Don’t panic. The racing share market may have you wondering where to invest, but you haven’t missed it yet. There are still plenty of opportunities to buy great shares for income, growth or value. In fact, there are always opportunities. 

If I had $2,000 spare today I would be looking squarely at dividing it between both growth and value opportunities. I believe many of today’s shares are still oversold and represent great value. Personally I would be looking to divide it 25% in growth and 75% in value shares.

Income investing requires a different focus and timeframe, in my experience. 

Where to invest for growth

Of the available growth shares, I would be looking very hard at Zip Co Ltd (ASX: Z1P) even after the recent rise. Growth shares can be a risky business and it is difficult to know where to invest. Today, it’s easy to see that Amazon.com (NASDAQ: AMZN) was going to be a behemoth. It was a lot harder to see it clearly in 2010, though.

In fact, I thought it was overpriced!

At Tuesday’s close, Zip Co was valued at $2.4 billion. A massive leap in two days to be sure. But I believe the company still has a long way to go. Potentially further, even, than Afterpay Ltd (ASX: APT).

Zip has more financial products than Afterpay and a track record of making profits. The recent US acquisition gives it access to a $5 trillion retail market. It may be hard to see now, but in the future, I believe we will think today’s price was cheap. 

Value investing

When considering where to invest for value, I have always looked for undervalued mature growth shares. The COVID-19 pandemic has created this opportunity for us. 

I believe that Altium Limited (ASX: ALU) and Jumbo Interactive Ltd (ASX: JIN) are two really great examples of this. 

Altium, the PCB design software producer, has returned investors over 130 times their initial investment since 2010. Its sales growth in the past two years has been better than the previous 7 years. I believe it is slightly undervalued in the market today.

Jumbo Interactive is one of the great shares on the S&P/ASX 200 (INDEXASX: XJO). It has returned 25 times the initial investment since 2010. Despite this, it had a greater leap in sales last year than in any previous years. In addition, it was forecasting another increase this FY before the coronavirus.

In average times, approximately 75% of lottery sales are via retail outlets. With these closed, but lottery continuing, it is likely they have picked up additional revenues via internet sales.

Foolish takeaway

The ASX is full of cheap value opportunities for people with limited funds who are wondering where to invest. You just need to spend some time looking for them.

More reading

• Why the shares of Afterpay rival Openpay are up 840% since March
• Is the CBA share price cheap today?
• Meet the ASX stocks to benefit from the new $688m home stimulus
• Why Zip Co and these ASX shares just zoomed to new highs
• Should the Xero share price have a P/E ratio of 4,000?

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and Jumbo Interactive Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO, Altium, and ZIPCOLTD FPO and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool Australia has recommended Amazon and Jumbo Interactive 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 Where to invest $2,000 in cheap shares appeared first on Motley Fool Australia.

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The Openpay Group Ltd (ASX: OPY) share price has been an incredible performer over the last two and a half months.

Since crashing as low as 32 cents on 23 March, the Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) rival’s shares have jumped a whopping 840% to $3.02.

Why is the Openpay share price rocketing higher?

Investors have been buying Openpay and other buy now pay later providers in recent weeks for a number of factors.

One is the belief that the pandemic has accelerated the rapid adoption of the payment method due to retail spending shifting online during the lockdowns.

Both Afterpay and Zip Co have reported stellar sales and customer growth throughout the pandemic. And this has come without any notable deterioration in bad debts. This appears to have convinced the market that their business models are more robust than first believed.

Openpay has also reported strong growth of its own. During the third quarter the company reported a 203% increase in active plans, a 113% lift in active customers, and a 63% jump in active merchants on its platform. This strong form continued in May.

Its active merchants now include the likes of Bunnings Warehouse, Bupa, JD Sports UK, Repco, Smiggle, and Spotlight.

But Openpay’s shares won’t be building on its strong gains today. This morning the payments company requested a trading halt.

Why are its shares in a trading halt?

It appears as though management has decided to take advantage of its incredible share price gain to raise capital.

No details have been released officially by the company, but the AFR is reporting that Openpay is seeking to raise $30 million to accelerate its expansion in the UK market and strengthen its balance sheet.

According to the report, the company is aiming to raise the funds at $2.40 per share, which represents a 20.5% discount to its last close price.

These certainly are exciting times for Openpay and the buy now pay later space in general.

More reading

• Where to invest $2,000 in cheap shares
• Why Zip Co and these ASX shares just zoomed to new highs
• ASX 200 jumps 1.8%, Australian headed for recession
• Sezzle Inc shares and 2 other small cap ASX techs surge higher today
• Afterpay share price hits a new record high: Is it too late to invest?

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 AFTERPAY T FPO and ZIPCOLTD FPO. 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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The Dimerix Ltd (ASX: DXB) share price has raced out of the gates this morning following news that one of its treatments has been included in a global COVID-19 clinical study.

Dimerix is a clinical-stage biopharmaceutical company that develops new therapies in areas with unmet medical needs. In doing so, the company leverages its scalable proprietary platform technology, Receptor-HIT, to rapidly screen and identify new drug opportunities.

Why the Dimerix share price is flying higher

This morning, Dimerix announced that its novel treatment DMX-200 has been selected for inclusion in the REMAP-CAP global study protocol for acute respiratory distress syndrome (ARDS) caused by COVID-19.

The REMAP-CAP clinical study is endorsed by the World Health Organisation and has been named by the chief medical officers of the UK as a key clinical trial for COVID-19.

REMAP-CAP is an international platform trial run by a number of leading experts, institutions, and research groups. The trial already has several existing treatment domains including anti-viral, immune-modulation and immunoglobulin treatment arms. DMX-200 will now be part of a new treatment group to compare the effect of a number of treatment options on the clinical outcomes of COVID-19 patients requiring hospital care.

Upon regulatory approval, Dimerix believes DMX-200 could be the only investigational new drug in the study since all of the other candidates are a repurposing of existing approved drugs.

The overall REMAP-CAP study plans to include more than 7,000 patients at study sites across Asia-Pacific, Europe and North America. Dimerix stated it will work closely with REMAP-CAP to obtain the necessary regulatory and ethics approvals before providing DMX-200 to sites from its existing pharmaceutical-grade manufactured supply.

In addition to potentially benefitting ARDS patients with COVID-19, Dimerix is currently developing DMX-200 for both diabetic kidney disease and focal segmental glomerulosclerosis (a kidney-related disease).

Commenting on today’s update, Dimerix CEO and managing director Dr Nina Webster said:

“We are extremely pleased to be in a position to support this global initiative investigating the potential of multiple therapies to treat COVID-19 patients dying of ARDS”.

“Dimerix is uniquely positioned to support the global effort in identifying COVID-19 treatments, as well as having two Phase 2 renal clinical studies completing mid- 2020,” she added.

The Dimerix share price rocketed as much as 120% this morning to an intra-day high of 59.5 cents in early trade. It has since pulled back to 44 cents at the time of writing, representing a 63% jump. This takes Dimerix’s current market capitalisation to around $80 million.

More reading

• Got $5,000 for a dividend yield over 10%?
• Have $10,000? This is where I’d invest it into ASX shares
• Why Corporate Travel Management, SKYCITY, Vocus, & Westpac are pushing higher
• Why Austal, Ecofibre, Northern Star, & Nufarm are dropping lower
• Where to invest $2,000 in cheap 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.

The post Dimerix share price doubles after being included in global COVID-19 study appeared first on Motley Fool Australia.

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