Stock Pick

  • Short-sellers are stepping up their attack against these popular ASX shares

    Short-sellers have pared their bearish bets as the S&P/ASX 200 Index (Index:^AXJO) recovered from its COVID-19 meltdown. But these traders have stepped up their attack against a number of popular stocks this month!

    The number of shares that are shorted dropped by 4.4% since the market bounced from its bear market low on 23 March.

    Short-sellers are those who borrow stock to sell on-market with the aim of buying it back at a lower price later to profit from the difference.

    It’s useful to keep an eye on what this group does. While they don’t always get their trades right, they tend to be more sophisticated than the average investor.

    ASX stock with largest increase in shorts

    One stock that caught their eye is the Southern Cross Media Group Ltd (ASX: SXL) share price after its big surge in May.

    The regional broadcaster experienced the largest increase in shorts of any ASX stock this month, according to the latest ASIC data which is always a week behind.

    The number of shares in the regional broadcaster that have been short-sold increased a whopping 362 basis points to 7.2% since the start of this month to 15 June.

    It seems Southern Cross isn’t a recent favourite. Short-interest in the company jumped 543 basis points (or 5.43 percentage points) since 23 March.

    Losing appetite

    In second place is Freedom Foods Group Ltd (ASX: FNP). Shares in the nutritional food and drink supplier saw the second biggest increase in shorts this month.

    Short interest in the company jumped 185 basis points to 4.8%, and that’s probably something to do with its dismal trading update as it was hit by the coronavirus shutdown.

    Management said it was seeing green shoots of recovery but short-sellers don’t seem to share that view.

    Looking tarnished

    In third spot is the Lovisa Holdings Ltd (ASX: LOV) share price with short-interest in the jewellery chain increasing 164 basis points to 6.3% in the first two weeks of June.

    The performance of the retailer stands in contrast to some of its peers who have benefited from the COVID-19 restrictions. These lucky retailers like Temple & Webster Group Ltd (ASX: TPW) and Premier Investments Limited (ASX: PMV), which have seen online sales spike.

    But as I reported last week, Lovisa isn’t as well placed due to its weak online presence and expected weak demand as weddings and other social events are unlikely to return to normal anytime soon.

    Other notable stocks that have seen big increases in short-interest include fund manager Perpetual Limited (ASX: PPT), consumer finance company FlexiGroup Limited (ASX: FXL) and travel agent Flight Centre Travel Group Ltd (ASX: FLT).

    3 “Double Down” stocks to ride the bull market higher

    Motley Fool resident tech stock expert Dr. Anirban Mahanti has identified three stocks he thinks can ride the bull market even higher, potentially supercharging your wealth in 2020 and beyond.

    Doc Mahanti likes them so much he has issued “double down” buy alerts on all three stocks to members of his Motley Fool Extreme Opportunities stock picking service.

    See the Double Down Stocks

    *Extreme Opportunities returns as of June 5th 2020

    More reading

    Brendon Lau has no position in any of the stocks mentioned. Connect with me on Twitter @brenlau.

    The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. The Motley Fool Australia has recommended FlexiGroup Limited, Flight Centre Travel Group Limited, Freedom Foods Group Limited, and 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.

    The post Short-sellers are stepping up their attack against these popular ASX shares appeared first on Motley Fool Australia.

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  • Wirecard’s $2.1 Billion Hole Deepens After Forgery Claim

    Wirecard’s $2.1 Billion Hole Deepens After Forgery Claim(Bloomberg) — Wirecard AG shares continued their free-fall after the two Asian banks that were supposed to be holding 1.9 billion euros ($2.1 billion) of missing cash denied any business relationship with the German payments company.Wirecard now faces a potential cash crunch. The company warned Thursday that loans up to 2 billion euros could be terminated if its audited annual report was not published on Friday. Analysts at Morgan Stanley estimated that Wirecard has available cash of around 220 million euros, if it cannot locate the missing $2.1 billion.BDO Unibank Inc., the Philippines’ largest bank by assets, and the Bank of the Philippine Islands said in separate statements on Friday that Wirecard isn’t a client.“It was a rogue employee who falsified documents and forged the signatures of our officers,” BDO Unibank Chief Executive Officer Nestor Tan said in a mobile phone message. “Wirecard is not even a depositor — we have no relationship with them”.The Bank of the Philippine Islands said in a separate statement that Wirecard isn’t a client and it continues to investigate the issue.Wirecard shares plunged 24% at 9:11 a.m. in Frankfurt on Friday, taking the stock’s losses to 71% since Wednesday’s close. The company that was worth 24.6 billion euros in September 2018 when it entered Germany’s Dax index is currently valued at about 3.4 billion euros.The denials from BDO and BPI follow a statement on Thursday from Wirecard, which claimed that auditor Ernst & Young couldn’t confirm the location of the missing cash that was supposed to be held in Asian banks and reported that “spurious balance confirmations” had been provided.BDO has reported the Wirecard issue to Bangko Sentral ng Pilipinas, the Philippines central bank, Tan said.The crisis has engulfed Wirecard in recent days. The payments company suffered one of the worst stock slumps in the history of Germany’s benchmark index after warning that as much as 2 billion euros in loans could be called due if its audited annual report, delayed for the fourth time, was not published by June 19.Wirecard spokespeople did not immediately return calls and emails for comment.Read More: Wirecard Suspends Executive After $2.1 Billion Goes MissingWirecard Chief Executive Officer Markus Braun said the trustee involved is in “constant contact” with EY and the company has promised to clear up the issue quickly with two Asian banks.The company temporarily suspended its outgoing Chief Operating Officer Jan Marsalek, it said in a statement late Thursday. Marsalek — who has been suspended on a revocable basis until June 30 — had tried to get in touch with the two Asian banks and trustees over the past two days to recover the missing money, but wasn’t successful, a person familiar with the matter said Thursday. It’s unclear if the funds can be recovered, the person added.(Updates with background starting in the fourth paragraph, statements from BPI.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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  • Why I’m desperate to add CSL and 2 other ASX shares to my portfolio in 2020

    hand holding red briefcase stuffed with cash

    Today, I’m going to discuss 3 ASX shares that I’m absolutely desperate to add to my portfolio in 2020.

    I’m not the kind of investor who buys a share just because I like (or love) the company. For me, the price also has to make sense, and preferably offer some kind of margin of safety as well.

    So here are the 3 ASX shares that I’m desperate to own by the end of this year, but for which the stars have not yet aligned.

    An ASX blue chip staple

    Brickworks Limited (ASX: BKW) is a solid ASX blue chip that is primarily in the business of making building materials (yes, including bricks). It’s been around since 1934 and has managed to survive everything thrown at it since – including the Great Depression, World War II and the global financial crisis. Building materials are a cyclical game to be in, but Brickworks tempers this by also leasing out tracts of land it owns for rent. This gives the company a stable and reliable source of income on the side, which helps buttress its finances when things get tough. As such, I would love to own this company for a long-term, buy-and-hold investment in 2020.

    An ASX healthcare giant

    CSL Limited (ASX: CSL) is another ASX share I would love to see join my portfolio in 2020. It’s that rare combination of an ASX blue chip as well as a growth company, which I find highly desirous to have in a portfolio. Due to its world-class R&D programs, I think CSL will continue to be in the vanguard of the blood and plasma medicine space for the foreseeable future. I also feel confident the Aussie giant will continue to reward its shareholders with strong capital growth as well as growing dividends. As such, CSL is on the top of my 2020 wishlist.

    A defensive ASX growth share

    How can a company be defensive and a growth share? Well, Cleanaway Waste Management Ltd (ASX: CWY) answers that question, with a highly successful growth strategy to expand in the defensive waste collections/management business. Waste is something we all produce, through thick and thin, in good times and bad times. I don’t see this changing anytime soon either – such is human nature.

    Cleanaway has been a high growth share for a while – rising from 75 cents per share in 2015 to $2.12 today. Due to waste being an evergreen and growing industry (from population increases if nothing else), I think Cleanaway is a great, long-term buy. I would love to see an entry point in the Cleanaway share price this year that matches the lows we saw in March. I might have to wait a while, but here’s to holding out hope!

    For some more shares you should take a look at for next week, don’t miss the report below!

    3 “Double Down” Stocks To Ride The Bull Market

    Motley Fool resident tech stock expert Dr. Anirban Mahanti has stumbled upon three under-the-radar stock picks he believes could be some of the greatest discoveries of his investing career.

    He’s so confident in their future prospects that he has issued “double down” buy alerts on each of these three stocks to members of his Motley Fool Extreme Opportunities stock picking service.

    See the Double Down Stocks

    *Extreme Opportunities returns as of June 5th 2020

    More reading

    Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended Brickworks. 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 Why I’m desperate to add CSL and 2 other ASX shares to my portfolio in 2020 appeared first on Motley Fool Australia.

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