Category: Stock Market

The S&P/ASX 200 Index (ASX: XJO) returned to form last week and charged notably higher. The benchmark index recorded a 1.3% gain to finish the period at 6,004.8 points.

Not all shares were able to follow the index higher last week. Here’s why these were the worst performing ASX 200 shares over the period:

ResMed Inc. (ASX: RMD)

The ResMed share price was the worst performer on the ASX 200 last week with an 11.4% decline. Investors were selling the sleep treatment focused medical device company’s shares after the release of its fourth quarter and full year update. Although ResMed delivered a very strong year of sales and profit growth, investors appear concerned by softer than expected mask sales during the pandemic. Management’s guidance for FY 2021 was also reasonably cautious.

NRW Holdings Limited (ASX: NWH)

The NRW share price was out of form and tumbled 7.9% lower last week. This means the contract services provider’s shares have given back the gains they made a week earlier following a positive announcement. That announcement revealed that the Southwest Connex Alliance has been named as the preferred proponent for the Bunbury Outer Ring Road project. NRW is a 40% partner in the alliance. The project is fully funded for $852 million and is expected to have a duration of three and a half years.

Credit Corp Group Limited (ASX: CCP)

The Credit Corp share price was a poor performer and recorded a decline of 6.1% over the five days. This appears to have been driven by profit taking after the debt collector’s shares surged higher a week earlier following its full year results release. Excluding one-off adjustments, Credit Corp’s net profit after tax would have been up 13% to $79.6 million in FY 2020.

Southern Cross Media Group Ltd (ASX: SXL)

The Southern Cross Media share price wasn’t far behind with a decline of just under 6.1% last week. This media company’s shares have come under significant selling pressure this year due to the negative impact of the pandemic on its operations and its highly dilutive capital raising. The company’s shares are now down a disappointing 74% since the start of the year.

More reading

• Ready for the “80% stock market crash”?
• The latest ASX 200 stocks downgraded by top brokers
• Is the ResMed share price a buy?
• Brokers name 3 ASX shares to buy right now
• ASX 200 down 0.45%: REA Group impresses, IAG profit slump, ResMed downgraded

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

The post These were the worst performing ASX 200 shares last week appeared first on Motley Fool Australia.

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The stock market crash means there are a number of bargain shares available for long-term investors to buy. Of course, an uncertain economic outlook may mean that finding them is more challenging now than it was previously.

However, by focusing on sectors with growth potential that are unpopular among investors, and identifying businesses with sound strategies, you could build a diverse portfolio of stocks that is capable of delivering high returns in the long run.

Bargain shares in unpopular sectors

Buying the best shares in unloved industries could be a sound means of obtaining favourable risk/reward opportunities. Clearly, some sectors may be unpopular among investors for good reasons, such as weak growth outlooks. However, in some cases, investor apathy towards the wider stock market means that industries with growth potential are undervalued.

Clearly, it is difficult at the present time to identify which sectors can recover from the current challenges facing the world economy. However, many trends of recent years look set to continue in the coming years. For example, an increasing use of technology in our everyday lives, a rising demand for healthcare-related products and services, and a switch towards greener forms of energy are likely to persist.

This strategy may not necessarily lead to portfolio growth in the near term. However, the track record of the stock market shows that buying bargain shares in sectors with growth potential while they are unpopular among investors could increase your chances of generating high returns in the long run.

Business strength

The best bargain shares are not necessarily those with the lowest valuations. Certainly, a wide margin of safety helps to make any stock a ‘bargain’, but the quality of its operations also has a large bearing on its prospects from an investment perspective.

Therefore, buying the strongest businesses in a specific sector could be a sound move. To achieve this goal, it may be necessary to consider factors such as financial strength, growth strategy and the size of a company’s economic moat. They may have changed significantly after the coronavirus pandemic, which could create new opportunities for businesses that previously did not have especially attractive business models.

Assessing the quality of a range of companies may require time and effort on the part of the investor. However, it could be worth it if it means that you are able to identify the most attractive companies that ultimately produce the highest returns in the long run.

With a wealth of information available via annual reports, trading updates and forecasts, it is possible for an investor to accurately gauge the quality of a business versus its sector peers. Doing so could make it easier for you to find the best bargain shares available after the market crash to boost your long-term financial prospects.

More reading

• These were the worst performing ASX 200 shares last week
• 3 steps I’d take today to make a million in the next market crash
• 2 exciting small cap ASX shares to watch
• Stock market recovery 2020: how you can make a million from buying cheap shares
• Forget gold and Bitcoin. I’d buy crashing stocks right now

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.

The post How I’d find the best bargain shares to buy today appeared first on Motley Fool Australia.

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It is almost impossible to predict when the next stock market crash will occur. However, the stock market’s track record of ups-and-downs suggests that investors will experience further downturns over the long run.

Therefore, it makes sense to prepare yourself for the next stock market crash. Through adopting a patient approach that focuses on improving your industry knowledge, as well as readying your finances for investment in undervalued shares, you can increase your chances of making a million when the next stock market decline occurs.

A patient approach

It can be difficult to wait for a market crash. As the stock market’s performance has shown over recent months, it can quickly rebound from even the largest and fastest downturns.

Although there may be stocks worth buying today and holding for the long term, some companies may now be fully valued after their recent rise. As such, it is logical to await more attractive price levels in some cases before deciding to add them to your portfolio.

As mentioned, a stock market crash is very likely to occur in the coming years. The track record of the stock market shows that it has never made gains in perpetuity, just as it has never experienced a permanent bear market. Through biding your time and awaiting the right opportunities, you can maximise your chances of buying high-quality companies at low prices and selling them at a later date for a higher price.

Evolving your industry knowledge

It is too soon to tell how much the recent market crash will affect a number of industries. Some may recover from the coronavirus lockdown measures that have been put in place, while changing consumer trends may impact severely on other sectors.

However, it makes sense for all investors to improve their sector knowledge in light of the major changes that could take place over the coming months. Some industries, such as online retail and healthcare, could become even more attractive. Meanwhile, others such as oil and gas, may struggle to produce market-beating returns.

By understanding how different sectors could evolve over the long run, you may be in a better position to know which companies you will buy when a market crash occurs. This may give you an advantage over other investors, since you will have a clear plan of action during temporary market falls.

Financial preparation ahead of a market crash

It’s difficult to prepare financially for a market crash, but it could be a worthwhile step. This does not only mean having cash available to invest, it also means that your overall financial position is sound enough so that you are confident in remaining solvent throughout an economic downturn.

Declines in share prices are often caused by a weak economic outlook that could realistically affect your own employment situation and financial position. Therefore, by having sufficient resources available to cope with the personal effect of an economic downturn, you may be in a better position to capitalise on attractive stock prices without worrying about your own situation. This could increase your capacity to invest in bargain shares, which may boost your chances of making a million.

More reading

• These were the worst performing ASX 200 shares last week
• How I’d find the best bargain shares to buy today
• 2 exciting small cap ASX shares to watch
• Stock market recovery 2020: how you can make a million from buying cheap shares
• Forget gold and Bitcoin. I’d buy crashing stocks right now

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.

The post 3 steps I’d take today to make a million in the next market crash appeared first on Motley Fool Australia.

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Are you interested in small cap tech shares? If you are, then you’re in luck because there are a good number trading on the ASX right now which I think have a lot of potential.

Two which I think would be worth adding to your watchlist are named below. Here’s why I like them:

Alcidion Group Ltd (ASX: ALC)

Alcidion is an informatics solutions provider which I think has a lot of promise. Despite operating in a tough environment during FY 2020 because of the pandemic, the company has still delivered decent top line growth. Management expects its revenue to be in the range of $18.4 million and $18.7 million, up 8.9% to 10.6% on the prior corresponding period. This has been driven by growing demand for its software, which has been designed to improve the efficacy and cost of delivering services to patients and reduce hospital-acquired complications. Pleasingly, thanks to positive industry tailwinds, I expect this solid form to continue over the coming years. This could make it well worth keeping a close eye on Alcidion’s progress in the coming years.

Mach7 Technologies Ltd (ASX: M7T)

Another small cap share to watch is Mach7. It is a quick-growing medical imaging data management solutions provider. Mach7’s software helps inform diagnosis, reduce care delivery delays and costs, and improve patient outcomes. Demand for its software has been very strong in FY 2020, leading to management recently revealing that it expects to report at least $18 million in revenue and its first positive EBITDA result. Another positive is its recent acquisition of leading provider of enterprise image viewing technology Client Outlook. This acquisition increases Mach7’s total addressable market from US$0.75 billion to US$2.75 billion. I believe this provides Mach7 with a significant runway for growth over the next decade. Which could make it a must for your watchlist.

More reading

• 3 quarterly updates you might have missed: Alcidion, Mach7, & Telix
• 3 exciting small cap ASX shares to watch in August
• Why Alcidion, Bubs, IGO, & Next Science shares are pushing higher
• 3 exciting small cap ASX shares to watch in FY 2021
• Add these ASX small cap shares to your watchlist immediately

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 and recommends MACH7 FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Alcidion Group Ltd. The Motley Fool Australia has recommended Alcidion Group Ltd and MACH7 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.

The post 2 exciting small cap ASX shares to watch appeared first on Motley Fool Australia.

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