Author: therawinformant

It’s very tempting to invest in the big players because of their perceived safety. However, if you’re wanting to achieve significant share price appreciation, it could be more beneficial to look to the ASX small cap shares. In addition, because of their potential for above-market growth, small cap shares could (over the long term) increase their dividends to the point you could make significant income as well.

Once upon a time, the big caps were small caps, after all.

As a result, I believe the following 3 ASX small cap shares could reward investors now and over the long-term.

Baby Bunting Group Ltd (ASX: BBN)

Baby Bunting stores can remain open in Melbourne’s stage 4 restrictions, as the group is a retailer of maternity supplies and classed as an essential service. As a result, I believe it could be the beneficiary of more demand.

Commenting on the lockdown, CEO and Managing Director Mat Spencer said: “With over 9,000 new babies due in Victoria during the lockdown period, new and expectant parents face many critical and specialised needs and our Melbourne stores remain open to provide the essential products and services for them.”

Additionally, the company is scheduled to release its FY20 accounts tomorrow. On 22 July 2020, Baby Bunting released a FY20 financial results update. In the update, the group indicated it expects proforma earnings before interest, taxation, depreciation and amortisation (EBITDA) of between $33 million and $34 million. This is growth of between 22% and 25% on FY19 EBITDA result. However, the result is subject to audit and excludes the non-cash impact of other expenses.

I have been impressed by the continued growth in sales (in-store and online) and expected gross margin increase of 36.2% which is an increase of 120 basis points against the prior corresponding period.

In the past year, the Baby Bunting share price has rallied 66.23% higher.

Catapult Group International Ltd (ASX: CAT)

Catapult has been kicking goals recently by reaching positive cash flow a year early of $9 million in FY20. This is an improvement of $24.1 million on FY19.

Its EBITDA is expected to be between $11.5 million and $12.5 million. Additionally, total revenue is expected to between $100 million and $101 million. This is assisted by its subscription-based model.

Catapult has also recently been awarded a video exchange contract with the top 130 US college football teams. The partnership will open several new commercial opportunities in the market. I believe Catapult can continue growing as it continues to sign new sporting leagues and clubs around the world.

The Catapult share price has increased 42.98% in the past year.

Marley Spoon AG (ASX: MMM)

A structural change in how people buy groceries now and into the future could see continued rapid share price growth for this ASX small cap share.

In its Q2 2020 market release, Marley Spoon’s highlights included an acceleration in the long-term adoption of online grocery shopping, retention of new customers and decline in acquisition costs, growth in revenue, global contribution margin and positive global EBITDA. It also upgraded its 2020 full year guidance to 70% revenue growth from approximately 30%.

I believe this trend will continue, post-pandemic, as people become accustomed to buying their groceries online. The Marley Spoon share price has soared a whopping 479.44% in the past year.

More reading

• Fund managers have been buying these ASX shares
• Can the Bubs share price go higher in 2020?
• ASX shares that could get a boost from Victoria’s shutdown
• Why Catapult, Perseus Mining, Prospa, & Spark shares are dropping lower
• Why the JB Hi-Fi share price is dropping lower today

Matthew Donald owns shares of Baby Bunting. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Catapult Group International Ltd. The Motley Fool Australia has recommended Catapult Group International 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 3 ASX small cap shares with serious growth potential appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3kEf4C3

If you’re looking for dividends, then you might want to take a look at the two dividend shares listed below.

I believe both blue chips could be top options for income investors right now:

Telstra Corporation Ltd (ASX: TLS)

The Telstra share price fell heavily on Thursday despite the release of a full year result which was in line with guidance. The telco giant also declared a final dividend of 8 cents per share, bringing its full year dividend to a fully franked 16 cents per share. This was in line with FY 2019’s dividend. However, judging by the Telstra share price weakness, some investors don’t appear to believe it will be able to maintain this dividend in FY 2021.

I”m optimistic it can, based on its guidance for free cashflow after operating lease payments of $2.8 billion to $3.3 billion. While this free cash flow is lower than the $3.4 billion it achieved in FY 2020, Telstra’s free cash flow payout ratio was 74% according to Goldman Sachs. This appears to indicate that it should be able to comfortably maintain its dividend if it achieves its guidance. If this proves to be the case, based on the current Telstra share price, this will mean a fully franked 5% yield in FY 2021.

Wesfarmers Ltd (ASX: WES)

Another blue chip ASX share to consider buying for dividends is Wesfarmers. It is the conglomerate behind popular brands such as Bunnings, Kmart, Target, Catch, and Officeworks. It also has a collection of chemicals and industrial businesses. I’m a big fan of the company due to the diversity and positive outlook for these businesses and my expectation that they will underpin solid earnings and dividend growth over the next decade.

In addition to this, the company is sitting on a mountain of cash following the sell down of its stake in supermarket giant Coles Group Ltd (ASX: COL) earlier this year. I suspect that this could be deployed to make earnings accretive acquisitions in the near future. For now, based on the current Wesfarmers share price, I estimate that it provides investors with an FY 2021 fully franked ~3.1% dividend yield.

More reading

• Metcash share price and these ASX stocks just got upgraded by leading brokers
• If an ASX share announces a demerger, here’s why you should listen
• Telstra just announced its dividend! Are Telstra shares now a buy?
• Why AGL, Breville, CBA, & Telstra shares are dropping lower today
• ASX down 0.55%: Telstra maintains its dividend, Treasury Wine shoots higher, AMP’s special dividend

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Wesfarmers 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 2 blue chip ASX dividend shares to buy appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2XWvMmy

Shares in specialist fashion jewellery retailer Lovisa Holdings Ltd (ASX: LOV) have rocketed 18.5% so far in August. In contrast, the All Ordinaries Index (ASX: XAO) went up 2.6% in the same period.

In intraday trading this afternoon, the Lovisa share price was up more than 7% while the All Ords is slipping towards a 1% loss.

Like most Australian retailers, and indeed most Aussie shares, Lovisa was hammered during the COVID-19 market rout in February and March.

From 20 February through to its 19 March low, the Lovisa share price plunged a chilling 79%. Since that low, it has more than tripled, up 202%. But even that meteoric rise hasn’t yet been enough to recoup the losses from the viral sell-off. Year-to-date, the company’s share price is down 38%.

At the current price of $7.37 per share, Lovisa has a market cap of $792 million.

What does Lovisa do?

Lovisa is one of Australia’s leading specialist fast fashion jewellery retailers. Founded by managing director Shane Fallscheer and BB Retail Capital, the first Lovisa store opened in Queensland in 2010.

Today, it has more than 400 stores across Australia, New Zealand, Malaysia, Singapore, Spain, France, South Africa, the United States and the United Kingdom. It also has franchised stores in the Middle East and Vietnam.

The company develops, designs, sources and merchandises 100% of its Lovisa-branded products.

What’s driving Lovisa’s share price gain?

There have been no announcements this month that would directly explain Lovisa’s 18.5% share price gain in August (24.2% since Monday 3 August’s close).

Lovisa did announce some store closures in Victoria and California to comply with lockdown measures following renewed surges in coronavirus infections. It could be that Victoria’s early progress in controlling the spread has encouraged some investors to buy shares at a long-term discount.

Lovisa was also mentioned on several financial news outlets, including Yahoo Finance on 2 and 3 August, mentioning the ‘fantastic 124% total returns’ Lovisa had ‘gifted’ to shareholders.

Lovisa is due to report results for the year ending 28 June to the ASX pre-market open on 26 August. It will be interesting to see how Lovisa’s share price moves following the release of the report.

More reading

• Here’s the best mid-cap growth share to buy on the ASX
• 2 ASX retail shares on my radar in 2020
• ASX 200 Weekly Wrap: Surging commodity prices snap ASX 200’s losing streak
• Why the Senex Energy share price climbed 17% in July
• The Galaxy Resources share price surged 41% in July. Here’s why.

Motley Fool contributor Bernd Struben 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 What’s driving the surge in jewellery retailer Lovisa Holdings’ share price in August? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2FkMJ3v

Electric scooter manufacturer Vmoto Ltd‘s (ASX: VMT) share price leapt out of the starting gate today after announcing it had received firm commitments for an equity capital raising of approximately $9.6 million. The Vmoto share price had been in a trading halt since Monday 10 August ahead of this announcement.

The company announced its placement received strong demand from strategic investors, institutions and other professional investors. That included existing shareholders, cornerstoned by Perennial Value Management.

Vmoto led the placement without the appointment of lead managers.

The company will issue 21,411,408 fully paid ordinary shares for 45 cents per share, a 7.4% discount to the volume weighted average price for the last ten trading days prior to its trading halt.

Vmoto expects to issue the new shares on 19 August 2020 with trading commencing on ASX on the same day.

The ASX’s only two-wheeled electric vehicle manufacturer will use the proceeds to increase its international market initiatives and accelerate potential opportunities in the growing B2C and B2B electric two-wheel vehicle markets internationally.

What the Directors said

Vmoto Managing Director, Mr Charles Chen said:

“Recent operational and commercial successes during the current global pandemic highlight that the company has reached an inflection point in its growth. As a result, it was approached by several strategic funds and took decisive action to further strengthen its balance sheet, ensuring it is in as strong a position as possible to capitalise on this success and accelerate its growth going forward.

As a result of the Placement and the additional capital raised, Vmoto is now in an even stronger position for all its shareholders, and very well placed to accelerate its growth and expand its strategy to drive long-term value for investors. We would like to thank all investors who participated in the placement”.

Andrew Smith, Head of Smaller Companies & Micro Caps at Perennial Value Management said:

“We have been monitoring the progress of Vmoto for several years and have seen the company deliver consistent growth in sales. Changes in legislation and the introduction of government schemes has given rise to an increasing trend of consumer preference for lower cost and convenient transport via two-wheel electric vehicles which has been accelerated by COVID-19 – Vmoto’s most recent quarterly sales is a testament to this”.

Vmoto share price soaring on strong sales growth

Vmoto’s sales have seen strong growth over the last 12 months, buoyed by the fast-growing demand for e-scooters. The company is also seeing higher demand from parcel delivery companies, further spurred by COVID-19 lockdown measures.

Last week, Vmoto reported record quarterly sales of 6,389 units in the three months to the end of June. That’s an increase of 55% on the previous quarter and more than double the sales in the same quarter of 2019.

Including today’s 15.4% increase, the Vmoto share price is up 150% year to date. Since its 23 March low, the Vmoto share price has soared more than 360%.

More reading

• The ASX small cap benefitting from COVID that you’ve probably never heard of

Motley Fool contributor Bernd Struben 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 Vmoto share price scoots 15% higher on successful capital raising appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/30SRyJq

The S&P/ASX 200 Index (Index:^AXJO) is under pressure from profit misses from some leading stocks. But it isn’t all bad news as brokers upgraded their call on a number of ASX stocks.

Today’s profit sinners include the likes of the Telstra Corporation Ltd (ASX: TLS) share price and AGL Energy Limited (ASX: AGL) share price.

But the Metcash Limited (ASX: MTS) share price is bucking the downtrend after Citigroup upgraded the stock to “buy” from “neutral”.

Stronger for longer triggers upgrade

Shares in the grocery distributor jumped 0.5% to $2.98 in the last hour of trade when losses on the ASX 200 deepened to 0.9%.

Citi believes the COVID-19 tailwinds that have lifted the Metcash share price, Woolworths Group Ltd (ASX: WOW) share price and Coles Group Ltd (ASX: COL) share price will persist for longer than many are expecting.

Social restrictions and lockdowns to contain the virus triggered panic buying of food and other household goods. Flattening the coronavirus curve or even finding a vaccine is unlikely to change the positive outlook for the sector over the medium term.

“The grocery outlook remains strong across the industry, with elevated sales growth; rational market conditions and earnings/dividend stability warranting an overweight position across Coles/Woolworths/Metcash,” said Citi.

The broker’s price target on Metcash is $3.50 a share.

Cleared for capital raise

Meanwhile, the embattled Sydney Airport Holdings Pty Ltd (ASX: SYD) share price is likely to get some reprieve. JPMorgan upgraded the stock to “neutral” from “underweight” on the back of the airport’s $2 billion capital raise.

The SYD share price was badly hit by the collapse in the travel market from COVID-19, but that doesn’t change the fact that it’s a quality asset with monopolistic power.

Enough runway for a recovery

“The duration of the passenger downturn continues to be pushed out, and international likely requires a vaccine before it can find a new normal,” said the broker.

“Importantly, we believe the raising will ensure SYD doesn’t breach covenants, but we await a turn in passengers and earnings before becoming more bullish.”

The Sydney Airport share price is in a trading halt as it finalises its $4.56 a share cap raise. The stock last traded at $5.39 a share and will likely fall when it returns to the bourse, although I think it will find a base comfortably ahead of the offer price.

Controlled descend

Another stock that got upgraded was the JB Hi-Fi Limited (ASX: JBH) share price. Credit Suisse lifted its rating on the electronics and whitegoods retailer to “neutral” from “underperform” as it takes a more positive view on the fiscal cliff issue.

The JBH share price outperformed during the COVID crisis as work-from-home restrictions fuelled demand for IT equipment.

Smaller than expected drop

The sector was facing a potential cliff as the support measures were initially meant to be withdrawn from September.

But the federal government is extending some of these wage support packages, although it will taper the payments through to March 2021. This means the cliff could turn out to be a relatively gentle slope instead.

Credit Suisse lifted its 12-month price target on the stock to $42.71 from $34.52 a share.

More reading

• 2 blue chip ASX dividend shares to buy
• How to find the rare ASX retail share winners
• If an ASX share announces a demerger, here’s why you should listen
• Fiji Kava share price soars 90% on Blackmores subsidiary agreement, trade paused
• Brokers have upgraded 3 ASX shares to the buy zone. Here’s why

Motley Fool contributor Brendon Lau owns shares of Telstra Limited and Woolworths Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths 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 Metcash share price and these ASX stocks just got upgraded by leading brokers appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2PPiLXm

I think ASX tech shares could be the best businesses to buy and hold until 2025.

Technology businesses have a couple of advantages that most other industries don’t have. The main cost for most technology businesses is simply developing the software. Once the software is made it’s very, very cheap to distribute it with low incremental costs. It means a business that can grow fast can rapidly increase its operating profit margins.

If a business has a large total addressable market then its profit has a much longer growth runway. It’s the ASX shares with international growth which are more likely to do well over time.

However, there are some ASX tech shares like Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX) which are quality but are priced very highly. But there are other ASX tech shares which are priced much more reasonably:

Tech share 1: Citadel Group Ltd (ASX: CGL)

Citadel is a software business which provides essential software to various sectors including education, defence and healthcare. With government organisations being some of its major clients, Citadel has quite defensive earnings.

Indeed, in the company’s COVID-19 update on 24 March 2020 it said that no significant projects or contracts have been delayed or cancelled.

I think the acquisition of Wellbeing could be transformative for Citadel. Wellbeing is a UK healthcare software company that manages patient workflow with recurring revenue being around 70% of its total revenue. Both Citadel and Wellbeing have major private and government clients.

In Australia, Citadel has a 42% market share of the pathology sector and a 27% market share of the oncology sector. In the UK, Welbeing has a 59% market share of the radiology sector and a 22% market share of the maternity sector. These are strong market positions for the ASX tech share to have.

Not only is the earnings of Wellbeing defensive and high-quality, but it opens up the opportunity for cross-selling each software into the other country.

For the overall business, Citadel’s recurring revenue as a percentage of total revenue grows from 41% to 48%. Its health software gross profit will increase from 31% to 52% of overall gross profit and the earnings before interest, tax, depreciation and amortisation (EBITDA) margin will rise from 22% to 26%. Higher margins are very attractive for the ASX tech share.

At the current Citadel share price it’s trading at 12x FY22’s estimated earnings.

Tech share 2: Pushpay Holdings Ltd (ASX: PPH)

Pushpay is a software business which facilitates digital giving to not-for-profits. Currently, its main client base is large and medium US churches.

The ASX tech share is seeing enormous growth at the moment due to the current COVID-19 conditions. In FY20 the company saw revenue grow by about a third to US$129.8 million. In FY21 Pushpay is expecting that EBITDAF (the F stands for foreign currency) can at least double to US$50 million.

Aside from the strong revenue growth potential, one of the main reasons why I really like Pushpay is that its gross margin could keep increasing. In FY20 alone it rose from 60% to 65%. That means more revenue falls to the bottom line.

Pushpay offers churches a livestreaming to connect with its congregation. It’s these types of tools which make Pushpay attractive to its clients.

I think the ASX tech share has a lot of growth potential. It’s aiming for annual revenue of US$1 billion from the US church sector.

Over the long-term, Pushpay could target churches outside of the US or different religions in the US. Other markets would dramatically increase Pushpay’s total addressable market – though it already has a large market to target.

At the current Pushpay share price it’s trading at under 30x FY23’s estimated earnings and 33x FY22’s estimated earnings.

Foolish takeaway

I think both of these ASX tech shares are among the best ideas to beat the overall ASX over the next five years. Citadel looks very good value today and I believe that Pushpay can continue to grow strongly with its rising profit margins.

More reading

• 3 stellar ASX tech shares to buy for the long term
• Where to invest $500 into ASX shares immediately
• If you have $12,000, you should invest in these 3 ASX shares now
• 5 quality ASX shares to buy in August
• 3 exciting ASX growth shares to buy with $3,000

Tristan Harrison owns shares of Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended Citadel Group Ltd and PUSHPAY FPO NZX. 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 2 of the best ASX tech shares to buy and hold until 2025 appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/30PHrVS

It’s well known that the coronavirus pandemic has not been good news for the Australian economy. As a result, we are headed for our first official economic recession in almost 3 decades.

But employment data released by the Australian Bureau of Statistics (ABS) this morning covering the month of July paints a somewhat optimistic picture of where the economy is headed from here.

Firstly, employment numbers increased by 114,700 people between June and July, which accompanied a 1.3% bump in ‘hours worked’. This increase was driven by 71,200 part-time workers and 43,500 full-time workers.

Unfortunately, this wasn’t enough to offset the official unemployment rate rising slightly to 7.5% (seasonally adjusted). The official unemployment figure only includes those persons aged 15–64 who are unemployed and actively seeking work, measured by the ‘participation rate’. This rate increased by 0.6% in July, which would have helped to push up the unemployment rate in turn. Female participation increased by 1.1% to 73.1% in July, whereas male participation was also up 0.6% to 82%.

According to Bjorn Jarvis, head of Labour Statistics at the ABS:

The number of unemployed people rose by nearly 16,000 between June and July. For the first time there were more than one million people out of work, available to work and actively looking for work… The July figures indicate that employment had recovered by 343,000 people and hours worked had also recovered 5.5 per cent since May. Employment remained over half a million people lower than seen in March, while hours worked remained 5.5 per cent lower.

Pleasingly, the underemployment rate (those who are employed but want to work more) decreased by 0.5% to 11.2%. But this is still 2.8% higher than in July 2019, as you might expect.

Job numbers: state by state

Over the month of July, most states saw an increase in employment. Check out the table below for the official figures:

State/Territory	Unemployment Rate (%) – June 2020	Unemployment Rate – July 2020
New South Wales	6.9%	7.2%
Victoria	7.5%	6.8%
Queensland	7.7%	8.8%
South Australia	8.8%	7.9%
Western Australia	8.7%	8.3%
Tasmania	6.9%	6%
Australian Capital Territory	5.1%	7.5%
Northern Territory	5.7%	4.6%
National	7.4%	7.5%

Table: Author’s Own | Data: Australian Bureau of Statistics

As you can see, unemployment rates decreased in most states and territories in July. Tasmania and South Australia saw the largest falls. However, we did see increases in the Northern Territory, Queensland and New South Wales.

However, also consider what AMP Capital’s senior economist Diana Mousina had to say on the numbers as well:

The effective unemployment rate is still high at 10.2% but it did fall from 11.2% in the prior month and is down on its peak of 14.9% from April. The “effective” unemployment rate is a better gauge to the level of unemployment in Australia as this includes those have left the labour force altogether and those who are working zero hours due to COVID-19 (but are still considered ’employed’).

The economy is still not out of the woods yet, I’m afraid. Fingers crossed for the August numbers!

More reading

• 3 ASX small cap shares with serious growth potential
• 2 blue chip ASX dividend shares to buy
• What’s driving the surge in jewellery retailer Lovisa Holdings’ share price in August?
• Vmoto share price scoots 15% higher on successful capital raising
• Metcash share price and these ASX stocks just got upgraded by leading brokers

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.

The post ABS employment data for July shows promising signs for coronavirus economy appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/31R3Y3S

The Enero Group Ltd (ASX: EGG) share price is currently trading 16.55% higher following the release of the company’s FY20 results. At the time of writing, the Enero Group share price is trading for $1.66 per share.

The group is an international network of marketing and communications businesses with over 600 staff working in 14 cities around the world. Its key geographic regions are located in Australia, UK and USA.

FY20 results

Highlights include a 4.9% increase in net revenue to $135.8 million up from $129.5 million in the prior corresponding period (pcp). The increased revenue was driven by organic revenue growth predominately in the USA market. Its international operations accounted for 57% of total revenue and 62% of earnings before interest, taxes, depreciation and amortisation (EBITDA).

Operating EBITDA increased 17.7% to $24.4 million in FY20 compared to $20.7 million in FY19.

Earnings per share before significant items of 15 cents was in line with analysis forecasts and was up 5.6% compared to the pcp.

The directors declared a fully franked final dividend of 3.5 cents payable on 2 October 2020. It brings the annual dividend per share payout to 6 cents per share. Additionally, the dividend is a 9.1% increase in FY20 compared to FY19.

Enero has high sector exposure to technology, healthcare and consumer staples, which were less impacted by COVID-19. Additionally, it has a low exposure to retail, travel and tourism clients which were more heavily impacted in the second half of FY20.

Management comments

Ann Sherry, Enero Group chair, commented:

The group delivered an outstanding result particularly during challenging times in the second half of the year…Our strong sector exposure to technology, healthcare and consumer staples resulted in 4.9% organic revenue growth. The group is in a strong position to drive further growth in FY21 despite the health and economic uncertainties that lie ahead.

CEO Brent Scrimshaw added:

Enero is now in a strong financial position to accelerate our momentum and create the next chapter of growth through some of the best performing brands in the market in Australia, UK, Europe and the USA. I will be working with the teams to bring new capability to our existing group offering and investing in the expansion of our network in the coming year.

About the Enero Group share price

The Enero Group share price is currently trading at $1.66, up by 16.55% in today’s trade. The group currently has a market capitalisation of $142.45 million.

More reading

• 3 ASX small cap shares with serious growth potential
• 2 blue chip ASX dividend shares to buy
• What’s driving the surge in jewellery retailer Lovisa Holdings’ share price in August?
• Vmoto share price scoots 15% higher on successful capital raising
• Metcash share price and these ASX stocks just got upgraded by leading brokers

Motley Fool contributor Matthew Donald 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 Here’s why the Enero Group share price leapt 16% today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2XXci0P

The Byron Energy Ltd (ASX: BYE) share price has today soared higher following a strong operations update published by the company. The Byron share price was up 10.3% to 21.5 cents in intraday trading before edging back to its current price of 21 cents, at the time of writing.

What Byron Energy does

Byron’s business was established in 2005 and is focused solely on the outer Continental Shelf in the Gulf of Mexico. The company participates in the identification, analysis and leasing of suitable oil and gas prospects. The Byron team boasts extensive geological, geophysical and operational expertise in developing and operating properties in that region.

To this tune, Byron has a portfolio of operated and 100% working interest properties in the Gulf of Mexico, many of which are oil prone.

Operations update

The Byron share price has today been buoyed by positive drilling and pipeline activities. The company announced that it has completed operations on the Upper Sand in the SM58 G1 well. This is positive progress for the company as it aims to get the G1 well into production by 1 September. The well will be placed into production after all pipelines are operational and are tied into the production facility.

Also in the SM58 region, it was announced that the G2 well has begun drilling. The drilling is set to occur over a section where strong mudlog oil and gas amounts were observed.

As mentioned above, in order to get the operation underway, pipeline installation and topside work is necessary. Operations to lay all necessary oil and gas pipelines are now complete and the lines are currently being buried beneath the seafloor. However, the next phase of the project will entail making the pipeline connections to the platform risers. This is expected to be completed later this week.

CEO, Maynard V. Smith had this to say regarding the SM58 project:

“Our team implemented a very complex tie back and completion program in the G1 well with no operational issues. The fact we accomplished this task ahead of schedule and under budget is a direct result of exceptional upfront planning and excellent offshore execution.”

Foolish takeaway

The Byron share price has been a casualty of falling oil prices. This has seen the company’s share price fall to a low of 10.5 cents during the pandemic. However, the recent rebound in oil prices has been driving the Byron share price higher, with experts stating the upturn isn’t over yet.

Company shareholders will be hoping that this, along with strong management, can elevate the Byron share price to its former highs. However, despite the recent good news, this is still a long way off as the Byron share price sits at 21 cents – well below its 52-week high of 39 cents.

More reading

• 3 ASX small cap shares with serious growth potential
• 2 blue chip ASX dividend shares to buy
• What’s driving the surge in jewellery retailer Lovisa Holdings’ share price in August?
• Vmoto share price scoots 15% higher on successful capital raising
• Metcash share price and these ASX stocks just got upgraded by leading brokers

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

The post Byron share price erupts 10% on operations update appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3iC8B8I

ASX retail shares… it certainly hasn’t been a good year. Retail has been something of a dirty word in the investment world for a while now. It’s no secret that the advance of e-commerce has decimated large swathes of the traditional retailing landscape, both here in Australia and around the world.

Tech shares like Amazon.com, Shopify and our own Kogan.com Ltd (ASX: KGN) have made many investors stupidly wealthy over the past decade or so. But this has come largely at the expense of existing retailers that used to dominate the physical shopfront.

Some of you might be old enough to remember the heyday of shops like David Jones and Myer Holdings Ltd (ASX: MYR). David Jones left the ASX boards a while ago when it was sold to South Africa’s Woolworths Holdings (not to be confused with the Aussie grocer). But Myer’s descent has been very public. Roughly a decade ago, Myer shares were asking around $3 each. Today, Myer is effectively a penny stock with a share price of 21 cents at the time of writing.

So should investors avoid all ASX retail shares like the plague?

Well, not so fast.

I do think retail is a risky area to invest in these days, to be sure. It’s a sector in the middle of a massive structural shift – a shift that has been dramatically accelerated by the coronavirus pandemic. But I still think there are plenty of diamonds in the rough, so to speak. And if you can find such a diamond, it might be a lucrative investment.

Finding a diamond ASX retail share

If you’re considering investing in any ASX retail share, I would recommend asking 2 questions about your potential investment. One, does it have a robust and cutting edge online store? And two, does it have something special that keeps customers coming back for more?

JB Hi-Fi Limited (ASX: JBH) is one such ASX retailer in my view. JB was written off a few years ago as being effectively doomed in the face of Amazon. Its primary product range included CDs and DVDs – two product lines I think we can all agree don’t have a bright future.

But JB has done a remarkable job of proving its critics wrong. The company read the writing on the wall accurately and has spent the last decade diversifying into TVs, white goods, home appliances and gaming – all areas less prone to e-commerce disruption. Investors who wrote JB off also didn’t notice that its customers love shopping there, drawn in by things like friendly staff and folksy product recommendations. It also has an extensive, fluid and fun online store.

Investors who took a shot with JB shares in January last year are already up more than 100%. That just proves how betting against the crowd in retail can make you a fortune, if you do it correctly, of course.

Foolish takeaway

So if you have found a potential investment in the ASX retail space, I think asking yourself the kinds of questions we explored today is a great start. There is a lot of company’s on life support in retail right now. But finding the rare winners can be a great place to invest.

More reading

• 4 ASX shares to buy now for a post-coronavirus world
• Can the Kogan share price keep going?
• Top ASX dividend shares to buy in August 2020
• ASX reporting season reveals some upside surprises
• Why Kogan and these ASX shares just hit new record highs

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of 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.

The post How to find the rare ASX retail share winners appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2PNrHwj