Category: Stock Market

  • ASX retail rental war gathers pace

    The rental war between landlords and retailers has gathered pace as Premier Investments Limited (ASX: PMV) became the latest retailer to reopen stores. But the retailer, which is Australia’s biggest retail tenant, says it will pay rent based on a proportion of gross sales.

    ASX retail shares seek rent relief 

    Premier Investments is among a plethora of Australian retail shares that have sought rent relief during the coronavirus pandemic. Accent Group Ltd (ASX: AX1) is also seeking for rent to be calculated by reference to a percentage of sales. 

    Premier Investments has said it’s prepared to walk away from stores if landlords don’t play ball. Around 70% of Premier’s leases are due to expire in 2020 or are already in holdover. The company has refused to pay rent since it shut its stores in March, although it announced the reopening of stores from Friday. 

    Premier Investments experienced a 74% fall in sales in the 6 weeks to 6 May. Retail store sales were down 99%, however, online sales have increased by 99%. Accent Group has also seen a surge in online sales which quadrupled in the period during which stores were closed. 

    Accent Group has concluded successful rental negotiations with landlords of more than 100 stores, but says if it is unable to achieve an outcome it considers fair it will close stores. This has already occurred with one major landlord, with Accent Group giving notice to exit 28 stores at lease expiry over the next 6 months. 

    ASX REITs also suffering 

    Landlords are not escaping unscathed. This week, Scentre Group (ASX: SCG) said it would not be paying its interim dividend due to uncertainty around the pandemic and the timing of operating cash flows. Customer visitation to the Scentre shopping centres fell to a low of 39% of the previous year’s levels in April and May. 

    At Scentre’s properties, 57% of retailers representing 70% of gross lettable area are open, with more retailers to reopen over coming weeks. The shopping centre operator is targeting at least a 25% decrease in centre operating expenses during the pandemic period. 

    Vicinity Centres (ASX: VCX) reported that as of 4 May, 50% of stores in its shopping centres were open, representing 65% of gross lettable area. Vicinity withdrew earnings and distribution guidance in March given the uncertainty around the impact of COVID-19 on operations. 

    Vicinity is negotiating with retailers whose businesses have experienced a downturn and accelerating temporary arrangements to assist them through the situation. CEO Grant Kelley said, “inevitably, our income at this time is being impacted negatively, however we agree with the Federal Government’s sentiment that landlords and tenants have a shared responsibility to tackle the challenges brought about by these unprecedented times.”

    5 cheap stocks that could be the biggest winners of the stock market crash

    Investing expert Scott Phillips has just named what he believes are the 5 cheapest and best stocks to buy right now.

    Courtesy of the crashing stock market, these 5 companies are suddenly trading at significant discounts to their recent highs… creating what could be incredible opportunities for bargain-hungry investors.

    Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares to buy now… before the next stock market rally.

    See the 5 stocks

    Returns as of 7/4/2020

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    Motley Fool contributor Kate O’Brien has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. The Motley Fool Australia has recommended Accent Group and Scentre Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Safe dividend stocks to buy today for the COVID-19 world

    The pool of reliable high-yield dividend paying stocks is shrinking!

    It’s income investors who depend on regular distributions from their ASX share portfolio who are the biggest losers from the coronavirus pandemic.

    You can still find stocks generous defensive dividends if you cared to look, and I think these stocks will outperform the S&P/ASX 200 Index (Index:^AXJO) due to their scarcity.

    Growth beating income

    It’s easier to find stocks with good growth potential despite COVID-19 than dependable dividend paymasters, in my view.

    Look at the tech sector in the US and Australia. The likes of Amazon.com, Inc. (NASDAQ: AMZN) and Afterpay Ltd (ASX: APT) surged to record highs recently.

    Meanwhile, the list of ASX stocks suspending or lowering their dividends is growing. We don’t have to mention the big banks like Westpac Banking Corp (ASX: WBC) or Australia and New Zealand Banking GrpLtd (ASX: ANZ). The big hit they took to profits forced them to postpone paying an interim dividend.

    Even stocks like CSR Limited (ASX: CSR) which delivered a much better than expected profit result is erring on the side of caution and suspending its payout.

    I am not suggesting that turning into a scrooge as we face off what is probably the worst recession in living memory is a bad idea. But some stocks are going from strength to strength, and are offering up an enticing dividend that’s hard to ignore.

    Rock solid dividend

    One such candidate is iron ore miner BHP Group Ltd (ASX: BHP). I’ve long been overweight on the stock for this reason, and UBS just upgraded the stock to “buy”.

    “In our view, BHP is in a strong position with gearing at 17% and net debt of US$12bn,” said the broker.

    “This should enable BHP to continue to return surplus cash to shareholders at a time when other more traditional dividend-paying stocks are not.”

    BHP is forecast to deliver at least a 5% yield before franking credits.

    Perfect package

    Another stock that is proving its dividend mantle is AMCOR PLC/IDR UNRESTR (ASX: AMC). The global packaging giant released its quarterly results yesterday, which I believed was a cracker.

    JP Morgan shares this view and describes the stock as its top pick in the sector. The highlight was the cost control for Amcor’s Flexibles business (soft plastic packaging).

    “We believe that AMC has ample opportunity to grow ahead of peers in the years ahead due to Bemis synergies, efforts on sustainability, further M&A or buy-backs,” said the broker.

    “The primary concern we hear from investors relates to top line performance, but if 3Q20 trends can be sustained over the medium term (as management has suggested), we would expect to see a multiple re-rating.”

    The stock is yielding around 5% and there’s scope for dividend increases, in my view.

    NEW: Expert names top dividend stock for 2020 (free report)

    When our resident dividend expert Edward Vesely has a stock tip, it can pay to listen. After all, he’s the investing genius that runs Motley Fool Dividend Investor, the newsletter service that has picked huge winners like Dicker Data (+92%), SDI Limited (+53%) and National Storage (+35%).*

    Edward has just named what he believes is the number one ASX dividend stock to buy for 2020.

    This fully franked “under the radar” company is currently trading more than 24% below its all time high and paying a 6.7% grossed up dividend

    The name of this dividend dynamo and the full investment case is revealed in this brand new free report.

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    See the top dividend stock for 2020

    *Returns as of 7/4/20

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    John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors.

    Brendon Lau owns shares of Australia & New Zealand Banking Group Limited, BHP Billiton Limited, and Westpac Banking. Connect with me on Twitter @brenlau.

    The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool Australia owns shares of and has recommended Amcor Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Amazon. 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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  • 2 quality ASX shares to buy for long-term growth

    stacking blocks with upward arrows

    Looking for ASX shares with strong long-term growth potential?

    I believe that the following 2 ASX shares are worth considering, and falls in their share prices over the past few months add to their appeal.

    Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

    Some of our leading companies on the S&P/ASX 200 Index (ASX: XJO) that are normally viewed as strong and consistent dividend payers have either suspended or reduced their next dividend payments this year. This includes the likes of Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking Group Ltd (ASX: ANZ), and National Australia Bank Ltd. (ASX: NAB). However, there are so far no indications that ‘Soul Patts’ will follow down this path.

    Soul Patts currently offers an attractive fully franked grossed-up dividend yield of around 4.7% and has increased its dividend every year since 2000. The group keeps a meaningful amount of cash on its balance sheet and this cash can be used as a buffer in difficult operating times. Soul Patts funds its dividends from its net regular cashflow and its next dividend is expected to be similar to the prior year for FY 2020.

    This strong balance sheet also places it in an ideal position to capitalise on any worthwhile investment opportunities if they suddenly arise, which is one of the reasons why I think Soul Patts has strong long-term growth potential. These growth prospects are also supported by its excellent management team and strong diversification across a broad range of industries.

    Blackmores Limited (ASX: BKL)

    There is no doubt that Blackmores’ recent financial performance has been somewhat disappointing.

    In its most recent half-year results back in February, Blackmores revealed a 20% revenue decline in its Australia and New Zealand segment and the company’s China segment saw revenue drop by 6%. However, on a more positive note, the company does now appear to be getting its business back on track again after its entry strategy into China, in particular, has struggled in recent times.

    Blackmores has put in place plans to strengthen its Australian business as it realigns its overall business strategy, which includes plans to further extend its investments into China. The company also plans an increased focus on the Indonesian market and aims to enter the Indian market within the next 12 months.

    Blackmores’ management has also reported the coronavirus pandemic has resulted in a spike in demand for vitamin C and other immunity products both in Australia and internationally.

    I believe that the coronavirus pandemic could potentially even change the mindset of some consumers to the benefit of supplements, leading to higher demand in the years ahead.

    For another ASX share with significant long-term growth potential, don’t miss the report below.

    One “All In” ASX Buy Alert, that could be one of our greatest discoveries

    Investing expert Scott Phillips has just named what he believes is the #1 Top “Buy Alert” after stumbling upon a little-owned opportunity he believes could be one of the greatest discoveries of his 25 years as a professional investor.

    This under-the-radar ASX recommendation is virtually unknown among individual investors, and no wonder.

    What it offers is an utterly unique strategy to position yourself to potentially profit alongside some of the world’s biggest and most powerful tech companies.

    Potential returns of 1X, 2X and even 3X are all in play. Best of all, you could hold onto this little-known equity for DECADES to come

    Simply click here to see how you can find out the name of this ‘all in’ buy alert… before the next stock market rally.

    Find out the name of Scott’s ‘All in’ Buy Alert

    Returns as of 6/5/2020

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    Motley Fool contributor Phil Harpur owns shares of Australia & New Zealand Banking Group Limited, Blackmores Limited, and Westpac Banking. The Motley Fool Australia owns shares of and has recommended Blackmores Limited and Washington H. Soul Pattinson and Company 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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  • Leading broker tips REA Group shares as a buy

    Financial data graph

    The REA Group Limited (ASX: REA) share price has been a strong performer over the last seven weeks.

    Since dropping to a 52-week low of $62.05 around seven weeks ago, the property listings company’s shares have zoomed approximately 45% higher.

    Is it too late to invest?

    While REA Group is far from the bargain buy that it was in March, I still see a lot of value in its shares at the current level for long term-focused investors.

    I continue to be very impressed with the resilience of its business and the way it can generate earnings growth during very tough trading conditions.

    For example, last week REA Group released its third quarter update and revealed a 1% increase in revenue to $199.8 million and an 8% lift in quarterly EBITDA to $119.6 million. This was despite it dealing with a 7% decline in national residential listings during the three months.

    And while things are going to be tougher in the current quarter, the company is attempting to offset this with a 20% reduction in operating costs.

    Overall, when trading conditions improve, and they will, I believe REA Group will be well-positioned to accelerate its growth again.

    Goldman Sachs rates REA Group as a buy.

    One broker which agrees that REA Group is a buy is Goldman Sachs. This morning it retained its buy rating and lifted its price target to $107.00. This implies potential upside of approximately 18% over the next 12 months.

    It lifted its price target after upgrading its earnings forecasts for the company.

    The broker explained: “Given our increased confidence on the outlook for property listings in Australia, given April numbers that were well ahead of our expectations, and a relaxation of auction/open home restrictions in parts of Australia, we see less risk around our listings forecasts.”

    Goldman is forecasting listings growth of 12% in FY 2021 and then 8% in FY 2022.

    “As a result, we revise higher the multiple we ascribe to REA Australia and Domain Digital assets by 1X, with REA increasing to 25X and DHG to 19X.”

    REA Group remains it preferred option in the space. It has held firm with its neutral rating for Domain Holdings Australia Ltd (ASX: DHG) and has a $2.70 price target on its shares.

    Domain may have a neutral rating, but these five top stocks have buy ratings along with REA Group. They look dirt cheap after the market crash.

    5 cheap stocks that could be the biggest winners of the stock market crash

    Investing expert Scott Phillips has just named what he believes are the 5 cheapest and best stocks to buy right now.

    Courtesy of the crashing stock market, these 5 companies are suddenly trading at significant discounts to their recent highs… creating what could be incredible opportunities for bargain-hungry investors.

    Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares to buy now… before the next stock market rally.

    See the 5 stocks

    Returns as of 7/4/2020

    More reading

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

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  • 3 top ASX 200 shares you can buy on sale today

    It’s been a rollercoaster start to the year for most ASX shares. Concerns over the coronavirus shutdown smashed the S&P/ASX 200 Index (ASX: XJO), which slumped as low as 4,456 points on 23 March.

    However, the recent bear market has created a lot of buying opportunities. Here are just a few ASX 200 shares I think could be on sale at bargain prices today.

    3 ASX 200 shares on sale today

    Webjet Limited (ASX: WEB) is one of the obvious candidates on sale today. Webjet shares have been smashed in 2020 and are down 65.71% this year at the time of writing. 

    The reality is that things have changed dramatically since the start of the year. And the outlook for the travel sector has also changed for at least the next 12 to 18 months. This means Webjet shares should rightly be valued lower in the wake of the COVID-19 shutdown.

    However, I think the ASX travel share has been oversold and could be in the buy zone. Even if it’s just domestic travel or across the ditch, we could see more bookings as restrictions ease and Australia’s economy starts to open back up.

    Stockland Corporation Ltd (ASX: SGP) is another ASX share that has been smashed in 2020. Stockland owns and operates shopping centres around Australia and therefore has a large exposure to the Aussie retail sector.

    Aussie retailers were struggling even before COVID-19 took hold. However, things looked even bleaker in the wake of the pandemic. Stockland shares have fallen 41.13% lower this year (at the time of writing) but things are starting to look up, in my opinion. Restrictions are starting to be wound back and we could see sales bounce back quicker than expected.

    Westpac Banking Corp (ASX: WBC) could also be an undervalued ASX bank share. I think there could be some short-term pain for the Aussie banks in 2020 but the longer-term outlook could be OK. At the time of writing, the Westpac share price is down 37.14% in 2020 and now could be a good time to buy for a sale price and hold for decades to come.

    If you’re looking for undervalued shares to buy, don’t miss this top ASX share pick today!

    One “All In” ASX Buy Alert, that could be one of our greatest discoveries

    Investing expert Scott Phillips has just named what he believes is the #1 Top “Buy Alert” after stumbling upon a little-owned opportunity he believes could be one of the greatest discoveries of his 25 years as a professional investor.

    This under-the-radar ASX recommendation is virtually unknown among individual investors, and no wonder.

    What it offers is an utterly unique strategy to position yourself to potentially profit alongside some of the world’s biggest and most powerful tech companies.

    Potential returns of 1X, 2X and even 3X are all in play. Best of all, you could hold onto this little-known equity for DECADES to come

    Simply click here to see how you can find out the name of this ‘all in’ buy alert… before the next stock market rally.

    Find out the name of Scott’s ‘All in’ Buy Alert

    Returns as of 6/5/2020

    More reading

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

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  • Datadog (DDOG) Is a Winner, but the Stock Is Fairly Valued Here, Says 5-Star Analyst

    Datadog (DDOG) Is a Winner, but the Stock Is Fairly Valued Here, Says 5-Star AnalystFate is a cruel mistress, the saying goes. But how about turning the phrase on its head? Might fate be a welcoming friend, too? That’s certainly the case during COVID-19. As some companies’ unfortunate line of business has dictated a struggle to make it through the pandemic, some are inherently well set up to benefit.Cloud based services and data focused companies, for example. Or specifically, Datadog (DDOG). The SaaS data analytics specilaist’s performance has been impressive. Since the turn of year, DDOG shares have appreciated by 82%, whilst successfully navigating through the pandemic storm. And unlike many companies struggling with recent Q1 reports, DDOG just delivered the goods. So, where has it all gone right for DDOG?As befits a data crunching platform, it’s all in the numbers. In the first quarter, the company reported revenue of $131.25 million, up by 87.4% year-over-year and easily beating the Street's call for $117.7 million. Q1 Non-GAAP EPS of $0.06 came ahead of the estimates by $0.07, turning a profit against expectations.Bucking the trend to shy away from guidance, in Q2, DDOG expects revenue to come in between $134 to $136 million (consensus calls for $126.31 million) and for FY20 , the company projects revenue in the range of $555 to $565 million, again ahead of consensus, which calls for $534.50 million.Even though they've yet to encounter any pressure, anticipating COVID-19 headwinds, management is preparing for some 2Q/3Q retention rate pressure and deal slippage.Oppenheimer analyst Ittai Kidron expressed great satisfaction with the results and steady execution, and said, “Even with management budgeting for some 2Q/3Q COVID-19 pressure on retention rate/churn, they were still comfortable raising CY20 guidance given the robustness of the existing deal pipeline. Management's also doubling down on aggressive investment, positioning for long-term gains.”Despite the strong report, though, Kidron argues the upside is “fairly reflected in Datadog's premium valuation.” However, the 5-star analyst believes “investors with longer investment horizons (+18 months) can buy into the story.” Accordingly, Kidron keeps his Perform (i.e. Hold) rating as is, though has not set a price target. Kidron is one of the top analysts on Wall Street covering technology. His picks average a 32% one-year return, and he's ranked in the top 10 out of over 6,500 analysts, according to TipRanks database.When evaluating DDOG’s prospects, the Street is almost split down the middle. 7 Buys and 6 Holds add up to a Moderate Buy consensus rating. However, the company’s on-going share appreciation means the current average price target of $61.50, implies downside of 11%.Read more: * 3 “Strong Buy” Dividend Stocks That Look Great After Earnings Beat * 2 Cruise Line Stocks to Bet on After the Coronavirus Crisis (And 1 to Avoid) * 3 Stocks Needham’s Top Analysts Are Raving About

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  • Why diversification is important and how to diversify your portfolio with ASX shares

    While it might be tempting to load up a portfolio full of the hottest stocks like Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO), having too much exposure to one particular sector can be a bad thing for a portfolio.

    You only need to look at the travel sector to see this. Through no fault of their own, the shares of Flight Centre Travel Group Ltd (ASX: FLT) and Webjet Limited (ASX: WEB) have been crushed in 2020 because of the pandemic.

    If you had a portfolio with significant weighting to the travel sector, you would be severely underwater right now compared to those with more balanced portfolios.

    With that in mind, here are two top ASX shares you could diverse your portfolio with:

    Betashares Nasdaq 100 ETF (ASX: NDQ)

    The first option for investors to consider is the Betashares Nasdaq 100 ETF. As its name implies, this exchange traded fund gives investors exposure to the famous Nasdaq 100 index. These are 100 of the largest, non-financial businesses on the NASDAQ exchange. There are countless household names included in the fund such as Amazon, Apple, Costco, Netflix, Starbucks, and video conferencing provider Zoom. Given the positive outlooks for the companies on the index, I feel the exchange traded fund offers strong potential returns as well as diversity.

    BHP Group Ltd (ASX: BHP)

    If you’re one of the many investors that doesn’t have any exposure to the resources sector, then doing so could be an easy way to bring some diversification to your portfolio. My favourite option in the sector is BHP, just ahead of fellow mining giant Rio Tinto Limited (ASX: RIO). I like BHP due to its diverse and world class operations, their low costs, its strong balance sheet, and the bumper free cash flow it generates. The latter is likely to lead to generous dividend payments over the coming years.

    And here are five dirt cheap shares which could be great additions to a balanced portfolio right now. They have just been given buy ratings.

    5 cheap stocks that could be the biggest winners of the stock market crash

    Investing expert Scott Phillips has just named what he believes are the 5 cheapest and best stocks to buy right now.

    Courtesy of the crashing stock market, these 5 companies are suddenly trading at significant discounts to their recent highs… creating what could be incredible opportunities for bargain-hungry investors.

    Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares to buy now… before the next stock market rally.

    See the 5 stocks

    Returns as of 7/4/2020

    More reading

    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS and Webjet Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO and Xero. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Up 140% since March: the ASX airline share flying under the radar

    share price higher

    The Regional Express Holdings Ltd (ASX: REX) share price has more than doubled in the past 7 weeks, surging more than 140% from its low in late March. The positive price action dwarfs the recovery seen in the share price of its larger competitors Qantas Airways Limited (ASX: QAN) and Virgin Australia Holdings Ltd (ASX: VAH) over the same period.

    Here’s why the Regional Express share price is flying and a closer look at whether Rex could be a long-term buy.

    A potential three-airline market

    Securities in Regional Express (Rex) entered a trading halt yesterday, following an article in the Australian Financial Review (AFR) that suggested the airliner was looking to expand its services. According to the article, Rex is looking to capitalise on the fragmented domestic market by investing $200 million into capital city services.

    According to the report, the company plans to lease a fleet of 10 aircraft and hire new pilots, crew and ground staff. The new services offered by Rex will compete directly with Qantas, its subsidiary Jetstar and Virgin Australia as a budget and full-service airline.

    How has Rex performed during the pandemic?

    Regional Express operates exclusive services to 60 regional destinations in Australia and currently has a fleet of 60 Saab aircraft. The company has been able to maintain minimum services to regional Australia thanks to funding arrangements with both federal and state governments.  

    The company was founded in 2002 and has made an operational profit every year since 2004. An interesting note from the article in the AFR is that Rex’s cumulative net profits over the past 6 years have exceeded the combined earnings of both Qantas and Virgin over the same period.

    Despite the company’s resilience and consistent profitability, Rex has not been spared the impact of the COVID-19 pandemic. The airline withdrew its profit guidance in mid-March citing the uncertain trading environment. The company also released an open letter to the Deputy Prime Minister, which stated that regional operators like Rex could only last for a few weeks based on reserves without government assistance.  

    Should you buy?

    Given the distressed state of the domestic airline sector, Regional Express has found an opportune moment to enter the market. Rex currently dominates regional services, covering 85% of the routes offered. However, the move from being a purely regional airline to servicing capital cities could be interesting. If the company manages to build on its existing infrastructure and maintain a lower cost base, it should be competitive.

    I think the prospect of Rex expanding its services would be great for consumers and potentially shareholders as well. I think a prudent strategy for investors would be to keep any eye on the sector and Rex in particular before making an investment decision.

    The Rex share price could have great long-term potential. Here are 5 more stocks that could boom in 2020 and beyond.

    NEW! 5 Cheap Stocks With Massive Upside Potential

    Our experts at The Motley Fool have just released a FREE report detailing 5 shares you can buy now to take advantage of the much cheaper share prices on offer.

    One is a diversified conglomerate trading 40% off it’s all time high, all while offering a fully franked dividend yield of over 3%…

    Another is a former stock market darling that is one of Australia’s most popular and iconic businesses. Trading at a significant discount to its 52-week high, not only does this stock offer massive upside potential, but it also trades on an attractive fully franked dividend yield of almost 4%.

    Plus, this free report highlights 3 more cheap bets that could position you to profit in 2020 and beyond.

    Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares.

    But you will have to hurry because the cheap share prices on offer today might not last for long.

    YES! SEND ME THE FREE REPORT!

    Returns as of 7/4/2020

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    Motley Fool contributor Nikhil Gangaram 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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  • Is the Altium share price a buy?

    Altium share price

    Is the Altium Limited (ASX: ALU) share price a buy after the electronic PCB software business gave investors a business update yesterday?

    Here’s what Altium revealed

    Altium said that since the last market update in early April, it’s anticipating some headwinds due to coronavirus impacts in the US and Western Europe.

    May and June are typically the strongest months of the year for closing sales. So it’s going to cause problems for Altium’s FY20 result with the cash preservation priorities of small and medium size businesses affecting Altium’s sales. But Altium did say that engineers are still working on prototype designs. The electronics industry is still holding up relatively well.

    In response to the problem, Altium has launched ‘attractive pricing’ and extended payment terms to drive volume. That’s not beneficial for revenue, margins or cashflow in the short-term. But I think it makes sense for the longer-term. Altium’s plan is to become the clear market leader by 2025, what happens in FY20 and even FY21 is less important than continuing to grow long-term market share.

    The Altium share price fell almost 4% yesterday.

    Altium is working even harder on rolling out its new cloud platform Altium 365 so that more clients will adopt to working on the platform. Altium 365 Standard was made available to all subscribers on 1 May 2020. According to management, it’s “off to a great start”. It won’t drive short-term revenue, but it’s important for transforming the industry and improving the recurring revenue.

    The company said it’s still profitable and has a cash balance of more than US$77 million.

    Due to the disruptions, the goal of US$200 million revenue this year is unlikely to be met.

    Is the Altium share price a buy?

    At around $35 the Altium share price is looking a little expensive for the short-term considering yesterday’s news. There could be heavier economic impacts to come this year. Though the very low interest rate does supposedly boost asset values.

    Over the long-term I think investors will still do quite well at $35, but I’d rather buy at around $30. It’d be even better to buy for price much cheaper than $30, but we don’t know what the Altium share price is going to do.

    If you’re waiting for a better price, then you could decide one of these top ASX shares instead.

    5 cheap stocks that could be the biggest winners of the stock market crash

    Investing expert Scott Phillips has just named what he believes are the 5 cheapest and best stocks to buy right now.

    Courtesy of the crashing stock market, these 5 companies are suddenly trading at significant discounts to their recent highs… creating what could be incredible opportunities for bargain-hungry investors.

    Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares to buy now… before the next stock market rally.

    See the 5 stocks

    Returns as of 7/4/2020

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    Motley Fool contributor Tristan Harrison owns shares of Altium. The Motley Fool Australia owns shares of Altium. 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 Altium share price a buy? appeared first on Motley Fool Australia.

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  • 2 of the best ASX 200 healthcare shares to buy for the long term

    Health technology shares

    Over the last 10 years the healthcare sector has been a great place to invest your money.

    During this time the S&P/ASX 200 Health Care index has climbed a remarkable 413%.

    While I don’t necessarily expect the same level of gains over the next 10 years, I believe the tailwinds the sector is experiencing are likely to underpin further outperformance in the future.

    In light of this, I think it is well worth having exposure to the sector in your investment portfolio.

    But which shares should you buy? Two healthcare shares I think could generate strong returns for investors in the future are listed below:

    Nanosonics Ltd (ASX: NAN)

    Nanosonics is an infection control specialist which I believe could be a great long-term investment. This is thanks to the impending launch of several new products targeting unmet needs and its core trophon EPR product. The latter product is used by healthcare organisations to prevent ultrasound probe cross-infection.

    At the end of the first half, the trophon EPR product’s global installed base had grown 17% over the last 12 months to 22,500 units. While this is a large number, it is still only a fraction of its total addressable market which is estimated to be 120,000 units. Due to its best in class status, I expect more market share gains over the coming years. This should support strong sales growth from units and also recurring revenue growth from the consumables the device requires. And if its new product launches are a success, the sky could be the limit for Nanosonics.

    Ramsay Health Care Limited (ASX: RHC)

    Ramsay Health Care is a leading private hospital operator. It provides healthcare services from 480 facilities across 11 countries. This makes it one of the largest and most diverse private healthcare companies in the world.

    While times have been hard for its network over the last couple of years and this is unlikely to ease in the immediate term, I believe its long term outlook is very positive given the increasing demand for healthcare services globally. In light of this, I think it is worth focusing on the long term and considering a patient buy and hold investment in its shares.

    And here are five more top shares that could be great options for investors right now. Each looks dirt cheap after the market crash.

    5 cheap stocks that could be the biggest winners of the stock market crash

    Investing expert Scott Phillips has just named what he believes are the 5 cheapest and best stocks to buy right now.

    Courtesy of the crashing stock market, these 5 companies are suddenly trading at significant discounts to their recent highs… creating what could be incredible opportunities for bargain-hungry investors.

    Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares to buy now… before the next stock market rally.

    See the 5 stocks

    Returns as of 7/4/2020

    More reading

    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Nanosonics Limited. The Motley Fool Australia has recommended Ramsay Health Care 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 2 of the best ASX 200 healthcare shares to buy for the long term appeared first on Motley Fool Australia.

    from Motley Fool Australia https://ift.tt/2Z0ofUS