The Netwealth Group Ltd (ASX: NWL) share price is in focus after the fintech business launched a takeover offer for Praemium Ltd (ASX: PPS).

Do analysts think that Netwealth shares are worth looking at with this in mind?

The proposed takeover

Netwealth was offering one new Netwealth share for every 11.96 Praemium shares, plus a cash consideration.

The cash consideration would reflect the net proceeds achieved from the sale process for Praemium’s international operations of more than an attributed value of $50 million less tax and transaction costs.

Based on the closing price of Netwealth shares of $17.94 on 27 October 2021, which was the last trading day before the date of the proposal, the offer was a value of $1.50 for each Praemium share, excluding the international sale consideration.

Netwealth said this offer was a 29% premium to Praemium’s closing price on 27 October 2021.

The fintech said that if the deal went ahead, it is expected to create substantial value for both sets of shareholders, due to the compelling strategic rationale and the “material” cost and revenue synergies.

Netwealth said it would enhance its position as the fastest-growing wealth management platform in Australia, with approximately $16 billion of net flows for the 12 months to 30 September 2021.

The combined group would account for around $72 billion of Australian platform funds under administration and more than $22 billion of non-custodial assets.

The Netwealth share price has edged lower since this announcement, but only by 1.6%.

The Praemium response

Praemium’s initial response was to decline the offer. The board unanimously concluded that the proposal undervalued the business for a few different reasons.

It said that it doesn’t appropriately value the current performance, the near-term trajectory, its market leadership and “superior technology” particularly in managed account and non-custodial portfolios, which would provide “significant benefits” to Netwealth.

Praemium also said the offer doesn’t value its growth momentum, including “very strong” FUA growth in the first quarter. The board also noted that it doesn’t reflect the significant valuation upside available to shareholders considering it’s valued at a discount to industry peers Netwealth and Hub24 Ltd (ASX: HUB). The final point that Praemium noted was that it wasn’t representative of recent transaction premiums in the platform and funds admin space.

The smaller fintech also noted that its share price closed at $1.245 on 1 November 2021, and based on the exchange rate and Netwealth share price, meant the premium was only 17.6%.

Praemium’s board said:

As a strong, rapidly growing independent player in the platform and funds administration industry, Praemium is in a unique position. The board is open to engagement at an appropriate valuation but is mindful that any proposals put forward should appropriately reflect Praemium’s market position and growth potential as well as recent activity in the sector.

Is the Netwealth share price a buy?

Brokers at Macquarie Group Ltd (ASX: MQG) think it is, with a price target of $19. Macquarie thinks buying Praemium would add to Netwealth. Macquarie thinks the fintechs have a good future and the more they can grow the better.

The post Is the Netwealth (ASX:NWL) share price a buy? appeared first on The Motley Fool Australia.

More reading

• Here’s why Praemium (ASX:PPS) shares are up 10% on Wednesday
• Why is the Praemium (ASX:PPS) share price 15% higher on Tuesday?
• ASX 200 (ASX:XJO) midday update: Netwealth’s merger proposal, IAG sinks
• Netwealth (ASX:NWL) share price drops on Praemium merger proposal
• These were the worst performing ASX 200 shares in October

Motley Fool contributor 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 and has recommended Hub24 Ltd, Netwealth, and Praemium Limited. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Netwealth. The Motley Fool Australia has recommended Hub24 Ltd and Praemium Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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With a new month here, now could be an opportune time to consider making some new additions to your portfolio.

To help you on your way, I’ve picked out ten ASX shares which analysts rate highly right now. Here’s why they could be top options in November:

Adore Beauty Group Limited (ASX: ABY)

Adore Beauty is Australia’s leading online beauty retailer. It recently released its first quarter update and revealed revenue of $63.8 million, up 25% on the prior corresponding period. Even when you annualise this, it is still only a fraction of the Australian beauty and personal care (BPC) market. That is currently estimated to be worth $11.2 billion and growing. This gives Adore Beauty a long runway for growth over the next decade. UBS currently has a buy rating and $6.00 price target.

Altium Limited (ASX: ALU)

Altium is an electronic design software provider behind the Altium 365 and Altium Designer platforms. It also has a number of complementary businesses such as Nexus and Octopart. Combined, the company is in a strong position to benefit greatly from the rapidly growing Internet of Things (IoT) and AI markets. These are expected to underpin strong demand for its Altium Designer software over the next decade. Bell Potter is a fan and has a buy rating and $42.50 price target on its shares.

Appen Ltd (ASX: APX)

Appen is a leading developer of high-quality, human annotated datasets for the machine learning and artificial intelligence markets. It has been tipped to grow strongly over the next decade thanks to the growing importance of machine learning and artificial intelligence for businesses. This is expected to support strong demand for its services. Citi is positive on Appen and has a buy rating and $17.10 price target on its shares.

Aristocrat Leisure Limited (ASX: ALL)

Aristocrat Leisure is one of the world’s leading gaming technology companies. It has a portfolio of world class pokie machines and a growing digital business which has become a significant contributor to its earnings in recent years thanks to the increasing popularity of games such as Raid. The company has also just announced plans to acquire London-listed leading global online gambling software and content supplier, Playtech, for $5 billion. Morgans is positive on the company. It currently has an add rating and $52.50 price target on its shares.

Goodman Group (ASX: GMG)

Goodman Group is a leading integrated commercial and industrial property group. It has been growing at a solid rate over the last decade thanks to the overwhelming success of its strategy. Goodman focuses on investing in and developing high quality industrial properties in strategic locations, close to large urban populations and in and around major gateway cities globally. This is where demand is strong and transformational changes are driving significant opportunities. Citi believes Goodman is well-placed for growth and has a buy rating and $27.50 price target on its shares.

Hipages Group Holdings Ltd (ASX: HPG)

Hipages is a leading Australian-based online platform and software as a service (SaaS) provider connecting consumers with trusted tradies. In FY 2021, Hipages delivered a 22% increase in revenue to $55.8 million. Pleasingly, it has built on this with a 14% increase in first quarter revenue to $14.9 million despite battling lockdowns. This is still only a small portion of its significant addressable market. Goldman Sachs has a buy rating and $4.90 price target on its shares.

Life360 Inc (ASX: 360)

Life360 is the growing technology company behind the eponymous Life360 mobile app. This increasingly popular app offers families useful features such as communications, driver safety, and location sharing. It recently released its third quarter update and revealed the addition of a further 1.5 million monthly active users (MAU) to 33.8 million. This underpinned a 48% year on year increase in Annualised Monthly Revenue (AMR) (excluding acquisitions) to US$120.1 million. Bell Potter is a big fan and has a buy rating and $12.50 price target on its shares.

Nanosonics Ltd (ASX: NAN)

Nanosonics is one of the world’s leading infection prevention companies. At present, the company is a one-trick pony with the high quality industry-leading trophon EPR disinfection system for ultrasound probes. However, management is in the process of developing and launching new products. One is the Nanosonics Coris platform. This new platform, which is expected to be launched in calendar year 2023, is for cleaning flexible endoscopes. Morgans is positive on Nanosonics and has an add rating and $6.97 price target on its shares.

ResMed Inc. (ASX: RMD)

ResMed is a sleep treatment-focused medical device company. It has been tipped to grow strongly over the long term thanks to its industry-leading products and massive market opportunity. In respect to the latter, management estimates that there are 1 billion people impacted by sleep apnoea worldwide. However, only ~20% of these sufferers have been diagnosed. Supporting this growth is its wide distribution network and growing software business. Credit Suisse is bullish on ResMed. So much so, it has an outperform rating and $43.00 price target on the company’s shares.

Xero Limited (ASX: XRO)

Xero is a leading provider of a cloud-based business and accounting solution to small and medium sized businesses. It has been growing at a strong rate in recent years thanks to the shift to the cloud and its international expansion. The good news is that Xero still has a significant global market opportunity to grow into over the next decade and beyond. It is partly for this reason that Goldman Sachs is very bullish and has a buy rating and $165.00 price target on its shares.

The post 10 top ASX shares to buy in November appeared first on The Motley Fool Australia.

More reading

• 2 top ASX tech shares rated as buys by brokers
• Brokers name 3 ASX shares to buy today
• Which tech shares are dragging down the ASX 200 on Friday?
• 2 buy-rated blue chip ASX shares to boost your portfolio
• 3 outstanding ASX growth shares to buy now

Motley Fool contributor 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 has recommended Altium, Appen Ltd, Hipages Group Holdings Ltd., Life360, Inc., Nanosonics Limited, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia owns shares of and has recommended Altium, Appen Ltd, Nanosonics Limited, and Xero. The Motley Fool Australia has recommended Adore Beauty Group Limited, Hipages Group Holdings Ltd., and ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Brokers are always on the lookout for opportunities, including with leading ASX tech shares.

There are a few businesses in the technology space that are rated as buys that may be able to produce returns over time from here.

Some ASX tech shares have substantial growth plans and may be able to achieve growing profit margins in the coming years.

Here are two of them:

Altium Limited (ASX: ALU)

Altium is one of the world’s leading electronic PCB software businesses. It’s currently rated as a buy by the broker Citi.

The Altium share price has risen by around 54% over the last six months.

A couple of months ago, Altium announced that it had returned to double digit growth in the second half of FY21 when it delivered its FY21 result. The company also said that it has a positive outlook for FY22.

Altium revealed a number of growth metrics in FY21. It saw “strong” growth of annual recurring revenue (ARR) of 29%. Recurring revenue was 65% of the overall revenue, up from 59% in the previous year. The company said that there was strong growth in term-based licenses, which is a positive for future recurring revenue.

Second half continuing business revenue from the ASX tech share increased 16%. There was “strong” Altium 365 adoption with almost 13,000 monthly active users and over 6,000 monthly active accounts. Its overall subscription base rose by 7% to 54,394.

Two of the fastest areas of growth were Octopart and China. Octopart saw revenue growth of 42% to US$27 million, whilst second half Chinese revenue increased 47%.

Vehicles, machines and devices are becoming increasingly technological, with Altium being part of that process.

Altium is expecting its total revenue to increase another 16% to 20% in FY22, with ARR growth of 23% to 27%.

According to Citi, the Altium share price is valued at 69x FY23’s estimated earnings.

Kogan.com Ltd (ASX: KGN)

Kogan is a leading e-commerce ASX share, which is rated as a buy by the broker Credit Suisse. It has a price target of $13.88 on the business.

After some difficulties during FY21, the broker noted that the first quarter of FY22 continued to show that the business is growing quickly in size.

Kogan said that there was growth in its Kogan First memberships, an optimised inventory position, strong growth in Kogan Marketplace and Mighty Ape.

In the first three months of FY22, gross sales increased 23.2% quarter on quarter to 330.5 million. The gross profit also increased by 31.6% quarter on quarter.

Active customers grew 30.7% year on year to 3.35 million for Kogan.com, whilst Mighty Ape finished with 748,000 active customers at 30 September 2021.

The number of Kogan First members grew 171.1% year on year and 64.4% quarter on quarter to 197,000. The growth in customers and members could help profit growth in the future.

Kogan.com has also resolved previous inventory problems that the company had, whilst also closing a number of inefficient overflow warehouses. This reduction in inventory levels led to the ASX tech share “significantly” reducing its warehousing costs, delivering an average variable cost saving of $0.8 million per month in the first quarter of FY22 compared to the fourth quarter of FY21.

According to Credit Suisse, the Kogan share price is valued at 23x FY23’s estimated earnings.

The post 2 top ASX tech shares rated as buys by brokers appeared first on The Motley Fool Australia.

More reading

• 10 top ASX shares to buy in November
• 3 outstanding ASX growth shares to buy now
• Why Domino’s, Inghams, Kogan, and Paradigm shares are sinking
• Altium (ASX:ALU) share price in focus after broker upgrade
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Tristan Harrison owns shares of Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Altium and Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Altium and Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The AMP Ltd (ASX: AMP) share price has had a great start to this month after the company announced it’s agreed to complete the divestment of its life insurance and mature business.

AMP will receive $524 million in exchange for its 19.3% stake in Resolution Life Australia.

As of Friday’s close, the AMP share price is $1.18, 9.26% higher than it finished the final session of October.

Let’s take a closer look at the latest news to boost the financial services company’s share price.

AMP agrees to finalise life insurance divestment

The AMP share price soared 9.3% on Wednesday after it announced it has entered into an agreement to sell its stake in Resolution Life Australia to Resolution Life Group.

The sale is the final step of AMP’s divestment of AMP Life.

AMP sold AMP Life to Resolution Life Group for $3 billion in July 2020.

Of the $3 billion, $2.5 billion was provided to AMP as cash and $500 million came in the form of a stake in Resolution Life Australia, the holding company that became the owner of AMP Life.

As part of the agreement, AMP and Resolution Life Australia will also settle some post-completion adjustments and claims between the parties.

The adjustments and claims have resulted in AMP paying $141 million to Resolution Life Australia. AMP had already provisioned for some of the costs. Though, it will still record a one-off expense of around $65 million in 2021.

However, the company claims the divestment will strengthen its available capital by approximately $459 million. It will also allow it to be flexible ahead of its planned demerger of AMP Capital’s Private Markets business.  

The divestment is expected to be completed in the first half of 2022.

AMP share price snapshot

This month has been good for the AMP share price so far. Sadly, it hasn’t been enough to boost it out of the red.

Right now, the AMP share price is 24% lower than it was at the start of 2021. It has also slipped 30% since this time last year.

The post So far, so good for the AMP (ASX:AMP) share price in November. Here’s why appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• These 3 ASX 200 shares are topping the volume charts this Wednesday
• Why AMP, Eclipx, Paradigm, and Praemium shares are surging higher
• AMP (ASX:AMP) share price leaps 9% on life insurance sale
• ASX 200 (ASX:XJO) midday update: CBA enters crypto market, AMP jumps

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you’re looking to boost your income portfolio, then you may want to look at the shares listed below.

Here’s why these ASX 200 dividend shares could be worth considering right now:

Centuria Industrial Reit (ASX: CIP)

The first ASX 200 dividend share to look at is Centuria Industrial. It is the largest domestic pure play industrial REIT.

Centuria Industrial notes that its portfolio of high-quality industrial assets is situated in key metropolitan locations throughout Australia and underpinned by a quality and diverse tenant base. The company is overseen by a hands on, active manager and aims to provide investors with income and an opportunity for capital growth.

The company recently announced the acquisition of eight freehold urban infill industrial assets for $351.3 million. This transaction expands Centuria Industrial’s exposure across attractive industrial sub-sectors including distribution centres, cold storage, and transport logistics.

Macquarie is very positive on the company and has an outperform rating and $4.22 price target on its shares.

The broker is also forecasting a 17.3 cents per share distribution in FY 2022 and an 18.4 cents per share distribution in FY 2023. Based on the current Centuria Industrial share price of $3.68, this will mean yields of 4.7% and 5%, respectively.

National Australia Bank Ltd (ASX: NAB)

Another ASX 200 dividend share to consider is NAB. It could be a quality option for income investors that don’t already have exposure to the banking sector.

The team at Bell Potter is very positive on NAB and is expecting a solid full year result from the bank next week. The broker is forecasting a profit of $6.45 billion, up materially from $3.7 billion in FY 2021. Its analysts expect this to allow the bank to pay a fully franked full year dividend of 119.5 cents per share, which is double FY 2020’s dividend.

Pleasingly, the broker then expects this dividend to grow to 129.5 cents per share in FY 2022. Based on the current NAB share price of $28.93, this will mean yields of 4.1% and 4.5%, respectively,

Bell Potter currently has a buy rating and $31.00 price target on the bank’s shares.

The post Analysts name 2 ASX 200 dividend shares to buy appeared first on The Motley Fool Australia.

More reading

• Own NAB shares? Here’s the bank’s proposal to stop crypto mania getting ‘really ugly’
• Analysts name 2 ASX dividend shares to buy now
• Which ASX bank shares were the best performers during October?
• How did the NAB (ASX:NAB) share price perform in October?
• Can the Macquarie (ASX:MQG) share price break new highs over $200?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Insurance Australia Group Ltd (ASX: IAG) share price was out of form last week.

At one stage, the insurance giant’s shares were down as much as 8% week to date at a 52-week low of $4.42.

The IAG share price recovered a touch late on in the week before ultimately ending the period 3.5% lower at $4.63.

Is the IAG share price cheap?

One leading broker that believes the IAG share price is trading at a very attractive level is Morgans.

In response to its natural perils claims update last week, the broker retained its add rating but trimmed its price target to $5.36.

Based on the current IAG share price, this implies potential upside of 16% for its shares over the next 12 months.

In addition, the broker is forecasting an 18.2 cents per share dividend in FY 2022. This equates to a 3.9% dividend yield, bringing the total potential return on offer to almost 20%.

What did the broker say?

Morgans notes that IAG had a difficult time in FY 2021 because of stormy weather. And unfortunately, FY 2022 looks set to be the same.

However, its analysts feel the weakness this has caused in the IAG share price has created a buying opportunity for investors. This is due largely to its attractive valuation and positive premium increase outlook.

It commented: “IAG had a difficult FY21 and FY22 is set to be a weather affected year. However, we believe for the patient investor the stock is cheap trading on ~13.5x FY23F earnings, and we expect continuing insurance price increases (further assisted by current bad weather), combined with management’s strategy to improve performance to drive improved profitability over time. ADD maintained.”

All in all, this could make IAG shares one to consider when the market reopens on Monday.

The post Is the IAG (ASX:IAG) share price cheap after hitting a 52-week low? appeared first on The Motley Fool Australia.

More reading

• These top brokers weigh in on the IAG (ASX:IAG) share price
• Why Bubs, Dalrymple Bay, IAG, and Redbubble shares are dropping
• Top brokers name 3 ASX shares to buy today
• Why Ingenia, IAG, Vulcan, and Westpac shares are dropping
• ASX 200 (ASX:XJO) midday update: Netwealth’s merger proposal, IAG sinks

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Insurance Australia Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) was back on form last week. The benchmark index rose 1.8% over the five days to finish the period at 7,456.9 points.

While a good number of shares climbed higher with the market, some climbed more than most. Here’s why these were the best performing ASX 200 shares last week:

Nufarm Ltd (ASX: NUF)

The Nufarm share price was the best performer on the ASX 200 last week with a gain of 15.4%. This was despite there being no news out of the agricultural chemicals company. However, with a strong full year result expected from Nufarm next week, investors may have been snapping up shares ahead of it. Morgans sees a lot of value in its shares even after this gain. Last month it put an add rating and $6.32 price target on Nufarm’s shares.

Pro Medicus Limited (ASX: PME)

The Pro Medicus share price wasn’t far behind with a 14.8% gain over the five days. Once again, this was despite there being no news out of the health imaging technology company. Though, it is worth noting that prior to last week the Pro Medicus share price had fallen 24% since hitting a record high in late August. Some investors may believe that its shares had been oversold, especially given the recent announcement of a $40 million seven-year deal with Novant Health.

News Corp (ASX: NWS)

The News Corp share price was on form last week and charged 11.6% higher. A good portion of this gain was made on Friday following the release of the media giant’s first quarter update. For the three months ended 30 September, News Corp reported an 18% increase in revenue to US$2.5 billion and a 53% jump in EBITDA to US$410 million. Strong performances from its Digital Real Estate Services segment and Dow Jones media business helped drive the strong result. The latter recorded its highest quarter of revenue and profitability since acquisition.

Charter Hall Group (ASX: CHC)

The Charter Hall share price was a strong performer and charged 11.3% higher over the period. Investors were buying the property company’s shares after it upgraded its post-tax operating earnings per security (OEPS) guidance for FY 2022. Charter Hall now expects OEPS of no less than 83 cents per share this year, which represents a minimum 36% year on year growth rate. This guidance reflects funds under management (FUM) growth and transactional activity to date.

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

More reading

• These were the worst performing ASX 200 shares last week
• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares this Friday
• News Corp (ASX:NWS) share price rallies 8% on market-moving quarterly
• Why is the Virgin Money UK (ASX:VUK) share price down 11% today?

Motley Fool contributor 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 has recommended Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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As most ASX investors would know, cryptocurrencies like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) are once again all the rage. This has no doubt been helped by Bitcoin’s ascension to yet another new all-time high above US$66,000 per coin last month.

Well, one ASX bank has already shown that it is keen to capitalise on this new wave of goodwill towards Bitcoin and other cryptos. On Wednesday, the dominant Commonwealth Bank of Australia (ASX: CBA) set chins a-wagging when it announced it would be the first ASX bank to offer cryptocurrency services to its customers.

As my Fool colleague Bernd reported at the time: “In an Australian first, the bank’s customers will be able to buy, sell and hold cryptocurrencies via CommBank’s app. This will include trading and holding [Bitcoin] and [Ethereum].”

In addition to these leading coins, CommBank will also be offering access to “up to 10 selected cryptos”. These will include Bitcoin Cash (CRYPTO: BCH) and Litecoin (CRYPTO: LTC).

CBA is partnering with the US-based cryptocurrency exchange Gemeni and blockchain analysis firm Chainalysis to deliver this new service.

Well, CBA might not be the only ASX bank offering crypto services for long.

ANZ set to join CBA’s Bitcoin bandwagon?

According to a report from cointelegraph.com, Nigel Dobson, banking services portfolio lead at Australia and New Zealand Banking Group Ltd (ASX: ANZ), has told a Blockchain Australia forum that the crypto space is now “too big to ignore” for traditional finance companies like ANZ. Here’s some of what he reportedly said:

There’s this sort of weight of money that you just simply at some point can’t ignore right?… it’s just the weight of money and the quality of money that’s moving into these venues that it makes us think, well, what is happening here? When you look under the hood on that, we’ve concluded that this is a major protocol shift for financial market infrastructure.

He went on to compare the blockchain technology behind cryptos such as Bitcoin to the emerging internet technology of the early 2000s:

I think the move that the CBA made yesterday was bold and it is yet to be seen whether those customers will embrace that. But certainly… the ship has sailed. And so what it is that we need to do is to navigate our path towards utilising these networks.

So perhaps no one should be surprised if we see ANZ move into the cryptocurrency space in the near future. Or indeed Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), or any other ASX bank. CBA has a reputation for trendsetting in the ASX banking sector, after all.

As we covered on Wednesday, CBA will launch its crypto services in a pilot program “within weeks”, with additional features rolled out next year. There’s no doubt the other ASX banks will be watching to see how it goes.

The post Could ANZ be the next ASX bank to jump on the crypto bandwagon? appeared first on The Motley Fool Australia.

More reading

• Own NAB shares? Here’s the bank’s proposal to stop crypto mania getting ‘really ugly’
• What these three experts are saying about the CBA crypto service
• Macquarie tips ANZ (ASX:ANZ) share price to hit $29.50. Here’s why
• The Ethereum (CRYPTO: ETH) price just hit all-time highs after a strong October
• The first crypto ETF (ASX:CRYP) has just hit the boards. Here’s what you should know

Motley Fool contributor Sebastian Bowen owns shares of Bitcoin, Ethereum, and National Australia Bank Limited, and owns Litecoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Ethereum. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) has just completed a very strong week. The benchmark index rose 1.8% over the five days to finish the week at 7,456.9 points.

Unfortunately, not all shares climbed with the market. Here’s why these were the worst performers on the ASX 200 last week:

Virgin Money UK (ASX: VUK)

The Virgin Money share price was the worst performer on the ASX 200 last week with a 13.7% decline. Investors were selling the UK-based bank’s shares following the release of its full year update. Virgin Money advised that it expects to report a 546% increase in underlying profit before tax to 801 million pounds. However, disappointing the market, the bank revealed that it will incur 275 million pounds in restructuring costs over the next three years. This was approximately double what the market was expecting.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The Domino’s share price was a close second with a decline of just under 13.7% last week. The catalyst for this was the pizza chain operator’s trading update at its annual general meeting. That update revealed a severe deterioration in the performance of the Domino’s Japan business once COVID restrictions lifted in the country. As a result, management warned that it can no longer forecast whether FY 2022 Japan sales and earnings would surpass those recorded in FY 2021.

Westpac Banking Corp (ASX: WBC)

The Westpac share price was a very disappointing performer last week, recording a sizeable 12.2% decline. Investors were selling the banking giant’s shares following the release of its full year results. Although Australia’s oldest bank doubled its cash earnings in FY 2021, this was still a touch short of expectations. In addition, a smaller than expected share buyback and a weak net interest margin outlook weighed on sentiment. It was largely because of the latter that Goldman Sachs downgraded the bank’s shares to a neutral rating with a $25.60 price target.

Beach Energy Ltd (ASX: BPT)

The Beach Energy share price was out of form and tumbled 8.2% last week. The catalyst for this was the surprise announcement of the departure of its Chief Executive. Beach advised that managing director and CEO Matt Kay had tendered his resignation to the company’s board. The release explains that Kay is leaving to pursue other professional opportunities.

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

More reading

• Here are the top 10 ASX shares today
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Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This weekend could be a good time to consider whether there are ASX shares that are good value and capable of producing long-term profit growth.

Plenty of businesses are volatile, which means that they could be attractive options if the market is underestimating their prospects.

But these two investments could potentially be compelling ideas:

Reject Shop Ltd (ASX: TRS)

Reject Shop is one of the largest discount retailers in Australia. It’s currently rated as a buy by the broker Morgan Stanley, with a price target of $10. That suggests the broker thinks that the Reject Shop share price could rise by around 40% in the 12 months after the rating.

The broker thinks that, whilst COVID-19 lockdowns have been a drag on performance, Reject Shop can increase its performance over the rest of FY22 and into FY23.

Morgan Stanley also referenced the company’s FY21 result which showed improvement in several areas.

The ASX share managed to materially increase its profit margins during FY21. Whilst sales declined by 5.1% to $778.7 million due to COVID-19, underlying earnings before interest and tax (EBIT) grew by 110% to $9.4 million, whilst underlying net profit rose 134% to $6.4 million.

A significant part of the result came from the 84 basis points improvement to the cost of doing business (CODB) margin, despite the reduction in sales. The savings of $22.5 million comprised $13.7 million in store expenses and $8.8 million saving in administration expenses.

Store labour reduced to 13.9% of sales, down from 14.5% in the prior corresponding period, driven by simplification and standardisation of in-store processes.

In FY22, the business aims to grow comparable store sales, open new stores and continue to optimise the business. Higher costs due to the global supply are expected to impact the gross profit margin. In the first two months of FY22, it opened a new store in Bendigo and closed another. It’s expecting to open another 20 stores in FY22, whilst closing five unprofitable or underperforming stores.

According to Morgan Stanley, the Reject Shop share price is valued at 16x FY23’s estimated earnings.

iShares S&P 500 ETF (ASX: IVV)

This exchange-traded fund (ETF) tracks the S&P 500, which is a long-time favourite of legendary investor Warren Buffett because of the (typically) low costs and the underlying diversification.

When it comes to costs, this ASX share is one of the cheapest ETFs on the ASX, with an annual management fee of just 0.04%. That means that investors lose almost none of the returns each year to fees, which should mean a bigger portfolio in the future than if the fees had been higher.

There are several ways that this ETF can help with diversification. It is meant to have 500 positions, so that’s quite a lot of businesses.

In terms of the different sector exposures, there are five industries with a weighting of more than 10%, which could suggest a fair balance between the different sectors: information technology (27.9%), health care (12.97%), consumer discretionary (12.97%), financials (11.31%) and communication (10.7%).

In the portfolio are many of the world’s biggest businesses including: Microsoft, Apple, Amazon, Tesla, Alphabet, Meta Platforms/Facebook, Nvidia, Berkshire Hathaway and JPMorgan Chase.

Past performance is not an indicator of future results. But, over the last three years, the ETF has produced an average return per annum of 18.7%.

The post 2 leading ASX shares to consider this weekend appeared first on The Motley Fool Australia.

More reading

• Reject Shop (ASX:TRS) share price slips amid CEO’s supply warnings

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended iShares Trust – iShares Core S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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