Author: therawinformant

The Zip Co Ltd (ASX: Z1P) share price has been a very strong performer again on Wednesday.

In morning trade the payments company jumped a further 30% to a record high of $6.74.

This means the Zip Co share price is now up a massive 81% over the last two trading days.

Why is the Zip Co share price up 81% in two days?

The catalyst for this strong gain was a major announcement by the buy now pay later (BNPL) provider on Tuesday.

That announcement reveals that Zip Co has entered into an agreement to acquire New York-based buy now pay later provider QuadPay. This deal will see the company go head to head with Afterpay Ltd (ASX: APT) in the United States market.

What is QuadPay?

QuadPay is a leading, high growth, instalment provider disrupting the credit card industry. It has a strong focus on innovation and customer centricity.

It has 1.5 million customers and 3,500 merchants on its platform. From these it is currently generating annualised total transaction value of over $900 million and annualised revenue of $70 million.

As with Afterpay, QuadPay splits purchases into four interest free repayments over a period of six weeks.

How is Zip Co funding the deal?

Zip Co intends to fund the deal through the issue of shares. If shareholders vote in favour of the acquisition at an upcoming extraordinary general meeting, the company will issue approximately 119 million Zip Co shares to QuadPay stockholders. This will represent the equivalent of 23.3% of the issued share capital of Zip at completion.

This implies an enterprise value of approximately US$269 million or A$403 million.

That won’t be the only thing shareholders are voting on. To support its expansion into a U.S. retail market estimated to be worth $5 trillion per year, the company intends to raise funds via the issue of convertible notes.

Zip Co has entered into an agreement with CVI Investments, Inc., an affiliate of Susquehanna International, to raise up to $200 million by way of the issue of convertible notes and the exercise of warrants. These convertible notes have an initial conversion price of $5.5328, which was a 47.7% premium to Friday’s close price.

Is it too late to invest?

I think this acquisition is a big positive for Zip Co and the U.S. market could be a key driver of growth for the company in the future.

However, although I’m a big fan of the company, I feel its shares are looking fully valued now after this strong gain. As such, I would class Zip Co as a hold until it starts to demonstrate that it can crack the U.S. market like Afterpay has.

More reading

• Afterpay and these top ASX tech shares are on fire in 2020
• ASX 200 rises 0.3%, Zip rockets higher
• These ASX shares were among the best performers in May, surpassing the ASX 200
• Zip Co share price rockets 44% higher on U.S. expansion news
• The 3 ASX tech stocks that helped this fund manager outperform in May

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 ZIPCOLTD FPO. 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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The Infigen Energy Ltd (ASX: IFN) share price is flying higher this morning in response to a takeover bid.

Infigen is a provider of renewable energy. The company generates renewable energy from its owned wind farms in New South Wales, South Australia and Western Australia. It also sources renewable energy from third-party renewable projects.

Infigen holds energy retailing licenses in the National Electricity Market regions of Queensland, NSW, ACT, Victoria and SA.

Why the Infigen Energy share price is going gangbusters

This morning, UAC Energy announced a takeover bid for Infigen Energy. UAC is an investment holding company owned by the AC Energy Group (a subsidiary of Ayala Corporation in the Philippines) and UPC Renewables Australia.

UAC intends to make an off-market takeover bid of 80 cents per Infigen stapled security. This offer represents a 35.59% premium to yesterday’s closing price of 59 cents and implies total equity value of $777 million.

UAC pointed out that the Infigen share price has not closed higher than 80 cents since August 2017. It believes the offer price is attractive and “presents compelling value in the context of the price performance of Infigen stapled securities”.

Commenting on the attractiveness of the offer more specifically, UAC said: “The Offer is particularly attractive in the context of recent falls in electricity prices as well as Infigen’s relatively high debt servicing costs, its limited track-record in paying distributions and decisions taken by Infigen to suspend investment in a number of projects and defer the delivery of its development pipeline.”

UAC also announced this morning it has acquired an aggregate interest in 12.82% of Infigen stapled securities. This consists of beneficial ownership of 9.9% and economic interest in a further 2.92% via a total return swap.

What now?

The offer will be subject to a number of conditions, including approval from the Foreign Investment Review Board. However, it will not be subject to a minimum acceptance condition.

UAC intends to provide a copy of the bidder’s statement to Infigen securityholders “in due course”. The statement will contain key information such as reasons to accept the offer and instructions on how to accept the offer.

Infigen is yet to release an announcement of its own regarding the takeover bid. At the time of writing, the Infigen share price has rocketed 35.59% higher to 80 cents, on par with UAC’s offer price of 80 cents.

More reading

• Can ASX 200 retail shares outperform this year?
• How I’d invest my first $500 into ASX shares
• 1 ASX 200 tech share to buy and hold for a decade
• Why I think the Vanguard Australian Shares Index ETF share price is a buy
• The Zip Co share price just zoomed to a record high: Is it too late to invest?

Motley Fool contributor Cathryn Goh 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 Infigen Energy share price rockets 36% higher following takeover bid appeared first on Motley Fool Australia.

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Last week, Prime Minister Scott Morrison gave a 1-hour speech that outlined ways the government would work to create jobs within the Australian economy. This will be known as the JobMaker program and will include changes to industrial relations (IR) laws, along with skills and training.

The 3 S&P/ASX 200 Index (ASX: XJO) shares discussed below have seen a significant amount of their gains in recent years absorbed by higher wages. If new IR laws come into play that allow a reduction in these wage bills, these companies could potentially have the capacity to pay higher dividends to shareholders.

Telstra Corporation Ltd (ASX: TLS)

Telstra is Australia’s largest telecommunications company providing physical networks, hardware, mobile, voice and internet services. In the half year to December 2019, Telstra paid $2.17 billion in labour costs. That’s almost double its net profit of $1.15 billion.             

According to its annual report, Telstra has a highly skilled workforce of 29,769 full-time employees, many of whom are likely receiving pay rises every year. This can erode profits and is significant given that Telstra’s wages bill forms such a large amount of its expenses.

Last year, Telstra came close to a strike by some of its employees. It averted the action by offering better conditions and pay rises. Over the last year, Telstra paid dividends of 16 cents per share, fully franked. If the group sees reworked IR laws, it may have scope to reduce its labour bill and increase dividends.

BHP Group Ltd (ASX: BHP)            

BHP is an Australian-based global mining and energy giant. It has 72,000 employees, many of which are in Australia and work in highly skilled mining roles. Recent enterprise agreements proposed by BHP were struck down by the Fair Work Commission. If enterprise agreements that are more favourable for BHP are introduced and accepted due to reworked IR laws, it could see its wages bill reduced. This should lead to higher dividends.

In its latest annual report, BHP set out that it aims for no lost time due to industrial action. While this may help to keep production levels high, it also means that BHP may often be at the mercy of unions in negotiating collective agreements. Reworked IR laws will potentially make it easier for BHP to negotiate agreements with workers, with less fear of industrial action.

At the time of writing, BHP trades on a trailing dividend yield of 5.97% fully franked. This works out to about $6.2 billion in the last year. Payments to employees were $6.06 billion, therefore any reductions in wages could be favourable for shareholders.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is an Australian conglomerate with interests in retail, coal mining, chemicals and fertilisers. It owns distinctive retail brands including Bunnings, Target, Kmart and Officeworks. Wesfarmers is one of the largest employers in Australia with 223,000 employees. Many of those employees are skilled and covered by collective agreements. These are the types of agreements the Prime Minister may be targeting, as they often include penalties and loading for weekend or overtime work. 

In 2019, Wesfarmers paid $4.14 billion in remuneration for continuing operations. This was a significant 5.67% increase on the prior year. Revenue on the other hand only increased 4.3% over the same period. Net profit after tax was $1.9 billion in 2019, less than half the amount paid out in wages.

Wesfarmers has a trailing dividend yield of 3.72% fully franked. If penalties and overtime are targeted as part of the JobMaker package, this could improve significantly. This is especially significant for Wesfarmers given the amount they pay out in wages each year.

Foolish takeaway

The details of the JobMaker program have not been released, however, investors could profit from getting in early. If the Prime Minister does change industrial relations laws in a way that is favourable for companies like these, it could mean a solid increase to dividends.

More reading

• Why the Vocus share price can race ahead later this month
• Is the BHP share price cheap right now?
• 5 things to watch on the ASX 200 on Wednesday
• This embattled ASX 200 company could be the next M&A target
• ASX 200 rises 0.3%, Zip rockets higher

Motley Fool contributor Chris Chitty 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 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.

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If you’re looking to add one or two small cap ASX shares to your portfolio in June, then I think the two listed below are worth considering.

Here’s why I think these small caps could be destined for big things in the future:

Bigtincan Holdings Ltd (ASX: BTH)

Bigtincan is a $276 million tech company which provides enterprise mobility software to businesses. This software help improve mobile worker productivity and has a track record of increasing sales win rates and reducing costs. Unsurprisingly, this has gone down well with businesses and a growing number of blue chips are using its software. This includes one of the big four banks, Australia and New Zealand Banking GrpLtd (ASX: ANZ).

Pleasingly, its strong growth has continued unabated during the pandemic. Management recently reaffirmed that it is on track to achieve its 30% to 40% organic revenue growth target in FY 2020, with stable retention. I think this makes it one of the best small cap ASX shares on the local market.

ELMO Software Ltd (ASX: ELO)

Another small cap ASX share which I think could grow strongly over the next decade is ELMO Software. It is a $560 million software company which provides businesses with a cloud-based human resources and payroll software solution. This unified solution is proving very popular with businesses that are wanting to streamline everyday processes such as payroll, recruitment, and learning.

ELMO recently completed a $70 million placement, with the proceeds being used to accelerate organic growth initiatives and to fund acquisition opportunities. I believe these funds could be used to expand internationally in the future as well. Not that it necessarily needs to. Management estimates that the ANZ market is worth $2.4 billion. This compares to its FY 2020 revenue guidance of $50 million to $52 million, which will be up 17.4% to 22% year on year. I think this makes ELMO a small cap to watch.

More reading

• ASX 200 rises 0.3%, Zip rockets higher
• ASX 200 down 0.1%: Big four banks drag ASX lower ahead of RBA meeting
• ANZ share price climbs higher on asset sale
• The big oil price recovery and bounce in ASX oil stocks are bringing out the bears
• How to value the big four ASX banks

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 BIGTINCAN FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Elmo Software. The Motley Fool Australia owns shares of and has recommended Elmo Software. The Motley Fool Australia has recommended BIGTINCAN 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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Yesterday, the Amaysim Australia Ltd (ASX: AYS) share price was making headlines after the company responded to media speculation regarding the potential sale of its energy business, causing shares to surge.

The Amaysim share price is charging higher again today but for a different reason. For some background, Amaysim is a subscription utility provider, delivering mobile and energy plans to customers around the country. The company launched in 2010 and is Australia’s fourth-largest mobile service provider.

What did Amaysim announce?

This morning, Amaysim announced it has signed a binding agreement to acquire ~77,000 mobile subscribers from mobile virtual network operator (MVNO) OVO Mobile.

OVO is the largest independently-owned, asset-light Australian MVNO, other than Amaysim. It uses the Optus network, like Amaysim, and offers pre-paid plans on a month-to-month basis without any lock-in contracts.

Amaysim expects the transaction to be completed “imminently” and for a maximum consideration of $15.8 million.

More than 74,000 of the acquired subscribers are recurring, thus accelerating one of Amaysim’s strategic initiatives to grow its recurring mobile subscriber base. This takes Amaysim’s recurring mobile subscriber base to 821,000 as at 31 May 2020, up from 726,000 as at 20 February 2020. Including the non-recurring subscribers acquired from OVO, Amaysim’s total mobile subscriber base was 1.17 million as at 31 May 2020.

For some more context, at 31 December 2019, Amaysim had 706,000 recurring mobile subscribers and 1.05 million total subscribers.

Amaysim expects to complete the migration of OVO subscribers in less than 4 months. The company has experience in this area after recently migrating around 42,000 Jeenee subscribers in less than 3 months. 

Amaysim expects the acquisition to be earnings accretive in FY21, with an increased earnings contribution in FY22 and beyond. It will be funded by a mixture of debt and cash reserves.

Guidance update

Along with the OVO acquisition, Amaysim also shed some light on its guidance for FY20. In spite of the challenges currently facing the economy, the company is pleased with the performance of the overall energy and mobile businesses in the second half of FY20.

On the energy front, Amaysim reported 209,000 energy subscribers as at 31 May 2020, up from 201,000 as at 31 December 2019.

The company confirmed it is on track to achieve full-year underlying EBITDA within the guidance range of $33 million to $39 million.

The Amaysim share price jumped 15.27% at the open and is currently sitting 18.06% higher at the time of writing at 42.5 cents per share.

More reading

• Why Amaysim, Bingo, Brickworks, & BlueScope are pushing higher today
• Amaysim share price flies 22% higher after confirming interest in its energy business

Motley Fool contributor Cathryn Goh 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 Amaysim share price soars 18% on mobile subscriber acquisition appeared first on Motley Fool Australia.

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Is the Westpac Banking Corp (ASX: WBC) share price a buy?

The Westpac share price has risen by 12.3% over the past two weeks. Not bad for a business that a lot of investors are counting out.

I suppose the market is simply saying that the Westpac’s troubles won’t be quite as bad as previously expected.

The Westpac share price is still down 40% compared to where it was before. That’s a large decline. There have been quite a few leadership changes within Westpac recently. Hopefully that’s a positive sign of renewal rather than anything else.

It’s not too surprising that the Westpac share price has dropped so hard. The recent Westpac FY20 half-year result outlined a number of the issues.

The statutory profit dropped 62% to $1.19 billion and cash earnings were down 70% to $993 million. When you exclude notable items, cash profit was still down 44%.

A significant part of the decline came about from higher impairment charges due to COVID-19. Westpac’s provisions for expected credit losses increased to $5.8 billion which included $1.6 billion of additional impairment charges predominately related to COVID-19 impacts.

Another problem that Westpac provisioned for is the upcoming AUSTRAC penalty. The bank has provisioned $900 million. Some don’t think that’s a big enough number.

What will cause the Westpac share price to rise further?

The recent news that not as many people are on jobkeeper as previously expected was positive. That’s a good sign for the overall economy and it hopefully means there would be less bad debts for the bank. That’s seemingly what caused the Westpac share price to rise over the past fortnight.

But beyond that, investors are waiting for more signs of a recovery for the banking sector. We’re still quite early into this crisis. Australia has been fortunate compared to most places in the world when it comes to the spread of the coronavirus. It will take a while for the full effect of the restrictions to be felt economically across the country.

The rest of the world is still going through the pandemic, so there could be more economic pain to wash through the global economy. Westpac will also have to come to terms with the very low interest rate which may harm the net interest margin (NIM) for some time.

How long will it take the Westpac share price to return to above $25? It could take a very long time. But if Australia’s banking system is safer than expected, there could be a bit more value at the current level. I’m not making that bet yet though.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 down 0.1%: Big four banks drag ASX lower ahead of RBA meeting
• How to value the big four ASX banks
• 5 things to watch on the ASX 200 on Tuesday
• I don’t normally buy ETFs, but I would buy these 2

Motley Fool contributor Tristan Harrison 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 Is the Westpac share price a buy? appeared first on Motley Fool Australia.

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Its larger rivals have been stealing the spotlight from the Vocus Group Ltd (ASX: VOC) share price. But this may be about to change this month.

This is the prediction by Morgan Stanley, which is tipping a re-rating in the telecom services group’s share price when management provides an update in June.

If that comes to pass, it will be Vocus’ turn to have its 15 minutes in the sunshine. Investors are preoccupied with the merger of TPG Telecom Ltd (ASX: TPM) and Vodafone Australia, and the impact of that on the Telstra Corporation Ltd (ASX: TLS) share price.

Debt and earnings update

The cloud hanging over Vocus is the state of its balance sheet. Management is scheduled to provide an update on the refinancing of its $1.1 billion debt facility before the end of the month.

Morgan Stanley believes it will use the opportunity to update the market on its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) guidance too.

Vocus reiterated its FY20 EBITDA forecast of between $359 million and $379 million back in February at its half year results announcement. This compares to the average broker estimate of $367 million.

“For perspective, the last time VOC refinanced their debt, in Apr 2018, VOC shares rallied +21% over the next three weeks (vs. XJO +4%), as the risk of an equity raising was reduced,” said Morgan Stanley.

XJO refers to the S&P/ASX 200 Index (Index:^AXJO).

Best outcome

There are three potential outcomes from the upcoming Vocus update, according to the broker. Firstly, Vocus will successfully refinance its debt and reaffirm its EBITDA guidance.

This will lift market confidence in both its financial health and FY21 outlook with consensus pencilling in a $388 million figure.

Two other scenarios

The second scenario sees debt refinanced but the EBITDA guidance lowered by 2.5% to the midpoint of management’s guidance. This outcome will provide certainty on the group’s balance sheet but slightly weaken confidence in its FY21 outlook.

Under the third scenario, Vocus will launch a capital raising and downgrade its EBITDA guidance by 5%. This will see shareholders diluted and consensus downgrading forecasts for the next financial year.

Re-rating opportunity

The first scenario is the most bullish one and Morgan Stanley believes the stock will jump 13% from yesterday’s closing price of $3.10 to $3.50.

The broker believes this is the most likely outcome because management made good progress in turning the business around since the last refinancing exercise two years ago and there’s less earnings risk given this is the last month of FY20.

If there was bad earnings news, one would think the company would have already announced it due to the continuous disclosure obligation.

Worst case doesn’t look so bad

But even under scenario two, the impact on the Vocus share price may not be as bad as you’d think. The broker thinks the stock could also climb higher to $3.30 a share as that puts it on a price-earnings multiple of 18 times.

In the last and most bearish scenario, the stock is tipped to fall to $2.55.

However, I would point out that ASX companies that have undertaken a capital raise in the midst of this COVID-19 pandemic have outperformed after the raise.

So even if Vocus goes cap in hand to shareholders and the share price falls, this could also prove to be a buying opportunity.

More reading

• JobMaker is coming. These 3 ASX 200 shares could benefit
• Is the BHP share price cheap right now?
• 5 things to watch on the ASX 200 on Wednesday
• This embattled ASX 200 company could be the next M&A target
• ASX 200 rises 0.3%, Zip rockets higher

Motley Fool contributor Brendon Lau owns shares of Telstra Limited and TPG Telecom Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why the Vocus share price can race ahead later this month appeared first on Motley Fool Australia.

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If you’re lucky enough to have $50,000 in a savings account and no immediate use for it, then I think you should consider investing it into the share market with a long term view.

This is because you could turn these funds into a life-changing sum thanks to a combination of time and compound interest.

How is this possible?

As of the end of 2019, the Australian share market had provided investors with an average annual return of 9.5% over the last 30 years.

While we may not have started 2020 in a positive fashion, I remain confident that the local share market will deliver a similar level of return over the next three decades.

If this proves to the case, then a $50,000 investment could grow materially over the period.

For example, if you were to invest the $50,000 into the share market and earn the same return, you would have ~$125,000 in 10 years, ~$310,000 in 20 years, and then ~$760,000 in 30 years. That’s all from just a single investment.

If you’re happy with this potential return, then you could simply look to invest in an exchange traded fund (ETF) that tracks the S&P/ASX 200 Index (ASX: XJO). The BetaShares Australia 200 ETF (ASX: A200) allows investors to do this.

Another option is the Vanguard Australian Shares Index ETF (ASX: VAS), which gives investors exposure to the 300 shares listed on the S&P/ASX 300 index.

What if you beat the market?

Now, imagine if you could outperform the share market by a small margin each year.

Instead of an average annual return of 9.5%, what would happen if you achieved a return of 11.5% per annum?

With this level of return, your $50,000 investment in 2020 would be worth ~$150,000 in 10 years, ~$440,000 in 20 years, and a massive ~$1.3 million in 30 years.

While beating the market is hard, it is possible. Shares like REA Group Limited (ASX: REA) and ResMed Inc. (ASX: RMD) have consistently beaten the market over the last 15 years and appear well-positioned to continue this trend over the next decade.

The key is identifying companies with strong business models, positive long term outlooks, and competitive advantages.

More reading

• 3 high quality ASX blue chip shares to buy in June
• 3 founder-led ASX shares to buy for strong long-term returns
• 3 investing secrets for success with ASX shares
• ASX 200 investor in your 40s? 3 shares to buy now
• I don’t normally buy ETFs, but I would buy these 2

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group Limited and ResMed Inc. 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 BHP Group Ltd (ASX: BHP) share price has had a rollercoaster start to 2020. Shares in the Aussie iron ore miner are down 9.02% in 2020 but are still managing to outperform.

For context, the S&P/ASX 200 Index (ASX: XJO) has slumped 12.70% from where it began the year.

The BHP share price has started to gain some momentum in recent weeks. It’s currently the largest ASX 200 share by market capitalisation and is valued at $165.5 billion.

But with all that’s happening in the global and domestic economy, is BHP a cheap share to buy right now?

Why the BHP share price could be cheap today

I think it’s fair to say I’ve never been a huge resources sector investor. I am bullish on the future of renewable energy and the role that graphite, manganese and aluminium can play in that future.

However, ASX resources shares can be tough to value. Anything that relies on commodity prices as the basis for its value is likely to be volatile.

We’ve seen the BHP share price fall as low as $24.05 on 13 March before rebounding strongly to its current $35.41 valuation. That’s good news for shareholders who managed to buy the dip but is the current price a bargain?

Iron ore prices are starting to rebound which is positive for BHP earnings. The group’s shares are currently yielding 6.02% but there’s no guarantees this will be maintained by the August earnings season.

I think the potential for an infrastructure boom is a big plus. If governments around the world look to infrastructure for stimulus, I’d expect the iron ore price to surge.

This could have a knock-on effect for the BHP share price and send it back towards its 52-week high of $42.33.

Foolish takeaway

There’s no such thing as a safe bet in ASX 200 shares and this is especially true at the moment. However, the BHP share price could be a solid large-cap with upside potential to help boost a diversified portfolio beyond 2020.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• This embattled ASX 200 company could be the next M&A target
• ASX 200 rises 0.3%, Zip rockets higher
• Why Coles and Woolworths shares were flat in May
• 3 long-term impacts of near-zero interest rates

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

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