The Premier Investments Limited (ASX: PMV) share price is pushing higher on Tuesday after releasing a business update.

At the time of writing the retail conglomerate’s shares are up 2.5% to $15.83.

What was in Premier Investments’ update?

This morning Premier Investments advised that in line with step one of the Government’s plan to reopen Australia, Premier Investments will be opening the balance of its stores in Australia from Friday May 15. This follows the reopening of its Queensland and Northern Territory stores late last week.

Outside Australia, in New Zealand the company plans to reopen its stores on May 14, whereas its UK and Asia stores will remain closed until at least June 1.

Sales update.

These store openings are good news for the company as their closures had caused a significant decline in global sales.

According to the release, Premier Investments’ total sales for the six weeks to May 6 were down 74% on the prior corresponding period.

It would have been much worse had the company not made its high level of investment in online technology over the last decade.

This strong online capability has supported strong online sales growth during the pandemic. Since the beginning of the temporary store closures, Premier Investments’ online sales have surged by 99%.

The Peter Alexander brand has been a real standout. It has experienced a 295% increase in online sales over the period.

But perhaps most impressive was that during the week ended May 2, Peter Alexander Australia’s online sales alone were up 18% on the total sales across both online and its entire 122 store and concession network in Australia during the prior corresponding period.

Balance sheet strength.

Premier Investments remains in a strong financial position and looks set to comfortably ride out the storm.

As at May 1, the company’s consolidated cash position was $256.2 million. It also maintains access to undrawn facilities of $91.8 million. Management believes this leaves it well placed to begin its recovery, including progressively bringing back its workforce to reopen.

Though it has warned that there could still be tough times ahead.

It commented: “No one can reliably predict the pace and timing of the upcoming phase of economic recovery. In this recovery period, Premier Retail’s sales and margin by store, by country, by brand and by region are highly uncertain and will be dictated predominately by the manner in which consumers respond to the return of instore shopping in their local communities, bound by strict social distancing rules and health guidelines.”

In light of this, it has no plans to provide guidance for FY 2020 at this stage.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Premier Investments 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 Premier Investments share price higher after announcing store reopenings and online sales surge appeared first on Motley Fool Australia.

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Australia’s leading online automotive classifieds website Carsales.Com Ltd (ASX: CAR) has seen a partial rebound in its share price since late March, but is still down 26% since mid-February.

Does this now provide investors with a good buying opportunity?

Sharp downturn in sales volumes

Social distancing and isolation measures implemented to combat the coronavirus pandemic has unsurprisingly translated to a reduction in buying and selling activity for Carsales. Therefore, this has impacted classifieds listing sales volumes and revenues.

In a recent trading update in late April, Carsales revealed that between 10 March 2020 and 21 April 2020, seller and dealer used car lead volumes were down very sharply by approximately 25% compared to normal levels. 

However, on a positive note, traffic on carsales.com.au had remained resilient over the prior month, and private seller and dealer used car lead volumes were growing solidly.

Well-positioned to ride out the crisis

Despite the enormous challenged posed by the crisis, Carsales appears to be taking all the necessary steps to mitigate the negative impact of the coronavirus pandemic on its operations. This includes the initiation of cost-saving measures such as reducing board executive remuneration, temporarily standing down around 250 employees and reducing outdoor brand marketing.

Also, Carsales’ debt and liquidity positions appear to be reasonably solid, considering the unprecedented challenges that the automotive industry is currently facing. At the end of March, Carsales had a relatively manageable net debt position of $355 million and a relatively strong liquidity position with around $190 million in available cash.

Is the Carsales share price a buy?

Despite the current market downturn, I believe that Carsales does offer investors a good long-term buying opportunity. That said, more share price volatility could still be around in the months ahead.

It is important to take into consideration that the automotive sector is highly impacted by economic cycles, but has always proven to be fairly resilient. Whilst it can suffer sharp downward swings in very challenging times, such as the one we are in now, it typically bounces back fairly quickly once market conditions improve.

Already there are signs that market conditions for Carsales may improve in the not too distant future. With the release of the Federal Government’s 3-step plan to reopen Australia by late July, this is likely to provide a welcome boost to new car sales in the months ahead, which could translate to a further uplift in the Carsales share price.

I also believe that Carsales’ industry leadership position in the Australian market, along with its geographic diversification, positions it well to outperform the S&P/ASX 200 Index (ASX: XJO) over the longer term. In particular, the international growth potential for Carsales appears to remain strong, especially in the fast-growing South Korean market.

More reading

• These were the top 10 ASX 200 shares over the last year
• Brokers may be upgrading this ASX stock even as it delivered a plunge in profits
• Is it time to invest in shares or wait on the sidelines?
• In a post-COVID world, could Australia be the next superpower?
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Phil Harpur owns shares of carsales.com Limited. The Motley Fool Australia has recommended carsales.com 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 Carsales share price down 26% since February. Is it now a good buy? appeared first on Motley Fool Australia.

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The last year has been tough. We’ve had bushfires, floods, and now coronavirus. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is down 14% from this time a year ago. But where there is disaster, there is also opportunity. We take a look at the 10 ASX 200 shares that have performed the best over the last year. 

Silver Lake Resources Limited (ASX: SLR)

Shares in Silver Lake Resources are up 155% over the past year. The gold miner has benefitted from the recent strong increase in gold prices and move to safe haven assets. Its cornerstone asset is the Mount Monger Gold camp located 50km south east of Kalgoorlie in Western Australia. 

In the March quarter, Silver Lake produced 65,548 ounces of gold and 438 tonnes of copper. The miner posted record sales of 68,183 ounces of gold at an average sale price of $2,170 an ounce. The all-in sustaining cost of production was $1,380 an ounce. 

PolyNovo Ltd (ASX: PNV)

Shares in PolyNovo are up 151% compared to this time a year ago. Shares in the healthcare company have appreciated on increasing revenue and market potential for PolyNovo’s product. 

PolyNovo produces NovoSorb BTM, an implantable dressing that can be absorbed into the body as it heals. Sales of NovoSorb BTM increased from $1.7 million in FY18 to $9.3 million in FY19. Guidance for FY20 has been in the region of $12 million. 

The company is close to breaking even and plans are in place to expand its product offering into hernia treatment and breast repair. The current focus remains on aggressively pursuing market penetration rather than short term profits.

Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH)

Fisher & Paykel Healthcare shares have appreciated 87% over the past year. The company designs and manufactures products for use in respiratory care, surgery, acute care, and sleep apnea. 

Fisher & Paykel updated its full year guidance in March from revenue of $1.2 billion to revenue of $1.25 million. Net profit is now expected to be $275–$280 million up from $260–$270 million. 

The medical company has seen strong demand for its products which are being used in the treatment of coronavirus. Fisher & Paykel’s respiratory humidifiers and consumables are directly involved in treating patients. The company has also benefitted from stronger sales of its Homecare products and a weaker New Zealand dollar. 

EML Payments Ltd (ASX: EML)

Shares is EML Payments have gained 70% over the past year. The payment solution company provides gift card and incentive programs, reloadable value cards, and virtual accounts for business payments. 

In the 5 years to FY19 EML Payments’s earnings before interest tax depreciation and amortisation (EBITDA) grew by 82% on a compound annual basis. Revenue increased 37% in FY19 to $97.2 million. Approximately 87% of revenue was generated from recurring revenue streams. 

Evolution Mining Ltd (ASX: EVN) 

Evolution Mining shares are up 64% over the past year. Along with other gold miners, Evolution’s share price has been boosted by the gold price increase. The gold price has risen from below $1,900 an ounce a year ago to above $2,600 an ounce currently. 

In the March quarter, Evolution produced 165,502 ounces of gold, bringing year-to-date gold production to 528,359 ounces. For FY20 Evolution Mining has provided guidance of gold production of 725,000 ounces at an all-in sustaining cost of $940 – $990 per ounce. 

Gold Road Resources Ltd (ASX: GOR)

Another gold miner on the list, the Gold Road Resources share price has climbed 62% over the past year. During the March quarter, the Gruyere Gold Mine (which Gold Road Resources has a 50% interest in) produced 59,595 ounces of gold at an all-in sustaining cost of $1,135 an ounce. Gold Road Resources reaffirmed its annual production and cost guidance in late April. 

Attributable gold sales in the March quarter totalled 31,700 ounces at an average price of $2,001 an ounce. Gold Road Resources had cash on hand and bullion of $115 million at the end of the March quarter. A $100 million revolving credit facility was drawn to $80 million giving the miner a net cash position of $35 million. 

Fortescue Metals Group Limited (ASX: FMG)

Fortescue Metals Group shares are up 61% over the past year with the miner reporting record shipments in the March quarter. Strong operating performance and demand have resulted in sustained cashflow generation and upgraded guidance. 

Fortescue reported record iron ore shipments of 42.3 tonnes in the March quarter, with year-to-date shipments a record 130.9 million tonnes. Strong free cash flow generation left the miner with cash on hand of US$4.2 billion at the end of the quarter. Net cash was US$0.1 billion, compared to net debt of US$2.9 billion a year prior 

Resmed Inc (ASX: RMD)

Resmed shares are trading up 56% from their position a year ago. Resmed makes products that have been in high demand due to the coronavirus pandemic. The medical device company has responded by ramping up production of ventilators. 

In the March quarter, revenue grew by 16% on the prior corresponding period. Net operating profit increased 39%. Resmed says it is confident in its ability to navigate through the challenging clinical and economic environment. 

Saracen Mineral Holdings Ltd (ASX: SAR)

Shares is Saracen Mineral Holdings are up 55% over the past year. Another gold miner benefiting from rising gold prices, Saracen reported record gold production in the March quarter. 

Saracen produced 158,133 ounces of gold at an all-in sustaining cost of $1,133 an ounce. The company has maintained its FY20 guidance of 500,000 ounces of gold. Saracen has large ore stockpiles exceeding 1.7Moz which will help insulate the business should mining be restricted by COVID-19 impacts. 

Xero Limited (ASX: XRO)

Xero shares have climbed 53% over the last year. The company provides cloud-based accounting software to small and medium businesses. With more than 2 million subscribers, Xero is operating in an industry where structural growth is being driven by regulation and a broad-based shift to the cloud. 

Increased remote working is also likely to hasten this shift to the cloud. Prior to the pandemic, Xero was seeing healthy growth in subscriber numbers. While this may slow in the near term, long term structural factors still work in Xero’s favour. 

More reading

• Carsales share price down 26% since February. Is it now a good buy?
• Brokers may be upgrading this ASX stock even as it delivered a plunge in profits
• Is it time to invest in shares or wait on the sidelines?
• In a post-COVID world, could Australia be the next superpower?
• 5 things to watch on the ASX 200 on Tuesday

Kate O’Brien owns shares of POLYNOVO FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Emerchants Limited. The Motley Fool Australia owns shares of Xero. The Motley Fool Australia has recommended Emerchants Limited and 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 top 10 ASX 200 shares over the last year appeared first on Motley Fool Australia.

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