The 5G Networks Ltd (ASX: 5GN) share price is storming higher today after the company completed an oversubscribed institutional placement.

5G Networks is a licensed communications carrier that operates throughout Australia. It currently owns and operates its own high-speed data network with points of presence in all of the major Australian capital cities.

The company also offers cloud solutions through its data centre and cloud capabilities, along with managed services to optimise customers’ IT and network environment.

What did 5G Networks announce?

5G Network shares have resumed trading on the ASX today after being halted while the company undertook a capital raising.

This morning, 5G Networks announced it has successfully completed the institutional component of the raising, comprising $18.2 million of funds. The institutional placement was completed at an offer price of $1.23 per share, representing an 8.9% discount to the company’s last closing price of $1.35.

The 5G Network share price has been on a tear recently and at yesterday’s close, shares were sitting on a year-to-date gain of 80%.

Notably, 5G Networks stated that the placement was strongly oversubscribed, with demand derived from a range of new and existing institutional investors.

The company will now have a pro forma net cash position of $16.4 million as at 31 March 2020. Proceeds from the capital raising will be used to accelerate organic growth initiatives and fund acquisition opportunities.

These growth initiatives include the expansion of its fibre network in Sydney and Melbourne, and new builds in Brisbane and Adelaide focused on CBD demand. Additionally, the company will continue to invest in increasing utilisation and cross-sell opportunities.

On the whole, 5G Networks believes it is well-positioned for continued growth in the COVID-19 environment. This is due to the essential technology and network services it offers, as well as the increased demand for digital infrastructure due to mass remote-based working.

FY20 guidance

In its capital raising investor presentation yesterday, 5G Networks also provided a trading and guidance update. Accordingly, FY20 earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to be in the range of $6 million to $6.3 million at an EBITDA margin greater than 12%. This is above the previously guided EBITDA range of 8% to 12%.

The company attributed the anticipated improvement in EBITDA margin to the conversion of customers to high-quality, higher-margin recurring revenue services; cost synergy realisation; and an increase in operating leverage.

However, FY20 revenue is expected to land between $50 million and $52 million. This is down from the guidance range of $55 million to $65 million provided in mid-February. 5G Networks attributed this to a shift from one-off hardware sales to recurring revenue services.

At the time of writing, the 5G Networks share price has surged by 7.04% to $1.445 after rallying by as much as 12.59% in early trade.

More reading

• The smartest ASX shares to invest $10,000 in right now

Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to end its positive run. At the time of writing the benchmark index is down 1.5% to 6,055.1 points.

Four shares that have not let that hold them back today are listed below. Here’s why they are pushing higher:     

The Aventus Group (ASX: AVN) share price is up 1% to $2.22. This morning analysts at Macquarie upgraded the shares of the retail park operator to an outperform rating with a $2.57 price target. It believes Aventus is well-placed to benefit from the reopening of Australia. It also estimates that its shares offer a very generous distribution yield of over 8% at the current level.

The Kogan.com Ltd (ASX: KGN) share price has returned from its trading halt and jumped 10% to $13.62. Investors have been buying Kogan’s shares after it completed its $100 million placement. These funds will be used by the ecommerce company to make value accretive acquisitions. Kogan intends to raise up to a further $15 million via share purchase plan.

The Newcrest Mining Limited (ASX: NCM) share price has stormed 5% higher to $29.89. This appears to have been driven by the combination of a rise in the gold price and an exploration update. In respect to the latter, the gold miner revealed positive drilling results at Havieron and Red Chris. Management notes that Havieron returned its best drill result to date and sees real potential to further expand this orebody.

The Northern Star Resources Ltd (ASX: NST) share price is up almost 6% to $13.77. This follows a decent rise in the gold price overnight after the U.S. Federal Reserve revealed that it plans to keep interest rates at zero until at least 2022. It isn’t just Northern Star (or Newcrest) charging notably higher today. The S&P/ASX All Ordinaries Gold index is up a sizeable 4.8% at the time of writing.

More reading

• ASX growth companies including Zip Co cash in on the rise of e-commerce
• Why the Kogan share price jumped 11% to a record high today
• My share investing journey during the pandemic
• 5 things to watch on the ASX 200 on Thursday
• Afterpay share price up 7%, ASX 200 edges higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended AVENTUS RE UNIT. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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There are at least two ASX shares I’d buy if the ASX crashes again.

I’m not expecting that the ASX will crash again. But I think it’s a good idea to have your investment targets lined up so you know what you’d do if the opportunity presented itself.

Some of the smaller-to-medium sized shares on the ASX have performed very well since the coronavirus low in March. If the share market pulls back, I know I’d love to jump on these two long-term winners:

Share 1: Altium Limited (ASX: ALU)

Altium is a leading electronic software business which is aiming for global market leadership by 2025. The ASX share is aiming to achieve this with 100,000 Altium designer subscribers.

The Altium share price has been a strong performer since the initial crash started in February 2020. It has risen by 38% since 23 March 2020. It was up even more before the Aussie dollar strengthened compared to the US dollar. Altium reports in US dollars, so its earnings are worth less in Australian dollar terms as the US dollar weakens.

I’d like to buy more Altium shares because I think it’s one of the best ASX growth shares around.

The company has attractive and growing profit margins as it scales. It has excellent management with a long-term focus. The ASX share has a good amount of cash on the balance sheet with no debt. It even has a growing dividend.

There is a lot to like about Altium. But with the company warning of tougher conditions in the short-term, I’d prefer to buy more shares at a lower price than today. However, at a share price of $34 I think investors could still do quite well over the next five years.

Share2: A2 Milk Company Ltd (ASX: A2M)

A2 Milk is another ASX share that has done very well since its March low. The A2 Milk share price is up 25.8% since 16 March 2020.

I have been very impressed with A2 Milk’s performance since it listed on the ASX five years ago. It has already generated big returns for long-term investors.

It’s one of the few ASX shares that is seeing even faster growth during this unfortunate period. People are looking to stock up on quality products to ensure their family’s needs are met.

A2 Milk is one of those quality businesses that is able to invest for growth, keep building its cash balance and maintain an attractive earnings before interest, tax, depreciation and amortisation (EBITDA) margin. It can be hard to balance those things.

I think it would be a costly mistake to assume A2 Milk has already achieved most of its growth. I’m not expecting returns of over 1,000% over the next five years. But A2 Milk still has a long growth runway. It has barely begun growing in the US and it’s planning to start generating earnings in Canada.

There are plenty of other countries for A2 Milk to keep growing its market share.

Foolish takeaway

I think both of these ASX shares are among the best quality businesses we can buy. Sadly, the market is pricing them highly. I wouldn’t mind buying a small parcel of each today. But it would be even better to buy them if their prices were at least 15% lower. Who knows if that will happen though?

More reading

• 5 things to watch on the ASX 200 on Thursday
• 3 top ASX shares to buy now to get rich later
• 3 companies with great intangible asset moats
• How to become a millionaire before your parents with ASX shares
• Will ASX 200 shares hit a record high in June?

Tristan Harrison owns shares of Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Altium. The Motley Fool Australia owns shares of A2 Milk. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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