Technologies Ltd (ASX: VHT) is soaring on news of its maiden positive cash flow.

It comes just one week after the company announced five new contract wins with a combined value of NZ$12.3 million, or around $11.35 million.

The Volpara share price soared 9% on open this morning to reach 77 cents before continuing on its upwards trajectory, hitting a high of 81 cents – marking a 15% increase.

It has since slipped slightly to trade at 78 cents. Though, that's still 10.6% higher than its previous close.

All Ords share Volpara rockets 11% on record cash receipts

Here are the highlights from the provider of breast cancer screening software's December quarter.

All results have been converted from New Zealand Dollars to Australian Dollars at today's exchange rate (NZ$1 to 92 Australian cents):

• $10.3 million of quarterly cash receipts – a new record and a 60% year-on-year improvement
• Maiden $1.2 million cash flow – up from a $3.5 million outflow in the September quarter
• Added around US$1.5 million of contracted annual recurring revenue (CARR)
• Average revenue per account increased to US$35,900 at the end of the quarter – up from US$31,900 at the end of the September quarter
• Ended December with $11 million of cash and no debt

At the end of the December quarter, the company's unaudited financial year to date cash receipts came to $26.38 million – a 39% year-on-year increase, or a 23% increase on a constant currency basis.

Its CARR is now around $37.1 million while its annual reoccurring revenue is approximately $28.8 million.

What else happened in the quarter?

The company reached its maiden cash flow well ahead of guidance. The milestone was previously tipped to be achieved in the final quarter of financial year 2024.

An increase in cash receipts due to improved debtors days, costs reductions, government grants, and around $830,000 of research and development tax credit all helped the company hit positive cash flow.

Meanwhile, the final bonus plan payment to CRA employees – worth around $461,230 – was more than offset.

What did management say?

Volpara Group CEO Teri Thomas commented on the news driving the All Ords share higher today, saying:

We are happy to show successful execution of our strategy focused on profitable growth. As planned, our top line continues to increase while our cost base has declined.

We continue to emphasise sales and positive engagements with our customers alongside settling into our streamlined operations.

What's next?

The All Ords company didn't provide any new guidance today. However, it did note it doesn't expect the current quarter's receipts to match those of last quarter. Though, they are expected to show consistent growth.

It also said its improved cash flow position has led management to believe it's holding enough cash to fund it through to maintainable cash flow break-even.

It previously expected to post between $30.9 million and $31.8 million of revenue in financial year 2023 – up from around $15.6 million in financial year 2022.

Volpara share price underpeforms All Ords

The Volpara share price has underperformed the All Ords over the last 12 months.

The stock has tumbled nearly 18% since this time last year. Meanwhile, the index has slipped 1.6%.

The post This All Ords share is booming 9% after turning cash flow positive appeared first on The Motley Fool Australia.

Four ASX shares that aren't letting that hold them back today are listed below. Here's why they are charging higher:

Lake Resources N.L. (ASX: LKE)

The Lake share price is up almost 7% to 88 cents. Investors have been buying this lithium developer's shares after it achieved key milestones at its Kachi project. The release notes that its partner Lilac has successfully operated the Demonstration Plant for 1,000 consecutive hours and produced 40,000 litres of lithium chloride eluate before 31 December. It is now being shipped to Saltworks to be converted into lithium carbonate. After which, it will be independently tested for purity.

Platinum Asset Management Ltd (ASX: PTM)

The Platinum share price is up 5% to $2.03. This follows the release of the fund manager's latest funds under management (FUM) update. According to the release, Platinum's FUM dropped by $10 million in December to $18,165 million. Investors may have been expecting a much weaker performance from Platinum.

Polynovo Ltd (ASX: PNV)

The Polynovo share price is up 8% on $2.49. This is despite there being no news out of the medical device company. PolyNovo's shares are now up 75% since this time last year and hit a 52-week high earlier today. This has been driven by a big improvement in the company's performance.

Volpara Health Technologies Ltd (ASX: VHT)

The Volpara share price is up a further 3% to 64.2 cents. Investors have been buying the medical technology company's shares this week following the announcement of five new contract wins. Volpara advised that the five new contracts have a combined value of NZ$12.3 million. All the contracts are for five years.

The post Why Lake Resources, Platinum, Polynovo, and Volpara shares are charging higher appeared first on The Motley Fool Australia.

The ASX share market is offering a wide range of opportunities in my opinion. With the current low starting point for a lot of valuations, this could be a very opportunistic time to buy.

Interest rates and inflation have thrown up plenty of uncertainty, but I believe that when there is fear, it's the best time to buy.

Which ASX shares could be excellent investments from now to the end of 2023? I think these names could provide returns good enough to put under the Christmas tree.

Adairs Ltd (ASX: ADH)

Adairs is a leading homewares and furniture business. It has plans to grow its number of stores across the Adairs and Focus on Furniture brands, increase the size of some Adairs stores, grow its membership base, become more efficient, and provide a strong online shopping experience. I also like the plan to start selling Mocka furniture in stores.

I'm particularly attracted to the low valuation and high dividend yield. According to CommSec, the Adairs share price of $2.20 is valued at under 8x FY23's estimated earnings with a projected grossed-up dividend yield of 12.1%.

Airtasker Ltd (ASX: ART)

Airtasker operates a leading platform that enables people to advertise for and pay for tasks that need doing such as furniture assembly, photography, delivery, accounting, and a very wide range of other services. Individuals and businesses can offer to do that work.

The ASX share is growing its organic revenue at a good double-digit growth rate overall. But, I'm incredibly optimistic about what the business can achieve in both the United States and the United Kingdom. They are both very large markets.

With a gross profit margin of above 90%, it can reinvest a high percentage of its new revenue for growth.

At the Airtasker share price of 33 cents, I think the company has plenty of upside potential.

Brickworks Limited (ASX: BKW)

I think it's worth looking at this diversified ASX share amid the heightened uncertainty about the real estate sector. The fact that it's going to start exporting bricks to the UK market is also promising.

In my opinion, the asset backing of the business is particularly compelling. I like the prospects for the industrial property trust joint venture as it completes more of its large property projects.

At the current Brickworks share price of $22.42, I think there is a big discount to its underlying inferred asset backing.

GQG Partners Inc (ASX: GQG)

GQG Partners is a US-based fund manager, though it is looking to expand geographically into places like Australia.

The ASX share has faced headwinds in 2022 with share markets going down, hurting its funds under management (FUM) and ability to generate profit. However, FUM continues to perform well, with ongoing FUM inflows. A share market recovery could be a useful tailwind next year for the FUM.

At the current GQG share price of $1.37, it could pay a dividend yield of 8.6% in FY23 according to CommSec.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

This exchange-traded fund (ETF) is about investing in US shares that are expected to see their strong competitive advantages endure for at least a decade and perhaps more than two decades.

The quality share is only added to this portfolio if it is deemed to be trading at an attractive value compared to Morningstar's estimate of fair value.

I think this combination of factors could help the ETF perform well in 2023 and beyond.

Pinnacle Investment Management Group Ltd (ASX: PNI)

This is another ASX share that is linked to funds management. It is invested in an array of quality fund managers – they have also seen some difficulties during this period of volatility. However, I think a turnaround for share markets could be a good tailwind for FUM and earnings.

I like that the business is looking to continue to expand its portfolio. It has expanded into Canada, which is a compelling market and similar to Australia.

After a 45% drop in the Pinnacle share price to $8.73, I think it now looks much better value.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is the leading online-only retailer of furniture and homewares in Australia. It sells products by third-party suppliers as well as a growing range of private label products.

After a period of tough comparable periods due to COVID-19 lockdowns (and strong online demand from customers), the business is expecting to get back to double-digit revenue growth by the end of FY23. I like the company's plans to invest in various initiatives, like AI (artificial intelligence) and augmented reality (AR), which can help it offer customers a better service and achieve better profitability.

However, after a 60% fall in the Temple & Webster share price in 2022 to $4.30, I think it looks excellent value for the long term.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is a small but growing ASX healthcare share that specialises in providing breast screening technology and risk analysis for patients, as well as software for medical professionals. It's also involved in screening for lung cancer.

The business is growing its market share and aims to keep increasing its average revenue per user (ARPU). It's aiming to rapidly reach breakeven, and I think it can do well with this goal because it has a very high gross profit margin of over 90%.

I think the ASX share looks much better value after dropping 49% in the year to date to 54 cents.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is one of the best blue chips in my opinion. Its crown jewel business, Bunnings, has a very strong market position and earns a high return on capital. The company's moves to expand into new areas including healthcare and lithium seem smart, considering the long-term growth potential of those two sectors thanks to ageing demographics and demand for electric vehicles, respectively.

I believe the retail outlook won't always look this uncertain, so I think the 23% drop in the Wesfarmers share price to $46.24 looks very compelling for the long term.

Xero Limited (ASX: XRO)

This ASX tech share offers high-quality software for accountants, bookkeepers, financial advisors and business owners. It can be used anywhere in the world because its platform is cloud-based.

It's growing its total number of subscribers and ARPU. Xero also recently increased its prices for New Zealand, the UK and Australia, which could boost the business' economics further.

With a gross profit margin approaching 90% and ongoing strong revenue growth, I think the business can achieve strong profit growth in the coming years. With the Xero share price down over 50% in 2022 to $71.08, I think it looks very compelling for the rest of this decade.

The post 10 ASX shares I think are buys for 2023 appeared first on The Motley Fool Australia.

The ASX share market can be a great tool to grow wealth in my opinion. With how little work is needed to invest, and the historical track record of capital growth, ASX shares are my favourite type of investing. It could be a great way for someone in their 40s to build a six-figure portfolio.

Investing is a long-term task. It doesn't matter if someone hasn't built up much, or any, wealth yet.

Trying to get rich quickly would probably be a mistake, as this could lead to investing in stocks that are incredibly risky, with a low chance of it doing well.

Just look at how some of the hottest investments from the COVID era of cheap money have now dropped by more than 60%. A few of those names which could still generate big profits in the long term may be opportunities. But the valuation of some assets just didn't make sense to me in 2021 and may never return to that level.

Having said that, I do think there are a number of excellent investments that can do well over the long term.

Decades of time left for compounding

A 40-year-old may have missed out on a decade or two of being invested. However, there are at least 25 years to a retirement age of 65. And wealth doesn't necessarily stop building at retirement — there are hopefully many decades ahead of living.

If someone were to invest $1,000 a month into ASX shares, it would turn into $1.18 million over 25 years if it achieved the historical ASX share market average return of 10% per annum, according to the Moneysmart compound interest calculator. In 21 years it would reach more than $500,000.

Of course, we don't know what the future returns will be. It could be worse than the average of 10% per annum, or it could also be better.

It will depend on what stocks investors choose and how they perform.

Which ASX shares to invest in?

The simplest way to achieve long-term returns could be to choose quality exchange-traded funds (ETFs) that are invested in quality businesses, such as Vanguard MSCI Index International Shares ETF (ASX: VGS) or VanEck Morningstar Wide Moat ETF (ASX: MOAT). The VanEck one is focused on companies with strong and enduring competitive advantages — it's my favourite ETF.

Another option could be to pick ASX blue-chip shares that already have a good track record in achieving long-term returns, including Wesfarmers Ltd (ASX: WES), Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Premier Investments Limited (ASX: PMV), and Xero Limited (ASX: XRO).

It could also be interesting to look at some beaten-up ASX shares with long-term growth potential, but I would only make each position a relatively small part of my portfolio compared to the ETFs or the blue chips. Some of the names I like include Temple & Webster Group Ltd (ASX: TPW), Adairs Ltd (ASX: ADH), Shaver Shop Group Ltd (ASX: SSG), Volpara Health Technologies Ltd (ASX: VHT), Universal Store Holdings Ltd (ASX: UNI), and Reece Ltd (ASX: REH).

But, if I were trying to keep things simple with a smaller number of names, my favourite idea for long-term capital growth would be VanEck Morningstar Wide Moat ETF.

The post If I was 40 and had never invested, here's how I'd aim to build a $500,000 ASX share portfolio appeared first on The Motley Fool Australia.

Investment group Blackrock recently commented on its investment thoughts for 2023, saying:

In equities, we believe recession isn't fully reflected in corporate earnings expectations or valuations – and we disagree with market assumptions that central banks will eventually turn supportive with rate cuts. We look to lean into sectoral opportunities from structural transitions – such as healthcare amid aging populations – as a way to add granularity even as we stay overall underweight.

We like healthcare given appealing valuations and likely cashflow resilience during downturns.

Here are three ASX healthcare shares that could benefit from growing demand for healthcare:

Pro Medicus Ltd (ASX: PME)

Pro Medicus describes itself as a leading healthcare informatics company. It provides a "full range of medical imaging software and services to hospitals, imaging centres and healthcare groups worldwide".

Visage Imaging is a medical imaging solution business. Its platform is "ultra-fast, clinically rich, and highly scalable", the company says.

It is benefiting from society's desire for increasing technological abilities to help medical practitioners and patients.

The ASX healthcare share is winning major new contracts as well as renewing existing contracts. One of the most promising factors about the renewals is that they are being negotiated at a higher transaction cost than the original pay-per-view contract. An example of this was the University of Florida, seven-year, $15.5 million renewed contract.

Over the last six months, the Pro Medicus share price has gone up by 50%. However, according to Commsec, the Pro Medicus share price is valued at 109 times FY23's estimated earnings.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara predominately aims to help save families from breast cancer, with "advanced cancer screening science and protocols". It's focused on detection and increasing prevention for women while digitising and reducing waste for medical professionals.

The company said in its FY22 half-year result that approximately 40.5% of screened women in the US have had contact with at least one Volpara product in obtaining their images and data. In HY22, operating expenses only increased by 3.4%, while revenue grew by 37%.

The ASX healthcare share is aiming to grow its average revenue per user (ARPU) to have more Volpara products used on patient images. The company is also looking to reach operating cash flow breakeven by the fourth quarter of FY24.

After a 41% fall of the Volpara share price in 2022, it's now at a much cheaper level than it was in 2021 despite its ongoing revenue growth. The business is also working on growing its presence in lung cancer screening.

Sonic Healthcare Ltd (ASX: SHL)

Sonic Healthcare is a leading pathology and radiology business on the ASX. The advancement of technology is enabling the company to provide a more detailed pathology service for patients and medical practitioners.

Its base revenue continues to grow. Geographic expansion, as well as wider service offers, can be a tailwind for the ASX healthcare share.

One of the intriguing elements of Sonic's business is the 20% investment in artificial intelligence (AI) business Harrison.ai, which has an existing radiology AI product called Annalise.ai. This is a market leader in radiology AI, according to Sonic. A brain CT scan product has also been completed, with tools for other modalities to follow.

Franklin.ai is a joint venture between Sonic and Harrison.ai to develop 'best-in-class' diagnostic tools for pathology. It's targeting a first product release within two years.

The Sonic Healthcare share price is down over 30% in 2022 to date. According to Commsec, this puts the business at 19 times FY23's estimated earnings.

The post Why I'd invest in these 3 ASX shares to combat this one inflationary megatrend appeared first on The Motley Fool Australia.

ASX shares that are hoping to grow substantially in the coming years could get some traction next year.

Of course, just because a business is growing doesn't necessarily mean that investors are going to recognise that potential within a 12-month time period, but I think underlying growth of the ASX share can indicate good things for the potential shareholder returns. That's why I've got my eyes on these three ideas:

Healthia Ltd (ASX: HLA)

Healthia is a small-cap ASX share with over 300 clinics. This healthcare share has three segments that are aimed at helping people across 'bodies and minds', 'feet and ankles' and 'eyes and ears'.

I think that, over time, scale can greatly add to this business' profitability as it grows the number of clinics through acquisitions and organic growth.

If the business can execute a steady pipeline of bolt-on acquisitions, it will naturally become a larger business over time.

The business already has a small presence in markets outside of Australia, in New Zealand and the USA, which gives it a longer growth runway.

According to Commsec, the business is valued at just 10 times FY23's estimated earnings with a potential grossed-up dividend yield of 5.7%.

Monash IVF Group Ltd (ASX: MVF)

This ASX share is about providing IVF services to help families have children. The company says that the maternal birth age has increased by two years over the last 20 years and is expected to further increase.

The IVF industry saw a 5% compound annual growth rate (CAGR) of volume between FY17 to FY22. After a disrupted period of COVID, 2023 could be a good year. It managed to slightly increase its market share in FY22.

It's gaining "momentum" in south east Asia with five IVF clinics across the region. It is planning to open two or three new clinics each year. By FY26, Asia could be contributing 25% of the group's stimulated cycles.

FY23 has started strongly – market share was up another 1.4% to 23.8%. According to Commsec numbers, it's priced at under 16 times FY23's estimated earnings.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is a leading provider of software relating to screening for breast cancer and lung cancer.

It has built an impressive market share in the US. Of the women that are screened for breast cancer, at least one of Volpara's products is used on 40.5% of women's images.

The ASX share has an impressive gross profit of more than 90%, so extra revenue can help it power towards profitability. Its FY23 first-half result showed total revenue growth of 22% in constant currency terms.

I think a big step towards breakeven in 2023 will go some distance to quell investor concerns about potentially needing to do a capital raising.

Growth of average revenue per user (ARPU), geographic expansion and large client wins could be good tailwinds for the Volpara share price next year.

The US Food and Drug Administration (FDA) is expected to release breast density legislation, which could also be a boost for Volpara if it means more dialogue with patients about cancer risk.

The post 3 ASX shares I think are primed to break out in 2023 appeared first on The Motley Fool Australia.

No one can know what share prices are going to do next month or next year. But I can see when valuations have dropped from where they were.

It's common, and expected, for share prices to go through declines every so often. However, it's rare for the entire market to drop at the same time.

The last time inflation and interest rates went up this quickly was a number of decades ago. It is a rare opportunity to be able to invest in businesses after such a large, rapid fall across the market.

While this is a different economic climate to the COVID-19 crash and the GFC, some businesses have — or had — experienced a similar level of decline.

Why I've been buying ASX shares

One of the benefits of a lower share price is that it boosts the prospective dividend yield of ASX dividend shares.

For example, if a business had a 6% dividend yield but the share price drops by 10%, that dividend yield turns into 6.6%.

All of the shares in my portfolio pay dividends. I like the real cash flow that dividends can add to my annual financial picture.

In the current market, I've seen plenty of opportunities to add to existing positions as well as invest in new ASX shares. Earlier in the year, I saw an opportunity to buy some more Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares and Rural Funds Group (ASX: RFF) shares.

I also invested in new positions like Brickworks Limited (ASX: BKW) and Bailador Technology Investments Ltd (ASX: BTI).

But, this article isn't about trying to advocate for those particular ASX shares.

Share prices don't typically drop by themselves. There has to be a significant worry for something to drop more than 10% in a relatively short amount of time.

When there's even a sniff that things might be getting better, or even not getting worse, the share market often likes to push valuations higher.

Which ones could be good value?

I think the names that could be opportunities are the ones that have fallen significantly but still have sound long-term plans.

Names in the tech space and retail space could be good value in my opinion, such as Xero Limited (ASX: XRO), Adairs Ltd (ASX: ADH), Accent Group Ltd (ASX: AX1), Airtasker Ltd (ASX: ART), Wesfarmers Ltd (ASX: WES), Temple & Webster Group Ltd (ASX: TPW), Universal Store Holdings Limited (ASX: UNI), and Volpara Health Technologies Ltd (ASX: VHT).

The strong growth businesses can hopefully recover investor sentiment, while the outlook for retail conditions won't always be this uncertain.

I think that buying businesses at a lower price can help the long-term compounding of the returns, resulting in stronger long-term wealth building. This could help me retire earlier, generate more dividend income, and perhaps see me finish with a bigger nest egg.

The post Why I'm buying ASX shares in this once-in-a-lifetime market to try and retire early appeared first on The Motley Fool Australia.

Let's say you have $1,000 to invest in ASX shares. If you were to buy S&P/ASX 200 Index (ASX: XJO) biotech giant CSL Limited (ASX: CSL), your $1,000 would buy you the grand total of precisely three shares, along with around $120 in change.

That's because CSL shares currently trade a little shy of $300 a pop — the highest individual share price of any company on the ASX.

If the thought of being the proud owner of just three shares doesn't exactly rock your world, perhaps you'd prefer to invest in some 'cheaper' options. Obviously, a smaller share price doesn't necessarily mean 'cheap', since a company's overall valuation is based on market cap. But companies trading at the lower end of the individual-share-price spectrum can certainly be more accessible (and indeed appealing) for many investors.

Furthermore, there are lots of high-quality companies trading on the ASX with share prices going for under a fiver. With that in mind, we asked our Foolish contributors to pop their thrifty thinking caps on and let us know which ASX shares they reckon are the best buys under $5 right now.

Here is what the team came up with:

8 best ASX shares under five bucks (smallest to largest)

• Volpara Health Technologies Ltd (ASX: VHT), $166.36 million
• Adairs Ltd (ASX: ADH), $385.46 million
• Imdex Limited (ASX: IMD), $875.67 million
• Core Lithium Ltd (ASX: CXO), $2.57 billion
• HomeCo Daily Needs REIT (ASX: HDN), $2.64 billion
• Harvey Norman Holdings Limited (ASX: HVN), $5.12 billion
• South32 Ltd (ASX: S32), $17.94 billion
• Telstra Group Ltd (ASX: TLS), $45.52 billion

(Market capitalisations as of 18 November 2022)

Why our Foolish writers love these ASX $5 finds

Volpara Health Technologies Ltd

What it does: Volpara "makes software to save families from cancer". Healthcare providers use Volpara's product to better understand a patient's cancer risk and guide recommendations on additional imaging, genetic testing and other interventions. The software can help radiologists perform their duties faster and more effectively.

By Tristan Harrison: Volpara continues to grow at an impressive pace. In the first quarter of FY23, cash receipts were up 23% to NZ$8.8 million. The healthcare company's annual recurring revenue (ARR) also continues to rise and is now above US$19 million.

Client retention rate remains high, and Volpara is hoping to grow its average revenue per user (ARPU) by selling more software modules to customers.

The gross profit margin is currently around 90% (which is high), so any extra revenue is highly beneficial to the bottom line. Volpara has the opportunity to reinvest extra gross profit into driving more growth by spending on further product development and marketing. The company is now focused on profitable growth.

Motley Fool contributor Tristan Harrison does not own shares in Volpara Health Technologies Ltd.

Adairs Ltd

What it does: Adairs is home furniture and decor retailer. It has an established network of more than 170 stores across Australia and New Zealand as well as an established and growing online channel.

By Matthew Farley: After plunging by around 44% year to date, I believe Adairs shares are now selling at an attractive discount. And at $2.25 as of Friday's close, the Adairs share price is also sitting substantially below its 52-week median price of $2.88 for its 52-week range, which makes it even more attractive to me right now.

One thing I like about the company is its revenue growth over the past couple of years. Adairs' group sales have grown from $388.9 million in FY2020 to $564.5 million in FY2022. The company expects sales revenue to grow further this fiscal year to between $625 million and $665 million.

Due to the market sell-off over the past year, Motley Fool's chief investment officer Scott Phillps recently highlighted the fact that some ASX retail shares are now trading at low valuation ratios. With a current price-to-earnings (P/E) ratio standing at just 8.7, arguably, Adairs is one of them.

Motley Fool contributor Matthew Farley does not own shares in Adairs Ltd.

Imdex Limited

What it does: Founded 42 years ago, Imdex has grown into a truly global tech company with sales in more than 100 countries. The business provides software solutions to the mining industry for optimising drilling and providing ore insights and actionable analytics.

By Mitchell Lawler: Imdex shares were perched at $2.20 apiece at the close of trade on Friday, amounting to a market capitalisation of around $875 million. The profitable tech company is a minnow relative to the broader Australian share market.

However, I believe the financial history of Imdex should speak volumes. Since the end of 2015, the company has evolved from a barely profitable biz raking in $145 million in revenue, to a profit printer with $341.8 million in revenue in FY22.

Despite its historical success, Imdex is still tinkering with new technology. Recently, Fortescue Metals Group Limited (ASX: FMG) entered a joint venture to implement the first commercial use of Imdex's Blast Dog tech.

Motley Fool contributor Mitchell Lawler does not own shares in Imdex Limited or Fortescue Metals Group Limited.

Core Lithium Ltd

What it does: Core Lithium is the Australian lithium developer behind the Finniss Project in the Northern Territory. Management claims it to be the most capital-efficient lithium project with arguably the best logistics chain to markets of any Australian lithium project.

By James Mickleboro: Core Lithium shares closed of Friday at $1.40 apiece, which is meaningfully lower than the 52-week high of $1.88 it reached just a few days ago. This weakness has been driven by concerns that the Finniss Project could run behind schedule and fears that lithium demand is softening in China.

However, the online lithium auction results from rival Pilbara Minerals Ltd (ASX: PLS) this week appear to demonstrate that demand is as strong as ever. In light of this and the expectation that lithium prices will remain high for some time, I think this is a buying opportunity for investors. Especially given that Core Lithium shares are trading at a reasonably modest 8x FY2024 earnings based on Macquarie's forecasts.

Motley Fool contributor James Mickleboro does not own shares in Core Lithium Ltd or Pilbara Minerals Ltd.

HomeCo Daily Needs REIT

What it does: HomeCo Daily Needs REIT is an Aussie real estate investment trust (REIT) focused on convenience-based assets. It boasts 53 properties, $4.6 billion of assets under management, and a 99% occupancy rate.

By Brooke Cooper: The HomeCo Daily Needs REIT has had a good run lately. Its funds from operations lifted 30% year on year in the 2022 financial year, while its net tangible assets rose 12%.

The trust has also announced more than $75 million worth of new development projects to be commenced this financial year.

Despite such tailwinds, the ASX 200-listed REIT's share price has tumbled 20% year to date to now trade at $1.27. Such a fall might have presented a buying opportunity, if Goldman Sachs is to be believed. The broker has a buy rating and a $1.57 price target on the share.

Motley Fool contributor Brooke Cooper does not own shares in HomeCo Daily Needs REIT.

Harvey Norman Holdings Limited

What it does: Harvey Norman Holdings Limited is the franchisor of Harvey Norman, a leading Australia-based retailer that sells home furniture and household goods.

By Bronwyn Allen: Personally, I like investing in the permanent cultural tailwind of Australia's property mania. We love upgrading our homes when our finances allow. We're very house-proud and increasingly partial to luxury furnishings, interior design, and the latest electronics.

We love watching The Block and spend millions on home renos annually. These are long-term trends. A strong, short-term trend also underway is that thousands of us are relocating from the expensive capital cities to cheaper regional areas since COVID ushered in the era of permanently working from home.

And when people change homes, they buy new stuff. I believe all of this bodes well for the iconic furniture and household goods retailer, Harvey Norman.

For the hard numbers analysis, let's look to broker Goldman Sachs. It's positive on the company with a price target of $4.80 and very healthy forecast dividend yields of 9% in FY23 and a bit below 8% in FY24.

Motley Fool contributor Bronwyn Allen owns shares in Harvey Norman Holdings Limited.

South32 Ltd

What it does: South32 is an ASX 200-listed miner with a focus on uncovering and digging up aluminium, manganese, silver, lead, zinc, and metallurgical coal across three continents. It has a market cap of just under $20 billion.

By Bernd Struben: With its focus on metals critical to a low-carbon future, I believe the outlook for South32 is promising. And I think the price for its met coal (used for steel making) is undervalued today compared to the rocketing price of thermal coal (used to generate electricity).

Katana Asset Management's Romano Sala Tenna says the miner "has tier-one assets in tier-two commodities".

South32 shares do run the risk of "some downgrades in the coming months" with cooling commodity prices, he said. However, "They've been one of the best companies in terms of capital management."

Down 2.5% year-to-date, the South32 share price has still outperformed the benchmark in 2022. At current prices, the stock pays a 9.4% trailing dividend yield, fully franked.

Motley Fool contributor Bernd Struben does not own shares in South 32 Ltd.

Telstra Group Ltd

What it does: Telstra is the leading provider of telecommunications, mobile and internet services in Australia

By Sebastian Bowen: Despite being a relatively large ASX 200 company, Telstra asks well under $5 per share. The telco has been going flat out with its restructuring and cost-cutting programs in recent years. After the success of its T22 plan, Telstra is now undertaking its T25 strategy and has just completed its corporate restructuring.

I believe this has the potential to rewrite the valuation Telstra commands. We've already seen Telstra secure some generous valuations for some of its underlying assets, such as its mobile towers. I feel there is plenty of potential for the market to place a premium valuation on some of the telco's other assets too.

As such, I think this is a great company to hold onto going forward, with a nice dividend to keep you company as well.

Motley Fool contributor Sebastian Bowen owns shares in Telstra Group Ltd.

The post Ballin' on a budget: The best ASX shares to buy for under $5 appeared first on The Motley Fool Australia.

I think there are a few ASX shares that have been hit hard during 2022 that may be long-term opportunities at these prices.

It's certainly possible that a handful of businesses may have seen their share prices fall too hard.

When things are oversold, I think they could be attractive ideas, particularly if they have long-term potential.

No one can know what a share price is going to do next. But, I think these two ASX shares could be investments to think about because of the value they offer at this lower price.

Nick Scali Limited (ASX: NCK)

Nick Scali is an ASX retail share that sells furniture from a national network of stores. It also recently acquired the Plush-Think Sofas business.

At the time of writing, the Nick Scali share price has fallen by around 38% in 2022.

Although the company's shares have recovered in recent weeks, the business still looks like good value for the long term, in my opinion.

Things are indeed looking a bit tough in the shorter term for retailers, but investing is about more than what happens in just the next 12 months.

I think after this period of high inflation and rising interest rates ends, the outlook for Nick Scali will improve, and therefore investor sentiment can recover somewhat.

FY22 was affected by store closures due to COVID lockdowns, as well as lockdowns in product sourcing locations and shipping container availability. FY23 will hopefully not have those negative impacts.

Besides that, there are other long-term positives. With the acquisition of Plush, there is the potential for store network expansion, enhanced group buying power, aligned distribution, and so on.

The ASX retail share can also add more Nick Scali stores to help grow its profit. Online sales growth could also help. Nick Scali online revenue was $13.7 million and it contributed $8 million of earnings before interest and tax (EBIT). With this good profit margin, it will help the company if and when more sales occur online.

Finally, Nick Scali usually pays a generous dividend yield. The dividend estimate on CMC Markets for FY23 suggests a grossed-up dividend yield of 9.6%.

Volpara Health Technologies Ltd (ASX: VHT)

ASX share Volpara Health Technologies offers a range of software relating to breast screening and risk analysis.

The Volpara share price has fallen by more than 40% since 25 October 2021.

I think the business has a very promising future by offering clients an increasingly valuable service by being able to analyse images and detect cancer as early as possible.

In my opinion, the business has several attractive features. It has a high gross profit margin of around 90%. In the FY23 first quarter, it saw good growth with subscription-based cash receipts up 36% to NZ$8.3 million. It has annual recurring revenue (ARR) of around NZ$27.1 million. Customer loss remains "low".

Around 35% of women in the United States have a Volpara product applied on their images and data.

The company is looking to become cash flow breakeven by the end of FY24.

It has good foundations, in my opinion. If the company keeps growing quickly, scale will help it generate a good bottom line in the future.

The post Here's why I think these ASX shares are top ideas to buy right now appeared first on The Motley Fool Australia.

The Volpara Health Technologies Ltd (ASX: VHT) share price is rising today after the company released its quarterly results.

The company's shares lifted 13% in earlier trade before retreating. The Volpara share price is now up 4.65%, trading at 67.5 cents.

Volpara develops software for the early detection of breast cancer. Let's take a look at what Volpara reported in today's results.

Volpara share price responds to 'strong' update

The Q1 FY23 quarterly cash flow report is likely driving the Volpara share price higher today. Highlights include:

• Customer cash receipts up 35% on Q1 FY22 to NZ $8.7 million
• Net operating and investing cash outflow of NZ$3.6 million, compared to N$2.9 million in the previous quarter
• Subscription receipts lifted 36% on prior corresponding quarter to NZ$8.3 million
• Net cash at hand of NZ$15.2 million. A $10 million undrawn bank facility is also available
• Guidance of NZ$31.5 to $33 million revenue in FY23

What else did Volpara report?

Volpara said cash receipts were the "strongest on record".

Net outflow was 24% on the previous quarter, due to multiple costs, including performance-related pay. Volpara was expecting this loss but plans to reduce outflows from Q3 onwards.

Volpara described its cash position as "strong" and highlighted it has no debt. Management is confident the cash at hand will help the company break even in the future.

Highlights for the quarter included a partnership with Microsoft, and a 'best scientific contribution' award for a scientific paper.

Contracted annual recurring revenue (CARR) lifted by US$1.5 million on the prior quarter to US$23.7 million.

Annual recurring revenue (ARR) also lifted by $1.2 million to US$18.5 million.

Management commentary

Speaking on the results that are giving the Volpara share price a boost today, CEO Teri Thomas said:

This quarter we are pleased with our continued growth. We are delighted about the momentum we've gained with large healthcare organisations' faith in us and our portfolio of products and services.

We are highly focused on continued support of our customers' successes, while engaging with additional 'elephant-sized' organisations for the next quarters

Strategy update

Volpara is aiming to return to profit by FY25 and balance the books by Q4 FY24. Central to this return to profit will be focussing on high revenue geographic regions, including Australia and the United States.

The company said it will prioritise sales opportunities that generate high value, and large revenue. Volpara will also keep investing in science and technology.

Commenting on this strategy, Thomas said: "This time focusing our expertise in both the products and geographical areas that provide maximum value to shareholders will position us well for growth as a profitable company within the foreseeable future."

Volpara will also freeze or limit investment in low-margin or long lead time products.

Volpara share price snapshot

The Volpara share price has lost 38% in the past year and more than 34% year to date.

However, in the past month, the company's stock has exploded 69%.

Volpara has a market capitalisation of about $173 million based on today's share price.

The post Volpara share price leaps 5% following record cash receipts appeared first on The Motley Fool Australia.

I wouldn't say that every single thing that has fallen is an opportunity, but there are some that I believe have very promising futures, and the lower prices represent good buying.

Quite a few ASX growth shares have rebounded strongly over the past month. For example, the Zip Co Ltd (ASX: ZIP) share price is up 65% over the last month at the time of writing. But I'm not talking about Zip in this article.

I think the two ASX growth shares below have a promising and profitable future. Here's why.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is a leading e-commerce business that sells a wide array of homewares and furniture.

It offers for sale more than 200,000 products from hundreds of suppliers. Those products are sent directly to customers by suppliers, which reduces the need to hold inventory, allowing for a more extensive product range.

Temple & Webster also has its own product range and recently launched The Build, a website to sell home improvement products.

The Temple & Webster share price is currently down by 64% in 2022, which I believe makes it attractively priced. It's up 17% in the last month.

This ASX growth share grew revenue by 23% between 1 January 2022 to 30 April 2022, compared to the prior corresponding period. Revenue was up 116% compared to 2020.

The company is using its rapidly-growing revenue to invest in areas building 'key strategic moats' around the business. This includes data, personalisation, artificial intelligence, augmented reality and logistics.

It's also pursuing further organic growth opportunities, such as its private label offering, and keeping an eye out for acquisitions.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara describes itself as a global leader in the research and development of artificial intelligence for the early detection of breast cancer.

Its software provides clinicians feedback on breast density, compression, dose and quality, enabling them to offer patients personalised breast care and enhanced risk assessment.

The Volpara share price has fallen 38% since the start of 2022, but it's up 46% in the last month.

Its FY22 result displayed a number of attractive statistics. Total revenue rose 32% to NZ$26.1 million and the gross profit margin was 91%. The market share continues to grow – in FY22, 35.5% of US women had a group product applied to their images and data (up from 32% in the prior year).

The ASX growth share has also signed important deals in the last few weeks. It has announced a new research and development collaboration with Microsoft to accelerate the creation of a product that uses mammograms to identify potential cardiovascular issues. Volpara said that breast arterial calcifications were shown to be associated with cardiovascular disease outcomes.

It has also signed a deal with RadNet Inc, which includes Volpara Analytics software and Volpara Risk Pathways software. Risk Pathways will be embedded into eRAD, RadNet's electronic medical record system. The contract incorporates a volume-based model with potential upside.

I think ongoing revenue growth will help as the company benefits from operating leverage, and grows from the deals it has signed.

The post Why I think these 2 ASX growth shares could keep marching upwards appeared first on The Motley Fool Australia.

The All Ordinaries Index (ASX: XAO) has broken into the green and trades 1.1% higher in morning trade on Monday.

Indeed, with a new month comes a new set of monthly returns. After some volatility in recent weeks, investors look to embark on a new set of investment conditions in July.

One All Ordinaries share that's taken off today is Volpara Health Technologies Ltd (ASX: VHT). Its share price is tracing 17.02% higher from the open at 55 cents.

Investors are jumping on the breast-screening software company's shares following a company announcement of a new contract win.

Indeed, Volpara's management says revenue from the contract "will be material" to the company.

What did Volpara announce?

Volpara advised it has signed a contract with Radnet Management, Inc. for an initial contract period of 42 months. The contract has a mutual option to extend.

The company says Radnet is the largest provider of outpatient imaging services in the United States with 353 imaging centres and 9,000 employees.

Under the agreement, Radnet will implement the Australian company's Volpara Analytics and Volpara Risk Pathways software throughout its various sites.

The company's announcement said:

Planning for the implementation has begun, with go-live projected in 2023.

Management expects that revenue generated under the agreement will be material to the company.

Speaking on the announcement, Volpara's CEO Teri Thomas was "pleased to partner" with Radnet. She said:

This is a broader partnership than a simple software purchase. We look forward to a deep engagement with Radnet as part of our focus on industry impacts and customer success of 'elephant-sized' industry leaders.

In the last 12 months, the Volpara share price has slipped around 57% into the red.

The post This ASX All Ordindaries healthcare share is ripping 17% higher amid a new contract win appeared first on The Motley Fool Australia.

I think the current investment environment is looking like a good time to go hunting for ASX growth shares for the long-term with $3,000.

Companies that are growing their revenue and operations at a decent pace could be good businesses to look at because of the power of compounding.

Of the three names I'm going to mention below, only one is currently in my portfolio. At the moment, my wife and I are following an investment plan that targets ASX dividend shares with attractive capital growth potential.

I believe that all of the three names are good candidates for long-term growth, which is why I think they're currently worth buying:

Bailador Technology Investments Ltd (ASX: BTI)

Bailador is a company that invests in technology businesses. I've already written an article about my recent purchase of some shares.

I like the characteristics that Bailador looks for in these growth-stage technology businesses: run by founders, been in operation for two to six years, a proven business model with attractive unit economics, international revenue generation, "huge" market opportunity and the ability to generate repeat revenue.

After a drop in the Bailador share price of more than 20% since November 2021, I think it looks like good value. Bailador said that at 31 December 2021, 91% of its portfolio's revenue was recurring, and the revenue grew by 41% in 2021.

I'm attracted to the 20% discount to the May 2022 post-tax net tangible assets (NTA) as well as the announcement of a dividend policy of paying a dividend yield that's 4% of the pre-tax NTA.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is a leading ASX healthcare share that specialises in providing software for breast-screening clinics.

It has built a large market share in the US – around 35.5% of US women now have one of the company's products applied to their images and data.

The ASX growth share is also generating a high gross profit margin of 91%. That means it can put more than 90% of new revenue towards further growth spending. FY22 revenue rose by 32% to NZ$26.1 million. The ASX share's annual recurring revenue (ARR) figure continues to grow – FY22 ARR rose 19% to US$22.2 million.

I think the company has plenty of growth potential by growing its average revenue per user (ARPU) by selling more products to new and existing clients (with a focus on 'risk' for patients), while also expanding in other countries outside of the US.

The ASX share also has a small but growing exposure to lung cancer screening, which management thinks could be just as big of an opportunity to make a difference as breast screening.

City Chic Collective Ltd (ASX: CCX)

City Chic is the third ASX growth share that I think has an attractive long-term future.

It's a retailer that sells clothing, footwear, and accessories to plus-size women.

After a few acquisitions, it now has a good position in Australia, the UK, and the US. Avenue in the US and Evans in the UK are now both e-commerce operators.

While COVID-19 has been difficult, I think the company has played it well by ensuring it has a good amount of stock to beat the supply chain issues.

The focus on maintaining a good inventory position has allowed the business to continue to grow revenue at a good pace. In a trading update two months ago, the company said it had achieved "strong" total sales growth in the second half to date, with growth of 25%.

City Chic said the plus-size market is forecast to grow by 7% per annum, and the average annual spend on plus-size is currently "materially less" than the rest of the apparel market.

The post Here's where I'd invest $3,000 into ASX growth shares today appeared first on The Motley Fool Australia.

Companies with long-term growth plans and large potential markets can generally produce good compound returns over the coming years, in my opinion.

I believe those elements together with recent share price volatility make the two ASX shares below even more attractive. Let's take a closer look.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is an ASX healthcare share that has seen a hefty decline since the beginning of the year, but its FY22 result showed a lot of progress.

The company points out that breast cancer screening presents a "significant opportunity" for the business. There are 92 million women screened globally each year, with 39 million in the United States. Volpara has reached a market share of 35.5% of US women having a Volpara product used on their images and data, compared to 32% in FY21.

There are plenty of other metrics that make this company a great long-term investment, in my opinion. Its average revenue per user (ARPU) continues to climb. ARPU was US$1.40 in FY21 and grew to US$1.51 in FY22. Growth here can be achieved by selling more modules to more clients.

Volpara's subscription revenue rose by 37% year on year to NZ$24.8 million over the year. It came with a gross profit margin of 91%, which allows the business to invest that growth profit into growth areas of the business growth such as marketing and research and development.

One focus for the ASX share in FY23 is to expand its total addressable market, which could help lengthen the company's long-term growth runway.

Bailador Technology Investments Ltd (ASX: BTI)

Bailador describes itself as a growth capital fund that is focused on the IT sector, actively managed by "an experienced team with demonstrated sector experience."

It aims to provide exposure to a portfolio of IT companies that have global addressable markets. Bailador invests in private technology companies at the expansion stage.

Some of its investments include Siteminder Ltd (ASX: SDR), Straker Translations Ltd (ASX: STG), InstantScripts, Nosto and Mosh.

Typically, it's looking for businesses that are run by the founders, have been in operation for two to six years, have a proven business model with attractive unit economics, international revenue generation, a huge market opportunity and the ability to generate repeat revenue.

Some of the types of areas the ASX share likes to look at include subscription-based internet businesses, online marketplaces, software, e-commerce, high-value data, online education, telecommunication appliances and services.

I think it could be a good opportunity because of the long-term investment approach it takes with its holdings, which themselves are attractive long-term businesses.

At the end of April 2022, it had net tangible assets (NTA) per share (pre-tax) of $1.99. The current Bailador share price of $1.36 at Friday's close is at an attractive discount to that NTA level.

These factors are why I think the underlying portfolio is likely to continue to perform well over the coming years, particularly starting at this lower valuation of the Bailador share price.

The post 2 ASX shares I think are great long-term buys appeared first on The Motley Fool Australia.

I believe that investing in shares is one of the best things that people can do for their wealth over the long-term. Beginners don't need $50,000 to start investing in ASX shares. People can invest with as little as $500. But when should investors start?

Readers may have seen a lot of news in recent months about how share markets are seeing volatility. That's in response to strong inflation and central banks around the world, like the Reserve Bank of Australia (RBA), deciding to raise interest rates to reduce inflation.

Interest rates act like gravity on asset prices. When interest rates go higher, it theoretically 'pulls' down the asset price.

So that explains why share prices are lower – investors are 'pricing in' the interest rates that are expected this year.

Is now a good time to start investing?

A key part of investing is buying opportunities at a good price. If nearly everything is cheaper, I think it makes sense to look at ASX shares.

Warren Buffett, one of the best and wisest investors in the world, once explained whether he sees lower prices as an opportunity:

To refer to a personal taste of mine, I'm going to buy hamburgers the rest of my life. When hamburgers go down in price, we sing the 'Hallelujah Chorus' in the Buffett household. When hamburgers go up in price, we weep. For most people, it's the same with everything in life they will be buying — except stocks. When stocks go down and you can get more for your money, people don't like them anymore.

If you already own shares, then it can be tough seeing your shares drop. But hopefully, if you've chosen well, they can recover and reach new heights over time. Global share markets have seen some tough times during the GFC and COVID-19, but they eventually have recovered.

That's why I'm looking at ASX shares like Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Brickworks Limited (ASX: BKW), Airtasker Ltd (ASX: ART), Volpara Health Technologies Ltd (ASX: VHT) and Temple & Webster Group Ltd (ASX: TPW)

Should investors wait for an even lower price?

No one knows what is going to happen next with ASX shares, or any asset price.

It's impossible to know whether the current share market decline is the bottom. Shares could drop another 10% in June. Or rise 10%. Or shares could end the month at the same price as the start.

Unless you have a crystal ball, which I certainly don't, it's impossible to be certain. That's one of the reasons why share markets are so volatile – everything is uncertain.

But over the long-term, I think the share market has shown it's worth investing (and staying invested) through the difficult times. Over the decades, the share market has returned an average of 10% per annum. That's an average – some years are much better. Some years are like the GFC (really bad!).

Those returns have happened despite the financial crashes, wars, politicians, policies, COVID-19 and so on.

So, while I think it's a good time to start investing right now, I wouldn't say it's a good idea to wait in case we've already seen the worst of the fall.

And then keep investing regularly in good ASX shares for the long-term.

The post Could now be a great time to start investing in ASX shares? appeared first on The Motley Fool Australia.

Shares in Volpara Health Technologies Ltd (ASX: VHT) jumped out of the gates on Thursday and are now trading 2% higher at 75 cents.

Investors are bidding up the Volpara share price following the release of the company's full-year results.

Volpara achieves record revenue

Key takeouts from the period include:

• Record revenue from customer contracts, up 32% to NZ$26.1 million
• Revenue result exceeds guidance of between NZ$25 million and NZ$26 million
• Subscription revenue up 37% to NZ$24.8 million
• Gross margin remained consistent at more than 91%
• Net loss for the year after tax improved 6% to NZ$16.4 million
• Normalised non-GAAP EBITDA loss declined 13% to NZ$14.1 million.

What else happened this period for Volpara?

Volpara achieved record full-year revenue for the year ending 31 March 2022, scoring NZ$26.1 million, which is a 32% year-on-year (YoY) gain.

Subscription revenues saw higher leverage this period and "continue to grow at a faster rate than total revenue", Volpara says.

In total, revenue from subscriptions increased to NZ$24.8 million, a 37% YoY gain.

Margins were held tight at the gross level at roughly 91% in FY22, in line with the previous year and guided ranges.

"Although further cost reductions were achieved through the continued work on the scaling of Microsoft Azure services, some one-off or non-standard costs were incurred during the year."

Finally, the group's net loss after tax (NLAT) improved 6% from NZ$17.5 million to NZ$16.4 million.

Over the 12 months to 31 March 2022, the Volpara share price dropped by more than 30%.

Management commentary

Speaking on the announcement, Teri Thomas, Volpara's CEO, said:

FY22 has been a great year for Volpara, with strong forward momentum in spite of Covid-driven uncertainties. Volpara has amassed a talented team of individuals who are passionate about our purpose, saving families from cancer. I'm honoured to lead this team forward into our next year of
making a positive impact on our customers and communities and for our shareholders.

Volpara share price snapshot

In the past 12 months, the Volpara share price has collapsed 40% into the red. It is down 28% this year to date.

The post Volpara share price up on record full-year results appeared first on The Motley Fool Australia.