Category: Stock Market

The Eclipx Group Ltd (ASX: ECX) share price is pushing higher on Thursday after the release of a business update.

At the time of writing the salary packaging and fleet management company’s shares are up 1% to $1.52.

What did Eclipx announce?

This morning Eclipx released an update on its Simplification Plan ahead of its appearance at the Macquarie Group Ltd (ASX: MQG) Emerging Leaders forum.

According to the release, the company’s Simplification Plan has now largely been delivered on.

It has divested all non-core businesses, operating expenses have been reduced, gross corporate debt has been reduced, and it is now solely focused on developing its core fleet business and strategy.

In respect to its operating expenses, Eclipx was targeting an annualised $15 million reduction in its core fleet operating expense base from $99.5 million in FY 2019 to $84.5 million by the end of FY 2021. On a run-rate basis, its operating expense target has now been achieved.

As for its debt, the company was targeting a gross corporate debt reduction from $350 million to $175 million. As at 31 August 2020, gross corporate debt had dropped below its target and stood at $170 million.

Management also notes there is significant headroom under the revised corporate debt covenants, which were further improved in May 2020.

Total liquidity is currently ~$180 million, including ~$105 million in undrawn capacity under the corporate debt facility.

Trading update.

Eclipx also revealed that its business performance is improving again.

At the end of August, new business writings in corporate operating leasing was tracking at ~70% to 80% of average pre-COVID-19 levels (October 2019 to February 2020 average).

It notes that this reflects the desire of some clients to seek lease extensions as a substitute for renewals or new business writings. Similarly, novated monthly volumes are tracking above 80% of average pre-COVID-19 levels.

In addition, end of lease car sales have continued to show positive momentum since mid-April 2020. As a result, management expects end of lease income in the second half to be about 90% of first half end of lease income.

More reading

• Why Bubs, Perseus, WiseTech, & Xero shares are dropping lower
• 3 ASX growth shares to buy with $3,000
• Why the Bubs share price crashed 10% lower today
• 3 small cap ASX shares I’d buy with $1,000
• Forget gold and Bitcoin. I think dirt-cheap stocks can make you rich

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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Investors often turn to small cap ASX shares for hidden gems or significant growth opportunities. While navigating through smaller, more volatile companies can be challenging, here are 3 small cap ASX shares poised for a blockbuster FY21. 

1. SelfWealth Ltd (ASX: SWF) 

SelfWealth is Australia’s fastest-growing share trading platform for retail investors. It leads the market on price and simplicity, with $9.50 flat-fee ASX trading and no monthly account fees.

In its FY20 results, the company highlighted a 313% increase in revenue to $8.6m. Active traders were up 235% to 45,445, and $147,000 cash burn down from $3.4m. The company notes that ultra-low interest rates have turned wealth creation on its head as term deposits are no longer attractive. This is transforming a generation of savers into a generation of investors.

COVID-19 has further accelerated tailwinds for broker platforms, and SelfWealth is well-positioned to capture the uptick. Looking ahead, SelfWealth will launch US trading in the December quarter. The US market is the most popular international market with Australian investors. At a market capitalisation of just $155m and significant growth tailwinds at hand, SelfWealth is the small cap ASX share to watch in FY21. 

2. BetMakers Technology Group Ltd (ASX: BET) 

BetMakers is involved in data and analytic products for the wagering market and production of racing content. Its clients include racing bodies, racing rights holders and wagering operators such as Pointsbet Holdings Ltd (ASX: PBH), William Hill and Sportsbet. Its FY20 results highlighted a 34% increase in revenue to $9.2m, $31.6m in cash and zero debt.

Sports betting is undergoing a significant growth opportunity with its legalisation in the US. BetMakers sees racing as a key component of the US sports betting market. It believes operators will need a racing solution to fit alongside its sports offerings.

The company has already signed an exclusive 10-year deal to manage Fixed Odds betting on horse racing in New Jersey. It’s also working with other horsemen groups and regulatory bodies. ASX shares in the sports betting space have seen significant price gains in the last 12 months. I believe BetMakers is positioned to benefit. However its share price may need some time to cool off following its recent surge. 

3. 5G Networks Ltd (ASX: 5GN) 

5G Networks is a telecommunications carrier engaged in the supply of cloud-based solutions, managed services and network services. The company’s success has been underpinned by a number of strategic acquisitions. These include new data centre locations and data centre sales providers. Its FY20 performance was solid, with an earnings before interest, tax, depreciation and amortisation (EBITDA) growth of 96% on FY19.

One of the main takeaways from its FY20 report was its significant infrastructure capacity. Services including metro-fibre network, national/international data, data centres and managed services have a utilisation of less than 50%. There is a significant revenue opportunity given its capacity. 5G Networks sits in the same boat as BetMakers where investors should watch closely for a buying opportunity. 

More reading

• Top ASX Stock Picks for September 2020
• Betmakers share price on watch as revenues rocket 39%
• Analysts think 5G Networks shares could be a post-COVID-19 winner
• My top 5G ASX share to buy right now
• Selfwealth share price soaring after 313% increase in revenue

Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Pointsbet Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends 5G NETWORK FPO. The Motley Fool Australia has recommended Pointsbet Holdings 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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Buying dirt-cheap stocks after the market crash could be a sound means of generating high returns in the long run. Undervalued shares have historically offered strong capital gains as the stock market recovers from its lows.

Although other assets such as Bitcoin and gold have risen sharply in price over recent months, the risk/reward opportunity from stocks could be more appealing. Over time, the stock market could help you to improve your financial situation.

Dirt-cheap stocks

Buying dirt-cheap stocks and holding them for the long term is a relatively simple investment strategy. However, it could prove to be highly effective in generating impressive returns.

The stock market has a long history of experiencing ups-and-downs that provides an opportunity for investors to buy stocks when they are undervalued, and sell them when they are overvalued. Clearly, executing that strategy is likely to be more difficult than it sounds in theory, since low points in the stock market’s performance generally coincide with higher risks.

As such, buying dirt-cheap stocks will not necessarily produce positive returns in the short run. It may even mean paper losses if the economy’s outlook deteriorates further. However, at the present time, valuations on offer across the stock market suggest that investors are pricing in difficult operating conditions for many businesses. This could mean that the margins of safety on offer are sufficiently wide to merit investment. Over the long run, this may translate into high profits for investors.

Value investing

Of course, buying dirt-cheap stocks does not mean that investors should overlook their attributes. In other words, it is far better to buy stocks that are not necessarily the cheapest around, but rather are those that offer the best value for money.

For example, paying more for a stronger business within an industry could a worthwhile move. It may be better placed to overcome short-term risks that are currently facing the economy. It could also become more dominant in the long run, and generate higher profits, if it can outlast weaker peers. This may translate into higher returns for investors – even though they may have initially paid a higher price compared to other stocks in the same sector.

A long-term hold

While dirt-cheap stocks may be outperformed by other assets such as gold and Bitcoin in the short run, over the long run they could produce more attractive returns. The track record of the stock market shows that a sustained bull market is likely following a market crash.

Therefore, by purchasing stocks while they are good value for money in many cases, you can potentially enjoy improving investor sentiment and rising profitability for many listed companies. Over time, this may lead to strong capital gains that improve your financial position.

More reading

• 3 small cap ASX shares I’d buy with $1,000
• WiseTech Global share price lower after CEO sells $10m of shares and plans even more sales
• Where I would invest my BHP dividends in September
• Is the Kogan.com share price a strong buy?
• Why Brainchip and these ASX shares just surged to new highs

Motley Fool contributor Peter Stephens 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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The market may be pushing higher today but the same cannot be said for the WiseTech Global Ltd (ASX: WTC) share price.

At the time of writing the logistics solutions company’s shares are down 2% to $28.75.

Why is the WiseTech Global shares price dropping lower?

Investors have been selling WiseTech Global’s shares on Thursday after it revealed that its founder and co-founder have been selling down their holdings.

The company’s Founder and Chief Executive Officer, Richard White, has sold a total of 349,504 shares through a series of on-market trades between 27 August and 2 September 2020.

Mr White received an average of approximately ~$28.49 per share or a total consideration of $9,959,109.

Despite this sizeable sale, Mr White still has an interest of 139,699,669 WiseTech Global shares.

Also selling shares was the company’s Co-Founder and Executive Director, Maree Isaacs. She sold a total of 15,472 shares through a series of trades across the same days. Ms Isaacs received an average of $28.50 per share or a total consideration of ~$441,000.

This leaves the executive director with an interest of 11,408,693 shares.

Share sales to continue.

According to the release, these are the first in a series of planned share sales by the company’s CEO over the next four months.

The release explains that these share sales have been undertaken as part of a trading program which will continue until 31 December 2020, subject to no material, non-public information arising during this period.

Mr White intends to sell down a minor portion of his shareholding to facilitate liquidity in the company’s shares and enable some diversification of his assets.

He said: “I am excited about WiseTech’s future growth opportunities and continue to be as committed and driven as ever, on achieving our global growth ambitions. We are gaining momentum in driving revenue growth, with four new global customers signed up in the first seven months of calendar 2020 and a strong pipeline of further global deals.”

“As we continue to execute on our market penetration strategy, it is pleasing to see interest from new, long-term investors wanting to be part of our growth journey. This is why it is important to enhance the liquidity of our stock through an orderly process and in a way that will benefit all of our shareholders,” he concluded.

Also experiencing heavy insider selling today have been Bigtincan Holdings Ltd (ASX: BTH) and Xero Limited (ASX: XRO). Unsurprisingly, their respective shares are dropping lower along with WiseTech Global.

More reading

• My top 5 ASX shares to buy in 2020
• 2 top ASX tech shares to buy and hold beyond 2025
• What’s sent WiseTech’s share price up 36% so far in August
• Why the Xero share price can crack $100 per share in 2020
• These ASX shares were top performers last week

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 WiseTech Global and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends BIGTINCAN FPO. The Motley Fool Australia owns shares of and 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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This morning the BHP Group Ltd (ASX: BHP) share price is likely to trade lower when its shares go ex-dividend for its fully franked 55 U.S. cents per share final dividend.

This dividend will then be paid to eligible shareholders later this month on 22 September.

While some shareholders will be using this as income in this low interest environment, others may wish to reinvest the funds back into the share market.

For the latter group, here is where I would consider investing BHP’s dividends:

Cochlear Limited (ASX: COH)

If you’re looking to invest these funds into a quality growth share, then you could do a lot worse than Cochlear. I think the global leader in implantable hearing devices has the potential to generate strong returns for investors over the next decade. This is thanks to its exposure to the ageing populations tailwind, which looks set to underpin growing demand for hearing solutions products over the long term. And with the Cochlear share price down 25% from its 52-week high due to the pandemic, I think now could be an opportune time to invest.

Rural Funds Group (ASX: RFF)

If you want even more dividends then you might want to consider Rural Funds. It is a leading agriculture-focused property group with a diverse portfolio of assets which are spread across several industries and leased to some of the biggest players in the market. One big positive is the long term certainty that Rural Funds’ leases offer investors. With a weighted average lease expiry of almost 11 years and rental increases built in, Rural Funds appears perfectly positioned to deliver on its target of increasing its distribution by 4% per annum over the long term. Based on the current Rural Funds share price and its guidance for FY 2021, it offers investors a generous forward 5% distribution yield.

More reading

• Why a recession shouldn’t matter for the ASX share market
• 5 things to watch on the ASX 200 on Thursday
• Some ASX winners and losers from a high Aussie dollar
• 2 high quality and growing ASX dividend shares
• A strange thing is happening with index funds…

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 Cochlear Ltd. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. The Motley Fool Australia has recommended Cochlear 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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Is the Kogan.com Ltd (ASX: KGN) share price a strong buy? It has been a great performer since the COVID-19 crash.

Indeed, over the past six months the Kogan.com share price has risen by 390%. The ecommerce business has done incredibly well at capturing retail market share. 

Whilst the situation with the global pandemic is tragic, Kogan.com has experienced an enormous rise in demand for its services. Customers have still wanted to buy phones, laptops and so on. 

The FY20 result was very impressive. Gross sales increased by 39.3% to $768.9 million and revenue went up by 13.5% to $497.9 million. Gross profit increased by 39.6% to $126.5 million. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 57.6% to $49.7 million and net profit after tax (NPAT) grew by 55.9% to $26.8 million.

The second half of the 2020 financial year, which included COVID-19, was particularly strong. Gross sales, gross profit and adjusted EBITDA grew by 62.5%, 68.3% and 74.1% respectively. Those are strong growth numbers. With growth like that, it’s no wonder the Kogan.com share price has gone up so much.

Kogan.com is not an early-stage growth business. It’s not an unprofitable buy now, pay later business. It’s making real profit and it’s even paying a dividend. Kogan.com declared a fully franked final dividend of 13.5 cents per share, up 64.6% on the prior year. Long-term shareholders are now getting a very good yield on their original purchase cost. 

The online business grew its active customer base by 35.7% to 2.18 million people. Kogan.com is the type of business that can really excel with network effects. It offers so many different services like mobile, insurance and superannuation. The company can work on selling a wider variety of services which should lead to higher margins.

Is the Kogan.com share price a strong buy today?

It can be a mistake to think that something is expensive just because it has gone up in price. A few years ago there was a buying frenzy for A2 Milk Company Ltd (ASX: A2M) infant formula. The A2 Milk share price has gone from $1.80 in September 2016 to $16.84 today. I’m not suggesting that the Kogan.com share price will be worth $200 in a few years, but it shows that a high-growth business can keep growing for longer than expected.

In July 2020 Kogan.com saw gross sales grow by more than 110%, gross profit increased by more than 160% and adjusted EBITDA was more than $10 million. Remember that FY20’s total adjusted EBITDA was $49.7 million. The growth seems to be accelerating.

At the current Kogan.com share price it’s trading at 50x FY21’s estimated earnings. That doesn’t look bad if the ASX share can continue a good growth rate for the medium-term.

But how long can this growth last? I have a feeling that some of the overall strong retail demand may slow down once the government stimulus starts to taper off. ASX retail shares weren’t demonstrating this kind of growth in 2019.

However, Kogan.com does benefit from the fact that it’s an online business. Some consumers may well permanently switch to online shopping rather than going to a physical store. Just look at how well Temple & Webster Group Ltd (ASX: TPW) is doing as an online retailer.

If you could travel back in time then obviously it would make sense to buy shares when the Kogan.com share price was under $5. But what about now? I don’t think Kogan.com is a ‘strong’ buy. However, I think that Kogan.com’s expanding product range and growing customer base will support growing earnings over the long-term.

I believe that it is worth a long-term buy today because the online shopping trend seems like a permanent shift and this should help Kogan.com’s earnings considerably. I’d be happy to accumulate during dips. As a bonus, Kogan.com offers a grossed-up dividend yield of 1.4%.

More reading

• Why a recession shouldn’t matter for the ASX share market
• Why it makes sense to invest in ASX tech shares
• What do you do after record share price gains?
• If you invested $10,000 in Kogan shares 5 months ago, here’s how much you’d have today
• How to invest in ASX shares in uncertain times?

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended Kogan.com ltd and Temple & Webster Group 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 Australian share market was on form on Wednesday and stormed notably higher.

While the majority of shares on the market pushed higher with the market, a few shares climbed so much they hit 52-week highs or better.

Here’s why these ASX shares just scaled to new heights:

Bigtincan Holdings Ltd (ASX: BTH)

The Bigtincan share price was on form again on Wednesday and stormed to a record high of $1.30. Investors have been fighting to get hold of the AI-powered sales enablement automation platform provider’s shares since the release of its full year results last month. In FY 2020, Bigtincan reported revenue growth of 56% to $31 million and annualised recurring revenue (ARR) growth of 53% to $35.8 million. The good news is that more of the same is expected in FY 2021. Management provided ARR growth guidance of 36.9% to 48% year on year.

Brainchip Holdings Ltd (ASX: BRN)

The Brainchip share price rocketed an incredible 58% higher to a record high of 49 cents on Wednesday. Investors were buying the artificial intelligence technology company’s shares after it announced a collaboration with VORAGO Technologies. This collaboration is intended to support a Phase 1 NASA program for a neuromorphic processor that meets spaceflight requirements. Brainchip notes that its Akida neuromorphic processor is uniquely suited for spaceflight and aerospace applications. The device is a complete neural processor and does not require an external CPU, memory or Deep Learning Accelerator.

Costa Group Holdings Ltd (ASX: CGC)

The Costa share price continued its positive run and stormed to a 52-week high of $3.74. The catalyst for this was the release of its half year results on Friday of last week. For the six months ended 28 June 2020, the horticulture company posted revenue of $612.4 million. This was an increase of 6.8% on the prior corresponding period. And on the bottom line, Costa delivered a 12% in net profit after tax to $45.8 million. This was driven by a very strong performance from its international business. Investors appear to believe that Costa is finally over the worst of its issues now.

More reading

• Why Brainchip, De Grey Mining, Nufarm, & Pointsbet shares are storming higher
• Brainchip share price rockets 30% higher on NASA program collaboration
• 3 exciting ASX small caps to put on your watchlist
• Zip and Brainchip were among the most traded shares on the ASX last week
• Top ASX Stock Picks for September 2020

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends BIGTINCAN FPO. The Motley Fool Australia owns shares of and has recommended BIGTINCAN FPO and COSTA GRP 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 SKYCITY Entertainment Group Limited (ASX: SKC) share price will be one to watch on Thursday following the release of its full year results.

How did SKYCITY perform in FY 2020?

For the 12 months ended 30 June 2020, SKYCITY delivered a 36.8% increase in reported revenue from continuing operations to NZ$1,125 million. Things were even better for its reported profits from continuing operations. They came in 46.3% higher year on year at NZ$235.3 million.

However, this was entirely the result of insurance recoveries following the NZICC fire. SKYCITY recorded a net gain of NZ$268.5m post-tax arising from these impacts. This offset weakness in the rest of the business.

On a normalised basis, it wasn’t quite as positive. Normalised revenue fell 24.3% to NZ$779.5 million and normalised net profit fell 59.7% to NZ$66.3 million.

In light of this profit decline, no final dividend was declared for FY 2020.

Outlook.

Management is expecting an improved performance in FY 2021.

It commented: “Assuming there is no adverse change to the current COVID-19 outlook in New Zealand and South Australia, we expect Group normalised EBITDA to be above FY20, but still below pre-COVID-19 and FY19 levels.”

“We expect the domestic businesses to continue to perform well when open (although we remain well prepared for the possibility of further closures), but are planning for negligible International Business and international tourism activity due to ongoing international border closures,” it added.

Trading update.

The company also provided a trading update, which revealed that its casinos are performing positively.

Its NZ Properties have recovered quicker than expected, with local gaming in Auckland and Hamilton trading ahead of pre-COVID levels. This has led to the segment being materially more profitable than anticipated.

It’s a similar story in Adelaide, with local gaming consistent with pre-COVID-19 levels. Its operations are both profitable and cashflow positive.

Finally, despite its casinos returning to relatively normal, its online casino business continues to perform well and is attracting new active customers. It has been EBITDA positive every month since April.

More reading

• ASX shares that could take a hit from New Zealand lockdowns
• Coronavirus: SkyCity share price falls as NZ restrictions tighten

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Sky City Entertainment Group 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 latest GDP numbers are in. It’s official: Australia is in a recession after two negative quarters of GDP movement. I don’t think it matters for the ASX share market. 

The numbers released by Australian Bureau of Statistics (ABS) show that Australia’s GDP fell by 7% in the quarter ending 30 June 2020.

That’s a hefty fall. You may think that ASX would drop significantly in response to a large economic decline. Nope. The S&P/ASX 200 Index (ASX: XJO) rose by 1.8% yesterday.

Why the big rise? Well I don’t think investors were euphoric about the GDP numbers, the share market just reversed the decline from the day before.

I don’t think an Australian recession should mean too much for the ASX share market for a few reasons:

Timing

You have to remember how and when GDP numbers are calculated. The quarter that this decline relates to ended two months ago. We’re already two thirds of the way through the quarter ending 30 September 2020.

Meanwhile, the ASX share market is forward looking. The ASX 200 took a huge 36% plunge during February and March in anticipation of the future economic hit that COVID-19 impacts would cause businesses and the country.

Many ASX shares have already strongly recovered since that share market plunge. But the recession has only just been officially recognised. Victoria is still a drag on the overall picture, but nationally things are looking much better today than in April.

Relevance

GDP gives us an insight into the overall country’s economic picture. The ASX share market represents the opinion of the collective investor community about the future economic prospects of the listed businesses.

ASX shares don’t completely represent the national economy. For example, plenty of small and medium private businesses are doing it tough. But, ASX share retailers are doing very well. JB Hi-Fi Limited (ASX: JBH), Harvey Norman Holdings Limited (ASX: HVN), Adairs Ltd (ASX: ADH), Temple & Webster Group Ltd (ASX: TPW) and Kogan.com Ltd (ASX: KGN) all reported impressive sales numbers.

Whilst the overall economy is important to everyone who participates in it as well as politicians, it’s the performance of the individual business that matters for the share price and the dividend of a company like Wesfarmers Ltd (ASX: WES).

Expecting share prices to follow the economy’s movement could mean missing out on a better performance by the ASX share market. Listed businesses are among the best of the best in the country. The strongest brands, the best balance sheets, easy access to new capital and they usually have good online operations. They’re likely to be more resilient.

International growth

Australia’s GDP numbers obviously are focused on Australia’s economy.

But as investors we can decide to invest in a variety of businesses to get a much larger exposure to the global economy. For example, Macquarie Group Ltd (ASX: MQG) only earns a third of its profit from Australia – the other two thirds comes from places like Europe, North America and so on. That has helped Macquarie’s share price rebound more than domestic banks like Westpac Banking Corp (ASX: WBC).

CSL Limited (ASX: CSL) generates a lot of earnings from the US. Sonic Healthcare Limited (ASX: SHL) generates a large amount of its earnings from the northern hemisphere. There are lots of examples. The ASX share market has plenty of global options.

Sure, there are some ASX shares like National Australia Bank Ltd (ASX: NAB) that rely on Australian economic growth for profit growth. But plenty of other ASX shares like A2 Milk Company Ltd (ASX: A2M), Cochlear Limited (ASX: COH) and Goodman Group (ASX: GMG) generate large amounts of profit offshore. They don’t need a strong Australian economy to grow profit or the share price.

More reading

• 5 things to watch on the ASX 200 on Thursday
• ASX 200 rises 1.8%, Afterpay had a volatile day
• The Future Fund is stockpiling cash. Should ASX investors take the hint?
• Latest ASX stocks brokers are urging you to buy today
• Praemium share price edges higher after Powerwrap offer goes unconditional

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd., CSL Ltd., Kogan.com ltd, and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia owns shares of A2 Milk and Wesfarmers Limited. The Motley Fool Australia has recommended Cochlear Ltd., Kogan.com ltd, Sonic Healthcare Limited, and Temple & Webster Group 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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On Wednesday the S&P/ASX 200 Index (ASX: XJO) returned to form and charged notably higher. The benchmark index jumped 1.8% to 6,063.2 points.

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

ASX 200 to charge higher again.

The ASX 200 looks set to continue its recovery on Thursday. According to the latest SPI futures, the benchmark index is expected to rise 39 points or 0.65% at the open. This follows an extremely positive night of trade on Wall Street which saw the Dow Jones storm 1.75% higher, the S&P 500 jump 1.55%, and the Nasdaq push 1% higher.

Xero insider selling.

The Xero Limited (ASX: XRO) share price will be on watch this morning after reports of some heavy insider selling. According to the AFR, Goldman Sachs helped the business and accounting software provider’s founder, Rod Drury, offload $198 million worth of shares. The shares were believed to have been offered at a 3.9% discount of $99.00 per share.

Oil prices sink lower.

It could be a bad day of trade for energy producers including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices sank lower overnight. According to Bloomberg, the WTI crude oil price is down 2.7% to US$41.60 a barrel and the Brent crude oil price has fallen 2.6% to US$44.40 a barrel. Weak gasoline demand in the United States put pressure on energy prices.

Gold price sinks lower.

Gold miners such as Newcrest Mining Limited (ASX: NCM) and Resolute Mining Limited (ASX: RSG) could come under pressure today after the spot gold price sank lower. According to CNBC, the spot gold price fell 1.45% to US$1,950.70 an ounce overnight. A rebound in the US dollar and economic recovery hopes weighed on the precious metal.

Shares trading ex-dividend.

Once again, another group of shares are going ex-dividend this morning and could trade lower. This includes mining giant BHP Group Ltd (ASX: BHP), private health insurer NIB Holdings Limited (ASX: NHF), financial services company Perpetual Limited (ASX: PPT), and utility infrastructure company Spark Infrastructure Group (ASX: SKI).

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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 Xero. The Motley Fool Australia has recommended NIB Holdings 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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