Shares in the exploration and IT development fund are taking off today
The post The Strategic Elements (ASX:SOR) share price is up 5% on Thursday appeared first on The Motley Fool Australia. –
The Strategic Elements Ltd (ASX: SOR) share price has soared into the green in afternoon trade on Thursday.
At one stage Strategic Elements shares were up a whopping 13% to 50 cents. However, they have since partially retreated and are currently exchanging hands at 38.5 cents apiece, a 5.48% jump from the open.
What’s happening with Strategic Elements?
The Strategic Elements share price has been on the move upwards ever since the company reported its FY21 earnings on 23 August. It has gained around 15% over this period to date.
In its report, the company recognised a 34% year-on-year growth in revenue to $127 million. It also secured a successful capital raise of $5.1 million through a share purchase plan.
The net loss for the year came in at $2.35 million, which was an improvement from the year prior. As a result, the company’s balance sheet was strengthened with cash and equivalents increasing by more than $5 million in FY21.
In addition to these financial results, the company’s wholly-owned ventures are currently in a series of collaborations with research partners to commercialise its “autonomous security vehicle (ASV)”.
The ASV is an autonomous vehicle that can perform duties without the staff that are usually required. This has the benefit of reducing the risk of harm, and labour costs.
For instance, the company, through its subsidiaries, is in a collaboration with the University of Western Australia to conduct a live demonstration of the ASV to the Australian Army. It is also expanding its technology into the fields of herbicide resistance and in the correctional sector.
Strategic is also in collaboration with the University of NSW to develop its “nanocube printable memory technology”. The company has already received government funding of more than $1 million to date to advance the project.
Investors have been pushing up the Strategic Elements share price since the company released its earnings. As such It has climbed almost 60% into the green over the last month alone.
Strategic Elements share price snapshot
Strategic Elements operates as a venture builder, generating projects by combining teams of leading scientists and innovators. The company operates as a registered Pooled Development Fund (PDF).
The Strategic Elements share price has been a major performer across the All Ordinaries this year, posting a return of 95% since January 1. This has contributed to a return over the past 12 months of a mammoth 580%.
These results have outpaced the All Ordinaries Index (ASX: XAO)’s return of about 25% over the past year.
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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.