Day: September 8, 2021

3 top quality ETFs for ASX investors

A man with a yellow background makes an annoncement, indicating share price changes on the ASX

If you don’t have sufficient funds to build a diverse portfolio, then exchange traded funds (ETFs) could be a quick fix.

The reason for this is that ETFs give investors access to a large number of different shares through a solitary investment. This allows you to spread your funds far wider than you would if you were buying individual shares.

With that in mind, I have picked out three ETFs that trade on the ASX that could be good options. Here’s what you need to know about them:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

If you’re interested in the US tech sector, then the BetaShares NASDAQ 100 ETF could be one to consider. This ETF provides exposure to the 100 largest non-financial shares on the NASDAQ index. Among the 100 shares included in the fund are household names such as Amazon, Apple, Facebook, Microsoft, Netflix, and Tesla.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

Another ETF for investors to look at is the VanEck Vectors Video Gaming and eSports ETF. This ETF gives investors access to companies involved in the growing video gaming market. Among the shares included in the fund are hardware giant Nvidia and game developers Take-Two and Electronic Arts. VanEck notes that these companies are in a position to benefit from the increasing popularity of video games and eSports.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ETF to look at is the Vanguard MSCI Index International Shares ETF. This ETF provides investors with exposure to a massive 1,505 of the world’s largest listed companies from major developed countries. This arguably makes it as diverse as it gets for investors. Among the companies you’ll be buying a slice of are Apple, Johnson & Johnson, JP Morgan, Nestle, Procter & Gamble, and Visa. Vanguard notes that this allows investors to participate in the long-term growth potential of international economies outside Australia. It also offers a modest dividend yield of ~1.6%.

The post 3 top quality ETFs for ASX investors appeared first on The Motley Fool Australia.

Wondering where you should 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 could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

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Motley Fool contributor 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 and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF and Vanguard MSCI Index International Shares 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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Dicker Data (ASX:DDR) share price continues to slide, down 21% since late August

shocked man looking at laptop with declining arrows in the background showing a falling share price

The Dicker Data Ltd (ASX: DDR) share price is again in negative territory today following two weeks of significant losses. 

The dramatic fall in the company’s shares follows the IT distributor’s announcement of director transactions.

At the time of writing, Dicker Data shares adding to its woes, are down a further 2.09% to $13.10. This means that since 26 August, the company’s share price has fallen 21%.

Why is Dicker Data shares coming under pressure?

Investors are continuing to head for the hills, selling Dicker Data shares after a worrying market update on 27 August.

According to its release, the company revealed that its chair and CEO, David Dicker sold a portion of his shares.

The news didn’t go down well with investors, sending the Dicker Data share price down 9% on the day.

Mr Dicker offloaded a total of 2.74 million shares in an on-market trade at a price of $15.40 per share. The company advised that the sale was in relation to meet “personal projects” by the chair and CEO.

The transaction represented roughly 1.6% of Dicker Data’s share registry and reduced Mr Dicker’s entire holding to about 33.6%.

To appease shareholders, the company said that Mr Dicker entered into a lock-up arrangement on his remaining shares until the end of 2021.

However, taking advantage of the share price weakness, a number of directors took the opportunity to top up their holdings. While it was nowhere near the amount transacted by Mr Dicker, the company’s share rose 5% on the update.

Unfortunately, since the 2 September buying, Dicker Data shares have given back those gains.

Dicker Data share price summary

Over the past 12 months, Dicker Data shares have accelerated by almost 80%, with year-to-date above 25%. The company’s share price reached an all-time high of $16.60 following the release of its interim results for FY21.

Based on today’s price, Dicker Data commands a market capitalisation of around $2.27 billion, with 172.8 million shares on issue.

The post Dicker Data (ASX:DDR) share price continues to slide, down 21% since late August appeared first on The Motley Fool Australia.

Should you invest $1,000 in Dicker Data right now?

Before you consider Dicker Data, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Dicker Data wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia owns shares of and has recommended Dicker Data 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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Why the IOUpay (ASX:IOU) share price is leaping higher

Two women with shopping bags leap on the grass in front of a blue sky.

The IOUpay Ltd (ASX: IOU) share price is climbing higher after the ASX fintech company emerged from yesterday’s trading halt.

After initially rocketing 22%, the IOUpay share price has given back some of those gains and is currently up 3.23% to 32 cents per share.

Below we look at the company’s acquisition announcement that looks to be driving investor interest.

What acquisition announcement did the company make?

The IOUpay share price is gaining today after the company reported it is acquiring a 42% stake in I.Destinasi Sdn Bhd (IDSB).

IDSB provides long-term installment-based consumer credit services in Malaysia.

IOUpay said IDSB is a complementary business “with prospective collaboration opportunities for cross-selling” between its short-term buy now, pay later offerings (which run up to 6 months) and IDSB’s longer-term consumer loan products, which run up to 10 years.

According to the release, IDSB “holds a unique and highly valuable AG Code2 licence”. This provides it with a significant competitive advantage in Malaysia consumer credit market. There are only 2 companies holding an AG Code2 licence in the country.

IOUpay will pay RM126 million (AU$41.3 million) for its 42% stake in 2 tranches over a 6-month period. It said that price won’t be increased “if IDSB outperforms an audited profit before tax” for the 2021 financial year.

On the other hand, the purchase price could be decreased if the profit before tax is less than RM30 million (AU$9.8 million) for FY21.

IOUpay will fund the acquisition with a 50% upfront cash consideration from its current cash holdings. The remaining 50% is scheduled to be paid in 6 months. The company said it will assess the appropriate payment method closer to that time.

IOUpay share price snapshot

Over the past 12 months, the IOUpay share price has rocketed 550%. This far outpaces the 27% gains posted by the All Ordinaries Index (ASX: XAO) over that same time.

IOUpay’s shares are up 30% over the last month.

The post Why the IOUpay (ASX:IOU) share price is leaping higher appeared first on The Motley Fool Australia.

Should you invest $1,000 in IOUpay right now?

Before you consider IOUpay, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and IOUpay wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

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.

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Why the Epsilon (ASX:EPN) share price is soaring 16% today

Cannabis in the field with woman holding leaf

The Epsilon Healthcare Ltd (ASX:EPN) share price is rocketing today, up more than 16% to 18 cents per share.

The company entered a trading halt on Monday before the market open pending today’s announcement. Epsilon’s share price closed at 15 cents on Friday.

We take a look at the announcement from the microcap ASX cannabis share.

What did Epsilon announce?

The Epsilon share price is soaring after the company reported it has entered into a partnership with The Valens Company Inc (TSX: VLNS) for access to Epsilon’s Southport Manufacturing Facility.

Valens is involved in the production of cannabis products. Its shares currently trade on the Toronto Stock Exchange, and it has applied to list on the NASDAQ.

The partnership with Epsilon will aid Valens’ growth strategy into international GMP markets via access to Epsilon’s GMP manufacturing capability at the Southport Facility. Southport is the largest cannabis extraction facility in the Southern Hemisphere.

Epsilon has been granted a licence to use Valens IP to streamline operations at its Southport Facility. Valens will also provide personnel and support.

As part of the partnership, Valens won’t sell any medicinal cannabis in Australia or New Zealand that doesn’t come from the Southport Facility. Valens will also “fund all future operational and capital expenditure” at the facility in return for access to up to 85% of the output.

What else is moving the Epsilon share price?

Epsilon’s share price may also be getting a lift today from the company’s accompanying announcement that it has entered into a Share Sale Agreement with Cannvalate Pty Ltd to acquire AlternaMed Pty Ltd. This includes Cannvalate’s portfolio of IP covering 3 “novel cannabinoid therapeutic agents with a view to Schedule 3 medicines production”.

Epsilon will issue some 28 million shares, worth $4.3 million at 15 cents per share, to acquire AlternaMed. The acquisition remains subject to customary approvals.

Commenting on the announcements, Valens’ CEO, Tyler Robson said:

We are excited to work with the largest and most advanced cannabis manufacturing facility in the Southern Hemisphere to distribute GMP products, and look forward to advancing our product distribution capabilities through our continued partnership with Cannvalate.

Epsilon’s CEO, Jarrod White, added:

Having worked with the teams at Valens and Cannvalate over the preceding months to achieve what is a transformational partnership for Epsilon and its Southport Facility, I am excited to see the maturing of Epsilon’s core assets and business into commercial production with experienced partners from established markets.

With this long term strategic partnership now agreed, Epsilon is well placed to be a leading contract GMP manufacturer of medicinal cannabis medicines in the region.

Epsilon share price snapshot

The Epsilon share price is down 30% year-to-date. This compares to a gain of 10.5% posted by the All Ordinaries Index (ASX: XAO) in 2021.

Over the past month, Epsilon’s share price is up 16%.

The post Why the Epsilon (ASX:EPN) share price is soaring 16% today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Epsilon right now?

Before you consider Epsilon, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Epsilon wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Valens GroWorks Corp. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Valens GroWorks. 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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