Author: therawinformant

Up 30% in a week, is the Webjet share price a strong buy?
The Webjet Limited (ASX: WEB) share price jumped 5.6% yesterday and is now up 30% since last Monday. The Webjet share price has still been smashed in 2020 but is now seeing a strong recovery.

The big question for value investors is whether or not now is a good time to buy.

Why the Webjet share price is surging

This is a perplexing question. The Webjet share price is rocketing higher despite tight coronavirus restrictions across the country.

Prime Minister Scott Morrison was even quoted as saying internal borders may stay shut until Christmas.

That’s not good news for the travel industry but hasn’t stopped investors piling in to Webjet shares recently.

I believe some investors are thinking that part of the short-term danger has subsided.

It could be that large institutional backers are buying back in and betting that Webjet’s insolvency risk is subdued.

Whatever the reason, the Webjet share price has a lot of momentum behind it right now. So, is it a good time to buy?

Are other ASX travel shares in the buy zone?

I think Corporate Travel Management Ltd (ASX: CTD) has more to offer than the Webjet share price right now.

The Aussie travel share jumped 4.4% higher yesterday and is now up 121.5% since 19 March.

One reason I prefer Corporate Travel to Webjet is its significant earnings from the business and government sector.

This has proven to be more resilient compared to leisure bookings. But it’s not just Corporate Travel that I’d prefer to buy over Webjet right now.

Sydney Airport Holdings Pty Ltd (ASX: SYD) is another top travel share.

Sydney Airport straddles the line between travel and infrastructure given its significant underlying assets.

Shares in the Aussie airport are down 37.5% this year as the company taps investors for a $2 billion capital raising.

The group’s half-year earnings report contained some soft numbers but that was largely to be expected in the current climate.

Foolish takeaway

I won’t be buying into ASX travel shares just yet. I certainly don’t like to invest in things I don’t understand and the Webjet share price is one of those things.

I will, however, be keeping an eye out for the Aussie travel agency’s full-year earnings report in August.

These 3 stocks could be the next big movers in 2020

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and Webjet 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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11 August 2020
If you have $12,000, you should invest in these 3 ASX shares now
If you have $12,000 to invest into ASX shares then you’re in luck. There are plenty of quality options to choose from.

The share market has rebounded strongly from the COVID-19 share market selloff a few months ago. There are plenty of ASX share ideas where prices may have reached almost as high as they can reach in the medium-term such as Coles Group Limited (ASX: COL) and Afterpay Ltd (ASX: APT).

I want to invest in ASX shares where there’s likely to be strong profit growth over the long-term but the valuation still seems reasonable.

If I had $12,000 to invest, this is where I’d put the money into these ASX shares:

Share 1: Pushpay Holdings Ltd (ASX: PPH) $4,000

Pushpay is one of the most exciting ASX growth shares in my opinion. It helps large and medium US churches to receive electronic donations. This is very useful during this COVID-19 era considering all of the social distancing and restrictions that is going on in the country. Pushpay also offers a livestreaming service to its church clients so it can still connect with its congregation.

I think Pushpay has a lot of growth potential. It was generating growth before COVID-19 came along but the unfortunate circumstances have really brought forward the adoption curve.

In FY20 it grew its revenue by a third to US$129.8 million and in FY21 it’s expecting to at least double its earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) to US$50 million..

I’m impressed that its gross margin is growing at a strong rate – in FY20 its gross margin improved from 60% to 65%. I also thought its recent acquisition of Church Community Builder was a really smart move. The combined business has a stronger offering. The two businesses can also sell to each other’s customer base.

Over the long-term the ASX share is aiming for US$1 billion of annual revenue which would make Pushpay a much bigger business if it achieves the goal.

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

Share 2: Bubs Australia Ltd (ASX: BUB) – $3,500

I think Bubs is a quality business with a lot of growth potential. Its management have proven they can grow the infant formula business effectively. I like how it used acquisitions to secure its supply chain with its own Chinese-approved manufacturing facility.

The ASX share has grown strongly over FY20 despite the issues relating to COVID-19. FY20 revenue increased by 32% to $62 million. Its FY20 fourth quarter showed the international growth potential – Chinese direct sales increased 26% and other export market sales grew by 71%.

I’m not expecting Bubs to be as globally successful as one of its competitors, but I think it has a very long growth runway geographically. It can expand with new products like Vita Bubs and the organic grass-fed cow milk infant formula range.

Over the long-term I think this ASX share could grow substantially in size. The growing gross profit margin will help drive the bottom line higher.

Share 3: WAM Microcap Limited (ASX: WMI) – $4,500

WAM Microcap is a listed investment company (LIC) which targets ASX small caps with market caps under $300 million. It’s this hunting ground which can generate really strong long-term returns because not many investors are searching in this area.

The investment team at Wilson Asset Management (WAM) have proven to be very effective at delivering strong returns.

At 30 June 2020 its portfolio had made a gross return of 32.9% over the past three months and 15.9% per annum since inception in June 2017. I think the WAM team can continue to outperform over the long-term with the investment style and focus on ASX growth shares.

Another of the attractive things about the LIC is the good dividend payments. WAM Microcap is growing its ordinary dividend and it keeps paying special dividends.

At the current WAM Microcap share price it offers a grossed-up dividend yield of 5.75%.

Foolish takeaway

I think each of these ASX shares are capable of producing strong returns over the next five years. WAM Microcap offers great diversification, but I believe both Pushpay and Bubs can grow into much larger businesses over time.

These 3 stocks could be the next big movers in 2020

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

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Tristan Harrison owns shares of WAM MICRO FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended BUBS AUST FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO and COLESGROUP DEF SET. The Motley Fool Australia has recommended 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.

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11 August 2020
Unusually Large AMD Option Trades Suggest Stock Could Be Headed Even Higher

Semiconductor stocks have performed well in 2020. However, Advanced Micro Devices, Inc. (NASDAQ: AMD) has been one of the hottest stocks in the market due to its exposure to gaming and the repeated stumbles of top competitor Intel Corporation (NASDAQ: INTC).On Tuesday, large option traders were making some huge bets that AMD's 90% rally off the March lows is far from over.The Trades: On Tuesday, Benzinga Pro subscribers received 28 option alerts related to unusually large trades of AMD options. Here are a handful of the largest: * At 9:39 a.m., a trader bought 334 AMD call options with a $85 strike price expiring on March 19, 2021 near the ask price at $12.68. The trade represented a $423,512 bullish bet. * At 10:39 a.m., a trader bought 500 AMD call options with a $55 strike price expiring on Oct. 16 at the ask price of $26. The trade represented a $1.3 million bullish bet. * At 10:47 a.m., a trader sold 373 AMD put options with an $80 strike price expiring on Jan. 15, 2021 near the bid price at $12.201. The trade represented a $455,097 bullish bet. * At 11:47 a.m., a trader bought 711 AMD call options with an $80 strike price expiring on Oct. 16 at the ask price of $7.39. The trade represented a $525,429 bullish bet.Of the 28 total large AMD option trades on Tuesday morning, 21 were calls purchased at or near the ask or puts sold at or near the bid, trades typically seen as bullish. Seven trades represented calls sold at or near the bid or puts purchased at or near the ask, trades typically seen as bearish. The five largest trades of the morning were all bullish in nature.Why It's Important: Even traders who stick exclusively to stocks often monitor option market activity closely for unusually large trades. Given the relative complexity of the options market, large options traders are typically considered to be more sophisticated than the average stock trader.Many of these large options traders are wealthy individuals or institutions who may have unique information or theses related to the underlying stock.Unfortunately, stock traders often use the options market to hedge against their larger stock positions, and there's no surefire way to determine if an options trade is a standalone position or a hedge. In this case, given the relatively large sizes of the largest option trades, they could certainly represent institutional hedging.AMD On The Path To $100? AMD reported 26% revenue growth in the second quarter, the same quarter Intel said it found a flaw in its 7-nanometer chip manufacturing process and may be forced to rely on third-party manufacturing. Intel has lagged AMD in GPU technology for the past several years, allowing AMD to eat into its leading market share.On Monday, Jefferies reiterated its Buy rating for AMD and raised its price target from $95 to $135, suggesting another 69% upside from current levels."As it does, we think that the bull case for AMD, which is based largely on AMD capturing 30% share from INTC over the next 2-to-3 years, will morph to a 50% market share bull case 4-to-5 years out," analyst Mark Lipacis said. AMD Chart by TradingView new TradingView.widget( { "width": 680, "height": 423, "symbol": "NASDAQ:AMD", "interval": "D", "timezone": "Etc/UTC", "theme": "light", "style": "1", "locale": "en", "toolbar_bg": "f1f3f6", "enable_publishing": false, "allow_symbol_change": true, "container_id": "tradingview_940f9" } ); Benzinga's Take: Tuesday's large option trading was heavily skewed to the bullish side, suggesting deep-pocketed traders are expecting more good news from AMD and potentially bad news from Intel in the coming months. The $1.3 million call purchase has a break-even price of $81, suggesting at least 2.5% upside for the stock over the next two months.Related Links:UPS Option Trader Bets M The Stock's Huge Rally Isn't Over How To Read And Trade An Option AlertSee more from Benzinga * Semiconductor Short Sellers Take 0M Hit From AMD Earnings Beat * What Mark Cuban Says Could Be The Greatest Threat To America's Tech, Military Future * Nvidia Option Trader Bets .3M On Near-Term Upside(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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11 August 2020
Stock market news live updates: Stock futures open higher; Moderna, Tesla shares soar in late trading

Stocks opened higher Tuesday evening, after a choppy session earlier sent the S&P 500 within striking distance of a record close before the the blue-chip index lost steam and declined.

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11 August 2020
Tesla Splits Stock to Make Lofty Shares Attainable Again

(Bloomberg) — Tesla Inc. is splitting its elevated shares in a 5-for-1 exchange, a move timed to make the stock price less expensive for individual investors after becoming the world’s most valuable automaker. Its shares surged on the news in aftermarket trading.Each shareholder of record on Aug. 21 will receive a dividend of four additional shares of common stock for each share, the Silicon Valley electric-car manufacturer said Tuesday. Trading will begin on a split-adjusted basis on Aug. 31.The split is a time decision to capitalize on Tesla’s recent surge, which has pushed its valuation to around $256 billion, surpassing the value of Ford Motor Co. and Toyota Motor Corp. combined. With a price as as high as $1,643 in recent weeks, the shares are beyond the reach of many smaller stock investors just as the EV industry is capturing their imagination.Analysts praised the move as a timely decision to capitalize on Tesla’s recent stock price surge.“At a time where the appetite for the stock and overall EV story continues to gain momentum, I think it’s a smart move,” said Dan Ives, an analyst at Wedbush who rates the shares the equivalent of a hold. Tesla’s move follows a similar split by Apple Inc., which Ives said other tech giants are likely to emulate.Apple announced a 4-for-1 stock split after the close on July 30 and retail traders have piled in to bet on further gains.More Accessible Tesla has been a favorite stock for day traders and other retail investors, who have helped boost the shares to record highs. At one point last month, nearly 40,000 Robinhood account holders added shares of the automaker during a single four-hour span. That helped spawn a boom in shares of other electric-car companies — even those that have yet to actually produce a vehicle.Credit Suisse analyst Dan Levy said in a note to investors that the split makes the shares more accessible to both retail investors and Tesla employees, noting the high stock price “may have been a barrier for retail” investors.At its peak on July 20, Tesla’s stock price was more than quadruple a March low of $361.22. Some of those gains came amid speculation the automaker is likely to join the S&P 500 after it reported the latest in a string of profitable quarters, making it a true blue-chip and a must-buy for mutual and exchange-traded funds that seek to mimic that benchmark stock index.In aftermarket trading Tuesday, Tesla rose as much as 8.4% to $1,490.The timing of the split may have come as a surprise to close followers of Tesla Chief Executive Officer Elon Musk’s Twitter feed. He was asked on June 30 whether he had any thoughts about a Tesla stock split and said it was worth discussing at the company’s annual meeting, which isn’t until Sept. 22(Updates with analyst comments from third paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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11 August 2020
Vir Biotech to begin mid-to-late stage study of COVID-19 drug candidate in August

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11 August 2020
Biden saved big bucks using payroll tax loophole

Joe Biden used a tax strategy to evade paying hundreds of thousands of dollars in payroll taxes, as he criticizes President Trump’s plan for a payroll tax deferral.

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11 August 2020
ASX gold miners on watch after gold price crashes lower
It could be a challenging day of trade for many of Australia’s leading gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) on Wednesday.

This follows a shocking night of trade for the spot gold price, which crashed materially lower following a return of risk appetite.

What happened to the gold price?

According to CNBC, the spot gold price has crashed 5.8% lower during overnight trade to US$1,921.8 an ounce. This is over US$150 lower than Friday’s record high of US$2,072.5 an ounce.

The silver price hasn’t fared well, either. The fellow safe haven asset is down a massive 15% to US$24.86 an ounce at the time of writing. This could be bad news for South32 Ltd (ASX: S32). Its shares have been rising on the back of the improving silver price in recent weeks.

Analysts believe the improving risk appetite is due to better than expected economic data and news of a potential Russian coronavirus vaccine.

Edward Moya, senior market analyst at broker OANDA, told CNBC: “This feels like a mini crash. We could not overcome the early morning headlines of a Russian potential vaccine, and there was just continued optimism flowing into stocks.”

This sentiment was echoed by Bart Melek at TD Securities. He told clients: “The precious metals complex was driven by a drop in rates, a steady increase in inflation expectations and a falling U.S. dollar. The rally is now giving up some of these gains as these drivers lose momentum.”

Mr Melek also notes that the trade became crowded, which is why the pullback has been particularly severe.

“Speculators and Commodity Trading Advisors (CTAs) are reducing their gold and silver exposure, as volatility trends higher and as they take profits out of a crowded trade,” he explained.

Given how strongly the shares of Evolution Mining Ltd (ASX: EVN), Saracen Mineral Holdings Limited (ASX: SAR), and other gold miners have rallied in recent months, it unfortunately looks set to be a very red day for their shares on Wednesday.

These 3 stocks could be the next big movers in 2020

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

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

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11 August 2020
Gold, silver have worst day since March

Invesco Global Market Strategist Brian Levitt joins Yahoo Finance’s Kristin Myers to discuss his market outlook amid hopes for a vaccine and further stimulus.

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11 August 2020
5 things to watch on the ASX 200 on Wednesday
On Tuesday the S&P/ASX 200 Index (ASX: XJO) continued its positive run and pushed higher again. The benchmark index rose a solid 0.5% to 6,138.7 points.

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

ASX 200 expected to edge higher.

It could be another positive day for the ASX 200 on Wednesday, despite a poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is set rise 5 points or 0.1% at the open. On Wall Street, the major indices gave back their gains to end the day deep in the red. The Dow Jones fell 0.4%, the S&P 500 dropped 0.8%, and the Nasdaq index fell 1.7%.

CBA FY 2020 results.

The Commonwealth Bank of Australia (ASX: CBA) share price will be in focus today when it releases its full year results for FY 2020. According to a note out of Goldman Sachs, its analysts expect the bank’s FY 2020 cash earnings from continued operations (pre-one offs) to come in at $7,815 million. This represents an 8% decline on the prior corresponding period. The broker is forecasting a final dividend of 100 cents per share.

Afterpay block trade.

The Afterpay Ltd (ASX: APT) share price will be on watch today after one of the biggest black trades of the year occurred after market on Tuesday. According to the AFR, an institutional investor was very keen to get a slice of Afterpay, grabbing 2.85 million shares for $71.50 each. This was a 1.9% premium to the closing price and a total consideration of $203 million. Given that the trade was undertaken by Goldman Sachs, it could be a sign that Tencent Holdings has been increasing its stake. Goldman bought a 5% stake for the WeChat owner earlier this year.

Oil prices drop.

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could drop lower today after oil prices came under pressure overnight. According to Bloomberg, the WTI crude oil price is down 0.65% to US$41.67 a barrel and the Brent crude oil price has fallen 0.8% to US$44.63 a barrel. Oil prices were charging higher before giving back their gains and more during a volatile session.

Gold price crashes.

It could be a difficult day of trade for gold miners including Newcrest Mining Limited (ASX: NCM) and Saracen Mineral Holdings Limited (ASX: SAR) after the gold price crashed lower. According to CNBC, the spot gold price has crashed 5.5% to US$1,924.2 an ounce after a return of risk appetite following encouraging economic numbers and a supposed Russian coronavirus vaccine.

These 3 stocks could be the next big movers in 2020

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

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

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11 August 2020