Author: therawinformant

If you’re looking to add a bit of exposure to the small side of the market, then you might want to take a look at the small cap ASX shares listed below.

Here’s why I think they could be destined for big things in the future:

Bigtincan Holdings Ltd (ASX: BTH)

Bigtincan is a fast-growing provider of enterprise mobility software. This software allows sales and service organisations to increase their sales win rates, reduce expenditures, and improve customer satisfaction through improved mobile worker productivity. It has been a strong performer over the last couple of years and continued this positive form in FY 2020 despite the pandemic.

For the 12 months ended 30 June 2020, Bigtincan reported revenue growth of 56% to $31 million and annualised recurring revenue (ARR) growth of 53% to $35.8 million. Pleasingly, more of the same is expected in FY 2021. Management provided ARR growth guidance of 36.9% to 48% year on year. This is still only a fraction of its overall market opportunity.

ELMO Software Ltd (ASX: ELO)

Another small cap ASX share to look at is ELMO Software. It is a fast-growing cloud-based human resources and payroll software company. It provides businesses with a unified software platform, which allows them to streamline a range of key processes. This includes everything from onboarding, training, payroll, and performance management.

I like ELMO due to its sizeable opportunity in the ANZ market and its option to expand internationally in the future. The latter is thanks to its jurisdiction agnostic platform. Another positive is that ELMO undertook a capital raising this year to fuel its future growth. Management intends to use the majority of its sizeable cash balance (~$140 million) to acquire complementary businesses. But even without these acquisitions, the company is forecasting further strong organic growth in FY 2021. It has provided guidance for ARR of $65 million to $70 million, which represents year on year growth of 18% to 27%.

More reading

• Could these exciting small cap tech shares be the next Afterpay (ASX:APT) and Altium (ASX:ALU)?
• 3 very exciting small cap ASX shares to watch
• 3 small cap ASX growth shares I’d buy with $1,000
• Top ASX growth shares to buy in September 2020
• New to investing? More ASX growth shares to buy now

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 BIGTINCAN FPO and Elmo Software. The Motley Fool Australia has recommended BIGTINCAN FPO and Elmo Software. 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.

I’m not going to bury the lede. Another stock market crash is going to happen.

I know this not because stocks are overvalued (although they probably are) or because COVID cases have continued spiking, or because the federal government seems unlikely to compromise on more financial relief, or for one of almost a dozen other reasons. 

I know it because stock market crashes always come. In fact, just in my lifetime alone, I’ve lived through:

• The crash of 1987, when the S&P 500 lost more than 30% of its value in just under 40 days
• The bursting of the DotCom bubble, when the S&P fell more than 44.7% over two years in the early 2000s
• The 2008 financial crisis, when the market shed over 50% of its value in under a year and a half
• The coronavirus crash

And I’m only in my late 30s. 

But despite the fact I’m 100% confident the market is going to crash again, I’m not worried about my investments or planning to reduce the amount I’m putting into the market. And, if you’ve done the right things, you shouldn’t be either. Here’s why. 

You can’t predict a market crash, but you can be ready for one

Although no one ever knows when a market crash is going to happen, everyone should know one could occur any day.

In fact, crashes often come as a result of burst bubbles, so everything may look like it’s going really well with the stock market (or real estate) — before all of a sudden… it isn’t. 

Since you can’t predict when a crash will happen, you should be prepared for one at all times. That doesn’t mean keeping your money out of the market, as you need to invest in stocks to build wealth. Instead, it means:

• Not investing money you’ll need in the near term. Some recoveries are very quick (including the most recent one). Others can take years. If you have money invested that you’ll need within the next two to five years, you may not have time to wait for the market to rebound and you could be forced to sell at a loss. You don’t want to do that. 
• Not trying to time the market. Since knowing what’s going to happen is impossible, don’t try to buy at rock bottom or sell at the peak. Instead, invest for the long term and consider using dollar-cost averaging to acquire your positions. That means investing the same amount in similar assets at regular intervals, so chances are good you’ll buy some shares at a high price and others at a low one, and things will even out. 
• Paying attention to your risk exposure. Over-investing in equities is a risky endeavor, as it ups the chances you’ll suffer outsized losses during a market crash. At the same time, not investing enough in stocks is also risky because you’ll miss out on the chance to earn reasonable returns. Take the time to think about what balance is right for you. 
• Not chasing short-term gains. If you want to be prepared for a market crash at all times, your portfolio can’t include any investments you’d be unhappy holding for years — just in case you happen to own them when a crash happens and you need to keep them until the recovery to avoid locking in losses. 
• Assessing what kind of investor you are. It’s hard to consistently beat the stock market — especially during times of turbulence. While it was easy for most people to make money during the 2010s when market volatility was low, these are much more uncertain times. If you’re a nervous investor likely to react in fear or you don’t have a sound investment thesis, investing in index funds may be a better bet than picking individual stocks. At no time would an investment held consistently in an S&P index fund have been a losing investment if you owned it for at least 20 years — so you’re taking much less risk in case of a crash if you opt for one, since it’s all but certain your investment will recover any losses over time.  

If you take these five steps, you can join me in knowing that you’re 100% ready for a market crash whether it happens today, tomorrow, or in five years’ time. 

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

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why you should always invest in ASX shares when interest rates are low
• ASX 200 falls slightly, miners surge higher
• Rhinomed (ASX:RNO) share price tries following Starpharma’s path to COVID glory
• The Mesoblast (ASX:MSB) share price surges on award win

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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Scentre Group (ASX: SCG) shares have been smashed in 2020. The Scentre share price is down 42.6% in 2020 despite surging 5.2% higher in yesterday’s trade.

However, I think the Aussie real estate investment trust (REIT) is one of the best-placed shares for an easing of coronavirus restrictions. Here are a few reasons to consider watching the Scentre share price in 2020.

The Scentre share price is cheap

Shares in the Westfield owner and operator look cheap right now. Of course, ASX shares don’t fall for no reason and investors are expecting lower future earnings.

COVID-19 restrictions have hit shopping centres hard in 2020 with tenants and landlords battling to maintain profitability. That’s seen the Scentre share price slump lower but I think that creates a buying opportunity.

It’s hard to price in coronavirus impacts

One of the hardest aspects of stock picking is working out what is already priced into a company’s valuation. For instance, the ASX banks have been hammered and investors are worried about further economic deterioration. However, that deterioration is largely expected by the market and ASX bank valuations have been falling accordingly.

COVID-19 is something of a unique beast. No one knows when or how current restrictions will be eased or even re-introduced. That makes pricing in expected loss of earnings for retail REITs very hard right now.

Market dislocation is a good thing for value-minded investors. I think the Scentre share price could rocket higher if we see restrictions ease quicker than expected.

Scentre is backed by prime real estate assets

On top of the above, Scentre is fundamentally backed by a huge portfolio of real estate. And that’s not just any real estate, some of these are huge blocks of prime real estate in major cities.

That means even if earnings remain depressed in the short to medium term, I think a strong asset backing is worth considering at a certain price.

Foolish takeaway

The Scentre share price has been under pressure in 2020 but I still think there’s a lot to like at a 42.6% discount.

More reading

• 5 ASX shares to avoid in October
• 2 ASX shares that could rocket from viral cash hoarding
• ASX 200 rises 1%, CSL (ASX:CSL) leads the way
• ASX 200 up 0.95%: Big four banks rise, Scentre collections improve, Nufarm jumps
• Why Magellan, Nufarm, Opticomm, & Scentre shares are storming higher

Motley Fool contributor Ken Hall 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 Afterpay Ltd (ASX: APT) share price has risen by 742.81% since its low point on 23 March. The company has had an astonishing run and has become the figurehead of an entirely new way of providing consumer debt. Moreover, at its closing price on Tuesday, Afterpay shares had a market capitalisation of $21.32 billion.

Can Afterpay shares continue to grow?

Whether Afterpay shares deserve their current valuation is not the point. The question for growth investors is “can I at least double my initial investment?” Personally, I doubt it. To further illustrate the size of this company, it is currently worth more than Woodside Petroleum Limited (ASX: WPL). In addition, it is no longer alone in a wide blue ocean. 

Australia has already created a slew of buy now, pay later (BNPL) competitors with many different approaches. Moreover, both Commonwealth Bank of Australia (ASX: CBA) and National Australia Bank Ltd. (ASX: NAB) have entered the market directly with their own interest-free credit cards. CommBank also has a native BNPL product called Klarna. Lastly, the payments giant Paypal Holdings Inc (NASDAQ: PYPL) has also entered the market with an existing network of 204 million users. 

Afterpay shares are in a sector which has very few barriers to entry, it is surrounded by giant sharks, and it already has a market cap larger than many of the blue chip shares in the S&P/ASX 20 Index (ASX: XTL). 

If you want high levels of growth, there are a range of well positioned companies to choose from. All of them are first movers in their sectors, they have solid competitive advantages, and they appear well managed.

Whispir Ltd (ASX: WSP)

Like Afterpay shares, Whispir has a very large addressable market. Large enough for it to more than double its current market cap of $337.6 million, I believe. Whispir provides a communications platform between organisations and people across a whole range of content. It produces 1.5 billion transactions each year and counts many government departments, retail chains, utilities and councils among its client base. 

The company recently reported an increase in revenues of 25.5%, a gross profit margin of 62.5%, and 95.6% of revenues come from annual recurring revenues (ARR). The company is not yet profitable, however it has a subscriber model, very high gross margin, and is growing at a considerable rate. 

Zip Co Ltd (ASX: Z1P)

Most people understandably think Zip shares are just smaller copies of Afterpay shares. Zip entered the BNPL market in pursuit of Afterpay and is now continuing to pursue it in the United Kingdom and the United States. It is impacted by the same issues that affect all of the BNPL shares. So what makes it different?

Zip Co is building an alternative finance company, not just a BNPL company. It recently announced a deal between its business lending division, Zip Business, and the Australian arm of eBay Inc (NASDAQ: EBAY). The company has another arm purchased in 2019 called Spotcap. In the recent deal, this will provide cash flow finance to small and medium enterprises on eBay, as well as invoice financing and lines of credit.

DroneShield Ltd (ASX: DRO)

DroneShield makes non-ballistic detection and disruption technology for drones. The company is gaining momentum with sales to defence and civil clients globally. Recently it has announced contracts with South East Asian defence forces, the US Government and European airports.

Some of the company’s other recent successes during CY20 include an EU Police 4-year framework agreement for DroneGun Tactical units, a European Ministry of Defence purchase of DroneShield command and control systems, as well as several other orders for anti-drone technology. I think DroneShield is likely to continue to grow because, unlike Afterpay shares, it has solid intellectual property.

More reading

• Are biotech shares like Polynovo (ASX:PNV) a better buy than Afterpay?
• Is value investing dead?
• 5 things to watch on the ASX 200 on Wednesday
• BNPL shares like Afterpay (ASX:APT) and Zip (ASX:Z1P) are soaring today. Here’s why
• BrainChip (ASX:BRN) and Zip (ASX:Z1P) were among the most traded shares on the ASX last week

Daryl Mather owns shares of DroneShield Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends PayPal Holdings and Whispir Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends eBay and recommends the following options: long January 2021 $18 calls on eBay, short January 2021 $37 calls on eBay, and long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended PayPal Holdings and Whispir 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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Are you wanting to make a few additions to your portfolio in September? If you are, I would suggest you consider one or two of the five ASX shares listed below.

I think all five could be great long term options for investors. Here’s why I would buy them today:

a2 Milk Company Ltd (ASX: A2M)

While I have some short term concerns over a2 Milk Company’s performance, I continue to believe that it would be a great ASX share to own for the long term. This is largely down to the increasing demand for its infant formula in China and its modest market share in the lucrative market. However, due to some potential short term headwinds, I would suggest investors buy half of a desired holding now and the other half when trading conditions return to normal.

Altium Limited (ASX: ALU)

I think Altium shares are a strong buy for long-term focused investors. It is an award-winning printed circuit board (PCB) design software provider. Over the last few years it has carved out a leading position in this growing market. I think this is a huge positive given the proliferation of electronic devices globally. This is likely to lead to increasing demand for its software over the next decade and underpin strong earnings growth.

Aristocrat Leisure Limited (ASX: ALL)

This gaming technology company’s shares are down 26% since the start of the year due to the pandemic. However, with casinos now reopening and its Digital business performing very strongly, I believe now would be an opportune time to consider picking up shares. Once both sides of the business are pulling together, I expect Aristocrat Leisure’s growth to accelerate.

Megaport Ltd (ASX: MP1)

Another option to consider is Megaport. It is an elasticity connectivity and network services company. Its service allows businesses to increase and decrease their available bandwidth in response to their own requirements. This is an increasingly popular alternative to being tied to a fixed service level on long-term and expensive contracts. Megaport has been delivering very strong recurring revenue growth in recent years. And given the cloud computing boom, I expect more of the same in the coming years.

REA Group Limited (ASX: REA)

A final share to consider buying is REA Group. It is the owner and operator of the realestate.com.au website and several international property listings websites. Although times are hard right now for the industry, I believe it would be a great buy and hold investment option. This is due to the quality and strength of its business model and its solid long term growth potential.

More reading

• Buy Afterpay (ASX:APT) and these ASX shares before the tech rebound
• ASX shares to buy if there’s another crash
• 4 of the best ASX 200 shares to buy in September
• 3 warning signs for the a2 Milk (ASX:A2M) share price
• Is the Altium (ASX:ALU) share price a strong 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 and recommends Altium and MEGAPORT FPO. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended MEGAPORT FPO and REA Group 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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The Australian share market has returned to form this week and is pushing higher.

While a number of shares have climbed higher with the market, some are performing better than others.

Three ASX shares that have just hit new highs are listed below. Here’s why they are flying high right now:

OptiComm Ltd (ASX: OPC)

The OptiComm share price hit a record high of $6.05 on Tuesday. Investors were fighting to buy the telco’s shares after Uniti Group Ltd (ASX: UWL) increased its takeover offer. This followed a competing offer by First State Super last week. OptiComm is happy with Uniti’s $5.85 per share offer and is recommending it to shareholders. Uniti has also secured the support of large shareholders, making it very difficult for First State Super to derail proceedings a second time.

OZ Minerals Limited (ASX: OZL)

The OZ Minerals share price continued its positive run and hit a multi-year high of $15.07 yesterday. The catalyst for this has been a rise in the copper price over the last few months. The base metal is currently trading at a two-year high of US$3.08 per pound. It has also been tipped to go even higher from here in the coming months.

Ramelius Resources Limited (ASX: RMS)

The Ramelius share price stormed to a record high of $2.50 on Tuesday. Investors have been buying this gold miner’s shares in 2020 thanks to a strong rise in the gold price. This has been driven by a combination of falling interest rates, the pandemic, and major economic stimulus. Its rise means that Ramelius is generating bumper profits from its operations. In fact, thanks also to its low costs, the gold miner delivered a 420% increase in net profit after tax to $113.4 million in FY 2020. This strong form will see the company’s shares added to the S&P/ASX 200 Index (ASX: XJO) later this month.

More reading

• Why the Ramelius (ASX:RMS) share price is at a new all-time high
• KGL Resources (ASX:KGL) share price surges on big upgrade
• Why Afterpay, Clinuvel, Mesoblast, & Uniti shares are storming higher
• Uniti (ASX:UWL) share price surges higher on revised OptiComm (ASX:OPC) takeover offer
• IGO share price surges on potential sale of Tropicana

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.

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Growth shares have pummelled value stocks in the past few years.

You just need to look at the successful technology stocks in Australia and overseas as evidence of this:

• Even after the pull-back this month, Afterpay Ltd (ASX: APT) has risen 740% since March
• Xero Limited (ASX: XRO) has surged more than 640% in the past 5 years
• Appen Ltd (ASX: APX)’s price has multiplied 32 times in the past 5 years
• Tesla Inc (NASDAQ: TSLA) has gone ten-fold in just over a year

In the US, the Russell 3000 Growth index has outperformed the Russell 3000 Value index by more than 7 percentage points per annum over the past 10 years.

This has had analysts wondering whether value investing is still relevant.

Bank of America sent out a provocative note last month declaring that value investing is “dead” after a decade of woe.

As opposed to growth shares, value investing involves picking out more established companies that are undervalued by the market.

It’s what Warren Buffett espouses, so the strategy has served many investors very well over the decades.

But their loyalty is being sorely tested.

Betashares senior investment specialist Cameron Gleeson told The Motley Fool that the low-interest environment in recent years had propelled growth stocks.

“Falling rates increase the present value of future cash flows, and this typically will have an especially positive impact for companies with strongly growing earnings,” he said.

“With the benefit of hindsight it’s perhaps not surprising that we have seen growth outperform value for over 10 years now.”

It’s not dead, it’s just resting its eyes

But Gleeson believes the value investing concept is not “dead”. 

“If the global economy shifts to a reflationary environment it is broadly expected that value will outperform and growth will lag.”

While everyone’s pretty used to low interest rates, it’s not that absurd to think inflation may return suddenly in the coming years.

“Expectations of increasing inflation and re-opening of economies may be triggered by the announcement of an effective COVID-19 vaccine, for example,” said Gleeson.

He added that value stocks are actually relatively cheap at the moment after many years of underperformance.

“For this reason, holding some exposure to value in your portfolio blended together with growth can improve the stability of your overall portfolio.”

Despite signing off on the funeral, Bank of America suggested four ways value investors can improve results:

• Target small caps
• Focus on quality, not “value traps” or fading industries
• Monitor macro-economic conditions (eg COVID-19 lockdowns, vaccines)
• Take “intangibles” into account when valuing a business (eg intellectual property)

“Equities markets such as the UK’s FTSE 100 Index (INDEXFTSE: UKX) offer exposure to large global value and cyclical stocks, like HSBC, Unilever and Royal Dutch Shell at compelling price levels and with an attractive yield,” said Gleeson.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• 2 ASX shares looking much cheaper today
• BNPL shares like Afterpay (ASX:APT) and Zip (ASX:Z1P) are soaring today. Here’s why
• BrainChip (ASX:BRN) and Zip (ASX:Z1P) were among the most traded shares on the ASX last week
• Tesla (NASDAQ:TSLA) and Nikola (NASDAQ:NKLA) among most traded US shares last week

Tony Yoo owns shares of AFTERPAY T FPO, Appen Ltd, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of AFTERPAY T FPO and Appen 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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On Tuesday the S&P/ASX 200 Index (ASX: XJO) had a subdued day and edged ever so slightly lower. The benchmark index fell 4.7 points to 5,894.8 points.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 expected to storm higher.

It looks set to be a positive day of trade for the ASX 200 on Wednesday. According to the latest SPI futures, the benchmark index is poised to open the day 48 points or 0.8% higher this morning. This follows a reasonably positive night of trade on Wall Street. The Dow Jones was flat, the S&P 500 climbed 0.5%, and the Nasdaq charged 1.2% higher.

Oil prices rebound.

Energy shares such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could push higher today after a strong night for oil prices. According to Bloomberg, the WTI crude oil price is up 3.1% to US$38.41 a barrel and the Brent crude oil price is up 2.6% to US$40.64 a barrel. Traders were buying oil after storms on the U.S. Gulf Coast forced output cuts.

Tech shares expected to climb again.

The tech rebound should continue on Wednesday after another very positive night of trade on the tech-focused Nasdaq index. The famous index stormed higher for a second day in a row after investors returned to the sector following a tough couple of weeks. This is likely to be good news for local tech shares such as Afterpay Ltd (ASX: APT) and Nearmap Ltd (ASX: NEA).

Gold price softens.

Gold miners including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch today after the gold price softened. According to CNBC, the spot gold price edged lower to US$1,962.40 an ounce. The price of the precious metal eased after the U.S. dollar recovered.

Dividends.

The Costa Group Holdings Ltd (ASX: CGC) share price could edge lower today when it goes ex-dividend for its 4 cents per share dividend. This will be paid to eligible shareholders on 8 October. Elsewhere, shareholders of APA Group (ASX: APA) can look forward to being paid its 27 cents per share dividend later today.

More reading

• Why you should always invest in ASX shares when interest rates are low
• ASX 200 falls slightly, miners surge higher
• Rhinomed (ASX:RNO) share price tries following Starpharma’s path to COVID glory
• BNPL shares like Afterpay (ASX:APT) and Zip (ASX:Z1P) are soaring today. Here’s why
• The Mesoblast (ASX:MSB) share price surges on award 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 Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO and APA Group. The Motley Fool Australia has recommended Nearmap 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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I think Westpac Banking Corp (ASX: WBC) and the rest of the big four banks have fallen to attractive levels for income investors.

However, not everyone is keen to invest in the banking sector because of the pandemic.

For those investors, I have picked out two ASX dividend shares which I think could be top alternatives. Here’s why I would buy them:

Aventus Group (ASX: AVN)

The first ASX dividend share I would suggest investors buy instead of Westpac is Aventus. It has been one of the property industry’s positive performers during the pandemic. This is thanks to its focus on large format retail parks. It owns a total of 20 centres across Australia, which are home to many of the largest retailers the country has to offer. Pleasingly, these properties have a high weighting towards every day needs.

This has meant that the company has been relatively unaffected by the crisis. So much so, it recently released its full year results and revealed a solid 4.2% increase in funds from operations (FFO) to $100 million. It also reported rent collections of 87% through the COVID-19 period and a high occupancy rate of 98%. I expect this positive form to continue over the coming years and believe it is well-positioned to deliver another solid result in FY 2021. Based on the current Aventus share price, I estimate that it offers a 5% FY 2021 dividend yield.

Rural Funds Group (ASX: RFF)

Another ASX dividend share I would buy is Rural Funds. It is an agriculture-focused property group which owns 61 properties across five agricultural sectors – almonds, cattle, cropping, vineyards, and macadamias properties. At the end of FY 2020, the company’s weighted average lease expiry (WALE) stood at a lengthy 10.9 years. These leases have a high weighting to blue chip customers. Approximately 78% of its revenue is coming from corporate or listed tenants such as wine company Treasury Wine Estates Ltd (ASX: TWE).

This has allowed Rural Funds to continue its growth during the pandemic. It reported an 8% increase in property revenue to $72 million in FY 2020. Looking ahead, management reaffirmed its plan to grow its distribution by 4% in FY 2021 and intends to pay shareholders 11.28 cents per share. Based on the current Rural Funds share price, this works out to be a 4.8% yield.

More reading

• With dividends slashed, is there any reason to buy ASX bank shares?
• CBA (ASX:CBA) employees angry at ‘disrespect’
• ASX 200 flat: Afterpay (ASX:APT) rebounds, Cleanaway (ASX:CWY) sinks, big four banks lower
• Borrowers on loan holidays are ignoring ASX bank communications
• Is the Westpac share price still a buy for dividends?

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and Treasury Wine Estates Limited. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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 CV Check Ltd (ASX: CV1) share price has fallen 4.7% to 10 cents after today’s closing bell. CV Check provided an operating update for the past few months prior to the market’s open this morning. During mid-afternoon trade, the CV Check share price hit as high as 12 cents before falling back to its day low of 10 cents.

CV Check overview

CV Check, founded in 2004, is an online tech company that offers background screening and verification services.

The company conducts over 300,000 verification checks every year for private and government organisations, employers and individuals.

These services include national police checks, employment reference checks, credit and financial checks, and predictive psychometric assessments, among other verifications.

Trading update

CV Check advised that its September order flow to date has been much stronger than its July and August averages. In addition, new customer wins in the recent months have offset the challenging conditions the company has faced during COVID-19.

CV Check has achieved over 50% revenue growth from information technology customers compared to the corresponding prior period. Notable client names include Ceridian HCM Holding Inc (NYSE: CDAY), Family Zone Cyber Safety Ltd (ASX: FZO), RXP Services Ltd (ASX: RXP), Reckon Limited (ASX: RKN), and Sage.

Sales post COVID-19 shutdown from 23 March to 13 September showed an upward trend of revenue increasing per week. From July, $250,00 of sales was achieved each week and has been increasing.

Check CV CEO, Rod Sherwood, commented that the effect of the widespread work from home adoption has accelerated sales of its digital, online, cloud-based services.

He added that new client wins across the information technology sector, particularly in its September revenues have continued the business recovery.

Mr Sherwood noted further that revenue from clients placing orders through integrations with other HR technology platforms also continues to rise strongly when compared to the same period of FY20.

CV Check share price summary

The CV Check share price has been gaining momentum since its March low of 4.6 cents, which has been underpinned by its sales recovery. However, the CV Check share price is down 33% from a trailing 12 months.

More reading

• CV Check share price storms 35% higher

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has recommended CV Check 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 CV Check (ASX:CV1) share price falls after trading update appeared first on Motley Fool Australia.

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