Category: Stock Market

The S&P/ASX 200 Index (ASX: XJO) has followed the lead of international markets and is storming higher on Tuesday. In late morning trade the benchmark index is up 2% to 5,569.9 points following positive COVID19 vaccine news.

Four shares that are climbing more than most today are listed below. Here’s why they are jumping higher:

The James Hardie Industries plc (ASX: JHX) share price has stormed almost 11% higher to $23.75. Investors have been buying the building products company’s shares after the release of its full year results. James Hardie delivered a 4% increase in revenue to US$2.61 billion and a 20% lift in EBIT to US$486.8 million for the year ended March 31.

The Oil Search Limited (ASX: OSH) share price has jumped 9% to $3.27. The catalyst for this strong gain was a sharp rise in oil prices overnight. Traders appear optimistic that a vaccine could open up economies much quicker than expected and lead to an increase in demand for oil. The S&P/ASX 200 Energy index is up 4.5% at the time of writing.

The Webjet Limited (ASX: WEB) share price has surged 6% higher to $3.33. Once again, this strong gain appears to have been driven by the vaccine news. The travel sector would be a big winner if this vaccine solves the COVID19 crisis. It could mean that international travel returns much sooner than the market was expecting, which would only be good news for travel bookers like Webjet.

The Westpac Banking Corp (ASX: WBC) share price is up 4.5% to $15.58. Australia’s big four banks have responded very positively to today’s development and are all notably higher. If the crisis ends earlier than expected, it could mean the banks have all overestimated the provisions that will be required. This could have positive consequences for future dividend payments.

More reading

• This is the latest ASX 200 stock to unveil double digit profit growth
• 4 ASX 200 shares exposed to a fall in house prices
• 5 things to watch on the ASX 200 on Tuesday
• 3 industries that may never recover from COVID-19
• ASX 200 up 1.35%: Gold miners and Fortescue rocket higher, big four banks tumble

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. 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.

The post Why James Hardie, Oil Search, Webjet, & Westpac shares are jumping higher appeared first on Motley Fool Australia.

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In late morning trade positive COVID19 vaccine news has given the S&P/ASX 200 Index (ASX: XJO) a major lift. At the time of writing the benchmark index is up a sizeable 2% to 5,572.6 points.

Four shares that have failed to follow the market higher today are listed below. Here’s why they are tumbling lower:

The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price has fallen 2% to $27.82. Investors may believe that the prospect of a COVID19 vaccine being released in the near future will lead to a reduction in demand for this medical device company’s ventilators.

The Mesoblast limited (ASX: MSB) share price has crashed 8% lower to $3.82. This decline also appears to have been driven by the vaccine news. Mesoblast has been busy trialling its own treatment for COVID19, with promising results. If a vaccine is successful then there would arguably be little need for a treatment.

The Northern Star Resources Ltd (ASX: NST) share price is down over 3% to $14.14. Investors have been selling Northern Star and other gold miners today after a sharp pullback in the price of the precious metal. The prospect of a vaccine has given risk on assets a major boost and led to a fall in demand for safe haven assets.

The TechnologyOne Ltd (ASX: TNE) share price is down over 1.5% to $9.66. This enterprise software company’s shares were down as much as 5% following the release of its half year update. Investors appear underwhelmed by its 6% lift in sales and profits during the six months ending March 31. Especially given the significant premium of 52x trailing earnings that its shares trade at. TechnologyOne provided guidance for the full year and expects net profit before tax to increase 8% to 12% year on year.

More reading

• This ASX 200 tech share is sinking 5% lower after its half year update
• 5 things to watch on the ASX 200 on Tuesday
• Is it time to buy ASX 200 gold shares?
• 3 ASX 200 shares to watch this week
• ASX 200 Weekly Wrap: Gold miners help edge ASX ever higher

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 Why Fisher & Paykel Healthcare, Mesoblast, Northern Star, & TechnologyOne are tumbling lower appeared first on Motley Fool Australia.

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The TechnologyOne Ltd (ASX: TNE) share price has come under pressure today following the release of its half year update.

At the time of writing the enterprise software company’s shares are down 5% to $9.34.

This compares to a strong 2% gain by the S&P/ASX 200 Index (ASX: XJO) this morning.

How did TechnologyOne perform in the first half?

For the six months ended March 31, TechnologyOne reported a 6% increase in revenue to $138.4 million and a 6% lift in profit after tax to $19.1 million. This result was underpinned by continuing strong demand for its SaaS ERP Solution.

Speaking of which. At the end of March the company’s SaaS Annual Recurring Revenue (ARR) stood at $110.2 million, up 33% on the prior corresponding period.

This ARR growth was driven largely by an increase in the number of large-scale enterprise SaaS customers. They have increased 22% over the last 12 months to 475. Pleasingly, management advised that the SaaS business continues to grow during the current pandemic.

Growing at an even quicker rate was its cash flow generation. TechnologyOne more than doubled its cash flow to $9.9 million during the half. This led to its cash and cash equivalents lifting 23% to $84 million.

In light of this and its confidence in its near term outlook, the company’s board has declared an interim dividend of 3.47 cents per share. This represents a 10% increase on last year’s interim dividend.

Outlook.

Unlike countless other companies, TechnologyOne has been able to provide guidance for the full year.

TechnologyOne’s CEO, Edward Chung, revealed that it has a strong pipeline and a high proportion of locked in recurring revenues. As a result, he is confident the company is well positioned to deliver continuing strong growth over the full year.

He commented: “TechnologyOne is well positioned, as the markets we serve are generally resilient. Our global SaaS ERP solution is mission critical to the markets we serve, and also enables any device, any time access from anywhere around the world.”

In light of this, the chief executive expects the company’s FY 2020 net profit before tax to increase 8% to 12% year on year.

Foolish Takeaway.

While growth in the current environment is clearly a big positive, I suspect the market was looking for stronger guidance given the premium its shares trade at. Based on its last close price, its shares were trading at 52x trailing earnings this morning.

More reading

• 3 ASX 200 dividend shares I’d buy today
• How to invest $10,000 in ASX 200 shares today
• Should you invest $1,000 in Woodside Petroleum shares?
• 2 millionaire-maker ASX internet growth shares
• A vaccine (probably) won’t be a quick fix for the ASX 200

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 This ASX 200 tech share is sinking 5% lower after its half year update appeared first on Motley Fool Australia.

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S&P/ASX 200 Index (ASX: XJO) dividend shares can be great sources of income. Share prices are a lot lower at the moment because of the coronavirus, which is boosting the potential dividend yields on offer.

If you’re after income there’s not much point having cash in the bank or bonds these days. It’s probably earning less than 1%.

But ASX 200 dividend shares could be the answer. They’re large enough to be able to get through a difficult period, but small enough to have plenty of growth potential.

ASX 200 dividend share 1: Brickworks Limited (ASX: BKW)

Brickworks has a grossed-up dividend yield of 6.3%. The diversified property business has maintained or grown its dividend every year for over 40 years. That’s a great ASX 200 dividend share record.

Australia has had a strong economy for a few decades, so obviously a construction company was going to do well during that period too. The current times are difficult for Brickworks’ building products divisions in Australia and the US, but construction will return to normal in the future.

In the meantime it’s Brickworks’ other assets that can continue to fund the dividend and hold up Brickworks’ valuation. Those assets are an ‘investments’ division and a 50% stake of an industrial property trust. Very defensive with reliable pretty cashflow. 

Share 2: Tassal Group Ltd (ASX: TGR)

Tassal has a trailing grossed-up dividend yield of 6.8%. The diversified fish business has both salmon farms and prawn farms under its belt now. The company is always trying to improve how it farms, improve its biomass and increase consumption of fish by the public.

Its operating earnings have been steadily growing in previous years which has supported a solid dividend.

Healthy food will continue to be important during this period, so I think Tassal is a solid alternative ASX 200 dividend share candidate to provide reliable income during this.

Share 3: Amcor Plc (ASX: AMC)

The global packaging business is one of the limited ASX 200 businesses to expect profit to increase during this coronavirus period.

Amcor has already been one of the best ASX 200 dividend shares over the best decade with regular dividend growth. It’s expected to increase its dividend again this year. It has an (analyst) projected 2021 dividend yield of just over 5%.

Foolish takeaway

All three of these ASX 200 dividend shares have promising long-term potential for growth and income. At the current prices I’d probably go for Brickworks. If you take the non-construction assets at book value, you get the construction side of the business for free essentially. That sounds good to me.

More reading

• This ASX 200 tech share is sinking 5% lower after its half year update
• How to invest $10,000 in ASX 200 shares today
• Should you invest $1,000 in Woodside Petroleum shares?
• 2 millionaire-maker ASX internet growth shares
• A vaccine (probably) won’t be a quick fix for the ASX 200

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Amcor Limited and Brickworks. 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 3 ASX 200 dividend shares I’d buy today appeared first on Motley Fool Australia.

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I believe that buying shares and holding onto them for the long term is one of the most efficient ways of building wealth.

This is because buy and hold investing allows investors to benefit from compound interest. This is essentially interest on top of interest or returns on top of returns when it comes to shares.

A $1,000 investment earning a 10% return will be worth $1,100 after one year, but almost $2,600 after 10 years.

And then if we look even further into the future, this single investment becomes almost $120,000 in 50 years if you continue to earn the same level of return.

With that in mind, here are a few top shares which I think would make great buy and hold investments. They are as follows:

Appen Ltd (ASX: APX)

The first share to consider buying and holding is Appen. It is a leading developer of high-quality, human annotated datasets for the machine learning and artificial intelligence markets. Due to the growing importance of machine learning and artificial intelligence, these markets are expected to continue growing materially in the future. I expect this to underpin strong earnings growth over the next 10 years.

Nanosonics Ltd (ASX: NAN)

This pandemic has shown us just how important infection control is. I believe this bodes well for Nanosonics’ industry-leading trophon EPR disinfection system for ultrasound probes. In addition to this, the company is planning to launch several new products in the near future which have similar addressable markets. All in all, I feel Nanosonics is well-positioned to be a market beater over the next decade and beyond.

SEEK Limited (ASX: SEK)

Another share to consider buying with a long term view is this job listings giant. The pandemic will certainly put a lot of pressure on job listings in the near term, but I expect listings to recover once the crisis passes. Looking ahead, SEEK is aiming to grow its revenues to $5 billion later this decade. This will be a big increase on the revenue of $1,537.3 million it recorded in FY 2019.

More reading

• The newspaper killers: 3 ASX 200 online classifieds shares dominating the market
• Why I would buy these exciting ASX growth shares right now
• Want to invest like Warren Buffett? Buy and hold these ASX 200 shares
• 4 top ASX shares to invest $4,000 into immediately
• 2 of the best ASX 200 healthcare shares to buy for the long term

James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nanosonics Limited. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended Nanosonics Limited and SEEK 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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ASX 200 shares have had a rocky start to the year. The S&P/ASX 200 Index (ASX: XJO) is down 16.17% in 2020 with the coronavirus pandemic and an oil price war hitting share prices hard.

However, we could be at a turning point in global markets. OPEC+ have slashed their daily oil production by around 10%, while US markets stormed higher overnight on the back of optimism surrounding a possible conronavirus vaccine.

So, what’s a good way to invest some spare cash in the market right now?

How to invest $10,000 in ASX 200 shares today

I think it’s important to invest in high-quality companies for the long-term. However, I get that it’s not easy to just ignore all the short-term share price movements in the meantime. 

I believe CSL Limited (ASX: CSL) could be a smart, long-term choice for investing $10,000 today. It’s the largest ASX 200 share by market capitalisation and is worth $139 billion right now. The biotech giant is looking to develop a potentially lifesaving plasma-derived treatment for people with COVID-19. Other than these short-term efforts, I also think CSL has a great business model overall.

It’s a leader in blood plasma treatment and biotechnology with a strong business moat. The CSL share price is trading at over $300 per share which is a testament to its long-term success since listing in 1994 at a stock-split-adjusted $0.766 per share. It’s hard to bet against the ASX 200 healthcare share given its track record and strong research and development pipeline.

CSL aside, I also like another Aussie large-cap share right now. Commonwealth Bank of Australia (ASX: CBA) shares have crashed lower in 2020 with investors selling off ASX bank shares in droves. 

The CBA share price is down 24.97% since the start of the year thanks to the COVID-19 shutdown. There are fears for what the economic impact of the pandemic will be for Aussie businesses and their lenders. We’ve seen ASX 200 bank shares fall after announcing billions of dollars of impairments this year despite unprecedented government stimulus measures.

However, I think the CBA share price could be another way to successfully invest $10,000 today. The bank is a key pillar of the Aussie economy and could emerge with a refined business model and strong risk measures. This means CBA could be a leaner, stronger ASX 200 bank share that can churn out consistent profits in the decades ahead.

More reading

• This ASX 200 tech share is sinking 5% lower after its half year update
• 3 ASX 200 dividend shares I’d buy today
• Should you invest $1,000 in Woodside Petroleum shares?
• 2 millionaire-maker ASX internet growth shares
• 4 ASX 200 shares exposed to a fall in house prices

Ken Hall 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 How to invest $10,000 in ASX 200 shares today appeared first on Motley Fool Australia.

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Woodside Petroleum Ltd (ASX: WPL) shares have been smashed in 2020. The ASX 200 oil share is down 37% in 2020 (at the time of writing) amid an oil price war between Saudi Arabia and Russia.

But is Woodside going to keep falling lower or is it a good place to invest $1,000 right now?

Why are Woodside Petroleum shares falling lower?

The coronavirus pandemic has hit ASX 200 shares hard, but ASX energy shares have had something else to worry about. Tensions have been heightened between OPEC+ and Russia in 2020. The ongoing stand-off between the world’s largest oil producers has led to oversupply and even sent the oil price negative in May.

Woodside Petroleum shares have been smashed in response and Australia’s largest oil and gas producer has shed billions in value. However, there could be light at the end of the tunnel for Woodside and its shareholders.

There are signs of slowing oil supply in the world. OPEC+ has delivered oil production cuts which could help support global crude oil prices. The global alliance will trim supply by 9.7 million barrels per day or roughly a 10% cut to current levels.

That’s good news for the Woodside Petroleum share price. Higher oil prices are good for producers as they realise a higher average sale price. For shareholders, that could mean higher earnings and strong dividends.

Should you invest $1,000 in Woodside?

ASX energy shares are struggling right now. Woodside is being hit particularly hard despite slashing jobs to try and conserve cash amid the COVID-19 pandemic.

If you want to invest $1,000 in Woodside Petroleum shares, it could turn out to be a great investment. However, I think it would have to be part of a highly diversified ASX share portfolio. ASX energy shares like Woodside are volatile at the moment and no one knows how geopolitics will play out in the current environment.

That means Woodside Petroleum shares could fall lower before they recover in the long-term. I don’t think I’m willing to buy just yet, but a 37% share price decline is certainly tempting to any value investor.

More reading

• This ASX 200 tech share is sinking 5% lower after its half year update
• 3 ASX 200 dividend shares I’d buy today
• How to invest $10,000 in ASX 200 shares today
• 2 millionaire-maker ASX internet growth shares
• A vaccine (probably) won’t be a quick fix for the ASX 200

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.

The post Should you invest $1,000 in Woodside Petroleum shares? appeared first on Motley Fool Australia.

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