Volatility is a funny word. When we hear it we don’t think of our portfolio dropping by, say, 40%. Yet if you can withstand swings like this then there are some great investment opportunities available to you. I believe these are the best shares to buy for growth in today’s market.

Although $4,000 sounds like a lot when you are starting out, it is about the limit that I would dedicate to higher-risk activities like investing in growth shares. I would invest $4,000 evenly among the 5 shares below. 

The roaring fintechs

Australia has a fantastic fintech economy. In fact, Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO) are 2 world-class fintechs. Within this sector, I think the following 2 companies are the best shares to buy.

Sezzle Inc (ASX: SZL) is a great share with a fantastic sales track record. In addition, this buy now pay later company has a great strategy to target millenials and Gen Z, customers.  It is also a native of the USA, the world’s largest potential buy now pay later retail market at US$5 trillion. I would place $1,000 into Sezzle.

Pushpay Holdings Ltd (ASX: PPH) runs donor management systems for faith-based, non-profit and education organisations. They are already across Australia, Canada and the USA. As with Sezzle, if you are going to build donor management systems for faith-based communities, then the US is the market to be in. I would invest $1,000 in Pushpay.

Best shares to buy in tech

If you are investing purely for growth then these 2 shares are ones I would look at very seriously.

Electro Optic Systems Hldg Ltd (ASX: EOS) is a technology company based in the defence and space industries. It is quite an amazing company and I had no idea that we had anything like this. Its primary focus is in sensor technology. It’s developing the technology to help with over 500,000 pieces of space debris travelling at around 30,000 km per hour. The company also develops weapons systems. 

Altium Limited (ASX: ALU) is the PCB design software manufacturer that is domiciled in the USA. It is a proven market player and has been able to grow sales, on average, around 16% every single year for the past 10 years. I believe that it is still growing into the market space and the share price is likely to continue to see decent growth.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Afterpay share price on watch after reaching 1 million UK customers
• Invest like Warren Buffett by buying and holding these ASX 200 shares
• Where to invest $500 into ASX shares right now
• Afterpay share price up 550% since February. Is it too late to buy?

Daryl Mather owns shares of Electro Optic Systems Holdings Limited and Sezzle Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Altium, Electro Optic Systems Holdings Limited, and Xero. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Electro Optic Systems Holdings Limited and Sezzle Inc. 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 Best growth shares to buy with $4,000 appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3hX6VHm

Trading in Cromwell Property Group (ASX: CMW) was temporarily paused Tuesday morning pending an announcement. The announcement, released at 10:06 am, related to an off-market proportional takeover bid from ARA Asset Management Limited (ARA). By close of trade Tuesday, the Cromwell share price had jumped 8.05% to 94 cents.

Why did the Cromwell share price jump?

Cromwell shares rallied following news that ARA intends to acquire 29% of all Cromwell stapled securities in which it does not already hold an interest. If successful, this would take ARA’s stake in Cromwell to 52.6%. The offer price of 90 cents per share was slightly higher than Monday’s closing price of 87 cents. According to Cromwell, ARA proposed it would execute the partial takeover by acquiring 29 out of every 100 Cromwell shares it doesn’t already own. 

Cromwell Property Group announced the following in relation to the proportional takeover offer:

“Cromwell securityholders are advised to take no action in relation to the proportional offer. Cromwell notes the unsolicited and opportunistic nature of the proportional offer and that the proportional offer is not an offer to acquire all securities held by securityholders in Cromwell. Cromwell will provide a further announcement in due course when it has evaluated and assessed the terms of the proportional offer.”

The announcement went on to state “In the interim, Cromwell will continue to operate and execute its business strategy in the ordinary course as previously flagged to the market on 4 June 2020”.

What did ARA say?

In its letter to Cromwell, ARA boasted that “the offer price is a premium to Cromwell’s recent trading prices despite ongoing market volatility”. The offer represented a 9.8% premium to the company’s 30-day volume weighted average price of 82 cents.

ARA already has an existing interest in Cromwell securities of 24%. The asset manager wrote “Given Cromwell’s elevated gearing levels in conjunction with the uncertainty surrounding rental collections and asset values as a result of COVID-19, ARA is concerned that Cromwell will seek to undertake a material equity raising at a discount to the offer price”.

It also suggested that the likelihood of a competing offer was reduced due to ARA’s existing 24% stake in Cromwell.

What’s next for the Cromwell share price?

The Cromwell share price is up 38.2% from its 52-week low of 68 cents. It’s also down 25% since this time last year and nearly 30% below its 52-week high of $1.35 reached in November 2019. 

The proportional takeover bid could play out in a number of ways. Overall, however, it should be positive for shareholders. At the current bid, it seems unlikely that shareholders will accept given the Cromwell share price is now already above 90 cents. However, a new higher bid may be accepted by shareholders enabling ARA to take its holding to above 50%. 

If ARA is successful in obtaining a holding greater than 50%, it will have the ability to appoint board members. This would then enable the asset manager to execute its own strategies for Cromwell Property. As suggested yesterday, this would likely include blocking any potential capital raisings. 

Previously on 2 March, Cromwell released an announcement suggesting that ARA was attempting a ‘takeover by stealth’. Cromwell’s management also clashed with the asset manager over its attempt to elect an appointed nominee to the board three months after his appointment had been struck down at the AGM. At this time Cromwell also stated that shareholders should take no action in response to approaches by ARA.

Stay tuned…

More reading

• ASX 200 finishes higher, Woolworths gives update

Motley Fool contributor Chris Chitty 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 Why the Cromwell share price soared higher yesterday appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2NkYOq2

If you’re interested in small cap shares, then you might want to take a look at the one talked about below.

It is a firm favourite of the Ellerston Australian Micro Cap Fund and it certainly can pay to listen to what this fund manager says.

Over the last 12 months the fund has provided investors with a 15.3% return after fees, which compares to a 2.9% decline by the benchmark S&P/ASX Small Ordinaries Accumulation Index.

This outperformance doesn’t appear to be a fluke either, with the fund returning an average of 16.5% per annum over the last three years. As a comparison, the benchmark index has provided a 7.5% per annum return over the same period.

Which shares does the Ellerston Australian Micro Cap Fund like?

In a recent update, portfolio managers David Keelan and Alexandra Clarke revealed that its portfolio remains skewed towards high-quality shares which they believe can endure a challenging macro environment.

This includes the technology sector and particularly companies with sustainable competitive advantages and structural tailwinds.

One of those is wagering service business Betmakers Technology Group Ltd (ASX: BET). It uses its proprietary technology to provide risk management systems, odds management, and content across a number of sports.

The portfolio managers commented: “The company boasts an exclusive 10- year agreement to manage fixed odds horse racing in New Jersey, and this was recently expanded to include a 5-year agreement to manage fixed odds terminals and kiosks at Monmouth Park racetrack.”

And although the Betmakers share price is up over 200% in 2020, the fund managers still see meaningful upside in the future.

“Fixed odds racing should benefit from a structural migration away from tote betting, a similar narrative to that which has already played out in Australia, and BET is well placed to capitalise on this. The company is on the verge of EBITDA profitability, has an extensive pipeline of opportunities, and we see meaningful upside to the current price,” they concluded.

More reading

• Best growth shares to buy with $4,000
• Why the Cromwell share price soared higher yesterday
• Is the Macquarie share price a buy?
• Forget term deposits! These ASX dividend shares are better
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor James Mickleboro 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 Why one top fund manager sees meaningful upside for the Betmakers Technology share price appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2YqCJN1