Author: therawinformant

I think there are some great S&P/ASX 200 Index (ASX: XJO) growth shares that are worth buying for your portfolio.

There aren’t many shares in the ASX 20 that display good growth potentials, though I did choose one for this article.

Here are three good ASX 200 growth shares worth buying today:

Magellan Financial Group Ltd (ASX: MFG)

Magellan is one of the best fund managers in Australia in my opinion. It is good at producing solid investment returns. The underlying business also has very good management that are always looking for further opportunities to grow the business.

Over the past decade it has grown its funds under management (FUM) to more than $100 billion thanks to the good investment performance as well as a good inflow of funds.

Magellan had a strong FY20 result. Revenue increased by 12.4% and adjusted net profit after tax (NPAT) grew by 20.3%.

As the ASX 200 growth share continues to grow its FUM, its profit can continue to rise at a pleasing rate.

The move to combine three of its funds into one seems like a smart move, locking in more funds while giving investors the chance to buy more closed-ended fund units. This should be good for long-term profit.

I also like the recent move to invest in new investment bank Barrenjoey, which is getting a lot of quality people on board which should be attractive to prospective clients.

At the current Magellan share price it’s trading at 20x FY23’s estimated earnings. Magellan currently offers a grossed-up dividend yield of 4.8%.

Service Stream Limited (ASX: SSM)

Service Stream describes itself as a leading essential network services company. It is involved with the design, build and maintenance of various networks including water, gas, electricity, renewable energy and telecommunications.

Indeed, today it announced another win from the NBN which could be worth many millions of dollars.

The ASX 200 growth share delivered a solid FY20 result, with earnings before interest, tax, depreciation and amortisation (EBITDA) from operations rising by 15.9%.

Infrastructure spending will help Australia’s recovery from COVID-19 impacts, and Service Stream could be one of the better ways to play that theme.

At the current Service Stream share price it’s trading at under 15x FY22’s estimated earnings. It also offers a grossed-up dividend yield of around 6%.

CSL Limited (ASX: CSL)

CSL has been one of the best ASX 200 growth shares over the past decade. The CSL share price has gone from around $33 to today’s $300.

The company keeps delivering strong long-term profit growth. In FY20 it grew its net profit after tax by 17% to US$2.1 billion in constant currency terms, with revenue rising by 9%.

CSL is going to be a key part of Australia’s ability to recover from COVID-19 because it has been tasked by the Australian government to manufacture both the Oxford vaccine as well as the University of Queensland vaccine.

In FY21 CSL is expecting profit to grow by up to 8% to US$2.265 billion, though the bottom end of the guidance range was US$2.1 billion of net profit – this would mean profit would be flat for the year.

The ASX 200 growth share consistently invests into new products and this helps unlock future earnings streams for the healthcare giant. It’s this investment in new products that makes me confident for CSL’s future profit growth. It is currently spending around 10% of its revenue on research & development.

At the current CSL share price it’s trading at 34x FY23’s estimated earnings.

Foolish takeaway

I believe that each of these ASX 200 growth shares have good growth credentials over the next three to five years. Growing dividends could also be good.

Out of the three options I’d probably go for Magellan because of its diversifying earnings and its rising profit margins. Fund managers are very scalable businesses.

More reading

• The Unibail (ASX:URW) share price is climbing today. Here’s why.
• ASX 200 up 0.9%: Telstra dividend update, Afterpay & Xero hit record highs
• Service Stream (ASX:SSM) share price higher on NBN update
• $10,000 invested in the CSL (ASX:CSL) IPO is worth how much now?
• 5 things to watch on the ASX 200 on Tuesday

Tristan Harrison 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 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.

The post 3 ASX 200 growth shares to buy today appeared first on Motley Fool Australia.

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Do you remember when the tech boom was over? When would-be pundits were coming out of the woodwork proclaiming that the share price gains investors enjoyed during the tech-led share market recovery had run their course?

Those pundits are still out there. But they’ve gone suspiciously quiet.

To be fair, technology shares did, by and large, race ahead of the pack following the pandemic fuelled market rout. And fears that valuations were stretched did see tech share prices retrace.

In Australia, the S&P/ASX All Technology Index (ASX: XTX) — which tracks 50 of Australia’s leading and emerging technology shares — peaked on 25 August. At that point it was up 116% from the 23 March low. Then the index slid 11% through to 14 September. And the tech bears predicted more pain to come.

But, as you probably know, that didn’t happen.

Since 14 September, the All Tech Index is up 17% (at the time of writing). It hit new, all-time highs last Thursday 8 October. And it’s kept gaining since then, currently up 5% from its 25 August peak and an eye-popping 127% from the 23 March low.

Investors piling into cashed up tech shares

It’s the same story across most of the globe, just on a slightly different timeline.

In the United States, the NASDAQ-100 (NASDAQ: NDX) didn’t peak until 2 September, up 77% from 23 March. By 23 September, it was down 13% from that peak, putting the index well into technical correction territory. And again, the tech bears forecast more share price losses to come.

But, following yesterday’s (overnight Aussie time) 3% gain, the Nasdaq 100 has instead climbed 12% since 23 September. That puts it only 3% below its 2 September all-time highs.

And that high looks like it won’t hold the record for long.

Deutsche Bank AG (NYSE: DB), among others, is upping its bullish outlook for some of the biggest technology shares. With an eye on the growth potential in digital advertising, the bank upgraded its outlook for Twitter Inc (NYSE: TWTR), Facebook, Inc. (NASDAQ: FB) and Google’s parent company, Alphabet Inc Class A (NASDAQ: GOOGL).

Keith Gangl, a portfolio manager of Gradient Investments noted that (quoted by Bloomberg), “People are going back to the trade that’s worked, and that’s the growth trade. People are worried about missing out, so they are going right to the tech leaders.”

Now there are all kinds of great technology shares on the All Ordinaries Index (ASX: XAO). But if you want exposure to the top US tech shares, you may want to consider the Betashares Nasdaq 100 ETF (ASX: NDQ).

The exchange-traded fund (ETF) is meant to mirror the returns of the Nasdaq 100. And it comes pretty close. The ETF is up 31% so far in 2020, compared to a 36% gain for the Nasdaq 100.

PC demand is booming

Sticking with technology, personal computer (PC) shipments increased 3.6% in the third quarter of 2020, reaching 71.4 million units. That’s according to preliminary results by research and advisory company Gartner Inc (NYSE: IT).

According to Mikako Kitagawa, research director at Gartner:

This quarter had the strongest consumer PC demand that Gartner has seen in five years. The market is no longer being measured in the number of PCs per household; rather, the dynamics have shifted to account for one PC per person…

Mobile PC demand in the U.S. market surged as the shift from desktop to mobile PCs became a common practice across public and private businesses, even with many companies partially bringing their workers back to the office. PC demands in the U.S. were also backed by the gradual economic recovery throughout the quarter, including a rebound in employment and an improved consumer confidence index.

Gartner does not include Chromebook shipments in its traditional PC market results. (Chromebooks run on Google’s Chrome operating system and are generally less expensive than most traditional PCs.)

If you include the 90% surge in Chromebook shipments in the third quarter, Gartner indicated the total worldwide PC market grew 9% year on year. Which hardly sounds like the end to the tech share boom.

The government’s recovery budget and ASX tech shares

We’ll wrap this up today with a look at how the government’s proposed instant asset write-off measures could impact ASX technology share prices.

For that, we turn to Fiona Hindmarsh, chief executive of venture capital firm Significant Capital Ventures. According to the Australian Financial Review, Hindmarsh believes the budget will increase the demand for high-tech equipment. She says:

This budget is a powerful confidence boost. The tax write-off won’t directly impact the start-ups that are sourced and funded by Significant as they are typically not yet profitable. It will however have a dramatic impact on the speed and scale of adoption of these technologies through industry engagement and investment…

Owners of heavy equipment are all seeking technology that will enable them to make autonomy in the field of construction, mining, remote environments a reality. The cost of taking on and accelerating this type of radical technology innovation is reduced with the tax benefits enabling more effective industry partnerships.

All of this doesn’t mean that tech share prices won’t fall again on any given day or week. But the growth outlook for well-placed technology shares remains robust.

More reading

• Where will Facebook (NASDAQ:FB) be in 5 years?
• Is the Nearmap share price a buy after the tech sell-off?
• Why it is important to diversify your ASX portfolio and how you can do it
• 3 five-star ASX shares to buy next week
• 3 ASX shares to buy in a US election selloff

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Bernd Struben 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), Facebook, and Twitter. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Gartner. The Motley Fool Australia has recommended Alphabet (A shares), BETANASDAQ ETF UNITS, and Facebook. 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 Unibail-Rodamco-Westfield CDI (ASX: URW) share price is climbing today after the company announced the sale of a major office building in France. The Unibail share price is currently trading 6.76% higher at $3.00.

What does Unibail do?

Unibail is the largest listed real estate company in Europe. The company is classified as a retail real estate investment trust (REIT) on the S&P/ASX 200 Index (ASX: XJO).

Unibail focuses its operations on big shopping centres in major European cities, including the large office buildings in the heart and west of Paris, France, and major convention and exhibition venues in and around Paris.

Why happened today?

Unibail announced a deal this morning to sell the SHiFT office building in Paris for 620 million euros. The sale price represents a premium on the 30 June book value. However, shareholders should note that the transaction is subject to standard conditions and is expected to be completed by January 2021.

The SHiFT office building is located in the business district of Issy-les-Moulineaux (Paris) with a total area of 47,200 sqm. The property is currently leased to Nestlé for its French headquarters on a 12-year agreement.

What now for the Unibail share price

The transaction is part of the REIT’s 9 billion euro reset plan to strengthen the group’s balance sheet in response to COVID-19. On completion of the sale, the group will have generated 5.3 billion euros of net disposal proceeds since June 2018.

The Unibail share price has been on a downward spiral since the start of the pandemic. Despite this rare uptick in share price, shareholders are likely to be wary of the damage rising numbers of COVID-19 cases in Europe may have on the company’s shares.

The Unibail share price has fallen a huge 73% since the start of 2020.

More reading

• ASX 200 up 0.9%: Telstra dividend update, Afterpay & Xero hit record highs
• 5 things to watch on the ASX 200 on Tuesday
• The Zip (ASX:Z1P) share price soars as Citigroup says 1Q update to surprise
• ASX 200 ends higher, Link (ASX:LNK) share price shoots 24% higher
• Why ASX oil stock laggards are well placed to bounce in the COVID recovery trade

Motley Fool contributor Daniel Ewing 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.

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This morning Australia’s leading investment platform provider CommSec released data on the most traded ASX shares on its platform from last week.

While there are once again some familiar faces, there are also a couple of very surprising additions to the top five this week.

Here’s the data:

Zip Co Ltd (ASX: Z1P)

This buy now pay later provider was the most popular share on the CommSec platform last week and accounted for 3.7% of total trades. Although just 44% of these trades came from the buy side, it was enough to lift the Zip share price by a sizeable 16.5%. The catalyst for this was news of tax cuts and a positive update from rival Sezzle Inc (ASX: SZL).

Mesoblast limited (ASX: MSB)

Mesoblast shares were popular with retail investors last week. The biotech company’s shares were responsible for 2.7% of trades on the platform. Almost two-thirds of these trades came from buyers, who may believe that a recent crash in the Mesoblast share price has created a buying opportunity. That decline was driven by an unfavourable decision by the US FDA at the start of the month. Mesoblast shares rose 5.6% last week.

American Rare Earths Ltd (ASX: ARR)

The first surprise addition to the top five was this small mineral resources company. It accounted for 1.8% of trades on the CommSec platform. The catalyst for this was news that US President Donald Trump had signed an Executive Order which declared it a national emergency for the US to increase its rare earths mining and processing capacity. The American Rare Earths share price rocketed 160% higher over the week.

Estrella Resources Ltd (ASX: ESR)

This junior exploration company is another surprise addition to the top five this week. Its shares were in demand with investors last week after announcing a significant nickel sulphide discovery at its Carr Boyd nickel project in Western Australia. Estrella Resources shares accounted for 1.6% of trades on the platform, with 60% coming from buyers. Those buyers will be pleased to learn that the Estrella Resources share price recorded a weekly gain of over 350%.

Afterpay Ltd (ASX: APT)

Afterpay was popular with investors again last week and was responsible for 1.5% of trades on the CommSec platform. And despite almost two-thirds of these trades coming from sellers, it couldn’t stop the Afterpay share price from surging over 12% higher over the five days. A strong update from Sezzle and a favourable Federal Budget appeared to give its shares a lift.

More reading

• ASX 200 up 0.9%: Telstra dividend update, Afterpay & Xero hit record highs
• Why Afterpay, HUB24, NEXTDC, & Telstra shares are storming higher
• The Zip (ASX:Z1P) share price soars as Citigroup says 1Q update to surprise
• Ignore EBITDA and P/E ratios? This fundie does
• 3 reasons I still think the Zip (ASX:Z1P) share price is a buy

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 ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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 Tuesday the S&P/ASX 200 Index (ASX: XJO) has continued its remarkable run and is on course to record another strong gain. The benchmark index is currently up 0.9% to 6,187 points.

Here’s what is happening on the market today:

Telstra annual general meeting update.

The Telstra Corporation Ltd (ASX: TLS) share price is pushing higher on the day of its annual general meeting. Ahead of the virtual meeting, Telstra released its presentations. These included a summary of its performance in FY 2020, the progress it is making with its T22 strategy, and an update on its dividend. It is the latter which appears to have really caught the eye today. Telstra’s chairman advised that the Telstra board is looking into ways to maintain its 16 cents per share dividend in FY 2021 and beyond.

Tech shares hit record highs.

A very strong night of trade on the technology-focused Nasdaq index has given the local tech sector a big lift on Tuesday. This has led to the S&P/ASX All Technology Index (ASX: XTX) charging higher and taken a few tech shares to record highs. Two of note that have achieved this feat are payments company Afterpay Ltd (ASX: APT) and cloud-based business and accounting software provider Xero Limited (ASX: XRO).

Coal miners under pressure.

Australian coal miners such as Whitehaven Coal Ltd (ASX: WHC) have come under pressure today amid reports that the Chinese government has told state-owned energy companies not to buy Australian coal. One Chinese analyst told the AFR that he believed the move is “a political sanction against Australia.”

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Tuesday has been the Unibail-Rodamco-Westfield (ASX: URW) share price with a 6% gain. This morning the shopping centre operator announced an agreement to sell its SHiFT office building for 620 million euros. The worst performer on the index is the Whitehaven Coal share price following the alleged Chinese ban on Australian coal.

More reading

• Why Afterpay, HUB24, NEXTDC, & Telstra shares are storming higher
• Why Austal, Challenger, Orocobre, & Whitehaven Coal are dropping lower
• New Chinese government threat leaves these ASX mining stocks on tenterhooks
• Telstra (ASX:TLS) share price in focus after AGM dividend update
• Telstra share price and 1 other ASX telecom trading near all time lows

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 Xero. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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 on course to maintain its impressive winning streak on Tuesday. In late morning trade the benchmark index is up a sizeable 0.9% to 6,188.8 points.

Four shares that are climbing more than most today are listed below. Here’s why they are storming higher:

The Afterpay Ltd (ASX: APT) share price has climbed almost 4% to $95.49. Investors have been buying the payments company and other tech shares on Tuesday following a very strong night of trade on the tech-focused Nasdaq index. This has helped drive the S&P/ASX All Technology Index (ASX: XTX) 1.5% higher at the time of writing.

The HUB24 Ltd (ASX: HUB) share price is up 2% to $21.17. This follows the release of the investment platform provider’s first quarter update this morning. HUB24 revealed that its strong has form continued in FY 2021, with record first quarter inflows of $1.36 billion. Together with positive market movements of $436 million, this increased the company’s Funds Under Administration to a massive $19 billion. This is a solid 32% increase on the prior corresponding period.

The NEXTDC Ltd (ASX: NXT) share price has risen 2% to $13.42. This appears to have been driven by a broker note out of UBS this morning. According to the note, its analysts have retained their buy rating and lifted their price target on the data centre operator’s shares to $15.25 following its debt update on Monday. It notes that NEXTDC’s shares are still attractively priced in comparison to its global peers.

The Telstra Corporation Ltd (ASX: TLS) share price is up almost 2.5% to $2.85. Investors have been buying the telco giant’s shares after the release of its annual general meeting presentation. That presentation revealed that the Telstra board is looking into ways to maintain its 16 cents per share dividend in FY 2021 and beyond.

More reading

• Why the HUB24 (ASX:HUB) share price surged to a record high today
• Telstra (ASX:TLS) share price in focus after AGM dividend update
• Telstra share price and 1 other ASX telecom trading near all time lows
• Why NEXTDC (ASX:NXT) and these ASX 200 shares just hit record highs
• The Zip (ASX:Z1P) share price soars as Citigroup says 1Q update to surprise

James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Hub24 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The coronavirus vaccine candidate being developed by Pfizer (NYSE: PFE) and BioNTech (NASDAQ: BNTX) is now undergoing its first regulatory review in North America. The two companies announced that their BNT162b2 has been accepted for a rolling review by Health Canada, that country’s healthcare regulatory authority.

A rolling review is one undertaken while a candidate is still in development; this is done in cases of urgent need, as with the current global pandemic.

No estimate was provided as to when Health Canada might complete its review; the two companies wrote that the regulator “will not make a decision on whether to authorise any vaccine being considered under rolling review until it has received the necessary evidence to support its safety, efficacy and quality.”

BNT162b2 is currently in phase 3 clinical trials, having reached that stage relatively quickly. As such, it is considered by many observers and pundits to be the leading COVID-19 vaccine candidate for approval.

According to Pfizer and BioNTech, around 37,000 participants have been enrolled in more than 120 testing sites around the world in the trials. Twenty-eight thousand of those patients have received the second dose of the two-dose vaccination.

Meanwhile, Pfizer and BioNTech continue to get their ducks in a row regarding the manufacture and distribution of BNT162b2 should it be approved for use. On Monday, the pair said they’ve signed an agreement to supply 1.5 million doses to New Zealand. The financial terms of the deal were not specified.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• 3 reasons Pfizer and BioNTech will have coronavirus vaccine data before Moderna
• Johnson & Johnson (NYSE:JNJ) starts late-stage coronavirus vaccine clinical trial
• Coronavirus vaccine trial adverse event was probably unrelated to treatment
• Pfizer says it could know if its COVID-19 vaccine candidate works in October
• The surefire vaccine winner following AstraZeneca’s COVID-19 trial pause

Eric Volkman 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.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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In late morning trade on Tuesday the S&P/ASX 200 Index (ASX: XJO) has continued its remarkable run and is charging notably higher again. At the time of writing, the benchmark index is up 0.8% to 6,182.4 points.

Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:

The Austal Limited (ASX: ASB) share price is down 3% to $3.40. This appears to have been driven by profit taking after a solid gain over the last week. Prior to today, the shipbuilder’s shares were up a sizeable 12.5% in the space of a week. This has been driven by a couple of positive developments this month. One of which came on Monday, when Austal revealed that it has successfully completed acceptance trials in the Gulf of Mexico for littoral combat ship, USS Mobile.

The Challenger Ltd (ASX: CGF) share price is down over 1% to $4.17. This morning the annuities company announced its intention to issue a new subordinated, unsecured, perpetual convertible security. This will be the Challenger Capital Notes 3, which it hopes will raise approximately $250 million. It is launching the notes to ensure it remains well capitalised and positioned for future growth.

The Orocobre Limited (ASX: ORE) share price has fallen 2% to $2.83 despite there being no news out of the lithium miner. However, it is worth noting that lithium miners have been incredibly volatile of late. Concerns over Tesla’s plan to mine its own battery materials has weighed on investor sentiment in the industry in October.

The Whitehaven Coal Ltd (ASX: WHC) share price has sunk 5.5% lower to 93 cents. Investors have been selling Whitehaven and other coal miners on Tuesday after the Chinese government reportedly told state-owned energy companies not to buy Australian coal. The AFR quoted one Chinese analyst, who said that he believed the move is “a political sanction against Australia.”

More reading

• New Chinese government threat leaves these ASX mining stocks on tenterhooks
• Why is the Austal (ASX:ASB) share price on the move?
• 3 reasons why ASX lithium shares can surge in 2021
• Top brokers name 3 ASX shares to buy today
• ASX renewable vs coal shares: Which will win?

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 Austal Limited. The Motley Fool Australia owns shares of and has recommended Challenger 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 Why Austal, Challenger, Orocobre, & Whitehaven Coal are dropping lower appeared first on Motley Fool Australia.

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An ASX-listed company has been busted for failing to disclose to the market information regarding two deals worth more than $345 million.

Antares Energy (now known as Blue Star Helium Ltd (ASX: BNL)) in September 2015 made announcements on the sale of two assets for US$105 million and US$149 million.

The Federal Court on Friday found that the company breached the Corporations Act by omitting crucial details that the market should have known.

This information included:

• Wade Energy was the purchaser
• Antares hadn’t independently verified the capacity of Wade Energy to complete the purchases
• Wade Energy had told Antares that it hadn’t yet received all funding approval to complete the purchase of one of the assets

Former Antares director James Cruickshank was also found to have failed in “his duty as a director to act with the degree of care and diligence required” for allowing the company to breach.

A separate accusation that Cruickshank was “involved in” the breach was not upheld by the court.

Penalties for Blue Star and Cruickshank will be determined at a later hearing.

“The judgment in this case reinforces the importance of the continuous disclosure regime to maintaining the integrity of the Australian securities market,” Australian Securities and Investments Commission deputy chair Daniel Crennan QC.

“The omissions from the company’s announcements to the market in this case were clearly material and therefore an appropriate subject for this civil penalty action by ASIC.”

Justice Katrina Frances Banks-Smith said the point of the disclosure obligations was to provide the market with confidence.

“The object is to enhance the integrity and efficiency of capital markets by requiring timely disclosure of price or market sensitive information.”

More reading

• Forget gold! How I’d find the best shares to build a fortune after the stock market crash
• Why the Spirit (ASX:ST1) share price is shooting the lights out today
• Service Stream (ASX:SSM) share price higher on NBN update
• 3 takeaways from the Commonwealth Bank (ASX:CBA) annual general meeting
• Why the HUB24 (ASX:HUB) share price surged to a record high today

Motley Fool contributor Tony Yoo 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.

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The stock market crash has caused some investors to sell shares to buy gold. While this plan may have been successful so far, over the long run the stock market’s recovery potential may mean that a portfolio of high-quality companies outperforms the precious metal.

With many stocks continuing to trade at bargain prices, now could be the right time to focus on identifying the best shares to buy for the long run. They may offer the highest return potential, as well as the lowest risks.

Buying the best shares after the stock market crash

Buying cheap shares after the stock market crash is a logical strategy. It means that you purchase assets at low prices, and could benefit from their recovery over the long run.

However, not all cheap stocks will recover from their current low levels. Some businesses may, for example, fail to overcome short-term economic challenges. Other companies could lack the right strategy through which to adapt to changeable market conditions. Therefore, it is important to buy high-quality companies that trade at attractive prices.

This may not necessarily mean that they are the cheapest shares around after the recent stock market crash. However, it can be wise to pay a premium for a higher-quality business that is more likely to deliver on your long-term profit goals.

Identifying the best shares today

The best shares to buy today could be those that remain unpopular following the stock market crash due to external reasons. In other words, they face a difficult set of operating conditions brought about by the global economic downturn. They are likely to have sound finances, solid growth strategies and competitive advantages that can turn their present weak financial performance into growing profitability over the long run.

Unearthing such companies may be best approached by searching within unpopular sectors, or industries that are currently facing a tough near-term outlook. For example, financial services firms may be negatively impacted more than other industries by a weak economic outlook. Similarly, energy companies, retailers and consumer goods businesses may need to make changes to their business models to benefit from future economic growth. Companies within those sectors may trade at low prices, and be in a position to record improving performances in the long run.

Buying undervalued stocks today

While gold may be an appealing defensive asset to hold after the stock market crash, its long-term growth prospects may be less attractive than a portfolio of the best shares. Its high price and a likely improvement in investor sentiment towards the stock market may limit its prospects.

Therefore, now may be the right time to build a portfolio of stocks that can deliver impressive returns and improve your financial position in the coming years.

More reading

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• 3 takeaways from the Commonwealth Bank (ASX:CBA) annual general meeting
• Why the HUB24 (ASX:HUB) share price surged to a record high today

Motley Fool contributor Peter Stephens 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 Forget gold! How I’d find the best shares to build a fortune after the stock market crash appeared first on Motley Fool Australia.

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