Category: Stock Market

Pointsbet Holdings Ltd (ASX: PBH) share price

Pointsbet is an online bookmaker with operations in Australia and the United States. The company offers innovative products that facilitate betting on horse racing and other sports. 

The Pointsbet share price has risen significantly from the lows we saw in March. Contributing to this rise was a trading update released by the company on 27 May. The announcement reminded investors that both AFL and Rugby League would soon be recommencing. Also included was advice that Pointsbet had entered into an agreement with Fox Sports to become the media provider’s AFL betting partner. According to Pointsbet, this was part of ‘an opportunistic approach to targeting media assets to deliver efficient client acquisition and increased betting volumes’. Pointsbet also has an existing deal covering Tier 1 horse racing with Channel Seven. 

What’s next for Pointsbet?

Pointsbet is not short on ambition. Also included in the May update was the company’s assertion that it ‘aims to provide more markets on the major Australian and US sports than any other bookmaker’. Given the company’s recent success, it is easy to believe that Pointsbet will deliver on its aspirations.

Another feather in the company’s cap is that it is operating in the lucrative US market and already seeing considerable success. Over 30% of the US population now has access to legal sports betting. Despite the fact that sports were recently suspended due to COVID-19 restrictions, Pointsbet reached 22,716 US clients in Q3 of the 2020 financial year. It’s total active clients across Australia and the US now totals 106,046. This represents a growth of 64% on the prior corresponding period. 

While Pointsbet is a relative newcomer to the betting industry, I believe it shows significant growth potential due to its position in the US and its unique betting markets. This potential is highlighted by the fact that the company’s market cap currently sits at $906 million. Compare this to the market cap of fellow gambling provider Tabcorp Holdings Limited (ASX: TAH) which sits at $7.36 billion. Pointsbet shows room for enormous growth as it increases its market share.

The Pointsbet share price is up 221% since this time last year, hitting a record high of $7.17 yesterday.

Sezzle Inc (ASX: SZL) share price

Sezzle is a financial technology company based in the US. This company works with a platform similar to ASX market darling Afterpay Ltd (ASX: APT). That is, it offers buy now, pay later (BNPL) solutions to consumers. 

Like other companies in the BNPL sector, the Sezzle share price has been performing well. This can be partially attributed to the fact that more consumers have moved to online shopping during lockdown restrictions. Sezzle is a significant player in the industry with 1.3 million active customers. Its platform is available through 14,900 merchants and its app has been downloaded around 600,000 times.

While Sezzle’s popularity does not presently match that of Afterpay’s, I believe it shows great potential, especially as a possible takeover target. If the BNPL industry consolidates, it’s very possible that Sezzle will get bought up by one of the major players. Alternatively, the company may continue to grow independently with the aim of rivaling Afterpay. Given the fact Sezzle is headquartered in the US and already actively targeting the US$460 billion Canadian retail market, I feel this is definitely possible. 

The Sezzle share price is up over 770% from its 52-week low of $0.35 and is currently sitting at $3.05 per share. The company also reached a new, all time high of $3.25 in yesterday’s trade. 

Foolish takeaway

Despite their recent gains, I still feel that both both the Sezzle and Pointsbet share prices offer considerable upside potential. Pointsbet is looking to leverage its huge growth potential in the lucrative US sports betting market while it expands its market share in Australia. Sezzle looks set to continue growing as it increases the number of merchants offering its platform along with its number of users. Is it time to invest? This writer believes yes.

More reading

• Why I would buy Afterpay and these exciting ASX tech shares
• Will ASX 200 shares hit a record high in June?
• ASX shares could be the best way to grow your wealth in 2020
• 10 ASX 200 shares that are fit for the Queen
• 3 ASX shares for a stress-free life

Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd and Sezzle 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 The Sezzle and Pointsbet share prices have hit new, all time highs. Time to invest? appeared first on Motley Fool Australia.

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If you’re looking to add a few dividend shares to your portfolio this week, then I think the ones listed below are worth considering.

Here’s why I think these dividend shares are in the buy zone:

Dicker Data Ltd (ASX: DDR)

The first ASX dividend share to consider investing in is Dicker Data. It is an Australia owned and operated distributor of IT hardware, software, cloud, and Internet of Things solutions. Thanks to a growing number of vendor agreements and strong demand for IT products, Dicker Data has delivered robust earnings and dividend growth over the last few years.

Pleasingly, this trend looks likely to continue in FY 2020. So much so, the company is confident enough to provide dividend guidance of 35.5 cents per share this year. This equates to a 31% increase year on year and represents a fully franked forward 4.6% dividend yield.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

While I wouldn’t be buying Sydney Airport’s shares if you want dividends in 2020, if you can afford to be patient it could be a great option. Australia’s busiest airport isn’t very busy at all right now. The pandemic has led to severe travel restrictions both domestically and internationally. However, the good news is that the domestic market is on the verge of starting its recovery.

Last week Qantas Airways Limited (ASX: QAN) revealed that it is preparing to increase its capacity to upwards of 40% of pre-pandemic levels by the end of July. I expect this to be a big boost to Sydney Airport and could put it in a position to pay a decent dividend in FY 2021. I estimate that it could pay as much as 27 cents per share to shareholders next year, before increasing it to 37 cents per share in FY 2022. This represents a 3.8% yield and a 5.25% yield, respectively.

More reading

• ASX 200 Weekly Wrap: ASX bulls crash through 6,000 points
• Forget term deposits and buy these high yield ASX dividend shares
• How to turn $20,000 into $275,000 in 10 years with ASX 200 shares
• ASX 200 down 0.35%: UBS upgrades NAB and Westpac, Qantas soars again
• Why Kogan, NAB, Qantas, & Sydney Airport shares are racing higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data 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 quality ASX dividend shares to buy today appeared first on Motley Fool Australia.

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On Tuesday the S&P/ASX 200 Index (ASX: XJO) was on form again and surged higher.

This led to a number of shares jumping higher with the market, with some of them even managing to climb to new highs yesterday.

Here’s why these ASX shares are flying high right now:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The Domino’s share price touched on a multi-year high of $66.96 on Tuesday. Investors have been buying the pizza chain operator’s shares during the pandemic after the closure of restaurants led to increasing demand for its pizzas. Towards the end of April the company revealed that its Japan and Germany businesses were performing particularly strongly in the second half. Australian same store sales have been positive during the period as well. All in all, it looks well-placed to deliver a solid full year result in August.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price hit a new record high of $15.25 yesterday. Investors were buying the iron ore producer’s shares after the price of the steel-making ingredient jumped higher again. Supply disruption in Brazil and robust demand in China have combined to send the spot iron ore price comfortably over the US$100 a tonne level. In light of this, Fortescue is likely to be generating significant free cash flow at present. Especially given its low cost operations and improving production grades.

MNF Group Ltd (ASX: MNF)

The MNF share price hit a 52-week high of $5.88 on Tuesday. The telecommunications and unified communication technologies provider’s shares have been on fire during the pandemic. This is because the working from home initiative has led to a surge in demand for voice and collaboration technology. At the end of April, the company revealed that it was on track to achieve its operating earnings guidance of $36 million to $39 million in FY 2020. This represents a 32% to 43.4% year on year increase.

More reading

• Are the Rio Tinto, Fortescue and BHP share prices a buy right now?
• ASX 200 Weekly Wrap: ASX bulls crash through 6,000 points
• 5 things to watch on the ASX 200 on Tuesday
• 2 strong ASX dividend shares to bolster your income
• How to build a $20,000 passive income with ASX shares

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 MNF Group Limited. The Motley Fool Australia has recommended Domino’s Pizza Enterprises Limited and MNF 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.

The post Why Fortescue and these ASX shares are flying high right now appeared first on Motley Fool Australia.

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Is the Commonwealth Bank of Australia (ASX: CBA) share price a buy? The ASX bank sector has been roaring back to life in recent weeks.

Since 25 May 2020 the CBA share price has soared higher by 22%. The market seems to think that the $60 billion jobkeeper overestimation means the economy will be in much better shape. That jobkeeper estimation error was due to overly pessimistic forecasts according to reporting by the Australian Financial Review.

The performance of CBA’s earnings and share price is largely linked to the Australian economy. Indeed, every ASX bank relies on a solid national economy. CBA is exposed to the same sorts of systematic risks as Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB) and Australia and New Zealand Banking Group (ASX: ANZ).

Where to now for the CBA share price?

The CBA share price is still down by around 19% from the level at 21 February 2020. So it’s not as though investors are pricing in a complete recovery for CBA yet.

The major bank made a $1.5 billion additional credit provision for the potential impacts of COVID-19 in its third quarter update.

If CBA’s provision is enough to account for all of the potential damage then it may in a much better position than investors were fearing a couple of months ago.

However, there’s one big factor I’m wary of. The official Australian interest rate is now incredibly low. This will likely cause a negative hit to CBA’s net interest margin (NIM). The NIM is important because banks generate a lot of their overall profit from the money they lend out.

I’m not sure how much higher CBA’s share price can go over the next couple of months. COVID-19 will cause a sizeable hit to the profit this year.

It will be interesting to see what CBA does with its dividend. ANZ and Westpac decided to defer the dividend. NAB decided to pay a much smaller dividend. After the recent strong share price increase for CBA, I’d be inclined to go for other shares first.

More reading

• The ASX bank dividend recovery may be better than what the market thinks
• Will ASX 200 shares hit a record high in June?
• ASX 200 Weekly Wrap: ASX bulls crash through 6,000 points
• These quality ASX dividend shares have very juicy yields
• ASX 200 closes higher, banks keep rising

Motley Fool contributor Tristan Harrison 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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On Tuesday the S&P/ASX 200 Index (ASX: XJO) returned from the long weekend and recorded a stunning gain. The benchmark index jumped 2.45% to 6,144.9 points.

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

ASX 200 to fall.

The ASX 200 looks set to run out of steam on Wednesday and drop lower. According to the latest SPI futures, the benchmark index is expected to fall 91 points or 1.5% at the open. This follows a mixed night of trade on Wall Street which saw the Dow Jones fall 1.1%, the S&P 500 drop 0.8%, and the Nasdaq push 0.3% higher. The latter index hit a record high during last night’s trade.

Oil prices mixed.

Energy producers such as Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) will be on watch today after a mixed night for oil prices. According to Bloomberg, the WTI crude oil rose 0.5% to US$38.38 a barrel and the Brent crude oil price fell 0.4% to US$40.64 a barrel. Oil prices were notably higher at one stage on supply cut optimism, before giving back most of their gains.

ANZ downgraded to a neutral rating.

One leading broker thinks the Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price may have peaked after its strong run. According to a note out of Goldman Sachs, its analysts have downgraded the banking giant’s shares to a neutral rating with a $20.02 price target. The broker made the move on valuation grounds.

Gold price rebounds.

Gold miners including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could be on the rise after the gold price rebounded. According to CNBC, the spot gold price rose 0.85% to US$1,719.00 an ounce ahead of the U.S. Federal Reserve meeting this week.

Tech shares on watch.

Tech shares such as Appen Ltd (ASX: APX) and Xero Limited (ASX: XRO) could defy the market decline today after their U.S. counterparts pushed higher. The Nasdaq index broke through the 10,000 points mark for the first time thanks to solid gains by the likes of Amazon and Facebook.

More reading

• Why you should be buying the dip in ASX gold stocks
• How to become a millionaire before your parents with ASX shares
• Why the CSL share price continues to trail the ASX 200
• The ASX bank dividend recovery may be better than what the market thinks
• Why I would buy Afterpay and these exciting ASX tech shares

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 owns shares of Appen 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 5 things to watch on the ASX 200 on Wednesday appeared first on Motley Fool Australia.

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