Author: therawinformant

Although the S&P/ASX 200 Index (ASX: XJO) was back on form on Monday and stormed higher, not all shares were able to climb higher with it.

In fact, some ASX shares not only dropped lower, they dropped to 52-week lows or worse.

Here’s why these ASX shares are down in the dumps right now:

AGL Energy Limited (ASX: AGL)

The AGL Energy share price dropped to a multi-year low of $14.68 on Monday. The energy company’s shares have been sold off this year after a disappointing performance in FY 2020 and weak guidance for the 12 months ahead. AGL Energy reported an underlying profit after tax of $816 million for FY 2020. This was a 22% decline on the prior corresponding period. Looking ahead, another sizeable decline in profits is expected in FY 2021. Management has provided underlying profit after tax guidance of $560 million and $660 million this year.

Insurance Australia Group Ltd (ASX: IAG)

The IAG share price tumbled to a multi-year low of $4.62 yesterday. The insurance giant’s shares have come under significant selling pressure this year after a terrible performance in FY 2020. For the 12 months ended 30 June 2020, IAG reported a 49.6% decline in net profit from continuing operations to $439 million. This was driven by the material narrowing in its insurance margins and forced the suspension of its dividend. Judging by its share price decline, I suspect the market believes the worst is not over for IAG.

Laybuy Holdings Ltd (ASX: LBY)

The Laybuy share price crashed to a new low of $1.48 on Monday. This means the newly listed buy now pay later provider’s shares are now trading within touching distance of their IPO price of $1.41. This is significantly lower than the high of $2.30 it reached on its first day of trade. A number of buy now pay later shares have come under pressure this month after PayPal announced its plan to enter the lucrative market with its Pay in 4 product. There are concerns that this could stifle the growth of some of the smaller players.

More reading

• Why the Laybuy (ASX:LBY) share price is tanking today
• Here’s why some ASX dividend shares just go nowhere
• Laybuy share price soars 47% above IPO on first day of ASX trading
• Should you buy Telstra and these beaten down ASX shares?
• ASX 200 drops 0.2%, Scentre soars

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why AGL Energy (ASX:AGL) and these ASX shares just hit new lows appeared first on Motley Fool Australia.

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The Harvey Norman Holdings Ltd (ASX: HVN) share price has been outperforming this year. Shares in the Aussie retailer are up 4.2% while the S&P/ASX 200 Index (ASX: XJO) is down 11.8% for the year.

Here’s why I think the Harvey Norman share price has further to run in 2021. 

Why the Harvey Norman share price is climbing

Strong earnings has been the key to a surging Harvey Norman share price.

The Aussie retailer reported a record full-year earnings result with $8.46 billion in FY20 sales revenue. Underlying net profit after tax climbed 30.9% to $462.2 million with operating cash flow of $1.1 billion.

That saw the company pay a fully-franked 18 cents per share dividend to be paid on 2 November.

The Harvey Norman share price is yielding a tidy 4.3% right now. That’s a pretty good return given the challenges facing many Aussie companies right now.

Why the ASX retail share has further to run

A persistently high Aussie dollar could be good news for the Harvey Norman share price.

The Aussie retailer is a net importer of products. That means a strong domestic currency makes those purchases relatively more cheap and profit margins can be boosted.

I still think there is also further room for sales volumes to grow. Aussies stocked up on home office electronics when the coronavirus pandemic began but I think we could see further investment.

However, a shift in working arrangements could see more housing activity. With more Aussies moving residences, the demand for a suite of electronics could surge.

It’s interesting to note that Harvey Norman has started the year strongly in FY21. That includes an uptick in sales for July and August with overseas sales recovering quickly.

Is it all good news?

Harvey Norman still faces some intense competition. That’s especially the case with Kogan.com Ltd (ASX: KGN) continuing to make big strides.

It’s tough to predict what FY21 will hold for the retail sector. Harvey Norman does have a strong online presence which may help mitigate some of the impact from COVID-19 restrictions.

I think the 10.8 price to earnings (P/E) ratio and 4.3% dividend yield still make the Harvey Norman share price worth a look in 2020.

More reading

• Top ASX dividend shares to buy in September 2020
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 rises by 0.7%, Cleanaway (ASX:CWY) shares dumped
• Buy and hold these stellar ASX growth shares for 10 years
• The best ASX stocks to buy for the COVID-19 recovery play

Ken Hall 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. The Motley Fool Australia has recommended Kogan.com 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 Tassal Group Limited (ASX: TGR) share price is down 15.8% in 2020. That’s not good news for shareholders but it could mean a buying opportunity for keen-eyed investors.

Why the Tassal share price is under pressure

The coronavirus pandemic has had a couple of big impacts for Aussie food producers.

On the one hand, supermarket sales have been surging higher in 2020. That means demand for products has surged and seen earnings for downstream producers climb higher.

However, weak export markets and a shutdown of the hospitality industry has hurt potential growth. Tassal still managed to report a solid full-year earnings result with strong retail trade offsetting weaker restaurant revenues.

Tassal reported a 0.3% increase in full-year revenue to $562.6 million with net profit climbing 13.3% higher to $64.2 million.

However, operating cash flow slumped 44.5% to $49.9 million with Tassal expecting prawns to be a big money-maker in FY21.

I also think strong operating earnings before interest, tax, depreciation and amortisation (EBITDA) bodes well for 2021.

The Tassal share price has fallen lower but I think the group has shown it can execute its strategy with a heavy focus on risk management.

Is the Aussie food company in the buy zone?

Tassal shares are trading at a cheap price to earnings (P/E) ratio of 10.4. It’s difficult to compare Tassal given how unique its business is. However, other good primary producing companies are relatively more expensive.

That includes the Bega Cheese Ltd (ASX: BGA) share price. Bega shares are currently trading at a P/E ratio of 54.0 after surging higher in 2020.

The Tassal share price has slumped lower in 2020 but it is also paying a tidy dividend. Tassal shares are yielding 5.1% right now compared to 1.9% for Bega.

Foolish takeaway

The Tassal share price has slumped lower in 2020 but could be back in the buy zone. With a handy dividend yield, strong FY20 earnings and a cheap P/E ratio, Tassal could be a handy portfolio addition.

More reading

• 3 simple ways to save more cash to buy ASX shares today!
• Why ASX dividend shares are still king in 2020
• Should you buy Bega Cheese (ASX:BGA) shares at near an all-time high?
• 3 ASX 200 dividend shares with 5% yield 
• 5 things to watch on the ASX 200 on Monday

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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Along with our Top ASX Stock Picks for September 2020 and our Top ASX growth shares to buy in September 2020, we also asked our Foolish writers to pick their favourite ASX dividend shares to buy this month.

Here is what the team have come up with…

Aaron Teboneras: Dicker Data Ltd (ASX: DDR)

Dicker Data has been a great option for investors seeking frequent and reliable dividends. In its interim results released last month, Dicker Data achieved a record revenue of more than $1 billion and rewarded shareholders with a fully franked dividend of 7.5 cents. Total dividends for the past 12 months have tallied 38 cents, representing a dividend yield of 5.1%. paid in quarterly instalments.

Dicker Data has increased its focus on small-to-medium business enterprises and is currently building a new distribution centre to meet its increasing demands. I think the company is well-positioned for the future and will continue to pay growing dividends.

Motley Fool contributor Aaron Teboneras owns shares in Dicker Data Ltd.

Daniel Ewing: Telstra Corporation Ltd (ASX: TLS)

The Telstra share price has been sinking lower recently and is showing no signs of slowing down. The company has been on a slide since its disappointing FY20 results.

However I’m confident the long-term outlook for Telstra is positive. I believe the telco giant’s T22 plan is bound to start reaping rewards as it seeks to strip out costs and simplify the Telstra business. As such, I think the trailing dividend yield of 5.61% on offer is a bargain which investors should take advantage of.

Motley Fool contributor Daniel Ewing owns shares in Telstra Corporation Ltd.

Sebastian Bowen: JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi is not a company that normally comes to mind for dividend investors. Yet it has a strong record of growing its shareholder payouts and offers a solid starting yield today. Its latest final dividend came in at 90 cents per share, which was paid out on Friday and represented a 76% increase on FY19’s final dividend of 51 cents per share. Not a bad performance for the year of the pandemic. That gives JB shares a trailing yield of 4% on recent pricing, which also comes fully franked. I don’t think any ASX share in the retail space can match this recent dividend record, and this makes JB a perfect income share for September in my eyes.

Motley Fool contributor Sebastian Bowen does not own shares in JB Hi-Fi Limited. 

Lloyd Prout: Macquarie Group Ltd (ASX: MQG)

Macquarie is the only bank that I would buy on the ASX. Why? Because the term ‘millionaire maker’ doesn’t just apply to the bank’s rich clients, but also to its investors. Over the past decade, Macquarie has provided total annualised returns of over 16% per annum. Despite this, investors have a nice entry point with shares trading around 20% off their February highs at the time of writing.

Macquarie has more international exposure than the other big banks, as well as an investment banking arm which provides greater optionality than its competitors. It currently pays a partially franked 3.4% dividend yield.

Motley Fool contributor Lloyd Prout owns shares in Macquarie Group Ltd and expresses his own opinion.

Tristan Harrison: Vitalharvest Freehold Trust (ASX: VTH) 

Vitalharvest is an agricultural real estate investment trust (REIT) which owns berry and citrus farms. 

Looking at the distribution, it offers a yield of 6.2%. But I think this could grow for two reasons. It has a profit-share agreement with its tenants for the farms that are rented. Those farms have suffered negative impacts from the drought but those conditions could materially improve in FY21. 

It’s also under new management that will focus on more consistent properties like food processing and logistics. The Vitalharvest share price of 78 cents (at the time of writing) is a 14% discount to the FY20 net asset value of 91 cents.  

Motley Fool contributor Tristan Harrison does not own shares in Vitalharvest Freehold Trust.

Daryl Mather: Base Resources Limited (ASX: BSE)

Base Resources is a mineral sands miner with operations in Kenya and a project in Madagascar. Its net profit after taxes for FY20 was $39.6 million, a slight reduction on FY19 due to reduced ore grade. Nevertheless, it intends to increase production by 50.2% in FY21.

The company pays its maiden dividend this year of 3.5 cents. Based on Monday’s price of 30 cents, this payment will yield 11.7%. The Base Resources share price goes ex-dividend on Friday 18 September, paying out on 7 October.

I think this is a good, cheap prospect for short-term dividend yield and medium-term share price growth.

Motley Fool contributor Daryl Mather does not own shares in Base Resources Limited.

Glenn Leese: Bendigo and Adelaide Bank Ltd (ASX: BEN)

Bendigo and Adelaide Bank is sometimes overlooked when compared to the big four banks, however its operation is anything but insignificant. Founded in 1858 (yes, it’s over 160 years old) and operating over 500 branches across multiple brands, its network is large. Bendigo and Adelaide Bank offers all the services of a big bank, competing across multiple product suites.

Ideally, you want stability and growth in a dividend share. After all, dividends mean cash flow. Bendigo and Adelaide Bank has more than doubled its dividend yield in the last decade, from 4.7% in 2010 to 9.7% in 2020. Importantly, during the pandemic, it has kept dividends flowing and increasing.

In my view, this bank would make an excellent addition to any dividend portfolio.

Motley Fool Contributor Glenn Leese does not own shares in Bendigo and Adelaide Bank Ltd.

Bernd Struben: Stockland Corporation Ltd (ASX: SGP)

When you’re hunting for dividends, you should never ignore a company’s long-term share price outlook. Which brings me to Stockland, a property development company operating in retail, industrial and residential properties, including retirement villages.

Stockland has yet to recover from its 67% share price crash during the COVID-19 panic selling. But it did gain 53% from 4 January 2019 through to 21 February this year. This is a trend I believe it can repeat post COVID.

Stockland paid two dividends this year, 13.5 cents on 28 February and 10.6 cents on 31 August for an annual dividend yield of 6.5%, unfranked.

Motley Fool contributor Bernd Struben does not own shares in Stockland Corporation Ltd.

James Mickleboro: Bravura Solutions Ltd (ASX: BVS)

I think that Bravura Solutions would be a great option for income investors in September. I wouldn’t normally class the provider of software products and services to the wealth management and funds administration industries as a dividend share, but a sizeable pullback in its share price has made it one.

Based on the current Bravura share price, I estimate that it offers investors a forward 3.3% dividend yield. Pleasingly, given the quality of its software products and their massive global market opportunity, I believe it is well-placed to grow this dividend at a very strong rate over the next decade.

Motley Fool contributor James Mickleboro does not own shares in Bravura Solutions Ltd.

Chris Chitty: Harvey Norman Holdings Limited (ASX: HVN)

Harvey Norman has seen significant success lately as people have rushed to buy up furniture and home appliances during coronavirus restrictions. It now trades on a trailing fully franked dividend yield of 7.7% at the time of writing. Additionally, Harvey Norman goes ex dividend on 9 October 2020 so it’s not too late for investors to receive the final dividend.

While there has been a definite move toward online retail during the pandemic, Harvey Norman’s brick and mortar stores have performed relatively well and it is currently opening new stores in Australia and abroad. The company now has no net debt and is in great shape to extend its track record as a great dividend share.

Motley Fool contributor Chris Chitty does not own shares in Harvey Norman Holdings Limited. 

Brendon Lau: Telstra Corporation Ltd (ASX: TLS)

The unloved telco slumped to around a near two-year low after delivering a disappointing outlook with its uninspiring FY20 profit result. But with the Telstra share price this low, the dividend yield is looking interesting even if you assumed a dividend cut.

While analysts seem divided on whether Telstra’s 16 cent per share annual dividend is sustainable, I think it’s more likely than not that management will lower the dividend by 2 cents per share. Even then, the share is still yielding close to 7% if you include franking (based on the share price of $2.86 at the time of writing). That’s a good yield. Just ask any big bank investor.

Motley Fool contributor Brendon Lau owns shares in Telstra Corporation Ltd.

More reading

• 2 high quality ASX dividend shares with generous yields
• ASX 200 rises by 0.7%, Cleanaway (ASX:CWY) shares dumped
• Buy and hold these stellar ASX growth shares for 10 years
• The best ASX stocks to buy for the COVID-19 recovery play
• Leading brokers name 3 ASX shares to buy today

The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd, Dicker Data Limited, Macquarie Group Limited, and 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.

The post Top ASX dividend shares to buy in September 2020 appeared first on Motley Fool Australia.

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If I were investing $3,000 into ASX dividend shares then I’d pick the three I’m going to tell you about this article.

I believe that it’s a great time to buy ASX dividend shares if you’re feeling an income pinch at the moment because of how low Australia’s official interest rate is. Earning less than 1% from your bank account isn’t going to do much even if you have $1 million in the bank.

Businesses can make good profits and pay out attractive dividends (or distributions) whilst also steadily growing their capital value for investors.

Here are my ASX three dividend share ideas:

Pacific Current Group Ltd (ASX: PAC)

This company is a boutique asset manager that applies its strategic resources, including capital, institutional distribution capabilities and operational investment manager partners. It has 15 boutique asset managers globally.

FY20 was a strong year. Funds under management (FUM) was $93.3 billion at 30 June 2020, an increase of 52% excluding acquisitions and sales during the year.

Underlying earnings per share (EPS) rose by 18% to $0.44. It was this strength that supported a final dividend of $0.25 per share, bringing the full year dividend to $0.35 per share – up 40% compared to FY19. That was a strong increase from the ASX dividend share. 

That full year dividend, which is only a payout ratio of 80% of underlying earnings, represents a grossed-up dividend yield of 8.4%. The company appears to be expecting more growth and more wins in FY21.

WAM Microcap Limited (ASX: WMI)

WAM Microcap is a high-performing listed investment company (LIC). As the name may suggest, it invests in microcaps and small caps. Its hunting ground is businesses with market capitalisations under $300 million at the time of acquisition.

The benefit of LICs is that they can invest in small cap growth shares, make investment gains and then pay out a dividend from some of those investment profits. That’s exactly what the ASX dividend share has been doing. It started paying a dividend in FY18 and has grown its dividend every year since. It has also paid a special dividend each year due to its strong investment returns.

At 31 August 2020, WAM Microcap disclosed that its portfolio had returned an average return of 21.7% per annum since inception in June 2017 before expenses, fees and taxes. The investment team have been very good at finding opportunities.

Looking at the current WAM Microcap share price, it offers an ordinary grossed-up dividend yield of 5.9%. It’s trading quite closely to its net tangible assets (NTA) per share of $1.49 at the end of August 2020.

Brickworks Limited (ASX: BKW)

Brickworks is a leading diversified property business with several attractive segments. I believe it’s a great ASX dividend share. 

Its most famous division is its Australian building products division which produces a variety of different products including bricks, paving, masonry, roofing and precast. This segment is obviously going through a tough time at the moment due to COVID-19. However, I think there will be a recovery as the economy and living conditions return to normal.

The same could be said about the North American division. It’s the market leader of bricks in the north east of the US, but COVID-19 is having a material impact at the moment.

In the meantime, it’s Brickworks other assets that support the current market capitalisation and the ASX dividend share’s payments to shareholders. It owns 50% of an industrial property trust along with Goodman Group (ASX: GMG) which is shifting towards high-tech e-commerce warehouses.

Brickworks also owns around 40% of investment house Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) which itself is a quality ASX dividend share and provides Brickworks with steadily growing dividends and capital growth.

Brickworks hasn’t cut its dividend for over four decades and at the current Brickworks share price it offers a grossed-up dividend yield of 4.6%.

Foolish takeaway

Each of these ASX dividend shares offer something different. Brickworks seems very robust, WAM Microcap offers good diversification along with strong total returns whilst Pacific is a bit of a left field choice for dividends, but it could keep doing well.

More reading

• 3 ASX 200 shares I’d buy right now
• 3 ASX shares for beginners to buy
• ASX dividend shares raising their dividends like clockwork
• Where to invest $10,000 into ASX shares today
• 2 ASX shares I would buy for both growth and income today

Motley Fool contributor Tristan Harrison owns shares of WAM MICRO FPO and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company 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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It really has been a very tough few weeks for ASX tech shares. A selloff on Wall Street’s tech-focused Nasdaq index has put a lot of pressure on them in September.

While this is disappointing for shareholders, I believe it has created a buying opportunity for non-shareholders. Especially given the very positive night of trade on the Nasdaq on Monday, which could be a sign that the tech rout is finally over.

But which ASX tech shares should you buy?

Afterpay Ltd (ASX: APT)

I think this payments company could be a great long term option, especially after the sharp pullback in its share price. Afterpay has been growing at an explosive rate thanks to the increasing popularity of its buy now pay later platform with consumers and retailers. I’m confident there will more of the same in the coming years. This is thanks to its huge opportunity in the United States and its expansion into Europe and Asia.

Altium Limited (ASX: ALU)

This electronic design software company could be a great option due to its exposure to the fast-growing Internet of Things and artificial intelligence markets. These markets are driving the proliferation of electronic devices, which is underpinning strong demand for its software subscriptions. Together with the benefits of scale and its other growing businesses, I believe Altium is well-placed to deliver on its FY 2025/26 revenue target of US$500 million.

Appen Ltd (ASX: APX)

A third ASX tech share to buy is artificial intelligence company Appen. It has a million-plus team of crowd sourced experts preparing the data that goes into artificial intelligence and machine learning models of some of the largest tech companies in the world. Given how these markets are expected to grow significantly in the future, Appen looks well-placed to grow its earnings at a strong rate over the long term.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Flexigroup (ASX:FXL) launches humm in New Zealand
• ASX shares to buy if there’s another crash
• 4 of the best ASX 200 shares to buy in September
• How this new red tape could send the Afterpay (ASX:APT) share price tumbling

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. 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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With the outlook for interest rates in Australia incredibly bleak, I suspect that dividend shares will remain the best way to earn a passive income for some time to come.

But which ASX dividend shares should you buy today? I think these are the ones to snap up right now:

Dicker Data Ltd (ASX: DDR)

I think Dicker Data is a great option for income investors. It is a leading wholesale distributor of computer hardware and software. Despite the pandemic, Dicker Data has been a very positive performer in FY 2020 and recently released a strong half year result. During the six months, the company delivered an 18.1% increase in revenue to $1,006.1 million and a 23.6% jump in net profit after tax to $29.4 million.

Given its strong market position and favourable industry tailwinds, I believe it is well-placed to continue its growth over the coming years. For now, the company is expecting to pay a 35.5 cents per share dividend for the full year. Based on the current Dicker Data share price, it offers a fully franked forward 4.8% dividend yield.

National Storage REIT (ASX: NSR)

Another option I would suggest investors consider buying is this self-storage operator. I believe it could be a great long term option due to its strong position in a fragmented market and its growth through acquisition strategy. As with Dicker Data, National Storage was a positive performer in FY 2020 despite the pandemic. It delivered a 9% increase in underlying earnings to $67.7 million over the 12 months.

Looking ahead, FY 2021 is expected to be tougher and management has warned that its earnings could be flat. However, this is a lot better than what many other companies will achieve in FY 2021 and still implies a very attractive yield. It expects to deliver earnings of 7.7 cents to 8.3 cents per share. After which, it will pay out 90% to 100% of this to its shareholders. The middle of this range (8 cents earnings per share and a 95% payout ratio) would be a 7.6 cents per share distribution. Based on the current National Storage share price, this represents a generous 4.1% yield.

More reading

• Top ASX dividend shares to buy in September 2020
• Smash low interest rates with these ASX dividend shares
• Why I would buy Coles (ASX:COL) and this ASX dividend share
• Why I would buy these quality ASX dividend shares in September
• 3 ASX shares for growth, income, and value investors to buy right now

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data 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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On Monday the S&P/ASX 200 Index (ASX: XJO) started the week on a very positive note. The benchmark index climbed 0.7% to 5,899.5 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 expected to edge lower.

The ASX 200 index looks set to edge lower today despite a very strong start to the week on Wall Street. According to the latest SPI futures, the benchmark index is poised to open the day 8 points or 0.15% lower. On Wall Street the Dow Jones rose 1.2%, the S&P 500 climbed 1.3%, and the Nasdaq jumped 1.9% higher.

Is the tech rout over?

A very positive night of trade on the tech-heavy Nasdaq index could be a sign that the tech rout is finally over. The Nasdaq index stormed higher overnight thanks to strong gains by the likes of Apple and Nvidia. This could be good news for local tech shares such as Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO), which have been struggling in recent weeks.

Oil prices lower.

Energy shares such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch after oil prices softened again. According to Bloomberg, the WTI crude oil price is down slightly to US$37.30 a barrel and the Brent crude oil price is down 0.4% to US$39.67 a barrel. Oil prices slipped amid concerns over a stalled global economic recovery. In addition to this, news that Libya is poised to resume production weighed on sentiment.

Gold price jumps.

It could be a good day for gold miners such as Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) after the gold price jumped higher overnight. According to CNBC, the spot gold price jumped 1% to US$1,966.9 an ounce on Monday night. This was driven by a weaker U.S. dollar amid dovish Federal Reserve hopes.

Shares going ex-dividend.

A handful of ASX 200 shares are going ex-dividend this morning and could drop lower. This includes poultry company Inghams Group Ltd (ASX: ING), media giant News Corp (ASX: NWS), and essential network services company Service Stream Limited (ASX: SSM).

More reading

• Buy Afterpay (ASX:APT) and these ASX shares before the tech rebound
• Investing $1,000 into these ASX shares could be a very smart move
• ASX 200 rises by 0.7%, Cleanaway (ASX:CWY) shares dumped
• Flexigroup (ASX:FXL) launches humm in New Zealand
• The best ASX stocks to buy for the COVID-19 recovery play

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 AFTERPAY T FPO. 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.

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If you’re looking to invest in the share market, the good news is there are a lot of quality options to choose from.

Three ASX shares that I think would be smart choices are listed below. Here’s why I like them:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The first option to consider is actually an exchange traded fund. And arguably the best exchange traded fund out there – the BetaShares NASDAQ 100 ETF. Through just a single investment, this fund gives investors a piece of the 100 largest non-financial companies listed on the NASDAQ exchange. Among its holdings are the likes of Amazon, Apple, Facebook, Microsoft, Netflix, and Google parent company, Alphabet. As the majority of these 100 companies have very bright futures ahead of them, I believe the BetaShares NASDAQ 100 ETF has the potential to outperform over the next decade and beyond.

NEXTDC Ltd (ASX: NXT)

Another top ASX share for smart investors to invest $1,000 into is NEXTDC. It is a growing data centre operator which owns a collection of world class centres in key locations across Australia. I’ve been very impressed with the company’s performance over the last few years and particularly in FY 2020. For the 12 months ended 30 June 2020, NEXTDC delivered a 23% increase in EBITDA to $104.6 million. This was driven by strong demand for its data centre services thanks to the ongoing shift to the cloud. Pleasingly, with the shift to the cloud accelerating and still having a long way to go, I believe NEXTDC is perfectly positioned for growth over the 2020s. 

Xero Limited (ASX: XRO)

A final option for smart investors to look at investing $1,000 into is Xero. I think the leading cloud-based business and accounting software provider would be a great option. This is due to the quality of its platform, its high retention rates, and its large global market opportunity. At the end of July, Xero’s total subscribers had reached 2.38 million. While this is certainly a large number, it is still only a small slice of the global market. I expect the company to win a growing slice of this market over the next decade. Especially given the way it is evolving into a complete solution for small businesses.

More reading

• How the China rift could spur these ASX tech share prices to new records
• How to tell if this is the end of the ASX bull market
• 3 five-star ASX stocks to buy right now
• 3 ways Aussies can buy Tesla (NASDAQ:TSLA) shares
• 3 exotic ASX tech ETFs you might want to add to your portfolio today

James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS and Xero. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS. 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) rose by 0.7% to 5,900 points.

Cleanaway Waste Management Ltd (ASX: CWY)

The Cleanaway share price was the worst performer in the ASX 200 today, it dropped 7.1%.

The company has announced its response to reports of misconduct after claims of workplace behaviour involving CEO Vik Bansal. The company did an independent investigation.

Cleanaway has implemented a range of measures after the investigation including executive leadership monitoring, enhanced reporting and monitoring of the CEO’s conduct.

Cleanaway said that Mr Bansal has acknowledged that his behaviour should have been better and expressed contrition. The company said he has discussed this openly with the board and with his colleagues and has embraced changes in his approach.

Mark Chellew, Cleanaway Chair, said: “Mr Bansal had some issues with overly-assertive behaviour in the workplace and has acknowledged that he needed to address them. The board is disappointed in the circumstances but has taken appropriate action. We have noted the committed and sincere manner in which Mr Bansal has responded. The board will not tolerate any further instances of unacceptable conduct.”

The ASX 200 business also announced the retirement of its CFO, Brendan Gill. Paul Binfield will become the new CFO.

Citadel Group Ltd (ASX: CGL)

The Citadel share price rocketed higher by 40% today after news of a takeover announcement.

Pacific Equity Partners are proposing to buy Citadel for a cash offer of $5.70 per share, reduced by any special dividend. That’s a 43.2% premium to the last closing price and a 51.4% premium to the 3-month volume weighted average price.

Citadel’s board intends to declare a fully franked special dividend of up to 15 cents per share to enable shareholders to receive up to 6.4 cents per share of franking credits.

The ASX share’s board has unanimously recommended that shareholders vote in favour of the scheme assuming an independent expert thinks it’s a good idea and unless a better offer comes in.

Citadel Chair Peter Leahy said: “The scheme is an attractive transaction which provides an all-cash option for Citadel shareholders. The Citadel board has unanimously concluded that the scheme represents a compelling outcome for our shareholders, customers, suppliers and staff.

“The price is a very tangible measure of the value and quality of Citadel’s industry leading expertise in specialist software and critical secure information management…At a significant premium to the current trading price, PEP’s offer provides Citadel shareholders with certainty of value and the opportunity to realise their investment in full for cash.”

Macquarie Group Ltd (ASX: MQG)

Macquarie announced an update for its FY21 first half profit expectations.

The ASX 200 investment bank business said that COVID-19 is causing significant and unprecedented uncertainty, which makes short-term forecasting extremely difficult.

Macquarie said it’s unable to provide meaningful earnings guidance for FY21. However, for the first half of FY21 it’s expecting profit to be down by 35% compared to the first half of FY20 and down 25% on the second half of FY20.

The business said it continues to maintain a cautious stance, with a conservative approach to capital, funding and liquidity that positions the business well for the current environment.

Monadelphous Group Ltd (ASX: MND)

The Monadelphous Group share price went up 3% after the company won some contracts from commodity giant BHP Group Ltd (ASX: BHP).

The ASX 200 engineering business said that the construction and maintenance contracts have a combined value of approximately $120 million.

One of the contracts is to provide structural, mechanical and electrical upgrades at the Newman Hub site in Pilbara. Another contract is for the dewatering of surplus water at the Jimblebar mine site in Western Australia.

More reading

• Where I’d invest $20,000 into ASX shares right now
• The best ASX stocks to buy for the COVID-19 recovery play
• Citadel (ASX:CGL) share price rockets 39% higher on $450 million takeover offer
• Cleanaway (ASX:CWY) share price plummets 7% today. Time to buy?
• The latest ASX 200 stocks that top brokers just upgraded to “buy”

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended Citadel 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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