Day: January 12, 2021

Fund managers are buying Domino’s (ASX:DMP) and this ASX share

ASX buy

I like to keep an eye on substantial shareholder notices. This is because these notices give you an idea of which shares large investors, asset managers, and investment funds are buying or selling.

Two notices that have caught my eye today are summarised below. Here’s what these fund managers have been buying:

Bravura Solutions Ltd (ASX: BVS)

According to a change of interests of substantial holder notice, Mawer Investment Management has been taking advantage of weakness in the Bravura share price to top up its position.

The release confirms that Mawer has added approximately 4.5 million more shares to its holding since its last update at the end of November.

This means the fund manager now owns just under 25.5 million Bravura shares, which represents a 10.31% stake in the company.

With the Bravura share price currently trading 51% lower than its 52-week high, it appears as though this fund manager believes its shares are in the bargain bin. Bravura’s shares have been sold off in recent months due to its disappointing guidance for FY 2021. Its performance has been impacted by Brexit and COVID headwinds.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another change of interests of substantial holder notice reveals that Pinnacle Investment Management Group Ltd (ASX: PNI) has been buying this pizza chain operator’s shares.

According to the notice, over the last few months Pinnacle has increased its holding in Domino’s by ~900,000 shares to a total of just under 7.3 million. This represents an interest of 8.43%.

Pinnacle’s most recent purchases came on 4 January when it picked up 37,453 shares for a total consideration of $3,296,643. This equates to an average of $88.02 per share.

So, with the Domino’s share price trading at $82.72 a little over one week later, investors could be buying shares at a 6% discount to what the fund manager paid.

One broker that thinks Domino’s shares are in the buy zone is Bell Potter. This week it put a buy rating and $99.30 price target on its shares.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd. The Motley Fool Australia has recommended Domino’s Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The BHP (ASX:BHP) share price is Goldman Sach’s top pick for iron ore

A happy miner tips his hard hat, indicating good ashare price results for ASX mining stocks

What a year 2020 was for iron ore. The steel-making metal soared to a 7-year high while ASX iron ore miners delivered market leading returns on improved profitability and record dividends

The Goldman Sachs commodities team is bullish on commodities and iron ore in 2021. Its 2021 sector outlook and themes report released on Wednesday points to recovering global demand, low inventories and supply constraints and a weakening US dollar to support commodity prices.

In this report, the BHP Group Ltd (ASX: BHP) share price has emerged as the broker’s top iron ore pick. 

Bullish but valuations are fair

Despite the bullish sentiment for commodities and iron ore, Goldman views the sector as ‘fairly valued based on a discounted cash flow (DCF) basis’. 

As a result, other ASX iron ore miners such as Rio Tinto Ltd (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG) received neutral ratings after both companies soared in 2020 and early 2021. 

Goldman rates BHP share price as a buy 

BHP has emerged as the preferred pick based on valuation, commodity mix, better operating performance and more compelling medium to long-term production growth. 

Goldman raised its BHP share price target to $48.70 with a buy rating. This represents an upside of around 5%, and does not include its current dividend yield of 4.50%. 

The broker says that “BHP’s portfolio is in a very strong position” and forecasts a “circa 65% increase in EBITDA and doubling of free cash flow (FCF) in FY21”.

The company’s strong financial performance will be underpinned by a fall in capex to US$7 billion as major minerals projects are completed, but also driven by positive copper prices and a recovery in met coal and oil prices in CY21. 

The report does flag BHP’s softer December quarter due to production disruptions across copper, iron ore and oil. However, points to improved production moving forward with higher copper production, improved coal demand and oil acquisitions being finalised. 

Long term, the broker is positive on BHP’s organic growth options, particularly in oil where it sees a possible 50% growth in volume to +150 million barrels of oil equivalent (MMboe).

At the time of writing, the BHP share price is trading up 0.41% at $46.19.

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

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Motley Fool contributor Lina Lim 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.

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2 exciting ASX tech shares to buy today

rise in asx tech share price represented by digitised rocket shooting out of person's hand

If you’re currently searching for a couple of tech shares to add to your portfolio, then you could do a lot worse than the ones listed below.

Here’s why these ASX tech shares come highly rated right now:

Afterpay Ltd (ASX: APT)

Afterpay is a payments company that has been growing at a rapid rate over the last few years. This has been driven by the growing popularity of the buy now pay later payment method with consumers and retailers and its successful international expansion.

Pleasingly, this strong growth has accelerated in FY 2021 thanks to the shift to online shopping because of the pandemic.

Analysts at Bell Potter believe this strong form can continue. They expect this to be underpinned by a significant pipeline of catalysts including further integration with key ecommerce and payment infrastructure players, strong growth in customers and underlying sales in the US and UK, and its healthy net transaction margin.

Bell Potter has a buy rating and $140.00 price target on the company’s shares. This compares to the latest Afterpay share price of $110.12.

Nearmap Ltd (ASX: NEA)

Nearmap is an aerial imagery technology and location data company. It has been growing at a strong rate over the last few years thanks to increasing demand for its services in the ANZ and North American markets. And while the pandemic appears to be stifling its growth somewhat, management remains very positive on the future.

Thanks to geographic expansions, new growth initiatives, and the quality of its offering, particularly its new AI product, management believes the company is well-positioned for growth in the future.

It is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term, with underlying churn of less than 10%.

Morgan Stanley is positive on the company’s future. The broker has an overweight rating and $3.10 price target on its shares. This compares to the current Nearmap share price of $2.13.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Nearmap Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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3 quality ETFs for ASX investors to buy today

Wooden blocks depicting letters ETF, ASX ETF

Exchange traded funds (ETFs) can be a great way to balance out your portfolio.

This is because ETFs give investors easy access to a large number and diverse range of shares that you wouldn’t usually have access to.

Due to their growing popularity with investors, there are an increasing number of ETFs to choose from.

To narrow things down, I have picked out three ETFs that could be worth a closer look:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ETF to look at is the BetaShares Global Cybersecurity ETF. It aims to track the performance of an index that provides investors with exposure to the leaders in the global cybersecurity sector. This is a rapidly growing area of the market which BetaShares notes is heavily under-represented on the ASX. Included in the fund are companies such as Cloudflare, Crowdstrike, and Okta. 

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another ETF to look at is the VanEck Vectors Morningstar Wide Moat ETF. This fund gives investors a slice of 48 US-based stocks which have sustainable competitive advantages. Among the ETF’s holdings you will find blue chips such as Amazon, American Express, Boeing, Coca-Cola, Microsoft, Pfizer, and Yum! Brands. Over the last five years the ETF has outperformed the ASX 200 index materially.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

A final ETF to look at is the BetaShares NASDAQ 100 ETF. This ETF gives investors exposure to 100 of the largest non-financial companies on the Nasdaq index. Given the favourable long term outlooks for the majority of these companies, the Nasdaq 100 index has been tipped to continue outperforming the ASX 200 over the long term. Investing in this ETF will mean you are buying a slice of companies such as Apple, Facebook, Microsoft, Netflix, and Tesla, to name just five.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

More reading

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETA CYBER ETF UNITS and BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS and VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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