A surprising success story to come out of these uncertain economic times is the rise of ASX online homewares and furniture retailer, Temple & Webster Group Ltd (ASX: TPW). Despite falling to almost $1.50 during in late March, shares in the company have now surged back up well over $5. This means they’ve gained almost 100% so far this year.

This share price performance is especially impressive when compared to more established competitors in the homewares space. Competitors like Harvey Norman Holdings Limited (ASX: HVN) and Myer Holdings Limited (ASX: MYR). Both companies have lost significant ground this year. The Harvey Norman share price is down 12% in 2020, while for embattled Myer, the loss is closer to 50%. Even the share price of ASX retail darling JB Hi-Fi Limited (ASX: JBH) is only up around 7% this year.

In a business update released to the market on Thursday, Temple & Webster reported year-to-date May revenues of $151.7 million. This is an increase of 68% over the prior comparative period. That strong momentum doesn’t seem to be letting up with the company declaring revenue for the month of June 2020 on track to double that of June 2019.

What is the secret behind Temple & Webster’s success?

Temple & Webster operates an online drop shipping business with no physical furniture showrooms. This business model meant that it was uniquely positioned to succeed during even the worst of the coronavirus. Operationally, the company was able to transition to remote working arrangements far more easily than its rivals. It also proved itself to be more adept at meeting the needs of consumers during the pandemic.

With many retailers closing their doors and the population forced to stay home, consumers moved to shop online. At the same time, demand for home furniture and other homewares spiked. Naturally, with people spending more time indoors, they were purchasing products to improve their homes and make their lives in lockdown more comfortable. Additionally, those working from home purchased home office furniture and other accessories.

In many ways, it makes sense that Temple & Webster outperformed competitors in this market. The lockdowns hit large brick and mortar retailers like Myer and Harvey Norman the hardest. In these uncertain times, the costs involved in maintaining a physical retail presence can drag on a company’s already shrinking profits. The market is clearly viewing growing digital companies operating off a lower cost base to be safer bets in the current climate.

Should you invest?

Given the surge in Temple & Webster’s share price over the last few months, now might not be the best time to buy. This is especially when the economic forecast is for rocky conditions ahead. However, Temple & Webster should definitely be one to add to your watchlists as a potential long-term growth opportunity.

Even as retail stores open up, the coronavirus crisis could have forced a permanent change in the way people shop. Consumers who may have never shopped online for homewares and furniture before have been doing so for the first time. And while that is bad news for malls and local shopping precincts, it’s great for e-commerce.

This could precipitate a radical reshuffling of the retail market share away from the traditional big players and towards the next generation of newcomers like Temple & Webster.

More reading

• Australian retail sales up 16.3% in May
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• Why A2 Milk, Afterpay, Mesoblast, and Temple & Webster are pushing higher
• Temple & Webster share price jumps 10% after reporting bumper sales growth
• These are the 10 most shorted ASX shares

Rhys Brock has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. 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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The Cardinal Resources Ltd (ASX: CDV) share price is flying higher today following news that a subsidiary of China’s largest gold producer is making a play for the ASX miner.

Cardinal Resources is a gold-focused exploration and development company that holds interests in tenements within Ghana, West Africa.

What’s the deal?

This morning, Cardinal announced a takeover bid from Shandong Gold at an offer price of 60 cents per share, valuing the company at around $300 million. This represents a 29% premium to Cardinal’s last closing price of 46.5 cents, and a 31.1% premium to a takeover proposal from Nord Gold SE announced in March.

The offer from Shandong Gold is subject to certain conditions, including 50.1% minimum acceptance by Cardinal shareholders and regulatory approval. On the regulatory front, Shandong Gold will need to obtain approval from the Foreign Investment Review Board, along with various regulatory bodies from the People’s Republic of China.

Cardinal’s board are in favour of Shandong Gold’s offer, recommending that all Cardinal shareholders accept the offer in the absence of a superior proposal.

“The Board of Directors of Cardinal has negotiated what we consider a strong offer for our shareholders and one which delivers a significant premium to Cardinal’s market price, at a time of considerable volatility and uncertainty in global markets,” said chief executive Archie Koimtsidis.

Interim financing

In conjunction with the transaction, Shandong Gold has also agreed to provide Cardinal with interim funding of $11.96 million by way of a placement. In the absence of a competing proposal, the placement will be completed at an issue price of 46 cents per share and is not subject to shareholder approval.

The funds will be used to ensure Cardinal continues advancing the Namdini Project towards development. Namdini is a gold project located in Ghana which has a published ore reserve of 5.1 million ounces.

At the time of writing, the Cardinal Resources share price has soared 27.31% to 59.2 cents after rallying as much as 31% in early trade.

More reading

• Australian retail sales up 16.3% in May
• What’s next for these 4 ASX travel shares?
• Temple & Webster shares continue to grow despite coronavirus restrictions
• 3 ASX shares I think are super cheap right now
• Grow your wealth with these 3 ASX fintech shares

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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Cheap ASX shares anyone?

With the S&P/ASX 200 Index (ASX: XJO) on track for another day of gains today, it’s certainly feeling like a good time to own ASX shares. Although we’re still not at the levels the ASX 200 touched last week (over 6,100 points), the momentum seems to have been regained by the bulls out there.

While this is all well and good for those of us who already own substantial positions, it’s not so rosy for anyone who is looking to add to their investments right now.  It can be very painful looking back on the prices we saw in March and April compared with those on offer today!

But there’s no point crying over spilt milk, as they say. So here are 3 cheap ASX shares that I think are still offering compelling value today.

A cheap ASX retailer

The Premier Investments Limited (ASX: PMV) share price is up more than 3% today after some positive sentiment from a brokering firm earlier this week. Even so, this ASX retailing giant remains substantially below the highs of over $21 we saw in February. Premier Investments is one of my favourite Aussie retailers. It owns the Smiggle, Peter Alexander, Just Jeans, and Jay-Jays chains, all stores with unique and compelling product lines. This company has no doubt been hurt by the coronavirus pandemic and the associated lockdowns and might be hurting for some time yet. But I still think Premier’s future is bright and I believe its current share price is pretty fairly valued.

An REIT income opportunity

Scentre Group (ASX: SCG) is another ASX share I think is offering a nice buy price today. Make no mistake, this real estate investment trust (REIT) has been hit hard by the pandemic. Scentre owns the Westfield shopping centre brand across Australia and New Zealand. March and April were dire months for this REIT as shops closed and customers deserted shopping centres. However, there are strong signs of life right now as restrictions are lifting and customers are returning to the shops. For a long-term income opportunity, I think Scentre shares are a great option to examine today.

An ASX ETF with global exposure

The Vanguard MSCI Index International Shares ETF (ASX: VGS) is my final cheap ASX share to consider today. This exchange-traded fund (ETF) tracks the largest companies across the advanced economies of the world. Its largest weightings are in United States shares like Apple and Microsoft, but it also has significant exposure to European, United Kingdom, Canadian, and Japanese companies as well. Back in February, units of this ETF would have set you back around $89, but today, they are going for $78.28 (at the time of writing). I believe this ETF is a no-brainer for a long-term, diversified and passive investment. As such, I think today’s price presents a great opportunity to stock up.

More reading

• Brokers just upgraded these ASX 200 stocks to “buy” today
• ASX 200 up 0.9%: Big four banks rebound, Appen hits record high
• Is the Downer EDI share price in the buy zone?
• Looking to buy ASX technology shares? Here are 4 to consider
• Why I would buy Telstra and these ASX 200 blue chip shares

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. The Motley Fool Australia has recommended Scentre Group and Vanguard MSCI Index International Shares ETF. 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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