• Top brokers name 3 ASX dividend shares to buy today

    3 asx shares represented by investor holding up 3 fingers

    Fortunately, in this low interest rate environment, there are countless dividend shares for investors to choose from on the Australian share market.

    But with so many to choose from, it can be hard to decide which ones to buy. To narrow things down, I have picked out three ASX dividend shares brokers think investors should buy:

    Bendigo and Adelaide Bank Ltd (ASX: BEN)

    According to a note out of Macquarie, its analysts have retained their outperform rating and $11.00 price target on this regional bank’s shares. This follows a review of the banking sector following the recent flurry of results and updates. Macquarie is forecasting dividends of 52 cents per share in FY 2021 and 50 cents per share in FY 2022 from the bank. Based on the current Bendigo and Adelaide Bank share price of $10.23, this will mean fully franked yields of 5.1% and 4.9%, respectively, over the next two years.

    Suncorp Group Ltd (ASX: SUN)

    A note out of Citi reveals that its analysts have upgraded this banking and insurance giant’s shares to a buy rating with an $11.80 price target. The broker made the move following Suncorp’s banking investor forum earlier this week. Citi believes the company’s medium term targets offer decent upside potential if it can achieve them. Though, it has warned that improvements may take some time, so investors may need to be patient. In the meantime, though, it is forecasting Suncorp’s shares to provide dividends of 56 cents per share in FY 2021 and 58 cents per share in FY 2022. Based on the current Suncorp share price of $10.62, this equates to 5.3% and 5.5% yields.

    Woolworths Group Ltd (ASX: WOW)

    Another note out of Macquarie reveals that its analysts have retained their outperform rating and $44.50 price target on this retail conglomerate’s shares. Macquarie has been running the ruler over its demerger of the Endeavour Drinks business and remains positive on the move. Particularly given the potential for upwards of $2 billion in capital management initiatives post-merger. For now, the broker is forecasting dividends of ~$1.06 per share in FY 2021 and ~$1.18 per share in FY 2022. Based on the current Woolworths share price of $40.80, this will mean fully franked yields of 2.6% and 2.9%, respectively.

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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 Woolworths 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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  • Why the Silver Mines (ASX:SVL) share price is rocketing 14% today

    Rocket launching into space

    The Silver Mines Limited (ASX: SVL) share price is rocketing, up 14% in afternoon trading. Shares in the ASX resource explorer are now up 27% since last Thursday’s closing bell.

    Below we take a look at the company’s latest update at its Bowdens Silver Project in central New South Wales, which it reports is the largest undeveloped silver deposit in Australia.

    What drill results did Silver Mines report?

    Silver Mines’ share price is soaring after the company announced it is substantially expanding drilling at Bowdens Silver.

    This follows on Friday’s announcement (which also saw shares surge) on the Aegean Zone, “a high-grade vein system located beneath the bulk-tonnage Ore Reserve in the Main Zone area of Bowdens”.

    The company said that the recent success of its drilling, which identified new silver feeder veins, led it to expand the exploration program at Bowdens Silver.

    Silver Mines currently has 4 drilling rigs on-site as part of the expanded program which will see 30,000 metres of diamond drilling.

    According to the release, recent drill analysis has identified “individual steep feeder veins considered to be source structures to the main Bowdens Silver mineralisation”. At Bowdens, these contain the highest-grade mineralisation and extend to depth.

    One recently identified individual structure Silver Mines highlights – the Northern Feeder Vein – “is interpreted over a strike of at least 120 metres and to a depth of 260 metres”. That’s produced a silver grade of more than 1,000 grams (30 ounces) per tonne.

    The company is now targeting additional steep feeder vein zones in the central and southern parts of the Bowdens Deposit and is investigating the potential for underground mining at the high-grade Aegean Zone and the Northwest High-Grade Zone.

    Silver Mines expects the expanded drilling program will continue through the end of 2021, or longer.

    Silver Mines share price snapshot

    It’s been a fine year for Silver Mines’ shareholders, with shares soaring 158% over the past 12 months. By comparison the All Ordinaries Index (ASX: XAO) gained 31% over that same time.

    Year-to-date the Silver Mines share price is up 19%.

    Where to invest $1,000 right now

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    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

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    Motley Fool contributor Bernd Struben 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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  • 2 ASX shares rated as strong buys by brokers

    ASX shares upgrade best buy Stopwatch with Time to Buy on the counter

    There are a handful of ASX shares that multiple brokers rate as buys.

    It might be worth paying attention when plenty of brokers all think the same business is worth looking at.

    Either it means that most analysts are calling out a clear opportunity. Or they’re all wrong at the exact same time.

    These two ASX shares are highly rated by multiple brokers:

    Baby Bunting Group Ltd (ASX: BBN)

    The ASX retail share that specialises in selling products for babies and infants is currently rated as a buy by at least five brokers.

    One of the brokers that likes Baby Bunting is Morgan Stanley, which has a price target on the business of $6.30.

    The broker is attracted to Baby Bunting’s continuing sales strength as well as its gross profit margins. Despite the heavy investment into growth, Baby Bunting is still achieving revenue growth and could reach $1 billion of annual sales in FY30.

    Baby Bunting is seeing exceptionally strong online sales growth. In the first half of FY21, total online sales increased 95.9% and click and collect sales went up 218%.

    All of the relevant HY21 profit margins increased, leading to solid growth for the bottom line. Total sales rose 16.6% to $217.3 million, the gross margin increased 41 basis points to 37.4%, pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) rose 29.7% to $18.5 million and pro forma net profit went up 43.5% to $10.8 million.

    Private label and exclusive product revenue rose 28.2% to be 39% of total sales. It’s targeting above 40% for FY21 and continues to aim for 50% of sales to come from private label and exclusive products.

    The ASX share continues to grow its store network in Australia. It currently has 59 stores and has plans for over 100. Baby Bunting also plans to open at least 10 stores in New Zealand.

    According to Morgan Stanley, the baby Bunting share price is valued at 29x FY22’s estimated earnings.

    Newcrest Mining Limited (ASX: NCM)

    Newcrest is one of the largest gold miners in the world with a market capitalisation of just over $23 billion.

    It’s currently rated as a buy by at least seven brokers including Morgans, which believes it can benefit from stronger silver and copper prices.

    Morgans has a price target on Newcrest Mining over the next 12 months of $30.95.

    In the quarter ending 31 March 2021, Newcrest reported that gold production was 4% lower than the prior period. However, the gold production was higher than the quarter ending 30 September 2020.

    There was planned shutdown events at Cadia and Lihir as expected. On the positive side of things, Newcrest’s all-in sustaining cost for the quarter was $891 per ounce, which was $72 per ounce lower than the prior period. Newcrest said it’s very well positioned to fund organic growth opportunities, with a strong balance sheet and long-dated debt maturity profile. The balance sheet has been further improved with the early repurchase of outstanding corporate bonds and the maturity extension of existing undrawn bank debt facilities.

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    Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Baby Bunting. 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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  • Up 20% today, what’s with the Podium Minerals (ASX:POD) share price?

    Shares in Podium Minerals Ltd (ASX: POD) are being blown out of the water again today, and with no news from the company, market watchers are scratching their heads.

    At the time of writing, the Podium share price is up 19.4%, with shares in the company swapping hands for 80 cents.

    Podium is a precious metals exploration and resource development company. Its current focus is on platinum group metals, gold, and nickel-copper sulphides. Its major project is Parks Reef, located in Western Australia.

    Today’s gains have added even more momentum to the Podium share price’s recent meteoric rise. It’s gained 63% since the start of the month –including a 15.5% gain yesterday. Most of those increases have come in the last week, during which there has been no news from Podium. 

    So, what’s Podium been up to lately? Let’s take a look.

    Mad May

    May has been a huge month so far for Podium and the explorer has kept the ASX updated throughout.

    Podium’s first news of the month was that it had found rhodium and iridium in assay results from its Park Reef Project.

    On 5 May, the news pushed the Podium share price up 27% during intraday trade, though it closed only 5% higher than the previous session.

    Podium Minerals executive chair Clayton Dodd said at the time the company was delighted to find the metals – particularly as the price of rhodium was around 20 times that of platinum.

    Next, Podium announced it received permission and funding from the Western Australian Government to complete two diamond drilling holes in Parks Reef on 11 May.

    The state government is to pay 50% of the cost of drilling the holes. Podium will use the holes to test for mineral deposits 500 metres below the earth’s surface.

    Further, the price of platinum and gold, both of which are found at Park Reef, has increased over the last month. This could also be helping to drive the Podium share price.

    Podium Minerals share price snapshot

    The combination of good news from Podium Minerals might be the reason its share price is flying high on the ASX.

    Currently, the Podium Minerals share price is up 627% year to date and has risen a monstrous 3,850% over the past 12 months.

    The company has a market capitalisation of around $187 million, with approximately 280 million shares outstanding.

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  • Why these ASX lithium shares are down for a 5th straight session?

    ASX lithium heavyweights, Galaxy Resources Limited (ASX: GXY)Pilbara Minerals Ltd (ASX: PLS), and Orocobre Limited (ASX: ORE) marked a fifth straight session of losses on Monday.  

    Galaxy and Orocobre have extended the losing streak on Tuesday. However, the Pilbara finally ticked green, bouncing 4.19% to $1.12 at the time of writing. 

    Why ASX lithium shares are selling off 

    Commodities take a breather 

    The broader commodities sector experienced a sharp pullback between 11 to 14 May. During this time, the S&P/ASX200 Materials (INDEXASX: XMJ) index fell 4.80%. Main laggards included heavyweights BHP Group Ltd (ASX: BHP) and also Fortescue Metals Group Ltd (ASX: FMG)

    The weakness across the commodities sector likely dragged ASX lithium shares lower or capping any potential upside. 

    Weakness in lithium-related industries 

    The Global X Lithium & Battery Tech ETF (NYSEARCA: LIT) is made up of companies involved in the lithium cycle, from mining and refining the material to battery and electric vehicle production. 

    The exchange traded fund‘s (ETF) largest positions include Albemarle, the world’s largest provider of lithium for electric vehicle batteries and Ganfeng Lithium, the worlds third largest diversified lithium player. In addition, Contemporary Amperex Technology, a Chinese battery manufacturer. 

    After surging as high as US$74.80 by mid-February 2021 from a pre-COVID high of ~US$33, the ETF experienced a sharp 25% selloff. This has brought it back down to the US$50 level. The lithium ETF is currently down approximately 2% year-to-date.

    The flat year-to-date performance and recent selloff of the ETF reflects weakness across the lithium. This comes all the way down the supply chain from miners through to battery producers. The weak sentiment could be a factor weighting on ASX lithium shares. 

    The bigger picture 

    While the share price of ASX lithium shares might be taking a breather, the lithium landscape continues to make headway.

    Lithium spot prices are still running hot in 2021. Furthermore, the latest update from Fastmarkets highlights an uptick in both lithium carbonate and hydroxide prices in Asian markets due to tight supply availability. 

    Pilbara’s corporate presentation on 11 May highlights the continued tailwinds including the global commitment to achieve carbon neutrality and strong electric vehicles sales in both China and Europe.

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  • Is the a2 Milk (ASX:A2M) share price a bargain or value trap?

    It has been another day in the red for the A2 Milk Company Ltd (ASX: A2M) share price on Tuesday. At one stage today, the fresh milk and infant formula company’s shares fell 4% to a multi-year low of $5.12.

    When the a2 Milk share price hit that level, it meant it was down almost 75% from its 52-week high.

    Where next for the a2 Milk share price?

    Opinion is largely divided on whether the a2 Milk share price is a bargain buy or a value trap following its sizeable decline.

    Though, one thing that is for sure, is that it may not be as cheap as you think despite shedding 75% of its value.

    For example, analysts at Credit Suisse are forecasting the company reporting earnings per share of ~11.2 cents in FY 2021 and then ~17.7 cents in FY 2022. This means the a2 Milk share price is trading at 46x estimated FY 2021 earnings and 29x estimated FY 2022.

    As a comparison, the Kogan.com Ltd (ASX: KGN) share price, which has also fallen heavily, is trading at 24x estimated FY 2021 earnings and 22x estimated FY 2022 earnings, according to Credit Suisse’s forecasts.

    Based on the above, this would arguably make Kogan the more attractive option for investors. It is no wonder then that Credit Suisse has a sell rating and $5.00 price target on a2 Milk’s shares and a buy rating and $17.93 price target on Kogan’s shares.

    What about other brokers?

    It is worth noting that Credit Suisse is one of the more bearish brokers when it comes to a2 Milk. This is due to its concerns that Chinese consumers are shifting towards local brands and the daigou channel may never return to what it used to be.

    But not everyone is as bearish. Analysts at Bell Potter, for example, have a buy rating and $8.50 price target on the company’s shares. While this is still a long way from its high, based on the current a2 Milk share price, this still implies potential upside of approximately 65% over the next 12 months.

    Bell Potter is anticipating a stronger recovery in FY 2022 and is forecasting earnings per share of 28.9 cents. If this is accurate, the company’s shares are currently trading at a much more reasonable 18x estimated FY 2022 earnings.

    However, given the incredibly high level of uncertainty it is facing, only time will tell which broker made the right call.

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  • Why the PPK Group (ASX:PPK) share price hit a record high today

    The PPK Group Limited (ASX: PPK) share price is having a bumper day on Tuesday. This comes after the technology and mining equipment company announced a technological breakthrough.

    At the time of writing, PPK Group shares are fetching $12.10 apiece, up 8.52% for the day. In earlier trade, the company’s shares reached a new record high of $12.90 before partially retreating.

    What’s pushing PPK Group shares higher?

    Investors are fighting to get a hold of PPK shares after the company announced an update regarding a revolutionary lithium-sulphur battery.

    According to its release, PPK Group’s 48%-owned subsidiary, Li-S Energy has developed a new lithium-sulphur battery using boron nitride nanotubes (BNNT) technology. The scientific discovery was achieved along with its partner and fellow shareholder, Deakin University.

    Previously, PPK Group highlighted the significant potential of BNNT however, the material could only be produced in small quantities. To help solve this problem, BNNT Technology, a 50% subsidiary of PPK Group used breakthrough Deakin University technology.

    Since then, BNNT Technology yielded 5 kilos of BNNT across a 5-day period from a single production module. The result achieved above 95% purity. This signifies a strong advance in technology as just 2 years ago, only 1 kilo of BNNT per year could be produced.

    PPK stated that lithium sulphur (Li-S) batteries are next-generation batteries with a significantly higher energy capacity than existing lithium-ion batteries. However, they have a severe limitation with lifetime performance, typically failing over very few charge and discharge cycles.

    In response to this, Deakin’s Nanotechnology research team has developed (BNNT) to improve the performance of Li-S batteries. So far, the material retains a high-energy capacity and avoids significant degradation on more than 450 charge/discharge cycles. The research team is looking at further increasing the product’s cycle capacity.

    Li-S has now lodged two key patents covering the function of BNNT and the technology within. According to PPK, covered by the new patents, Li-S has the commercial opportunity to create large-scale manufacturing of lithium-sulphur batteries.

    Over the coming years, Li-S plans to finalise the design and scale-up production of the new batteries. Such applications include charging an electric vehicle after 1,000 kilometres of driving, off-grid solar/battery street lighting and more.

    Li-S Energy and BNNT Technology are both joint ventures between Deakin and PPK Group. Li-S Energy recently completed a capital raise of $20 million to support the ongoing development of Deakin’s technology.

    Management commentary

    PPK executive chair, Robin Levison commented:

    For me personally, this is a really exciting moment for PPK. What we see here is a real-life tangible application of BNNT to facilitate a genuine technological breakthrough with global commercial potential. This new type of lithium sulphur battery demonstrates how the unique attributes of this truly amazing product can be realised in practice.

    Li-S CEO Dr Lee Finniear went on to add:

    We have achieved a significant innovation breakthrough with our Li-S battery technology at a time when the world is demanding better batteries and more efficient energy storage devices. The commercialisation journey for Li-S Energy Limited has begun and is on track to showcase this Australian company as a recognised leader in this exciting industry.

    Lead Deakin researchers Alfred Deakin Professor Ying (Ian) Chen and Dr Baozhi Yu noted:

    These results are the culmination of 10 years of research into the development of lithium sulphur batteries and how that is influenced by advanced nanomaterials. The belief and investment in the research program from Li-S Energy have now enabled us to bring our research toward a commercial reality.

    PPK Group share price review

    Over the last 12 months, the PPK Group share price jumped by more than 200%, with year-to-date performance above 100%. 

    Based on valuation grounds, PPK Group commands a market capitalisation of roughly $1 billion, with approximately 89 million shares outstanding.

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  • Why ELMO, James Hardie, Redbubble, & St Barbara are tumbling lower

    The S&P/ASX 200 Index (ASX: XJO) is on course to record a solid gain. In afternoon trade, the benchmark index is up 0.7% to 7,070.4 points.

    Four ASX shares that have failed to following the market higher today are listed below. Here’s why they are tumbling lower:

    ELMO Software Ltd (ASX: ELO)

    The ELMO Software share price is down 3.5% to $4.74. Investors have been selling the HR and payroll platform provider’s shares after it narrowed its FY 2021 guidance range. It now expects annualised recurring revenue (ARR) to be between $83 million and $85 million. This compares to its previous guidance of $81.5 million to $88.5 million. Some investors appear to have been betting on the company achieving the high end of its previous range.

    James Hardie Industries plc (ASX: JHX)

    The James Hardie Industries share price is down 4% to $40.44. This follows the release of the building materials company’s fourth quarter results. James Hardie reported a 20% increase in sales to US$807 million and a 44% jump in adjusted net income to US$124.9 million for the quarter. This led to its full year sales increasing 12% to US$2,908.7 million and adjusted net income rising 30% to US$458 million. As strong as this was, it appears as though some investors were expecting better.

    Redbubble Ltd (ASX: RBL)

    The Redbubble share price is down over 6% to $3.36. This is despite there being no news out of the ecommerce company today. This latest decline means that the Redbubble share price is now down 54% from its 52-week high. Weakness in the tech sector and concerns over its valuation have been weighing on its shares.

    St Barbara Ltd (ASX: SBM)

    The St Barbara share price is down over 8% to $1.88. Investors have been selling the gold miner’s shares after it downgraded its production guidance and increased its cost guidance. Due to issues at its Leonara and Simberi operations, the company expects to be between 330,000 and 360,000 ounces in FY 2021. This compares to its previous guidance of 370,000 to 380,000 ounces. As for costs, the miner’s all-in sustaining costs (AISC) is now expected to be A$1,547 to A$1,695 per ounce, up from between A$1,440 and A$1,520 per ounce.

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  • 3 outstanding small cap ASX shares to watch

    Three different hands against a blue backdrop signal thumbs up, indicating share price rise on the ASX market

    If you’re a fan of small cap shares, then I would suggest you take a look at the ones listed below.

    Here’s why these three ASX small cap shares could have bright futures ahead of them:

    Audinate Group Limited (ASX: AD8)

    The first small cap share to look at is digital audio-visual networking technologies provider, Audinate. It is best known for its industry-leading Dante audio over IP networking solution. This solution is used widely across a number of industries and is currently dominating the competition. This appears to have positioned it perfectly for growth once the pandemic passes and large gatherings and events begin again. The company has also made some acquisitions in the video side of things and is looking to replicate its success in audio in this lucrative market as well.

    Universal Store Holdings Limited (ASX: UNI)

    Another small cap to watch is Universal Store. It is a fashion retailer which aims to deliver a frequently changing selection of on-trend products to a target 16-35 year old fashion focused customer. It has been a very positive performer during the pandemic and reported impressive growth during the first half of FY 2021. For the six months ended 31 December, Universal Store delivered a 23.3% increase in sales to $118 million and a 63.6% increase in underlying net profit after tax to $21.1 million. The company followed this up in the third quarter with further strong growth, setting itself up for a bumper full year profit result.

    Whispir Ltd (ASX: WSP)

    A final small cap share to watch is Whispir. It is a software-as-a-service communications workflow platform provider. Whispir provides an industry-leading software platform that allows governments and businesses to deliver actionable two-way interactions at scale using automated multi-channel communication workflows. Demand has been increasing strongly, leading to stellar recurring revenue growth in recent years. However, it is still only scratching at the surface of its total addressable market (TAM). At the end of the third quarter, Whispir’s ARR stood at $50.3 million, which was up 20.3% over the prior corresponding period. This compares to its TAM of US4.7 billion in the just United States. 

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

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    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 Whispir Ltd. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO. The Motley Fool Australia has recommended Whispir 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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  • A2 Milk and Zip were among the most traded ASX shares last week

    man and woman talking with each other whilst using a MacBook

    Australia’s leading investment platform provider CommSec has released data on the most traded ASX shares on its platform from last week.

    Here’s the data:

    A2 Milk Company Ltd (ASX: A2M)

    This infant formula company’s shares were the most traded on CommSec last week and attributable to 2.8% of trades. And although the a2 Milk share price sank 21% lower following its fourth guidance downgrade of FY 2021, almost two-thirds of the volume came from buyers. Unfortunately for these buyers, the company’s shares continue to slide and hit a multi-year low earlier today.

    Zip Co Ltd (ASX: Z1P)

    This buy now pay later (BNPL) provider’s shares were popular again last week. They accounted for 2.5% of trades, with 62% coming from the buy side. Despite this buying pressure, it wasn’t enough to stop the Zip share price sinking 6.8% over the five days. This was driven by weakness in the tech sector.

    Betashares Nasdaq 100 ETF (ASX: NDQ)

    The Betashares Nasdaq 100 ETF was attributable to 2.2% of trades on CommSec last week, with 84% of the volume coming from buyers. As with Zip, weakness in the tech sector weighed heavily on the popular ETF last week. This led to the Betashares Nasdaq 100 ETF falling 2.7% over the period.

    Afterpay Ltd (ASX: APT)

    Afterpay shares were attributable for 2.1% of trades on the platform last week, with 59% coming from buyers. Unfortunately, the aforementioned selloff in the tech sector led to the Afterpay share price sinking 9.5% over the five days.

    Fortescue Metals Group Limited (ASX: FMG)

    This iron ore producer’s shares accounted for 1.5% of trades on CommSec last week. On this occasion, the buying and selling was largely even, with buyers accounting for 52% of the volume. The Fortescue share price fell 1% last week after a pullback in iron ore prices towards the end of the week.

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    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

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    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 AFTERPAY T FPO, BETANASDAQ ETF UNITS, and ZIPCOLTD FPO. The Motley Fool Australia has recommended A2 Milk and BETANASDAQ ETF UNITS. 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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