Author: therawinformant

The Super Retail Group Ltd (ASX: SUL) share price won’t be going anywhere on Monday.

This morning the retail group requested a trading halt while it undertakes an equity raising.

What did Super Retail announce?

This morning Super Retail announced that it is launching an underwritten accelerated pro-rata non-renounceable entitlement offer to raise approximately $203 million at $7.19 per share. This represents an 8% discount to its last close price.

Management believes this equity raising will allow the company to continue to execute its strategy and pursue strategic growth initiatives.

It will also put Super Retail in a position to take advantage of changing consumer trends by returning capital expenditure to historic levels of ~$90 million per annum, even if a softer trading environment emerges.

This includes the company investing in its omni-retail digital customer experience and analytics, the supply chain to facilitate omni-channel sales growth, the further simplification of its business model, footprint optimisation and organic market consolidation, and increased supplier promotional activity.

Trading update.

Super Retail also provided the market with an update on its performance since the reopening of its stores.

Following a sharp decline in April, the company’s group sales rebounded strongly in May. Group like for like sales increased 26.5% in May compared to the prior corresponding period. As a comparison, group like for like sales fell 26.2% in April.

The Supercheap Auto and Rebel businesses have been doing the heavy lifting. Their sales are up 4.6% and 2.1%, respectively, for the 47 weeks to May 2020. This has offset 0.6% and 10% declines, respectively, in the sales of the BCF and Macpac businesses over the same period.

“Robust trading performance.”

Super Retail’s Chief Executive Officer and Managing Director, Anthony Heraghty, was pleased with the company’s performance during the pandemic.

He said: “We are very pleased with the robust trading performance of the Group despite COVID-19 and thank our team members for their dedication to the business during the pandemic. The execution of our strategy has continued during COVID-19, with our four core brands well positioned to take advantage of shifts in consumer behaviour that have been observed through the pandemic. The equity raising enables us to continue the execution of our strategy, further strengthen our omni-retail capabilities and continue to organically grow our four core brands.”

More reading

• These are the 10 most shorted ASX shares
• Cheap ASX 200 retail shares to buy today
• These are the 10 most shorted ASX shares
• Leading brokers name 3 ASX 200 shares to buy right now
• These are the 10 most shorted ASX shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail 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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It was another rollercoaster week for ASX shares as the recent bull run came to an end. The S&P/ASX 200 Index (ASX: XJO) closed the week 2.5% lower at 5,847.8 points.

But as always, a falling share market creates some great buying opportunities. Here are a couple of top ASX shares that I think could be trading cheaply today.

The Webjet Limited (ASX: WEB) share price 

One ASX share that got hit pretty heavily last week was Webjet Limited . Investors have been bullish on Aussie travel shares in recent weeks with the Webjet share price climbing 108.8% between 23 April and 9 June.

That strong momentum came to an end last week as Webjet shares crashed 12.03% lower. No one knows quite what the travel industry will look like in 2020 and beyond.

This means the ASX travel share could continue to be volatile in the weeks ahead. I still think its a speculative buy, especially given the recent share price doubling.

However, if travel rebounds quickly and Aussies are happy to spend their spare cash, Webjet could turn out to be a bargain at its current price of $3.94 per share (at the time of writing).

The Woodside Petroleum Limited (ASX: WPL) share price

I’ve also got my eye on ASX oil shares after some of the heavy falls we saw last week. In particular, The Woodside Petroleum share price slumped 8.52% lower to $21.37 per share. 

However, I think there are some positive signs for the Aussie oil and gas producer. With coronavirus restrictions easing and the economy warming up again, demand for oil could be set to surge.

Higher demand means higher oil prices which is good for corporate earnings. This could mean the Woodside share price is a cheap buy at its current price.

Foolish takeaway

These are just a couple of ASX shares that could be trading at ridiculously cheap prices in the current market.

More reading

• Gold mining shares – these are the facts and myths
• Is the Transurban share price a secret bargain?
• 3 ASX shares with 6% dividend yields to buy for income
• 50% off: these ASX 200 shares are dirt cheap today
• ASX winners and losers from last week

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended 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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More reading

• My ASX share for the week
• Why the Super Retail share price is in a trading halt
• Is the Webjet share price ridiculously cheap?
• Gold mining shares – these are the facts and myths
• Propel Funeral share price climbs higher after providing FY20 guidance

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Gold mining shares are widely misunderstood. Myths abound and many investors lose money. However, investors can protect their stake if they understand a few basic truths about gold and the companies that mine it.

Trying to work out which gold explorer is likely to see explosive growth is not for the faint-hearted. It takes considerable years of experience. You need to understand markets, currencies, metallurgy, as well as understanding who is who in the gold mining game.

Buy the breakout not the speculation

Instead of trying to pick winners before the event, invest in gold mining shares during the event. The investing community is filled with very smart and knowledgeable people. When they move, you should consider moving, too. In other words, the point where a gold mining share starts to rise is, perhaps, the perfect time to buy-in.

For example, within 1 month of its low point on 16 March, Gold Road Resources Ltd (ASX: GOR) had risen by more than 118%. At least double most other S&P/ASX 200 (INDEXASX: XJO) gold miners. Recognition of the company’s value as the newest producing gold company on the ASX.

Bellevue Gold Ltd (ASX: BGL) likewise burst forth from its COVID-19 low on 19 March to be 100% up within 1 month. The Bellevue share price, in particular, has risen another 71% up to last Friday. I personally expect Bellevue to be one of the great ASX performers over the next decade. 

Gold mining shares go up when everything goes down

Between 8 January 2010, and 10 January 2010, the ASX 200 rose by around 41% in a nearly continuous upward trend. During this exact same period, the gold price rose by 84% despite the absence of a sharp or prolonged downturn.

In fact, the best-performing ASX investment of the decade was Northern Star Resources Ltd (ASX: NST). The Northern Star share price rose by 375 times the initial investment between 10 January 2010 and 2 January 2020. The core truth here is that a good company is always a good company regardless of the commodity prices.

Over 90% of the world’s gold has been mined

This is definitely true given what we know of the disclosed gold reserves. Unfortunately, though the exact location and trading of most above-ground gold is a bit of a mystery. In addition, there are signs that several large central banks have been building their positions in gold recently.

As investors turn their interest to gold as part of a more balanced portfolio we will see more and more money chasing lower and lower levels of available gold. In addition, it pays to remember that gold doesn’t come from the earth.

Foolish takeaway

For me, physical gold is savings not investing. When I want to invest in gold I buy gold mining shares. The facts above should help to understand the gold market. For instance, buy the breakout, not the speculation. A good company is always a good company. Lastly, gold is becoming increasingly rare with much of it coveted and held by institutions and central banks. 

More reading

• Is the Transurban share price a secret bargain?
• 3 ASX shares with 6% dividend yields to buy for income
• 50% off: these ASX 200 shares are dirt cheap today
• ASX winners and losers from last week
• Where to invest $10,000 into ASX 200 shares immediately

Motley Fool contributor Daryl Mather owns shares of Bellevue Gold Ltd. 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 Propel Funeral Partners Ltd (ASX: PFP) share price is climbing this morning after the company delivered a trading update and provided FY20 guidance.

At the time of writing, Propel Funeral shares are up 4.51% to $3.01, reducing the company’s year-to-date share price loss to 11.47%.

What did Propel Funeral announce?

As previously disclosed, COVID-19 restrictions in Australia and New Zealand affected Propel’s ability to offer a full range of services to its clients.

As a result, the company’s comparable average revenue per user (ARPU) in the month of April fell by approximately 10% on the prior corresponding period.

However, the easing of funeral attendee limits in both countries contributed to an ~8% increase in ARPU in May compared to the previous month.

Propel expects ARPU to continue to increase as attendance limits at funeral services are progressively eased in Australia. Funeral attendance limits have now been increased to at least 50 mourners in most Australian states. Meanwhile, limits have been removed altogether across the pond in New Zealand.

As for funeral numbers, Propel’s total funeral volumes were approximately 1% higher in May compared to April. Additionally, the company expects to exceed 13,000 funerals in FY20, up from 11,304 in FY19. This includes part contribution from the acquisitions of Gregson & Weight and Grahams Funeral Services which were completed in November 2019.

In terms of cost-cutting, Propel’s previous trading updates in late March and early May detailed a number of strategies intended to mitigate the potential financial impacts of COVID-19. These measures included the deferral of non-essential capital expenditure, managing staff costs, and raising its liquidity position. Accordingly, at the end of April, Propel had $49 million cash on its books compared to just $6.7 million as at 31 December 2019. 

The company also revealed this morning that some of its businesses have received government subsidies.

FY20 guidance

Along with the trading update, Propel also shed some light on FY20 guidance this morning.

Stating it is on track for another record year, Propel quantified its expectations by providing revenue guidance of approximately $110 million. This compares to $95.1 million revenue achieved in FY19.

The company also provided guidance for earnings before interest, tax, depreciation and amortisation (EBITDA). It is expecting full-year operating EBITDA of approximately $32 million, up from $23.8 million in FY19.

Propel is set to release its FY20 full-year results in late August 2020. In the meantime, the company stated it will continue to monitor the impacts of COVID-19 on its teams, trading and suppliers.

More reading

• 3 ASX shares to buy and hold for the 2030s

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

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The Transurban Group (ASX: TCL) share price slumped 3.34% lower last week, but is the Aussie infrastructure group a secret buy?

What does Transurban actually do?

Transurban is entrenched inside the ASX 50 with a market capitalisation of $38.8 billion. But despite its size, the Aussie infrastructure giant isn’t talked about nearly as much as some of its ASX 200 peers.

Transurban operates 18 roads across Australia and North America. It also has seven major projects scheduled for completion over the next five years. I think this is one of the key reasons it could be a secret buy right now.

The Transurban share price is down 4.43% for the year. That means it’s still outperforming the S&P/ASX 200 Index (ASX: XJO) which has slumped 12.92% in 2020.

I like the company’s diversified earnings which are spread across Australia, Canada and the United States. This provides some operational diversity across each country as well as different currency exposure.

I think given the uncertainty right now, this could be a real advantage. Especially if restrictions continue to ease across the globe.

More people out and about is good for toll road operators. More traffic means more earnings and, most likely, a higher share price. Particularly since many people may be unwilling to use public transport due to fears surrounding coronavirus so are more reliant on their cars. 

The Transurban share price has still fallen lower this year despite what I see as some strong potential tailwinds.

Foolish takeaway

While some other ASX 200 shares have been in the spotlight, it feels to me like Transurban is being largely ignored.

That could mean the Aussie group is a secret bargain. Broad currency exposure, diversified operations and more potential traffic in the next 12 to 18 months seem like big positives.

No one knows whether the Transurban share price is set to rocket higher. However, I think the Aussie company could be a secret bargain ahead of its August earnings result.

More reading

• Gold mining shares – these are the facts and myths
• 3 ASX shares with 6% dividend yields to buy for income
• 50% off: these ASX 200 shares are dirt cheap today
• ASX winners and losers from last week
• Where to invest $10,000 into ASX 200 shares immediately

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of 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 has been a disappointing year for the Jumbo Interactive (ASX: JIN) share price.

The online lottery ticket seller and operator of the Oz Lotteries website has seen its shares fall ~25% since the start of 2020.

This poor form has culminated in the company being dumped out of the S&P/ASX 200 Index (ASX: XJO) at the next rebalance on 22 June.

Why is the Jumbo share price down 25%?

Investors have been selling Jumbo’s shares this year for a couple of reasons.

The first is its investment in growth opportunities, which is expected to temporarily soften its margins.

This was evident in its first half result when Jumbo delivered a 23% increase in revenue but a 14% lift in net profit after tax. Quite a contrast to previous years where its profit growth has thoroughly outpaced its revenue growth.

What else is weighing on its shares?

The other potential reason for its share price weakness is Tabcorp Holdings Limited (ASX: TAH) reporting quicker growth in its digital lottery ticket sales.

In the first half, the gambling company reported a 39.8% increase on the prior corresponding period. This compares to a 25% lift in transaction value by Jumbo during the half.

This has sparked fears that Tabcorp will be less reliant on Jumbo to sell its tickets in the future and could be in a stronger negotiating position when Jumbo’s reseller contract ends in 2022. The worst-case scenario would be Tabcorp showing Jumbo the door completely.

Though, it is worth noting that Tabcorp is a substantial shareholder in Jumbo and the two parties have worked together successfully for years. I feel this means it is unlikely to do anything that would impact the value of its shareholding.

In addition to this, with Jumbo expanding internationally, in the coming years it will be less reliant on the Australia market. In fact, it is thanks partly to its expansion plans that Jumbo is aiming to generate $1 billion in global ticket sales annually through its platform by FY 2022. This will be triple what it achieved in FY 2019.

Should you invest?

I’m optimistic that Jumbo and Tabcorp will extend their reseller agreement in 2022.

However, until this happens, the uncertainty is likely to weigh heavily on the company’s shares. This could mean they continue to underperform during the near term until things become clearer.

Nevertheless, I still believe Jumbo could be a great long term investment option for patient investors due to its sizeable global market opportunity.

Incidentally, this morning Jumbo requested a trading halt, pending the release of an announcement in relation to its reseller operations in Western Australia. No details have been released as of yet, but this could potentially shed some light on its future. I would suggest investors keep a close eye out for that announcement.

More reading

• ASX 200 down 2.2%: Westpac tumbles, TPG reveals special dividend plans
• Why Jumbo, Santos, Westpac, & Zip Co shares are crashing lower
• S&P quarterly rebalance: A2 Milk added to ASX 50 & NEXTDC in the ASX 100
• The Sezzle and Pointsbet share prices have hit new, all time highs. Time to invest?
• Could these ASX shares be the future dividend stars that make you rich?

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Jumbo Interactive Limited. The Motley Fool Australia owns shares of and has recommended Jumbo Interactive 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 The Jumbo share price is down 25% in 2020: Is it time to invest? appeared first on Motley Fool Australia.

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Top-quality ASX shares with strong dividend yields can be hard to come by in 2020. Many reliable dividend payers like the big banks have slashed dividends to conserve capital.

However, the recent bear market has hit many S&P/ASX 200 Index (ASX: XJO) constituents hard. That means that dividend yields have surged higher and many ASX dividend shares could be in the buy zone.

3 top ASX dividend shares 

Fortescue Metals Group Limited (ASX: FMG) is one of those ASX dividend shares right now.

The Fortescue share price has rocketed 72.6% higher since 9 March, but is still yielding a tidy 6.75% at the time of writing. With iron ore prices on the rise, Fortescue could be a bargain given its capital growth and income prospects.

Fortescue isn’t the only top ASX dividend share trading for a good price today. The Harvey Norman Holdings Limited (ASX: HVN) share price is trading at $3.54 per share with a 5.93% dividend yield.

Harvey Norman recently announced a 6 cents per share special dividend for shareholders. This came after a strong sales period during the coronavirus shutdown, as Aussies spent big on their home improvements and office setups.

Sticking with the retail theme, Scentre Group (ASX: SCG) is another ASX dividend share that’s worth watching, with a current dividend yield of 8.39%. 

Scentre shares have been on a rollercoaster ride in 2020 as investors try to work out the impact on real estate investment trusts (REITs) from the pandemic restrictions. 

Scentre owns and operates Westfield shopping centres across Australia and New Zealand. That means what is good for the retail sector is good for Scentre.

With restrictions starting to ease, we could see retail stores reopen for business and earnings bounce back. That means more stable tenants for Scentre, which could make it a strong dividend share in 2021 and beyond.

Foolish takeaway

These are just a few examples of top ASX dividend shares as we start this new week. Of course, dividend yields can be misleading right now, but I think the long-term picture is still good for many of these companies.

More reading

• Gold mining shares – these are the facts and myths
• Is the Transurban share price a secret bargain?
• 50% off: these ASX 200 shares are dirt cheap today
• ASX winners and losers from last week
• Where to invest $10,000 into ASX 200 shares immediately

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Scentre 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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The S&P/ASX 200 Index (ASX: XJO) slumped 2.5% lower last week as many ASX 200 shares plummeted.

Despite a strong bull run in recent months, investors were spooked towards the end of last week.

3 dirt-cheap ASX 200 shares to buy

Travel, media and oil are some of the sectors most affected by the coronavirus pandemic.

That’s been reflected in the hardest-hit Aussie shares on the market. For instance, the Southern Cross Media Group Ltd (ASX: SXL) share price has fallen 66.10% lower in 2020.

Southern Cross is a major media company with a number of interests in Australian television and radio.

The pandemic has hit the media sector hard with advertising revenues plummeting lower. Investors have been pessimistic about Southern Cross’ prospects this year and the Aussie media group could be trading dirt-cheap right now.

Another ASX 200 share worth watching is Flight Centre Travel Group Ltd (ASX: FLT). The Flight Centre share price fell 5.30% on Friday and is down 64.94% for the year.

Times are tough for the travel industry right now. Booking revenues have plummeted as airlines have collapsed and travel has been heavily restricted.

This sent the Flight Centre share price into freefall from mid-February onwards. Of course travel isn’t the only sector feeling the heat though, with ASX 200 oil shares also trading cheaply.

The Oil Search Limited (ASX: OSH) share price has slumped 53.43% lower this year. The shutdowns in both travel and manufacturing have reduced global demand for oil by a huge proportion.

Combined with an oil price war between OPEC+ and Russia, oil prices dived through the floor (literally) and went negative in April.

The volatility and global supply glut is bad for Oil Search’s earnings and sent the ASX 200 oil share tumbling lower to its current $3.29 valuation.

Foolish takeaway

These are just a few ASX 200 shares that could be trading dirt-cheap right now.

It is important, however, not to buy Aussie companies only because they’ve experienced share price falls. Often very smart investors are selling them for a reason, so you have to remember why you’re buying – to build long-term wealth.

The recent rally has boosted some share prices higher but there are still bargains if you are willing to take some risks.

More reading

• Gold mining shares – these are the facts and myths
• Is the Transurban share price a secret bargain?
• 3 ASX shares with 6% dividend yields to buy for income
• ASX winners and losers from last week
• Where to invest $10,000 into ASX 200 shares immediately

Motley Fool contributor Ken Hall 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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