• How will the Afterpay (ASX:APT) share price react when US rival delivers trading results overnight?

    A woman nervously crosses her fingers, indicating hope for positive share price movement

    Shares in Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) are in the spotlight this morning following the overnight release of Affirm Inc‘s (NASDAQ: AFRM) third-quarter results. 

    Affirm, the largest buy now, pay later (BNPL) share listed in the United States, has tumbled to record lows in recent weeks. 

    Why Afterpay and Zip shares are in focus 

    The US market is the centrepiece of growth for both the Afterpay share price and Zip. 

    In the case of Afterpay, the US was the first region to record more than $1 billion in underlying sales in a single month and is now the largest contributor to its overall business. The same can be said about Zip with its Quadpay business set to outpace Australia and New Zealand revenues in the near term. 

    Affirm will report its third-quarter results on Monday night. Surprisingly, the company only has regional exposure to North America, which could provide key insight as to how the heavyweight region is performing. 

    Should investors get their hopes up?

    BNPL shares have struggled to rally in recent weeks, even on the back of positive announcements and quarterly results. 

    In the case of Affirm, the company previously topped second-quarter revenue and gross merchandise expectations on 11 February but its share price still managed to slip 10% on the day. 

    The company delivered quarterly revenues of US$204 million compared to the US$130 million a year ago, while analysts had forecast US$189.4 million. Similarly, its gross merchandise volume increased to US$2.1 billion from US$1.3 billion, compared to consensus estimates of US$1.7 billion. 

    Foolish takeaway

    The Affirm third-quarter earnings conference call can be found here. With its shares down some 40% year-to-date, the question is: will the company put its best foot forward to restore confidence? Not only for its shareholders but to potentially bring life back into the BNPL sector including ASX-favourites Afterpay and Zip. 

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    Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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 excellent ASX 200 shares rated as buys

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

    If you are looking for some new portfolio additions, then the ASX shares listed below could be worth considering.

    Here’s why these ASX 200 shares have been given buy ratings:

    Goodman Group (ASX: GMG)

    The first ASX 200 share to look at is Goodman Group. It is a global property group that owns, develops, and manages industrial real estate including logistics and industrial facilities, warehouses, and business parks.

    Goodman has been growing at a solid rate over the last decade thanks to its high quality portfolio. Over the period, management has curated its portfolio to give it exposure to industries benefiting from structural tailwinds. These include areas such as online, logistics, food, consumer goods, and the digital economy.

    Positively, with an occupancy rate at 98%, rental income growing nicely, and its work in progress worth $9.6 billion, the future is looking very positive.

    Macquarie certainly believes this is the case. Last week it retained its outperform rating and lifted its price target to $20.87. It believes Goodman could achieve double digit earnings growth until at least FY 2024.

    Lendlease Group (ASX: LLC)

    Another ASX 200 share to look at is Lendlease. It is a global property and infrastructure company.

    Lendlease has been going through a major transformation over the last couple of years. This has seen the company divest its struggling engineering business and launch a new strategy.

    This new strategy is actually aiming to shift its earnings mix and business model to be more like Goodman. And given Goodman’s impressive form over the last decade and its positive long term growth outlook, this went down well with the market.

    Goldman Sachs is a fan of the strategy. Its analysts currently have a conviction buy rating and $16.52 price target on the company’s shares.

    The broker believes its shares are very cheap at the current level and is positive on the future thanks to its significant development pipeline.

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    Motley Fool contributor James Mickleboro 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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  • LIVE COVERAGE: ASX expected to sink; Seven launches takeover bid for Boral

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    Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Kate O’Brien owns shares of Apple and Rio Tinto Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Apple. 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 quality ASX dividend shares to buy today

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    Are you looking to add some new faces to your income portfolio this week? If you are, then you might want to look at the ASX dividend shares listed below.

    Here’s what you need to know about them:

    Coles Group Ltd (ASX: COL)

    The first dividend share to consider is this supermarket operator. It could be a good option due to the overall quality of its business model, its solid growth prospects, and generous dividend policy. The latter sees the company aim to pay shareholders 80% to 90% of its earnings as dividends.

    One broker that believes the Coles share price is in the buy zone is Goldman Sachs. Last month the broker responded to Coles’ third quarter update by retaining its buy rating and trimming its price target slightly to $20.50.

    As for dividends, Goldman is expecting dividends per share of 62 cents in FY 2021 and 66 cents in FY 2022. Based on the current Coles share price of $16.21, this will mean fully franked yields of 3.8% and 4%, respectively, over the next two years.

    Transurban Group (ASX: TCL)

    Another ASX dividend share to look at is Transurban. It is a toll road operator with a portfolio of important roads throughout Australia and North America.

    While traffic has been soft on its roads during the pandemic, it is starting to bounce back. The good news with this is that as traffic levels recover so too will its distributions.

    It is for this reason that analysts at Ord Minnett are forecasting dividends of 37 cents per share in FY 2021 and then 58 cents per share in FY 2022. Based on the current Transurban share price of $14.34, this will mean yields of 2.6% and 4%, over the next two years.

    Macquarie has an outperform rating and $16.00 price target on its shares.

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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 COLESGROUP DEF SET and Transurban Group. 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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  • 5 things to watch on the ASX 200 on Tuesday

    A share market investment manager monitors share price movements on his mobile phone and laptop

    On Monday the S&P/ASX 200 Index (ASX: XJO) started the week with a very strong gain. The benchmark index rose 1.3% to 7,172.8 points.

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

    ASX 200 expected to sink

    It looks set to be a difficult day for the Australian share market on Tuesday following a poor start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 59 points or 0.8% lower this morning. On Wall Street, the Dow Jones dropped 0.1%, the S&P 500 fell 1%, and the Nasdaq tumbled 2.55%.

    Oil prices soften

    Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could be out of form after oil prices softened. According to Bloomberg, the WTI crude oil price is down 0.15% to US$64.80 a barrel and the Brent crude oil price has fallen 0.15% to US$68.19 a barrel.

    Seven makes Boral takeover offer

    The Boral Limited (ASX: BLD) share price will be one to watch this morning after Seven Group Holdings Ltd (ASX: SVW) launched an off market takeover offer. Seven, which currently owns 23.18% of Boral, has made a $6.501 cash per share off-market for all of the shares it does not own. This represents an 18% premium to its last close price.

    Gold price rises

    Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.4% to US$1,838.20 an ounce. Weak US economic data sent the gold price close to a three-month high.

    Tech shares could tumble

    Leading Australian tech shares such as Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) could come under pressure today. This follows a particularly bad night of trade on the tech-focused Nasdaq index. As the local tech sector tends to follow the Nasdaq’s lead, its 2.55% decline doesn’t bode well for today’s session. One slight positive for Afterpay and Zip, though, is that their US rival Affirm jumped after a strong update.

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  • What happened to the AVZ Minerals (ASX:AVZ) share price today?

    good news and bad for asx shares represented by same man pictured happy and then sad

    The AVZ Minerals Ltd (ASX: AVZ) share price surged then fell today after the company announced a co-operation agreement with the government of Congo.

    Shares in the company were trading 6.25% higher at 17 cents late this afternoon before slipping back to their opening price of 16 cents just at the market close.

    Let’s take a look at what mineral explorer announced.

    Government agreement

    Today, AVZ Minerals announced that the Democratic Republic of Congo (DMC) had approved a draft co-operation agreement with the company.

    The company said the document approval would aid the company’s Manono Lithium and Tin Project, adding the draft represented “significant financial opportunity”.

    With the new DMC government being sworn in on April 27, the company said the news represented a step in the right direction for the Manono Special Economic Zone (MSEZ). It noted the agreement could lead to tax concessions and import duty relief.

    AVZ managing director Nigel Ferguson welcomed the news, saying:

    The final co-operation agreement will deliver significant long-term economic benefits for the project, as well as further underpinning our substantial investment in the DRC.

    It will also deliver long-term benefits for the people of the Manono region, including access to improved health and education services, stable employment opportunities and upgraded infrastructure including electricity supply.

    The company noted that the agreement was still in the draft stage, with the AVZ Minerals team in DRC “working hard” to finalise negotiations. It expects the DRC Government to sign the formal decree “as soon as practicable and hopefully in May 2021”.

    About the AVZ Mineral share price

    AVZ Minerals is an Australian mineral explorer. The company’s key operation is the Manono project in the Democratic Republic of Congo in Africa.

    While the mine is not yet operational, the company continues to focus on progressing it.

    The AVZ Mineral share price has had a ripper year so far, gaining 166% over the past 12 months. This exceeds the All Ordinaries Index‘s (ASX: XAO) more modest 33.5% gain.

    Where to invest $1,000 right now

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  • ASX 200 jumps, A2 Milk sinks, Crown rises

    The S&P/ASX 200 Index (ASX: XJO) went up by 1.3% today, ending at 7,173 points.

    Here are some of the highlights from the ASX:

    A2 Milk Company Ltd (ASX: A2M)

    The A2 Milk share price suffered today, it dropped by 13.1% after a trading update.

    The infant formula business downgraded its revenue expectations again. A2 Milk said it’s now forecasting FY21 revenue will come between $1.2 billion to $1.25 billion.

    A2 Milk said that the China infant nutrition market has been and continues to be challenging for international infant formula producers.

    While the third quarter trading was broadly in line with management’s plan, the company said it’s clear that the actions taken to address challenges in the daigou and reseller channel, as well as cross border e-commerce (CBEC), will not result in sufficient improvement in pricing, sales and inventory levels to meet previous guidance based on April sales being well below plan.

    The board asked management to do a review of inventory and the conclusion of that is inventory is higher than had been anticipated. The challenges that the company is seeing has been exacerbated by the excess inventory.

    A2 Milk is going to take more aggressive actions to address excess inventory, which will impact FY21 revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) and potentially the first quarter of FY22.

    The company will also increase marketing investment in the fourth quarter of FY21 and into FY22 to drive consumer demand.

    A2 Milk’s leadership recognises that the Chinese market and channel structure is changing rapidly and has therefore commenced a comprehensive process to review its growth strategy and executional plans to respond to this new environment.

    Due to these various impacts, the FY21 EBITDA margin is now expected to be in the order of 11% to 12%, excluding acquisition transaction costs.

    The A2 Milk board is considering a potential share buy-back. Despite that, it was one of the worst performers in the ASX 200.

    Crown Resorts Ltd (ASX: CWN)

    The Crown Resorts share price went up 7.25% after announcing two takeover bids.

    Firstly, Crown announced that Blackstone Group had increased its bid for the casino business by $0.50 per share from $11.85 to $12.35 per share. Other than the increase in the indicative offer price, the key terms of the revised offer are consistent with that has been previously announced.

    Crown has also received a merger proposal from Star Entertainment Group Ltd (ASX: SGR). The proposal is that Star will exchange each Crown share for 2.68 Star shares. The merger proposal also contemplates a cash alternative of $12.50 per Crown share, subject to a cap of 25% of Crown’s total shares on issue, with any scale back to occur on a pro rata basis.

    If the cash alternative is fully taken up, it would result in pro forma ownership of the merged entity of 59% of Crown shareholders and 41% of Star shareholders.

    Star stated that it has estimated a merger with Crown would result in indicative cost synergies of between $150 million to $200 million per annum. There is also the potential to unlock “significant value” from a sale and leaseback of the merged entity’s property portfolio.

    The Crown board has not yet formed a view about either of these proposals.

    The Star share price also grew by 7.7% today. It was one of the best performers in the ASX 200.

    Woolworths Group Ltd (ASX: WOW)

    The Woolworths share price went up 2.75% after announcing it’s going to demerge its Endeavour Group business, which includes Dan Murphy’s, BWS and ALH.

    Woolworths shareholders will receive one new Endeavour Group share for each Woolworths share they own.

    The supermarket business will retain a 14.6% interest in Endeavour Group after the demerger. Bruce Mathieson Group, the joint venture partner, will also retain 14.6%.

    Subject to board approval and trading conditions, $1.6 billion to $2 billion could be returned to shareholders.

    Woolworths Chair Gordon Cairns said:

    The Woolworths Group Board believes that a demerger of Endeavour Group will enhance shareholder value and it will create two leading ASX-listed companies. We believe both businesses, post demerger, have strong future prospects and will benefit from greater simplicity, focus and ongoing partnership.

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    Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk. 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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  • The Hub24 (ASX:HUB) share price slides despite positive news

    asx share price fall represented by lady in striped tshirt making sad face against orange background

    The Hub24 Ltd (ASX: HUB) share price was trading in the red this afternoon despite the company announcing an update on its strategic alliance with Clearview Wealth Ltd (ASX: CVW).

    At the close of trade, the investment platform provider’s shares were down 2.48%, trading at $23.18.

    What did Hub24 announce?

    In its release, Hub24 advised it has completed the wrap platform development and bulk transition from Clearview. This transfer entails the administration services of $1.4 billion funds under administration (FUA) to Hub24. The strategic wrap platform consists of ClearView’s WealthSolutions Super, LifeSolutions Super, and WealthSolutions investor directed portfolio service (IDPS).

    Hub24 said that both parties developed a private label IDPS and Super wrap solution to provide investment continuity and minimise customer disruption. As a result, most of the FUA has moved across to the private label from Clearview’s administrator. Both advisors and customers can now access the new product through the Hub24 platform.

    Last year, Clearview’s WealthSolutions2 white label for IDPS and Super was launched onto Hub24’s network. Since then, 14 managed portfolios have been made available to advisors using the Hub24 retail offer.

    Words from the management

    Hub24 managing director Andrew Alcock said:

    HUB24’s capability to seamlessly deliver large scale transitions has once again been proven. The teams across HUB24 and ClearView have been working together to achieve this for ClearView’s customers following the launch of the white label last year. We look forward to continuing to work with ClearView on product development initiatives going forward.

    ClearView managing director Simon Swanson went on to add:

    ClearView is in the middle of a multi-year transformation program to ensure that we remain easy to do business with and continue to deliver high quality, fit-for-purpose life insurance, wealth management and financial advice solutions. We look forward to continuing our relationship with HUB24.

    About the Hub24 share price

    The Hub24 share price has accelerated over the last 12 months, delivering gains of more than 120%. Hub24 shares fell to a 52-week low of $9.01 during late June before moving on an upwards trajectory. The company reached an all-time high of $27.80 this year and is within striking distance of breaking that new record again.

    Based on the current Hub24 share price, the company commands a market capitalisation of around $1.5 billion.

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  • How the Pilbara (ASX: PLS) share price outshone its lithium peers today

    asx share price increase represented by golden dollar sign rocketing out from white domes of lithium

    The Pilbara Minerals Ltd (ASX: PLS) share price spearheaded the lithium cohort today and was up 10.5% at $1.31 by the end of trading. 

    The Pilbara share price achieved most of its gains in the first hour of trade but released a positive drilling results announcement before the market close to further extend its bullish day. 

    Pilbara share price flies on “exceptional” drill results 

    In today’s release, Pilbara reported significant initial assay results from exploration and resource extension drilling programs at its Pilgangoora Lithium-Tantalum project in Western Australia. 

    The programs are currently targeting the previously under-explored region adjacent to its recently acquired Altura Lithium Operations tenement boundary.

    Currently, 7,009 drill metres have been completed in the proposed 9,500 metre program. Select assay results received from its first nine holes in the program include: 

    15m @ 2.35% Li2O and 100ppm Ta2O5 from 142m (PLS1315)
    22m @ 1.27% Li2O and 87ppm Ta2O5 from 125m (PLS1316)
    18m @ 2.01% Li2O and 75ppm Ta2O5 from 168m (PLS1319)
    18m @ 1.81% Li2O and 80ppm Ta2O5 from 150m (PLS1320)
    20m @ 1.55% Li2O and 89ppm Ta2O5 from 174m (PLS1321)

    Pilbara notes it will incorporate the results from this drilling program into its updated combined Pilgangoora Project Mineral Resource, which is scheduled for release in the September quarter. 

    Management commentary 

    Commenting on the results, Pilbara Minerals CEO Ken Brinsden said: 

    The area adjacent to the old Altura tenement boundary has always offered significant exploration potential and was considered one of the benefits for Pilbara Minerals undertaking the Altura asset acquisition.

    These results from the current program confirm the potential endowment of this area and we intend to work hard on this area in the coming months to add further value to the integrated operations.

    Brinsden said as one of the world’s great lithium resources, the Pilgangoora Project would play “an important part in raw materials supply across the globe, including value-added products, as the global decarbonisation push and electrification drive gather significant momentum”.

    A strong day for ASX lithium shares 

    ASX lithium shares appear to be taking charge despite no catalyst from the likes of Tesla Inc (NASDAQ: TSLA) or renewables ETFs such as the Global X Lithium & Battery Tech ETF.

    The Galaxy Resources Ltd (ASX: GXY) closed today up 2.98% at $4.15 at a 2-year high. While the Orocobre Ltd (ASX: ORE) share price has also surpassed a 2-year high, up 3.45% to $7.20. 

    The Pilbara share price is currently leading the pack but is still 5% off its 22 January 2021 high of $1.385. 

    Where to invest $1,000 right now

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  • 2 excellent ASX growth shares rated as buys this month

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    If you’re a fan of growth shares, then you might want to take a look at the ones listed below.

    Here’s why these quality ASX growth shares have been tipped as ones to buy right now:

    Altium Limited (ASX: ALU)

    This electronic design software provider could be a growth share to look closely at. As well as being the company behind the Altium Designer and Altium 365 platforms, it also has the Octopart electronic parts search engine business and the NEXUS design collaboration platform supporting the core business.

    All these businesses have exposure to the growing internet of things and artificial intelligence markets. And as these markets are underpinning an explosion in electronic devices globally, demand for Altium’s offering looks likely to increase materially in the future. Especially given how its platforms are widely regarded as the best in the industry by some distance.

    One broker that is positive on the company’s future is Citi. Late last month the broker put a buy rating and $33.50 price target on Altium’s shares. It suspects that the company is nearing the end of its COVID-19 related downgrade cycle and remains positive on the long term.

    Pushpay Holdings Group Ltd (ASX: PPH)

    Another ASX growth share to look at is Pushpay. It is a leading donor management and community engagement platform with a focus on the faith sector.

    It has been growing strongly in recent years but still has an enormous runway for growth. For example, management has set itself a target of winning 50% of the medium to large US church market in the future. This represents US$1 billion in revenue, which is almost 8 times greater than FY 2020’s revenue.

    Pleasingly, it looks well-positioned to achieve this thanks to its industry-leading platform. This platform was also bolstered by the acquisition of US$87.5 million church management system provider Church Community Builder last year.

    This has led to the launch of ChurchStaq, which is the amalgamation of its Pushpay and Church Community Builder software. It brings together digital giving, donor development, church apps, and church management software (ChMS) to deliver a fully integrated engagement platform.

    Goldman Sachs is positive on Pushpay and believes it is well-placed for long term growth. The broker has a buy rating and ~$2.59 price target on its shares.

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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 PUSHPAY FPO NZX. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Altium. The Motley Fool Australia owns shares of Altium. The Motley Fool Australia has recommended PUSHPAY FPO NZX. 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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