Author: therawinformant

The PolyNovo Ltd (ASX: PNV) share price has been one of the best performers on the S&P/ASX 200 Index (ASX: XJO) over the last 12 months.

Since this time last year the medical device company’s shares have climbed a massive 120%.

If we go even further back, the returns get even more impressive.

Three years ago, PolyNovo’s shares were changing hands for 21 cents. Whereas today they are worth 12 times that at $2.60.

Why has the PolyNovo share price been on fire?

Investors have been buying the company’s shares due to the potential of its NovoSorb product, which was developed by CSIRO.

NovoSorb is a dermal scaffold for the regeneration of the skin when lost through extensive surgery or burn.

While this itself is a lucrative ~$1.5 billion market, the company is looking to extend the use of NovoSorb into the hernia device and breast augmentation markets. Combined, these three markets have an addressable opportunity worth an estimated $7.5 billion per year.

If it can successfully penetrate these markets, then the sky could be the limit for its sales and ultimately its shares.

But that hasn’t stopped one of its directors from cashing in some of his shares this week. On Wednesday Non-Executive Director Dr David McQuillan sold 441,687 shares on market for approximately $1.18 million.

The company advised that the sale was made to fund the purchase of property ahead of Dr McQuillan’s move from the United States to Melbourne. Dr McQuillan still holds 770,317 PolyNovo shares.

Should you be selling shares?

While insider selling is rarely good news, the purpose of this sale seems more than reasonable. So, I wouldn’t be panicking just yet.

Though, given that PolyNovo has a market capitalisation of $1.7 billion and first half sales of just $10.18 million, I also wouldn’t be opposed to taking some profit off the table.

PolyNovo clearly has a massive market opportunity, but only time will tell whether it captures a sufficient slice that justifies its current valuation.

More reading

• 5 things to watch on the ASX 200 on Thursday
• 3 easy rules for building a massive ASX share portfolio
• Where to invest $5,000 in ASX growth shares today
• Got $2,000? Here are 2 ASX 200 healthcare shares to buy today
• Here are all the ASX 200 shares that have doubled or more since the bottom of the bear market

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.

The post Where next for the PolyNovo share price? appeared first on Motley Fool Australia.

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The CSL Limited (ASX: CSL) share price had a rare off day on Wednesday.

The biotherapeutics company’s shares finished the day 6% lower at $288.00.

Shareholders will no doubt be hoping for better on Thursday. Especially after the release of an announcement after the market close yesterday.

What did CSL announce?

According to its announcement, CSL has entered into a long term strategic partnership with the world leader in serving science, Thermo Fisher Scientific.

This partnership is for the lease of CSL’s state of the art biotech manufacturing facility, which is currently under construction in Lengnau, Switzerland.

The company made the move following a strategic review to determine a pathway that would fully optimise the capabilities of the facility once construction is completed next year.

How will CSL benefit?

Thermo Fisher will lease and operate the facility and is responsible for providing production to support CSL’s biologics portfolio. It will also provide other contract manufacturing services such as packaging and fill-and-finish for a number of CSL products.

CSL Chief Operating Officer Paul McKenzie commented: “As part of the strategic review, we are in the process of transforming our end-to-end supply chain with a view to ensuring the company’s global manufacturing network is operating at a best-in-class level. This includes balancing internal investment with access to capabilities and capacities that are available with an experienced partner.”

“CSL will now be able to access a wide range of capabilities provided by a leading pharma services provider, and we are confident that the management of the facility and the team will be in the very best of hands,” he added.

This isn’t the first time the two parties have worked together.

For some time now, Thermo Fisher has been a key provider of third-party services to CSL. This includes fill-and-finish, cell culture growth media, single-use technologies, and laboratory instruments and supplies.

There was no update in relation to its guidance for FY 2020. I would interpret this to mean the company remains on track to achieve it. Management has previously guided to a profit of ~US$2,110 million to US$2,170 million this year.

More reading

• ASX 200 edges down, bank share prices fly
• Is now the right time to be buying ASX bank stocks?
• 2 outstanding ASX 50 shares to buy today
• Why Afterpay, CSL, Fortescue, & Newcrest shares are dropping lower
• Where to invest $5,000 in ASX 200 shares today

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has 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 CSL share price on watch after Thermo Fisher deal appeared first on Motley Fool Australia.

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On Wednesday the S&P/ASX 200 Index (ASX: XJO) fought hard but fell just short at the close. The benchmark index dropped 5 points to 5,775 points.

Will the market be able to bounce back from this on Thursday? Here are five things to watch:

ASX 200 expected to storm higher.

It looks set to be a very good day of trade for the ASX 200. According to the latest SPI futures, the benchmark index is expected to open the day 51 points or 0.9% higher this morning. This follows a great night of trade on Wall Street which saw the Dow Jones rise 2.2%, the S&P 500 climb 1.5%, and the Nasdaq push 0.8% higher.

Oil prices crash lower.

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could come under pressure after oil prices crashed lower. According to Bloomberg, the WTI crude oil price fell 6.8% to US$32.00 a barrel and the Brent crude oil price dropped 5.8% to US$34.08 a barrel. Concerns over U.S.-China trade tensions weighed on prices.

Gold price edges higher.

Gold miners such as Northern Star Resources Ltd (ASX: NST) and St Barbara Ltd (ASX: SBM) will be on watch after a subdued night for the gold price. According to CNBC, the spot gold price is up slightly to US$1,711.00 an ounce. The precious metal fell to a two-week low on Wednesday.

PolyNovo insider sale.

The PolyNovo Ltd (ASX: PNV) share price could come under pressure today after it revealed that one of its directors has been selling shares. Non-Executive Director Dr David McQuillan sold 441,687 shares on market on Wednesday for approximately $1.18 million. The director made the share sale to fund the purchase of property ahead of his move from the United States to Melbourne. Dr McQuillan still holds 770,317 PolyNovo shares.

Blackmores shares to return.

The Blackmores Limited (ASX: BKL) share price will be on watch when it returns from its trading halt this morning. Blackmores requested the trading halt while it undertook a capital raising to raise up to $117 million. This comprises a fully underwritten $92 million institutional placement and a non-underwritten share purchase plan of up to $25 million. The company also provided a trading update which revealed that it was on track to achieve its guidance in FY 2020.

More reading

• Where next for the PolyNovo share price?
• ASX 200 edges down, bank share prices fly
• Is the Ampol share price in the buy zone?
• New to investing? Put $500 into these top ASX 200 shares
• Top broker says this ASX stock is a better buy than Afterpay

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores 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 5 things to watch on the ASX 200 on Thursday appeared first on Motley Fool Australia.

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One sure-fire way to generate wealth in the share market is by investing successfully in quality companies for long periods.

Take for example, property listings company REA Group Limited (ASX: REA).

If you had invested $10,000 into its shares 10 years ago, your investment would be worth $105,000 today.

But success is by no means guaranteed when you invest. Though, I believe you can put the odds in your favour by investing wisely.

Which shares would be good buy and hold options? I believe the two top ASX shares listed below could help you grow your wealth in the 2020s. Here’s why I like them:

Bravura Solutions Ltd (ASX: BVS)

One area of the market which I think has strong growth potential is the financial technology industry. One of my favourite options in this industry is Bravura Solutions, which is a provider of software products and services to financial institutions. These include major institutions such as BNP Paribas, Fidelity, and Mercer.

The key product that appears to be attracting these giants to Bravura Solutions is its Sonata wealth management platform. It allows users to connect and engage with clients anytime, anywhere, through computers, tablets, or smartphones. It also simplifies legacy client systems into one unified customer-centric solution. I believe Sonata and recent bolt on acquisitions leave the company well-placed to deliver strong earnings growth over the next decade.

ResMed Inc. (ASX: RMD)

ResMed has been a very strong performer over the last 10 years, but I believe it could do it all again in the 2020s. This is because the sleep treatment focused medical device company has a massive and growing market opportunity due to the proliferation of obstructive sleep apnoea.

Given the quality of its mask products and software solutions, I believe it will capture a growing slice of this market over the next decade. This should drive solid earnings growth and potentially market beating returns for investors.

More reading

• Got $1,000 to invest? These quality ASX shares could be the ones to buy
• Invest like Warren Buffett and buy these ASX 200 shares
• Which is the best ASX entertainment media share?
• Where to invest $20,000 into ASX shares right now
• Is the REA Group share price a buy?

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 Bravura Solutions Ltd. The Motley Fool Australia has recommended Bravura Solutions Ltd, 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.

The post 2 ASX shares to buy and hold for monster returns in the 2020s appeared first on Motley Fool Australia.

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