Shares in ASX essential network services business Service Stream Limited (ASX: SSM) look set to end the week down more than 6% despite the company’s attempts to reassure the market that it hasn’t been experiencing any overly negative financial impacts from COVID-19.

Service Stream designs, constructs, operates and maintains essential telecommunications and utilities infrastructure, including water and gas distribution networks. With large portions of the Australian population still more or less confined to their homes, people are relying on this infrastructure now more than ever.

In a business update released to the market on Thursday, Service Stream stated that demand for its services had remained strong throughout the pandemic. However, it did note that the costs of delivering those services had increased, and some “minor” projects had been delayed or paused.

Service Stream had originally forecast operational earnings before interest, tax, depreciation and amortisation expenses (EBITDA) for the second half of FY20 to be in line with the first half result of $58.1 million. Due to the impacts of the coronavirus pandemic, the company now expects full year operational EBITDA to be $108 million, which would imply a second half operational EBITDA in the range of $49.9 million, or a decline of a little over 7% versus the first half.

The market reacted negatively to the news, with the Service Stream share price dropping almost 6% on Thursday. However, while it’s disappointing that the company is now forecasting a drop in EBITDA, Service Stream does point out that operational EBITDA of $108 million for the year would still be a record result for a growing company.

Should you invest?

Service Stream doesn’t provide the exciting growth narratives of coronavirus market darlings like Kogan.com Ltd (AS:KGN), Appen Limited (ASX:APX) or NextDC Limited (ASX:NXT). But the fact that it is flying under the radar for many investors works in its favour.

Shares in many of those sexier tech companies are now trading higher than they were pre-coronavirus, which seems unsustainable as the country heads into a potential economic recession. For example, despite its soaring share price, Kogan relies on strong consumer sentiment, which may not exist once the economic impacts of the coronavirus pandemic are fully realised.

Service Stream, on the other hand, should have a much more reliable source of revenue. Even in periods of economic stress and uncertainty, people will continue to depend on the infrastructure that supports necessities like water, gas and telecommunications.

Service Stream could make a good defensive option for investors looking to safeguard their portfolio against a severe downturn. Plus, at its current price of around $2.00 it is still well short of the 52-week high price of $3.06 it reached back in August – meaning it could represent great value.

More reading

• Why Afterpay and these ASX shares just hit multi-year highs
• ASX 200 drops 0.4%, Chinese threat to Australian iron
• If you invested $10,000 in the Kogan IPO, this is how much you’d have now
• Why the share price of this top dividend share just sank 6%
• 3 mid cap ASX growth shares to buy for monster returns

Motley Fool contributor Rhys Brock owns shares of Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended Service Stream Limited. 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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Card payment options and a surge in e-commerce has created a new era in how we complete transactions. The coronavirus pandemic has accelerated the death of cash with many conducting their business and discretionary transactions via alternative methods. With the World Health Organization also advising people to use contactless payment to reduce the risk of transmission, it’s heightened people’s consciousness of cash handling.  

Here are 2 ASX stocks that could benefit from the death of cash.

EML Payments Ltd (ASX:EML)

EML Payments is an Australian fintech company providing technology solutions for payouts, gifts, rewards and supplier payments. The company has a large presence in Australia, North America and Europe, issuing mobile, virtual and physical card solutions.

The coronavirus pandemic has seen EML’s retail segment struggle, however, its salary packaging and online gaming businesses have outperformed. In a recent trading update, EML reported a 55% increase in Gross Debit Volume of $9.83 billion and a 20% increase in revenue of $87.1 million for the 9 months ending 31 March. Despite being sold-off earlier this year, the EML share price has bounced more than 173% from its March low and is poised to head higher.

Pushpay Holdings Ltd (ASX: PPH)

Believe it or not, the Pushpay share price has surged more than 181% from its March low and is now trading at all-time highs. Pushpay provides donor management services and finance tools targeted towards non-profit, religious and education providers. The company predominately operates in the US and has digitised the way people make donations.

With many churches and religious gatherings banned during the coronavirus pandemic, Pushpay has emerged at the right place, at the right time. The company’s platform has enabled people to make donations whilst also abiding by social distancing measures.

Earlier this month Pushpay released its annual report, posting a 32% surge in revenue for the full-year. The company also noted the successful acquisition of US software company Church Community Builder, allowing Pushpay to provide more innovative solutions for customers.

Pushpay expects further revenue growth in the future as more customers adopt mobile technology, post-pandemic. As a result, the company is targeting 50% of the medium and large church segments in the US and expects EBITDAF in the range of US$48 million and US$52 million for FY21.

Foolish takeaway

The coronavirus pandemic has brought with it many permanent changes in consumer behaviour, such as online shopping and greater attention to infection control. Although cash may, realistically, never be replaced, EML and Pushpay reflect the exciting opportunities and innovations available to investors on the ASX.

More reading

• Here are all the ASX 200 shares that have doubled or more since the bottom of the bear market
• 3 leading ASX 200 tech shares to buy now
• Where growth, income, and value investors can invest right now
• These ASX payments shares could be long term market beaters
• Where to invest $20,000 into shares right now

Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Emerchants Limited. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia has recommended Emerchants Limited. 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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We’re almost 2 months on from the fastest bear market on record, which saw the S&P/ASX 200 Index (ASX: XJO) fall 36.53% from 7,162.50 points on 20 February to a low of just 4,546 on 23 March.

In the time since, however, the market has rallied on the back of unprecedented fiscal support, a flattening COVID-19 curve, and perhaps a whole lot of optimism. So much so that a number of ASX 200 shares heavily sold-off in the downturn have bounced back with a vengeance.

With this in mind, here are all the ASX 200 shares that have doubled or more in price from 23 March through to yesterday’s close:

Afterpay Ltd (ASX: APT) — 394.38%

It’s been an eventful couple of months for the Afterpay share price. The buy now, pay later provider’s recent rollercoaster ride on the ASX has certainly been a hot topic, falling to a low of $8.01 in March due to COVID-19 concerns. The thinking was that with the economy in hibernation and unemployment becoming a real issue, Afterpay’s bad debts were at risk of blowing out, all the while customers would have less of an appetite to spend. 

But 2 months, a flattening curve, and a JobKeeper package later, the Afterpay share price is reaching new heights. Just yesterday, Afterpay shares hit an all-time high of $45.17, buoyed by the company’s announcement of reaching 5 million active US customers.

Since the bottom of the bear market in March, the Afterpay share price has also been boosted by a positive trading update and news of Chinese tech giant Tencent becoming a substantial shareholder.

EML Payments Ltd (ASX: EML) — 171.16%

The EML share price experienced a significant fall from grace in the recent bear market, plunging from its February high of $5.70 to close on 23 March at just $1.34. 

Whilst the broader market has been on an upward trend ever since, it’s EML’s renegotiated acquisition terms that have gotten investors particularly enthused. In late March, the company announced more favourable contract terms for its acquisition of Prepaid Financial Services, a leading provider of white-label payments and banking-as-a-service technology across the UK and Europe.

What’s more, earlier this week, EML released a trading update, quantifying the effects of COVID-19 on March and April performance and remaining upbeat about achieving a solid full-year result in FY20.

Perenti Global Ltd (ASX: PRN) — 147.92%

The mining services group has been on a tear recently, notching up a number of impressive one-day gains at times when there was seemingly no news out of the company. 

Perenti first delivered a trading update on 24 March, disclosing that COVID-19 hadn’t yet had an impact on its financial performance. Nonetheless, it decided to withdraw FY20 earnings guidance for safe measure. The following day, the company deferred its interim dividend and outlined a range of capital management initiatives to ensure financial strength throughout the crisis.

On 15 April, Perenti confirmed it still hadn’t experienced any material financial impact from the pandemic. On the whole, it appears investors deemed this mining services share heavily oversold, flooding back to the company in droves.

Credit Corp Group Limited (ASX: CCP) — 143.36%

Being Australia’s largest debt buyer and collector, Credit Corp shares naturally took a beating as soon as the market started taking a turn for the worse. In fact, the Credit Corp share price spiralled from an all-time high of $37.99 in February to just $6.25 on 23 March – an 84% drop.

In the period since, Credit Corp made the move to withdraw its FY20 earnings guidance and completed a $120 million institutional placement to strengthen its balance sheet and pursue debt purchasing opportunities. In any case, as one of the hardest-hit companies in the bear market, investors saw value in the Credit Corp share price after the government announced a series of financial support measures. However, most of Credit Corp’s recent gains have come in late March and early April, with shares actually down 15.64% since 14 April. 

Nearmap Ltd (ASX: NEA) — 110.80%

Those following along with Nearmap’s journey might remember a fateful day in late January this year when the company downgraded FY20 guidance, causing shares to plummet 30%. Well, despite COVID-19 concerns, the Nearmap share price is actually now trading higher than these January lows after more than doubling since the bottom of the bear market.

Along with overall market sentiment, shares in the aerial imagery and location data company have been spurred on by a business update released in April. At the time, Nearmap revealed trading conditions had not been materially impacted by COVID-19, brushed off concerns over the need to raise additional capital, and announced its intention of reaching cash flow breakeven by the end of FY20.

PolyNovo Ltd (ASX: PNV) — 106.82%

Last but not least we have PolyNovo, the up-and-coming healthcare star that announced its arrival on the ASX 200 stage last year by posting a 231% annual gain.

After succumbing to a near 60% fall in the recent bear market, investors have been clamouring to get their hands on PolyNovo shares following a positive trading update released in early April. The company announced a record monthly sales result for the US in March and didn’t believe the coronavirus would have a material impact on its business.

Foolish takeaway

The seemingly never-ending sea of red we saw in the markets earlier this year was, understandably, a difficult pill to swallow for many investors. However, these gains just go to show the kinds of opportunities that can arise in a bear market.

Learning to master your emotions and capitalise on depressed valuations in times like this can go a long way in fast-tracking your journey to long-term wealth creation.

More reading

• 2 ASX stocks that could replace cash
• Is Afterpay an ASX blue chip of tomorrow?
• 3 leading ASX 200 tech shares to buy now
• Brokers name 3 ASX 200 shares to buy right now
• Is Telstra about to be caught in a new mobile phone war?

Cathryn Goh owns shares of AFTERPAY T FPO and Nearmap Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Emerchants Limited. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Emerchants Limited. 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.

The post Here are all the ASX 200 shares that have doubled or more since the bottom of the bear market appeared first on Motley Fool Australia.

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