Author: therawinformant

The MyDeal.com.au Limited (ASX: MYD) share price has had a sensational start to life on the Australian share market.

The online retail marketplace provider’s shares rocketed 120% higher than its IPO price of $1.00 to $2.20 this morning.

The MyDeal share price has since pulled back a touch but is still up 83% for the day to $1.83.

The MyDeal IPO.

MyDeal hit the ASX boards this morning after successfully completing its initial public offering that raised $40 million at $1.00 per share.

The $40 million comprises $35 million for the company and $5 million for certain existing shareholders.

Based on this and its existing shares, this gave the company a market capitalisation of $258.8 million. Though, with its shares now changing hands for $1.83, MyDeal has a market capitalisation of $475 million.

What will it spend the proceeds on?

According to the release, the company intends to use the proceeds from the IPO to drive future growth.

This includes growing MyDeal’s private label business, investing in its proprietary technology (the development and launching of mobile apps for iOS and Android devices), and investing in advertising to grow its customer base and brand.

MyDeal’s CEO and Managing Director, Sean Senvirtne, commented: “This is a very exciting day for MyDeal, and I am delighted with the strong support that we received from both institutional and retail investors. Today is an important milestone for MyDeal, however, this is still the beginning of our journey. I would like to thank our long-term shareholders for their ongoing support, and welcome new shareholders to be part of the exciting journey ahead of us.”

Trading update.

As with fellow ecommerce companies Kogan.com Ltd (ASX: KGN) and Temple & Webster Group Ltd (ASX: TPW), MyDeal has started FY 2021 strongly.

Gross sales for the first quarter came in at $56.67 million, up 317% on the prior corresponding period.

Also growing strongly was its active customers. MyDeal now has 669,897 active customers, which is an increase of 268% since this time last year.

More reading

• Why it makes sense to invest in ASX shares
• Why Aerometrex, Healius, Megaport, & Temple & Webster shares are pushing higher
• Is the Kogan.com (ASX:KGN) share price a strong buy?
• The ASX 200 finished 0.1% higher today
• Temple & Webster (ASX:TPW) share price sinks 15% lower: Is this a buying opportunity?

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 Kogan.com ltd and Temple & Webster Group Ltd. The Motley Fool Australia has recommended Kogan.com ltd 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.

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The Tinybeans Group Ltd (ASX: TNY) share price is edging higher today following the company’s release of its Q1 FY21 update. In early morning trade, shares in the tech company reached an intra-day high of $1.35. However, the Tinybeans share price has since retreated to $1.24 at the time of writing, up 0.82%.

What’s moving the Tinybeans share price?

The Tinybeans share price bounced higher this morning after the company reported a robust result backed by an acceleration in user engagement for the period ending 30 September.

Revenue jumped to $2.5 million, a 123% increase on the prior corresponding period, and 6% on the previous quarter. The record result was achieved by Tinybeans’ premium subscription base growing above 21,800 members.

Earnings before interest, tax, depreciation and amortisation (EBITDA) improved, operating at a loss of $331,000. This represented a 50% reduction on the past three months. With high operating margins, the company noted that revenue is closing the gap as the business grows.

Operating cash burn for Q1 FY21 was $815,000, driven by recruitment costs to support new and existing larger advertising partners. Advertising wins included Walmart Inc (NYSE: WMT), Apple Inc (NASDAQ: AAPL), Cooper Companies Inc‘s (NYSE: COO) CooperVision, Spin Master Corp, Aphabet Inc‘s (NASDAQ: GOOGL) Google and Moose Toys.

Tinybeans recorded a cash balance of $4.55 million at the end of the quarter.

What did the CEO say?

Tinybeans CEO, Mr Eddie Geller, commented on the positive result. He said:

I’m pleased to report another quarter of strong growth despite COVID disruptions to our operations and to our brand partners…

Historically, Q1 is seasonally a slower quarter in the U.S. advertising market, however, a 15% revenue growth in USD terms during difficult economic times is very promising…

We have plans to significantly grow this offering as more and more content gets integrated across the app. E-commerce is a complementary addition to the platform and a total addressable market in the baby/kids category in the U.S. of over 1 trillion dollars.

FY21 priorities

Tinybeans said it continues to perform well with the COVID-19 backdrop and is focused on executing its growth strategies.

New partnership agreements are being worked on and are expected to be released to the market in due course.

The company is anticipating exponential user growth to begin in FY22, with revenues from its consumer segment to eclipse adverting by FY23. This is due to its ever-growing sales team pushing subscription and e-commerce products and services.

About the Tinybeans share price

The Tinybeans share price has been an impressive performer since the beginning of August, reflecting a gain of more than 50% for shareholders. On today’s price, the company has a market capitalisation of just under $58 million.

More reading

• Broker updates are mixed on these 6 high profile ASX 200 shares
• Why the Centuria Capital (ASX:CNI) share price is in a trading halt
• How will the Crown Resorts (ASX:CWN) share price fare at today’s AGM?
• ASX 200 down 0.75%: Big four banks drop, Healius hits record high, Zip slides lower
• Why the OZ Minerals (ASX:OZL) share price hit a 10-year high today

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Aaron Teboneras 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 Alphabet (A shares) and Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Tinybeans Group Ltd. The Motley Fool Australia has recommended Alphabet (A shares), Apple, and Tinybeans 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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Brokers have updated their ratings across a range of high profile shares on the S&P/ASX 200 Index (ASX: XJO) this week. It’s a mixed bag, so let’s take a look at which ASX 200 shares were in their sights. 

Afterpay Ltd (ASX: APT) 

Morgan Stanley reacted positively to Afterpay’s Westpac Banking Corp (ASX: WBC) partnership. It expects September quarterly merchant sales to improve to $4 billion and active users to 11.3 million. The December quarter will also likely surprise to the upside on a surge in consumer spending. As a result, Morgan Stanley raised its Afterpay share price target from $106 to $115 and retains its overweight rating. 

Conversely, UBS has retained its sell rating and price target of $28.25. An almost 75% discount to today’s prices! 

Cochlear Ltd (ASX: COH) 

Citi sees revenues declining by as much as 16% with no recovery in earnings until FY22. It retains its sell rating with a price target of $184. Likewise, UBS retains its sell rating with a target price of $175 citing lower implant revenues. 

Credit Suisse raised its Cochlear share price target from $215 to $225 with a neutral rating. The broker believes its recovery is on track after reviewing first quarter sales. Likewise, Macquarie raised its price target from $236 to $241. It sees potential for improving sales to continue, particularly for developed markets. 

Crown Resorts Ltd (ASX: CWN) 

Credit Suisse lowered its Crown share price target from $11.10 to $10.20 while retaining an outperform rating. It blames the ongoing impact of the COVID-19 pandemic on the business but notes some signs of early recovery. 

Dominos Pizza Enterprises Ltd (ASX: DMP) 

Citi raised its Dominos Pizza share price target from $59.60 to $67.40 but retains its sell rating. It notes that surging sales has propped up its target price but blames the unattractive price-to-earnings (P/E) ratio for its sell rating. 

Tabcorp Holdings Limited (ASX: TAH) 

Credit Suisse raises the Tabcorp share price target from $4.30 to $4.40 and retains its outperform rating. The broker is impressed with its trading update and has upgraded its earnings estimates for FY22 by 5% and FY23 by 6%. Likewise, UBS also retains a buy rating and target price of $4.70. 

Woolworths Group Ltd (ASX: WOW) 

Citi upgrades the Woolworths share price rating from neutral to buy and raises its price target from $41.20 to $44.50. Citi is pleased with its continued earnings momentum and expects a strong December quarter performance. It increased Woolworth’s earnings estimates for FY21 by 5% and FY22 by 3.5%.

More reading

• How will the Crown Resorts (ASX:CWN) share price fare at today’s AGM?
• Here’s where I would spend $10,000 on ASX shares today
• 3 super reasons to buy ASX 200 shares today
• 5 things to watch on the ASX 200 on Thursday
• The best ASX shares to buy during a market crash

Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO and Woolworths Limited. The Motley Fool Australia has recommended Cochlear Ltd., Crown Resorts Limited, and Domino’s Pizza Enterprises 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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Real estate funds management company Centuria Capital Group‘s (ASX: CNI) shares will be on watch tomorrow. The Centuria Capital share price will remain in a trading halt until tomorrow morning, as requested by the company prior to today’s ASX announcements.

Centuria focuses on both unlisted and listed Australian real estate investment trust (REIT) property funds as well as investment bonds.

The Centuria Capital share price was on tear in the early weeks of 2020, gaining 24% from 2 January through to 19 February. Like most ASX shares, particularly property shares, it was hit hard by the COVID panic selling, falling 49% from 19 February through to 23 March.

Since then, the share price is up 61%, for a year-to-date gain of 3%. By comparison the S&P/ASX 200 Index (ASX: XJO) is down 9% in 2020 (at the time of writing).

What did Centuria Capital announce?

Centuria announced it has acquired the NZ$178.3 million (AU$165.8 million) Visy Glass industrial facility in Auckland, on a 20-year sale-and-leaseback, triple net lease. The facility – New Zealand’s only glass bottle and jar manufacturing site – was acquired via Centuria’s New Zealand platform, Augusta Capital.

Centuria has now secured more than AU$700 million of industrial and healthcare assets since the beginning of the 2021 financial year. It reports another $300 million of assets are under due diligence, and forecasts its assets under management (AUM) will expand to $10 billion.

In light of the increased earnings associated with the growth of its AUM, the company also upgraded its FY21 guidance. Operating earnings per security (EPS) guidance increased 9.1% to 11.5 –12.5 cents per security. Distribution per security (DPS) guidance increased 5.9% to 9.0 cents per security.

The Visy Glass facility will be the largest single asset unlisted fund launched by Centuria.

It will be funded by a $100 million equity raising comprised of an $80.5 million entitlement offer and a $19.5 million fully underwritten institutional placement.

The company reports that following the equity raising, it will have approximately $105 million of working capital available.

A word from Centuria’s CEOs

Addressing the new acquisition, John McBain, Centuria Joint CEO, said:

The Visy Glass acquisition in New Zealand follows the recent $416.7 million acquisition of Telstra’s data centre in Victoria and Centuria is pleased to partner with both groups in these initiatives. Centuria has upgraded both its operating EPS guidance and DPS guidance following strong property funds management activity to date in FY21 with a meaningful proportion of these earnings generated from our New Zealand business unit underpinning our ongoing confidence in this acquisition.

Jason Huljich, Centuria Joint CEO, added:

The industrial sector in both Australia and New Zealand has enjoyed exceptional growth over the past three years and we continue to take advantage of these tailwinds. Together with recent healthcare property transactions, Centuria is on track to expand assets under management to $10 billion, a 14% increase… since the end of FY20.

With a lot of new information for investors to sort through, the Centuria Capital share price will be one to watch tomorrow.

More reading

• Centuria Capital (ASX:CNI) delivering on FY21 strategy
• Centuria Capital’s fund managers’ insights on A-REITs and unlisted property funds
• Top ASX Stock Picks for October 2020

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra 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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In pre-released remarks, Crown Resorts Ltd (ASX: CWN) chair Helen Coonan has acknowledged a significant protest vote ahead of the company’s AGM today. Shareholders have protested strongly against the re-election of three directors as well as the remuneration report. Although the exact size of the protest vote remains unclear. It is expected that James Packer will vote to save the three directors, as the majority shareholder. Ms Coonan further commented: 

Based on conversations with investors in the lead-up to today, I understand the vote on these resolutions reflects dissatisfaction with the performance of the board and the company, particularly in the context of evidence coming out of the ILGA Inquiry.

Shareholders have given a clear and powerful message that board renewal is required, and the board accepts this feedback. Changes will be made.

Crown Resorts CEO Ken Barton also said in later comments that he “did not intend to mislead”. Furthermore, he apologised in writing for an answer to the inquiry related to dealings with Mr Packer’s private company.  

Operational performance

The company advised the Perth casino has opened again, albeit under restrictions. Main floor gaming revenue (excluding VIP program play revenue) was up approximately 16% on the prior corresponding period. Meanwhile, non-gaming revenue was down approximately 21% due to continuing constraints driving lower attendance. The company finds this result to be encouraging. 

The VIP area, however, has been minimal due to West Australian border restrictions. The company’s wagering and online social gaming revenue increased 34% on the previous period, with revenue growth driven by Betfair.

Construction of the Crown Sydney hotel resort continued throughout the year with the building on track for completion in early December. Once fully operational, it is expected to employ more than 2,000 people.  The first residents are expected in March of 2021 after gradually opening from December. 

Based on the latest advice, Crown Resorts Melbourne anticipates being able to recommence some limited food and beverage operations in early November. 

The future for Crown Resorts

The company continues to work fully with the various regulatory processes and investigations under way. It has also undertaken to faithfully implement its reform agenda so stakeholders can be confident the company has learned from past issues and will not allow them to recur. A number of areas that are being acting upon immediately, and the company stands ready to implement any additional recommendations for improvement.

At the time of writing, the Crown Resorts share price is slightly down 0.18% at $8.36.

More reading

• 5 things to watch on the ASX 200 on Thursday
• 5 ASX 200 events to watch for this week
• ASX 200 rises 1%, Cimic (ASX:CIM) up 8% on sale
• Why the Crown (ASX:CWN) share price crashed 10% lower today
• ASX 200 up 1%: Crown sinks on AUSTRAC news, South32 & CIMIC storm higher

Motley Fool contributor Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Crown Resorts 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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At lunch on Thursday the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. The benchmark index is currently down 0.75% to 6,144.7 points.

Here’s what is happening on the market today:

ASX 200 sinks lower on U.S. stimulus concerns.

The ASX 200 index is sinking lower on Thursday after the U.S. senate blocked a US$500 billion COVID-19 stimulus package. While all sectors are currently trading lower, the banks are arguably weighing heaviest on the market’s performance. The worst performer in the big four has been the National Australia Bank Ltd (ASX: NAB) share price with a 1.3% decline.

Healius hits a record high.

The Healius Ltd (ASX: HLS) share price hit a record high this morning after the release of its first quarter update. That update revealed that the healthcare company achieved revenue of $492.5 million and underlying earnings before interest and tax (EBIT) of $81.2 million during the first quarter. This was a 17.5% and 150% increase, respectively, over the prior corresponding period. The company’s COVID-19 testing was a key driver of growth.

Zip tumbles on Westpac sale.

The Zip Co Ltd (ASX: Z1P) share price is tumbling lower today after Westpac Banking Corp (ASX: WBC) announced the sale of its 10.7% stake to institutional investors. The banking giant was able to fetch $6.65 per share for its 55.46 million Zip shares. This was a 6% discount and valued them at approximately $368.8 million. The two parties intend to continue working together despite the share sale.

Best and worst ASX 200 shares.

The best performer on the ASX 200 on Thursday has been the Healius share price with a gain of over 6% following its impressive update. Going the other way, the worst performer has been the Resolute Mining Ltd (ASX: RSG) share price. The gold miner’s shares are down 8% following a disappointing third quarter update. Resolute also revealed that its full year production will be at the low end of its guidance range, whereas its costs will be at the high end.

More reading

• Why the OZ Minerals (ASX:OZL) share price hit a 10-year high today
• Why Aerometrex, Healius, Megaport, & Temple & Webster shares are pushing higher
• Why the Resolute Mining (ASX:RSG) share price is the worst performer on the ASX 200 today
• Why the Healius (ASX:HLS) share price surged to a record high today
• ASX 200 shares hit by multiple takeovers

James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of 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 OZ Minerals Limited (ASX: OZL) share price defied the market gloom to surge to its highest in a decade this morning.

The OZL share price jumped 3% to $15.62, making it the third best performing stock on the S&P/ASX 200 Index (Index:^AXJO).

The outperformance of the copper miner is only bettered by the Healius Ltd (ASX: HLS) share price and Southern Cross Media Group Ltd (ASX: SXL) share price at the time of writing.

OZ Minerals share price turning gold

OZ Minerals quarterly production report is the key reason why the stock is rallying when the ASX 200 is crashing 1.1%.

The miner upgraded its gold production guidance for 2020 thanks to a strong showing at its flagship Prominent Hill project.

Surprising production upgrade

OZ minerals expects to deliver between 242,000 and 259,000 ounces of the precious metal this year. That’s up from its earlier estimate of 227,000 to 249,000 ounces.

The timing of the production increase couldn’t be sweeter as the gold price is hovering close to record highs and is now fetching over US$1,900 an ounce.

Little wonder why the OZ Minerals share price is reacting so positively!

What the gold output upgrade essentially means is a drop in operating costs for the group. Management believes that C1 cash cost for 2020 will range between zero and US15 cents a pound of copper. This compares to its earlier projections of US10 cents to US25 cents a pound.

OZ Mineral could be mining for free?

That’s a pretty incredible outcome as profit from the sale of gold may totally offset the cost of mining the industrial metal.

Gold is seen as a by-product for OZ Minerals, which sells the yellow metal to bring down the cost of its copper operations. The C1 cost refers to the operating expenses and doesn’t include capex to find new copper deposits to replace what is being mined.

The all-in sustaining costs, which is a more holistic reflection of real expenses, is also expected to be lower than originally forecasted. This will come in between US60 and US75 cents a pound versus the US70 to US85 cents earlier estimate for 2020.

Management made no changes to its copper production guidance. This is tipped to be 88,000 to 105,000 tonnes for the year.

Rise in copper adds to OZ Minerals share price rise

The pleasing production report may not be the only driver for the stock today. The copper price jumped 1.6% to around US$3.19 a pound due to supply disruption from Chile, the world’s largest copper exporter.

This also explains why the Sandfire Resources Ltd (ASX: SFR) share price is also outperforming the market today.

The gold price is also faring well with the precious metal gaining 0.7% to US$1,923 an ounce.

The outlook for both commodities is bright despite economic impact from COVID‐19. The OZ Minerals share price is likely to be well supported going forward. There’s a lot of profit margin for the miner to make at current prices.

More reading

• Why Aerometrex, Healius, Megaport, & Temple & Webster shares are pushing higher
• Why the Healius (ASX:HLS) share price surged to a record high today
• 3 super reasons to buy ASX 200 shares today
• 5 things to watch on the ASX 200 on Thursday
• The best ASX shares to buy during a market crash

Motley Fool contributor Brendon Lau owns shares of OZ Minerals Limited. Connect with me on Twitter @brenlau.

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 S&P/ASX 200 Index (ASX: XJO) is out of form on Thursday and sinking notably lower in late morning trade. At the time of writing, the benchmark index is down 1.2% to 6,119.3 points.

Four shares that have not let that hold them back today are listed below. Here’s why they are pushing higher:

Aerometrex Ltd (ASX: AMX)

The Aerometrex share price is up 3% to $1.34 after announcing a new product. The aerial mapping company has developed a new technology that is able to determine, in three dimensions, the exact fuel load densities in any bushfire prone region in Australia. It believes the breakthrough should allow users to adopt a far more science-based and pre-emptive fuel load strike position ahead of this year’s bushfire season.

Healius Ltd (ASX: HLS)

The Healius share price has climbed 6% higher to $3.65. Investors have been buying the healthcare company’s shares after the release of its first quarter update. That update revealed that Healius recorded revenue of $492.5 million and underlying earnings before interest and tax (EBIT) of $81.2 million during the quarter. This represents an increase of 17.5% and 150%, respectively, on the prior corresponding period. COVID-19 testing played a key role in this growth.

Megaport Ltd (ASX: MP1)

The Megaport share price is up 1% to $14.72. This appears to have been driven by a broker note out of UBS this morning. The broker has upgraded the leading elastic interconnection services provider’s shares to a buy rating with a $16.45 price target following its first quarter update. It was pleased to see strong growth in new ports during the three months.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price has bounced back from a heavy decline on Wednesday and is up 3% to $11.99. This morning analysts at Goldman Sachs retained their buy rating and lifted their price target on the online homewares and furniture retailer’s shares to $12.85. This follows a trading update yesterday which revealed stronger growth than the broker expected. 

More reading

• Why the Healius (ASX:HLS) share price surged to a record high today
• Aerometrex (ASX:AMX) share price on watch after announcing new bushfire product
• The ASX 200 finished 0.1% higher today
• Temple & Webster (ASX:TPW) share price sinks 15% lower: Is this a buying opportunity?
• ASX 200 flat: Big four banks push higher, Afterpay drops, Megaport sinks 10%

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 and recommends MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia has recommended MEGAPORT FPO 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.

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The Australian Pharmaceuticals Industries Ltd (ASX: API) share price is falling today following the release of its full-year results.

In early morning trade, shares in the Australian health and beauty company are down 2.79% at $1.04. However, this could partly be attributed to a broader market-sell off mimicking Wall Street’s lead overnight.

Let’s take a look at what API reported for the financial year.

FY20 review

For the full-year ending September 30, API delivered a mixed FY20 result. The company advised it has been focused on managing the COVID-19 impact, which closed half of its business.

Underlying earnings before interest and tax (EBIT) dropped 40.1% to $56.3 million over the prior corresponding period (pcp). In turn, this affected net profit after tax (NPAT), which fell 42.6% to $32.5 million.

However, revenue growth proved resilient as it increased 0.2% to $4 billion on FY19. This was despite retail lockdowns in both its Priceline and Clear Skincare portfolio.

Cost of doing business (CODB) was down 10.2% to 70bps. This reflected ongoing cost savings that included the closure of two distribution centres.

API reported a strong balance sheet, with net debt reduced to $18 million from the previous $181.1 million recorded on the pcp.

Management declared a fully-franked dividend of 2 cents representing a payout ratio of 33% of NPAT. The dividend will be paid to shareholders on December 15.

What did management say?

API CEO and managing director Richard Vincent said:

This result is testament to the strength of API’s combined portfolio of businesses. Pharmacy Distribution revenue excluding Hepatitis C increased 6.1% which demonstrates the resilience of that business throughout COVID-19.

With half of API’s revenue coming from its retail businesses, we were exposed to the impact of mandatory lockdowns to non-pharmacy Priceline stores and Clear Skincare clinics.

From a capital management perspective, we made significant improvements before and during COVID-19, we built on our strong net debt position from the first half and further improved our cash conversion days.

Outlook

API said it was well positioned for FY21 and beyond as it seeks to support future growth.

The start of its seventh community pharmacy agreement is expected to provide additional funding to address rising distribution costs. This will provide an uplift on the company’s bottom line for the new financial year.

In addition, API anticipates its pharmacy distribution business to return to growth with a significant network expansion pipelined for FY21. New cash generation is forecast as the company takes advantage of a shift to value-based beauty and health products.

Given the uncertain economic environment, API did not provide an earnings guidance for FY21.

More reading

• Australian Pharmaceuticals (ASX:API) share price on watch after trading update
• 2 ASX dividend shares raising their dividends like clockwork

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If I had a spare $10,000 lying around, the first choice for its use would be investing in…  a brand new 90-inch 8K TV.

Just kidding. That ‘investment’ wouldn’t get you a very good return at all.

If I had a spare $10,000, I would, of course, put it into ASX shares. Since cash is virtually worthless as an investment these days, I think all of us should aim to have at least some money in the share market. And it’s nice knowing that, if invested judiciously, that $10,000 is going to work for me and help me to build long-term wealth. But which ASX shares to choose? Well, here are 3 I would consider today:

3 ASX shares for a $10,000 investment today

Cochlear Limited (ASX: COH)

Cochlear is our first option for a $10,000 investment today. This company is a global leader in the healthcare space, more specifically in hearing aid and assistance. It has managed to perform extremely well for its shareholders over a long period of time – illustrated by its 160% share price appreciation over the past 5 years. Cochlear has an extremely sticky customer base, which helps lock in customers, often for life. Since its products are also a ‘need’ for its customers, this also adds stability to its earnings base. With a near-60% global market share in the hearing aid/assistance market, I have a lot of confidence Cochlear will be a top investment for decades into the future.

Coles Group Ltd (ASX: COL)

Coles is our second ASX share for a $10,000 investment today. It needs little introduction as Australia’s second-largest supermarket grocer. Why do I like Coles? Well, it’s a highly defensive share, meaning the company’s revenue and profitability are not likely to be affected by any economic maladies or market cycles. We all need to eat, after all, and I’d wager that a large proportion of us will continue to shop at Coles to meet this end. This defensiveness was on full display earlier in the year, amidst the worst throes of the coronavirus pandemic. Coles also offers a decent dividend yield, currently 3.28% on recent prices. I think Coles is a great ‘bottom-drawer’ share, and I’d be happy to use $10,000 to buy Coles shares today.

Vanguard Australian Shares Index ETF (ASX: VAS)

Our final choice is this exchange-traded fund (ETF) from Vanguard. VAS is your typical index ETF – it tracks a basket of the ASX’s 300 largest companies. That’s everything from Cochlear, Coles, Westpac Banking Corp (ASX: WBC) and BHP Group Ltd (ASX: BHP) to Afterpay Ltd (ASX: APT) and JB Hi-Fi Ltd (ASX: JBH). I like this investment because it’s the perfect choice for an investor who’s not sure where to invest.

If you can’t find any screaming bargains in the market right now, this is an easy way to make a broad, diversified investment you won’t lose too much sleep over. Sure, index funds can be volatile in the short-term. But anyone who has held an ETF like VAS over the past decade has done extremely well. I don’t envisage that changing over the next decade at all. So, if you’re not too keen on Cochlear or Coles, I think VAS is a perfect ASX share to take the final spot for our $10,000 today.

More reading

• 3 super reasons to buy ASX 200 shares today
• Are US shares a better investment than the ASX 200?
• Reject Shop (ASX:TRS) share price tumbles but it’s property stocks that should be worried
• Here’s how much Coles (ASX:COL) and Woolworths (ASX:WOW) are benefiting from COVID-19
• Buy Coles (ASX:COL) and this dividend share before the next RBA meeting

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 Cochlear Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO and COLESGROUP DEF SET. The Motley Fool Australia has recommended Cochlear 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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