Author: therawinformant

I’m a big advocate of buy and hold investing and firmly believe it is the best way for investors to grow their wealth.

To demonstrate how successful it can be, every so often I like to pick out a number of popular ASX shares to see how much a single $20,000 investment 10 years ago would be worth today.

With that in mind, here’s how $20,000 investments in these ASX shares in 2010 would have fared:

CSL Limited (ASX: CSL)

This biotherapeutics company’s shares have been consistently strong performers over the last decade. This strong form has been driven by the increasing demand for its immunoglobulins, the acquisitions of the Novartis influenza vaccines business, and its high level of investment in research and development activities. These have combined to underpin strong sales and earnings growth over period, leading to CSL shares generating an average total return of 24.9% per annum. This would have turned a $20,000 investment into almost $185,000.

Evolution Mining Ltd (ASX: EVN)

Historically, gold miners are not great long term investments. But that hasn’t been the case over the last decade due to falling rates and a rising gold price. Combined with strong production and acquisitions, this has led to Evolution Mining shares beating the market since 2010. Over that time its shares have generated a 13.5% per annum total return. This means that a $20,000 investment would now be worth $71,000.

REA Group Limited (ASX: REA)

Thanks to the shift to online listings and the emergence of its realestate.com.au website as the dominant player in the Australian housing market, REA Group has been able to grow its earnings at a strong rate over the last 10 years. This has led to the property listings company’s shares smashing the market over the period with an impressive 26.15% per annum total return. Based on this, a $20,000 investment in REA Group’s shares in 2010 would be worth $204,000 today.

More reading

• Why BrainChip, Evolution, Nearmap, & Zip shares are tumbling lower
• Should you buy these beaten down ASX 200 shares?
• 3 outstanding ASX shares to buy and hold for decades
• Where to invest your first $1,000 into ASX shares
• 5 things to watch on the ASX 200 on Thursday

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 CSL Ltd. The Motley Fool Australia has recommended 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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There are some ASX dividend shares that are growing their dividends like clockwork every year.

Plenty of businesses that were meant to be good dividend shares have cut their income payments to shareholders this year due to COVID-19.

Businesses like Commonwealth Bank of Australia (ASX: CBA), Sydney Airport Holdings Pty Ltd (ASX: SYD) and Transurban Group (ASX: TCL) have all reduced their payments to shareholders.

But there are other ASX dividend shares that continue to grow their dividends year after year:

APA Group (ASX: APA)

It owns a vast network of 15,000km of natural gas pipelines around Australia with a presence in every mainland state and the Northern Territory. It also owns or has interests in gas storage facilities, gas-fired power stations and renewable energy generation (wind and solar farms). APA owns, or manages and operates, a portfolio of assets and delivers half the nation’s natural gas usage.

APA pays distributions from its annual cashflow. The cashflow from existing assets is fairly steady and it continues to invest in new projections which will grow cashflow further and fund higher distributions. That makes it a very reliable ASX dividend share.

It has increased its distribution every year for the past decade and a half. At the current APA Group share price if offers a distribution of almost 5%.

Rural Funds Group (ASX: RFF)

Rural Funds is an agricultural real estate investment trust (REIT) which owns a variety of farms including almonds, cattle, cotton, macadamias and vineyards.

The ASX dividend share aims to increase its distribution by 4% every year. It’s able to do this because rental increases are built into all of its contracts. Some of the contracts have a fixed 2.5% annual increase, whilst others are linked to CPI inflation, with market reviews.

I like the strategy that Rural Funds has by investing in productivity improvements at its farms. This increases the farm value as well as unlocking rental income growth potential.

As the landlord, Rural Funds doesn’t take on operational risk. But it does own water entitlements which are available for tenants.

At the current Rural Funds share price it has a FY21 distribution yield of around 5%.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is an investment conglomerate that has been operating for over a century, it was listed in 1903.

I think Soul Patts is the gold standard for ASX dividend shares. It has paid a dividend every year in its history including through the Spanish Flu, world wars and recessions. I think it’s a very dependable income payer.

It has actually grown its dividend every year since 2000. That’s the best record on the ASX. The GFC didn’t stop its streak.

Soul Patts has a diversified portfolio of businesses in its portfolio including TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), Australian Pharmaceutical Industries Ltd (ASX: API), Clover Corporation Limited (ASX: CLV) and Bki Investment Co Ltd (ASX: BKI).

It’s also invested in unlisted businesses such as financial services, resources, agriculture, swimming schools and Ampcontrol.

Most of the ASX dividend share’s investments pay dividends (and distributions) up to Soul Patts each year. In FY19 Soul Patts paid out around 80% of its net cashflow (after paying for expenses) to investors, whilst keeping the rest to re-invest into more opportunities.

I think many of its largest holdings like TPG, Brickworks, Clover and so on have attractive growth potential.

At the current Soul Patts share price it has a grossed-up dividend yield of 4.1%.

Foolish takeaway

Each of these ASX dividend shares have grown their dividend during COVID-19. They’re very reliable and have potential for long-term dividend growth for many years to come. If I had to pick one it would be Soul Patts for its diversification and ability to invest into new industries.

More reading

• 2 reliable and high quality ASX dividend shares to buy today
• 2 ASX shares I would buy for both growth and income today
• 3 ASX shares I’d buy to quickly add diversification
• Smash low interest rates with these high yield ASX dividend shares
• These 2 ASX 200 shares could be the best value ideas

Tristan Harrison owns shares of RURALFUNDS STAPLED and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Clover Limited. The Motley Fool Australia owns shares of and has recommended Brickworks, RURALFUNDS STAPLED, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of APA Group and Transurban Group. 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 was a very volatile five days for the S&P/ASX 200 Index (ASX: XJO) last week. After a series of ups and downs, the benchmark index eventually dropped 66.1 points or 1.1% to end it at 5859.4 points.

While most shares on the index tumbled lower with the market last week, some fell more than most. Here’s why these were the worst performers on the ASX 200 over the period:

Nearmap Ltd (ASX: NEA)

The Nearmap share price was the worst performer on the ASX 200 last week with a 15.5% decline. Investors were selling the aerial imagery technology and location data company’s shares after it completed its fully underwritten institutional placement. Nearmap raised $72.1 million at a 4.2% discount of $2.77. The company raised the funds to take advantage of industry tailwinds and support its growth. Also weighing on its shares was a broker note out Goldman Sachs. Its analysts downgraded Nearmap’s shares to a neutral rating on Friday.

Origin Energy Ltd (ASX: ORG)

The Origin share price wasn’t far behind and dropped 12% over the five days. This appears to have been driven by a pullback in oil prices last week. Oil prices came under pressure due to demand concerns after Saudi Arabia made very deep monthly price cuts to offload its oil.

Resolute Mining Limited (ASX: RSG)

The Resolute share price was out of form and tumbled 11% lower last week. Investors were selling the gold miner’s shares after it revealed that workers at its Syama operation in Mali have threatened to strike. Syama is an important operation for Resolute and contributed 59.4% of its total production during the second quarter. In light of this planned strike, the company has withdrawn its production and costs guidance for FY 2020.

GrainCorp Ltd (ASX: GNC)

The GrainCorp share price was a poor performer and dropped a sizeable 10.5% lower last week. This may have been driven by a broker note out of Morgans. Its analysts retained their hold rating and cut the price target on the company’s shares to $4.18. It expects that strong demand for grain in the domestic market after three years of drought will prevent the company from fully benefiting from higher margin exports.

More reading

• The ASX 200 is still stuck in a rut
• ASX 200 drops 0.8%, Nearmap (ASX:NEA) sinks
• The latest ASX stocks upgraded by brokers to “buy” today
• Leading broker downgrades Nearmap (ASX:NEA) shares
• Afterpay (ASX:APT) share price facing new competitive pressure

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 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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It’s no secret that retail and travel share prices have been among the hardest hit from the COVID-19 mitigation efforts.

When people are ordered to stay home or even just told to maintain social distancing, brick and mortar retailers see their revenues crumble. This in turn puts their landlords under pressure when rents are reduced or simply not paid.

Take Scentre Group (ASX: SCG), for example, which owns and operates retail properties across Australia and New Zealand. The Scentre share price crashed more than 68% during the first 2 months of the COVID outbreak. It’s bounced back strongly since then, but the Scentre share price still remains down 45% year to date.

Airlines, airports and the companies that arrange domestic and international travel have suffered the same fate.

With Australia’s international borders effectively closed and domestic travel hugely reduced, it’s no surprise that the Flight Centre Travel Group Ltd (ASX: FLT) share price has been hammered as well, falling more than 78% following the coronavirus outbreak.

The Flight Centre share price has also rebounded strongly since then. But it still remains down 68% since 2 January.

What Westpac’s consumer sentiment report revealed

On Wednesday, Westpac Banking Corp (ASX: WBC) released its latest consumer sentiment report.

Atop a noticeable rise in consumer confidence, Westpac revealed that:

[Household] preferences have not moved to the ‘riskier’ investments like shares and property (property down from 11.9% to 9.9%; and shares steady around 9%). Rather the shift in preferences, over the year, has been to bank deposits with 32.7% favouring bank deposits compared to 26.7%. The conclusion remains that Australians continue to hold extremely risk averse preferences for their savings.

Foolish takeaway

The trigger that many retail investors are waiting for before parting with the security provided by their cash holdings is either the elimination or effective control of the coronavirus.

When that happens it’s some of the most beaten down shares that could benefit the most.

And the Flight Centre share price along with the Scentre share price could prove to be among the bigger winners. That’s because not only are Australian households holding more cash to invest in the share market, but they’ll be eager to spend that cash on travel and shopping out in real stores once they’re allowed to again.

More reading

• This devastated sector is ripe for buying: fundie
• Is the Flight Centre (ASX:FLT) share price about to take off?
• 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 Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel 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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Rio Tinto Limited (ASX: RIO) timidly (and all-too-cutely) titled its ASX release “Rio Tinto Executive Committee changes”.

I guess they were updating the schedule of committee meetings?

Maybe adding a couple of people to the committee?

Nope.

The CEO (and Executive Director) JS Jacques is leaving the company, ‘by mutual agreement’.

Oh, and “Chris Salisbury will step down as Chief Executive, Iron Ore with immediate effect” while “Simone Niven will step down as Group Executive, Corporate Relations”.

‘Changes’, indeed.

It is perhaps a small point, given the magnitude of the destruction of the Juukan Gorge rock shelters in the WA Pilbara region.

But at a time when the company is scrambling to right some wrongs (or, at least, to ensure it acted meaningfully and decisively in the wake of the disaster), to use such weaselly words was, perhaps, unwise at the very least.

It’s a small thing, though, in the bigger picture.

Three senior mining company executives are going to walk the plank, their positions being considered untenable.

It is almost certainly too little, too late. But it’s something. 

It’s also notable because of the seriousness of the price being paid — because it’s unusually harsh.

I’m not suggesting that it was inappropriate — you can argue it was both too lenient or too harsh, depending on your perspective — but it is unusual.

As I wrote to the team in an internal message this morning:

“I do think the pressure is ramping up on companies who are seen to break a social contract.

“It’s not even close to the first time mining companies have mined / damaged important sites, but the Rio response is the strongest I can recall.”

You can add that to the focus on CEO salaries over the past few years, and the more recent brouhaha over companies receiving JobKeeper support while also paying bonuses.

And then there’s the ongoing fallout from the banking Royal Commission and the rolling debacle that is AMP Limited (ASX: AMP).

Corporate missteps are both more prominent, and being dealt with more harshly than I can recall.

There’s always been scrutiny of the high-profile, self-styled corporate titans — think Bond, Skase and Packer — but both the magnifying glass and the blowtorch are being applied more strongly and in more places than ever before.

Is it a good thing?

It depends where you stand.

Some of our society like nothing more than a bit of outrage, and a head on a platter to sate the baying crowd.

Some take a legal perspective: if it’s not precluded by law, it’s fair game.

Others expect our companies to exhibit a standard of behaviour that meets a higher moral level.

And yet others don’t care, personally, but want to make sure their companies don’t end up corporate pariahs, with presumably negative consequences for their share prices.

It is, as ever, a complicated issue.

For all of that, though, CEOs and two direct reports don’t leave a company on a whim.

Regardless of what camp you’re in, it seems that the shareholders who matter (and who have the ear of directors) are requiring higher standards and more concrete consequences. And that, perhaps more than ever, high profile wrongdoing will attract media scrutiny.

Of course, that might not mean much — at least in concrete financial terms.

At the time of writing, shares in Rio Tinto were down 0.6% — almost exactly the same as the general fall on the ASX.

That’s hardly a ringing endorsement, nor strong repudiation, of today’s announcement.

And remember, at one point Altria — formerly known as Philip Morris, and one of the largest cigarette manufacturers in the world — was the best performing US stock, measured over half a century.

As ever — and especially in investing — don’t follow the words, or even the actions.

As they say, follow the money.

But that’s where it’s worth paying attention. The money to follow isn’t the share price, but the money being spent with the company.

Investor power might change CEOs, but consumer (or customer) power changes what companies do, and how they make their money — especially in our social media-powered world.

Whether you care about an issue or not, the ability of companies to operate in a way that keeps their ‘social licence’ intact is going to become an ever more important part of assessing their business plans.

Invest accordingly.

Fool on!

More reading

• ASX 200 drops 0.8%, Nearmap (ASX:NEA) sinks
• ASX 200 down 0.95%: Rio Tinto (ASX:RIO) CEO exits, Nearmap (ASX:NEA) sinks lower
• Rio Tinto (ASX:RIO) heads roll, but investors want more
• IGO share price surges on potential sale of Tropicana
• Rio Tinto (ASX:RIO) announces CEO exit following Juukan destruction

Motley Fool contributor Scott Phillips 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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Tesla Inc (NASDAQ: TSLA) has been one of the most popular shares in the world to talk about in 2020 so far. Tesla (and its… eccentric CEO, Elon Musk) have never spent long out of the limelight over the past 5 years. From the infamous ‘private at $420’ tweet and a public showdown with the United States SEC (Securities and Exchange Commission) to the Bladerunner-esque Cybertruck and the more recent stock split, there always seems to be something in the news about Tesla.

But 2020 has brought that ‘something’ into a realm most investors understand (and can’t ignore) – an exploding share price. Tesla has long been a rather volatile share. But 2020 has turned up that dial to 11 (out of 10).

Picture this. At the start of 2020, Tesla shares were priced at US$86 (post-split adjusted) after going as low as US$38 in May 2019. During the March market crash, the shares descended to around US$72.

But it’s been onwards and upwards from there. Today, Tesla shares are asking US$371 after going as high as US$500 less than 2 weeks ago. The shares remain 330% up for the year so far.

But Tesla is listed in the United States, on the Nasdaq exchange to be specific. And whilst many Aussie investors are comfortable buying international shares, many still are not. So how would the latter investor get exposure to Tesla shares on the ASX today? Well, there are 3 easy options.

Tesla on the ASX

Option 1) ETFS FAANG+ ETF (ASX: FANG)

This exchange-traded fund (ETF) tracks a concentrated portfolio of 10 US tech companies, including the FAANG stocks as well as Tesla. Since Tesla has a current weighting in this fund of 15.1% (the heaviest current allocation), this is a great way to own Tesla in your portfolio.

Option 2) BetaShares Nasdaq 100 ETF (ASX: NDQ)

Our second option is this Nasdaq ETF. As I mentioned earlier, Tesla is traded on the Nasdaq exchange and as a result, appears in this ETF (although not in any S&P 500 ETFs as of yet). Tesla shares are the sixth largest holding in NDQ with a 3% weighting.

Option 3) ETFS Battery Tech & Lithium ETF (ASX: ACDC)

Our final option is another ETF, this time with a focus on battery technology (and an ultra-cool ticker symbol to boot). ACDC holds a range of companies that are involved in energy storage and lithium processing. Tesla is ACDC’s largest holding with a 5.3% weighting, joining some other ASX shares like Galaxy Resources Limited (ASX: GXY).

This is a slightly more risky option in my view due to the wild swings often seen in lithium mining shares. But if you’re bullish on both lithium and Tesla, let there be rock, I say.

More reading

• 3 exotic ASX tech ETFs you might want to add to your portfolio today
• Why Tesla stock jumped again on Thursday
• The biggest threat to tech shares
• Tech shares lead ASX rebound but Afterpay (ASX:APT) faces mounting competition
• Correction or crash for ASX 200 shares?

Sebastian Bowen owns shares of Tesla. 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 BETANASDAQ ETF UNITS. 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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Is the S&P/ASX 200 Index (ASX: XJO) still stuck in a rut?

Exactly a month ago, I penned an article in which I described how the ASX 200 was stuck in a rut. I noted how, for two months, the ASX 200 had essentially gone nowhere. It has ebbed and flowed around the 6,000 point level, but never left the safety of this band for long. This pattern held true after the ASX 200 initially leapt out of the ditch that the March share market crash put it in, rising from 4,546 points on 23 March to 6,000 by 5 June. But from 5 June to 11 August, we essentially didn’t move away from this level, at least not for long. It seemed to be a classic case of ‘mean reversion’.

So, one month later, how have things progressed?

Well, they haven’t. The ASX 200 has not yet shown it can break away from 6,000 points. We nearly saw it last week, when the ASX 200 touched above 6,100 points. But today, it stood at 5,859.40 points by close of trading. Since ASX 200 shares have lost over 4% since 3 September, I would say we’re actually in danger of breaking out of this rut in the wrong direction. With all of the hoopla of August earnings season behind us now, we are still stuck in the mud.

So what does this strange phenomenon tell us?

The ASX 200: All revved up with no place to go

In my opinion, it tells us that ASX investors are waiting for something to give direction to the markets. Apparently earnings season wasn’t enough. Perhaps investors are waiting until the United States presidential election in early November. Perhaps they are waiting until the impact of the government wind-down in support payments on the economy becomes clearer. 

I don’t know. All I know is that we are seeing this pattern play out.

So, how does one invest in this strange environment?

Well, I think ‘sticking to the plan’ is the best way forward. ASX 200 shares will go up in the future, and they will go down. There will be more booms and more crashes down the road. We just don’t know when either will come. If you stick to investing in companies you like, that are top quality, that aren’t too expensive and have good growth prospects in these uncertain times, I think you’ll be just fine.

And if you’re feeling queasy about where the markets are today, the best thing you can do (in my view) is build a small cash position in case your fears come to pass.

More reading

• ASX 200 drops 0.8%, Nearmap (ASX:NEA) sinks
• The latest ASX stocks upgraded by brokers to “buy” today
• Afterpay (ASX:APT) share price facing new competitive pressure
• What I’ve learned writing for The Motley Fool
• ASX 200 down 0.95%: Rio Tinto (ASX:RIO) CEO exits, Nearmap (ASX:NEA) sinks lower

Motley Fool contributor Sebastian Bowen 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 S&P/ASX 200 Index (ASX: XJO) fell by 0.83% today to 5,859 points after another market selloff in the US on Thursday.

Nearmap Ltd (ASX: NEA)

The Nearmap share price was the worst performer in the ASX 200 today. The aerial imaging business returned to trade after its capital raising trading halt.

Nearmap announced today that it has successfully completed a $72.1 million institutional placement. The placement was priced at $2.77 per share, which was at the top end of the placement bookbuild range of $2.69 to $2.77. This was a 4.2% discount to the closing price of $2.89 on 9 September 2020. However, that’s much higher than the closing price today of $2.47.

The company reminded investors that the proceeds from the placement will be used to accelerate growth opportunities in the company’s core industry verticals, invest in rolling out the company’s fourth generation camera system and build out the operational foundations to support future growth aspirations.

Nearmap CEO and managing director Dr Rob Newman said: “The strong support our company received from both existing shareholders and new investors is extremely encouraging and I wish to thank them for their endorsement of our strategy. With an even stronger balance sheet, we are well positioned to execute on our accelerated growth strategy and will continue to focus on the global opportunity to become the world’s leading provider of subscription-based location intelligence.”

The ASX 200 business also confirmed that non-executive director Mr Ross Norgard also sold 4.2 million shares representing 15.1% of his holding in Nearmap.

Retail shareholders will be able to buy shares from 17 September 2020.

Rio Tinto Limited (ASX: RIO)

The board of Rio Tinto has been engaging with various stakeholders after the publication of its review into cultural heritage management.

Significant stakeholders expressed concern about executive accountability for the identified failings.

Rio Tinto announced today that J-S Jacques will step down from his role as an executive director and CEO. A process to identify his successor is underway. J-S will remain in his role until the appointment of his successor or 31 March 2021, whichever is earlier. Rio Tinto said this will ensure business continuity to maintain the strong performance of the group’s global operations during COVID-19.

J-S Jacques isn’t the only one that will be stepping down. The chief executive of iron ore, Chris Salisbury and the group executive of corporate relations, Simone Niven, will be leaving.

The ASX 200 miner is establishing a new social performance assurance function, reporting to Mark Davies, to strengthen oversight of communities and heritage practices and performance within the operations.

Rio Tinto chair Simon Thompson said: “What happened at Juukan was wrong and we are determined to ensure that the destruction of a heritage site of such exceptional archaeological and cultural significance never occurs again at a Rio Tinto operation. We are also determined to regain the trust of the Puutu Kunti Kurrama and Pinikura people and other traditional owners. We have also listened to our stakeholders’ concerns that a lack of individual accountability undermines the group’s ability to rebuild that trust and to move forward to implement the changes identified in the board review.”

The Rio Tinto share price finished down 0.6%.

Pro Medicus Ltd (ASX: PME)

ASX 200 medical technology business Pro Medicus announced that it has signed a 7-year, $25 million deal with NYU Langone Health. It is also going to collaborate to research and develop the next generation of imaging solutions. 

NYU Langone was ranked in the 10 best hospitals by US news and world report 2020 to 2021.

The tier 1 academic institution which includes the respected NYU Grossman School of Medicine.

Visage technology will be deployed throughout NYU’s imaging departments replacing systems from legacy vendors. The deal spans six hospitals and numerous other locations across the network. The rollout is expected to commence in the second quarter of FY21.

The contract for the ASX 200 healthcare share is based on a transaction-based licensing model.

Pro Medicus CEO Dr Sam Hupert said: “NYU Langone is a very significant addition to our rapidly growing North American footprint. More than any other PACS vendor, we now have seven of the top twenty ranked US hospitals standardising on our technology and are looking to grow that further across additional market segments. We believe the network effect of this and other recent wins positions us well to increase our lead in this highly competitive market.”

 The Pro Medicus share price rose by 1% today.

More reading

• The ASX 200 is still stuck in a rut
• The latest ASX stocks upgraded by brokers to “buy” today
• Leading broker downgrades Nearmap (ASX:NEA) shares
• Afterpay (ASX:APT) share price facing new competitive pressure
• Pro Medicus (ASX:PME) share price higher on major contract win and research agreement

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 Nearmap Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. 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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