• LIVE COVERAGE: ASX to open higher

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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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  • 5 things to watch on the ASX 200 on Tuesday

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    On Thursday the S&P/ASX 200 Index (ASX: XJO) was on form and finished the shortened week with a gain of 0.55% to 6,828.7 points.

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

    ASX 200 futures pointing higher

    The Australian share market could have a strong start to the week. According to the most recent SPI futures, the ASX 200 is expected to open the week 23 points or 0.3% higher. However, it is worth noting that these contracts are based on pre-Easter trading. Since then, the US market has stormed to record highs, so the gains could be far stronger at the open. On Monday night the Dow Jones rose 1.1%, the S&P 500 climbed 1.45%, and the Nasdaq jumped 1.7%.

    Oil prices sink

    Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could come under pressure after oil prices sank lower. According to Bloomberg, the WTI crude oil price is down 4.3% to US$58.78 a barrel and the Brent crude oil price has fallen 4% to US$62.27 a barrel. Traders were selling oil after OPEC ramped up its production.

    RBA meeting

    The Reserve Bank will be meeting this afternoon to make a decision on the cash rate. According to the latest cash rate futures, the market has priced in an 87% probability of a cut to zero. This means that while it remains unlikely, a cut is well and truly in play at today’s meeting. The current cash rate stands at 0.1%.

    Gold price flat

    Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after a flat night of trade for the gold price. According to CNBC, the spot gold price is flat at US$1,728.70 an ounce. The precious metal was held back by improving investor sentiment.

    Webjet given buy rating

    The Webjet Limited (ASX: WEB) share price remains good value according to analysts at Goldman Sachs. This follows its recent capital raising via a convertible notes offering. The broker said: “We view this announcement as a move towards removing capital structure uncertainty. While the new convertible notes are likely to be dilutive to equity shareholders in the future (considering our WEB target price), they are currently out of the money with par value 20.3% above the current share price.” The broker has retained its buy rating and $7.00 price target.

    Where to invest $1,000 right now

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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 Webjet 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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  • 2 top quality blue chip ASX shares to buy in April

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    If you’re wanting to add a few blue chip shares to your portfolio in April, then you may want to check out the ones listed below.

    Here’s why these ASX shares come highly rated:

    Goodman Group (ASX: GMG)

    Goodman Group is a leading integrated commercial and industrial property company. It owns, develops, and manages industrial real estate globally.

    Goodman focuses on investing in and developing high quality industrial properties in strategic locations. These are 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.

    At the last count, Goodman had $51.8 billion of total assets under management, 369 properties under management, and 1,600+ customers. Among its customer base are the likes of Amazon, Coles Group Ltd (ASX: COL), DHL, Showpo, and Walmart.

    Macquarie is positive on the company’s future and currently has an outperform rating and $20.39 price target on its shares. It believes Goodman is positioned to achieve double digit earnings growth through to FY 2024.

    Sonic Healthcare Limited (ASX: SHL)

    Another blue chip to look at is Sonic Healthcare. It is a leading medical diagnostics company with operations across the world.

    Sonic has been a very impressive performer in FY 2021. In February, it released its half year results and reported a 33% increase in revenue to $4.4 billion and a 166% jump in first half net profit to $678 million.

    While this growth has been driven by strong demand for COVID-19 testing services, it has been supported by positive performances across the rest of the business. 

    Credit Suisse is a fan of the company. Late last month the broker retained its outperform rating and increased its price target to $40.00.  It notes that there is evidence of pent up demand for healthcare services after people delayed seeking healthcare during the pandemic. The broker also expects COVID-19 testing to remain strong through 2021.

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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. The Motley Fool Australia has recommended Sonic Healthcare 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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  • 2 quality ASX healthcare shares to buy and hold

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    One area of the market which has performed very positively over the last five years has been the healthcare sector.

    Since this time in 2016, the S&P/ASX 200 Health Care index has risen a sizeable 109%. This compares to a ~38% gain by the S&P/ASX 200 Index (ASX: XJO) over the same period, excluding dividends.

    The good news for investors is that there are a number of healthcare shares that have been tipped to continue to outperform the market. Two to consider are listed below:

    CSL Limited (ASX: CSL)

    CSL is one of the world’s leading biotherapeutics companies. It has been an exceptionally positive performer over the last five years due to a number of factors.

    This includes successful acquisitions, its high level of investment in research and development (R&D) activities, its growing plasma collection network, and its leading therapies and vaccines.

    In respect to its therapies, CSL’s portfolio includes lucrative and life-saving products such as Privigen, Hizentra, Idelvion, and Afstyla. These will be added to in the coming years thanks to its almost billion-dollar annual investment in R&D.

    While the pandemic has hit plasma collections and could lead to elevated costs in the near term, this headwind is only expected to be temporary. In light of this, a number of brokers believe recent weakness in the CSL share price is a buying opportunity for investors.

    One of those is Credit Suisse. Last month the broker upgraded the company’s shares to an outperform rating with a $315 price target.

    Mach7 Technologies Ltd (ASX: M7T)

    At the small end of the healthcare sector you’ll find Mach7. It is a medical imaging data management solutions provider which uses software to create a clear and complete view of the patient. Management notes that this helps users with their diagnoses, reduces costs, and improves outcomes. 

    Last year Mach7 announced the acquisition of Client Outlook for A$40.9 million. The acquisition of the leading provider of an enterprise image viewing technology has not only expanded its offering but also its addressable market. The company now estimates that it has a US$2.75 billion market opportunity to grow into. This is significantly more than its current annualised recurring revenue (ARR) of $10.2 million.

    Analysts at Morgans are very positive on the company’s prospects. The broker believes that its solutions are well-placed in the current environment where demand for telehealth is growing fast. Morgans currently has an add rating and $1.68 price target on the company’s 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 and recommends MACH7 FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has recommended MACH7 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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  • Leading brokers name 3 ASX shares to buy today

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    With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

    With the market closed today for Easter, I have picked out three top ASX shares that leading brokers have named as buys recently. Here’s why they are bullish on them:

    CSL Limited (ASX: CSL)

    According to a note out of Wilsons, its analysts have retained their overweight rating and $320 price target on this biotech company’s shares. Although the broker expects plasma collection headwinds to stifle its earnings growth in the near term, Wilsons remains positive on its future. Particularly given its strong position in the global plasma market and the strong demand it expects it to continue to experience for plasma-based products. The CSL share price last traded at $263.00.

    EROAD Ltd (ASX: ERD)

    A note out of Bell Potter reveals that its analysts have put a buy rating and $3.99 price target on this fleet management solution provider’s shares. According to the note, the broker is a fan of EROAD due to its consistent revenue and ARPU growth. Bell Potter also sees opportunities for the company to grow the latter metric in the future with new product launches and its growing addressable market. This is particularly the case in the huge North American market. The EROAD share price ended the week at $4.04.

    Openpay Group Ltd (ASX: OPY)

    Analysts at Shaw and Partners have retained their buy rating and $5.00 price target on this buy now pay later provider’s shares. According to the note, the broker was pleased with Openpay’s agreement with payments giant FIS Worldpay. Shaw and Partners notes that this is another milestone partnership on the back of its recent ezyVet deal. It feels this further demonstrates the company’s ability to integrate into leading global payments providers and augment that with service specialist requirements. The Openpay share price was fetching $2.50 at the end of last week.

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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 CSL Ltd. 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 excellent ASX growth shares to buy

    Do you want to add a growth share or two to your portfolio in April? If you do, then you might want to look at the ones listed below.

    Here’s why these could be growth shares to buy right now:

    Altium Limited (ASX: ALU)

    The first ASX growth share to look at is electronic design software provider Altium.

    It appears well-placed for growth over the long term thanks to its market-leading Altium Designer software and cloud-based Altium 365 platform. These platforms are used for printed circuit board (PCB) design by some of the biggest companies and government organisations in the world. This includes Boeing, CSIRO, Microsoft, NASA, SpaceX, and Tesla.

    Another positive is that demand for PCB design software is expected to increase strongly over the 2020s due to the proliferation of electronic devices globally.

    Pleasingly, management is confident this will be the case. In February, it confirmed that it is targeting US$500 million in revenue and 100,000 subscribers by 2025. This compares to its revenue forecast of US$190 million to US$195 million in FY 2021 and its current subscriber base of 52,157.

    UBS is positive on the company. It currently has a buy rating and $34.00 price target on Altium’s shares.

    IDP Education Ltd (ASX: IEL)

    Another ASX growth share to look at is IDP Education. It is a leading provider of international student placement and English language testing services.

    The last 12 months have been tough for the company due to the pandemic’s impact on demand for its services. However, trading conditions are improving as vaccines are rolled out across the world. In addition, pent up demand looks likely to lead to a surge in demand once the crisis passes.

    One broker that is particularly positive on the company is Macquarie. It currently has an outperform rating and $30.80 price target on the company’s shares.

    It notes that IELTS testing is expected to return to pre-COVID levels by December. It also expects the company’s investments in its digital business to support margin improvements.

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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 Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Idp Education Pty Ltd. 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 quality tech ETFs delivering strong returns

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    There are a few high-quality technology exchange-traded funds (ETFs) that have a record of delivering strong returns over the past few years.

    Technology is an important part of life and the businesses that are within the below two ETFs continue to do well:

    Betashares Nasdaq 100 ETF (ASX: NDQ)

    This ETF is about investing in 100 of the largest non-financial businesses that are listed on the NASDAQ.

    Diversification away from ASX shares alone is a good reason to consider this ETF. It owns many of the world’s biggest and strongest technology businesses.

    It has holdings of the following huge tech companies: Apple, Microsoft, Amazon, Tesla, Facebook, Alphabet, NVIDIA, PayPal and Netflix.

    Many of the above businesses are the ones that are changing how we live our lives. Phones, our entertainment, how we buy things and how many people work – the big US tech companies are heavily involved in many aspects.

    The revenue, profit and returns from these tech companies keep delivering. That’s why Betashares Nasdaq 100 ETF has been one of the best ETFs over the last few years. Over the last three years it has returned an average of 24.2% per annum and over the last five years it has returned an average of 23.7% per annum. It has an annual management fee of 0.48%.

    Past performance is not a guarantee of future performance, but there are some industry-leading businesses in the portfolio that aren’t just FAANG shares – Adobe, Cisco Systems, Broadcom, Texas Instruments, Costco, Qualcomm, Applied Materials, Starbucks, Advanced Micro Devices, Micron Technology, Intuitive Surgical, Zoom, ASML and Moderna. As a group, they could keep doing well. 

    Betashares Global Cybersecurity ETF (ASX: HACK)

    This is an ETF that is focused on businesses that provide cybercrime defence systems. As more and more of the world goes digital, and increasingly onto the cloud, the importance of protecting against attacks is even more important.

    The portfolio is invested in both the biggest global cybersecurity businesses as well as smaller, growing companies in the sector.

    Betashares Global Cybersecurity ETF is invested in 40 names, with the largest 10 positions each having a weighting of over 3%. Those names include: Cisco Systems, Accenture, Splunk, Crowdstrike, Zscaler, F5 Networks, Fortinet, Akamai Technologies, Juniper Networks and Leidos.

    Most of this ETF is listed in the US, with almost 90% of the weighting. The only other countries that have allocations of more than 3% are the UK and Israel.

    This ETF has a slightly more expensive cost, with an annual management fee of 0.67%. Since inception in August 2016, it has made net returns of an average of 19.2% per annum.

    BetaShares disclosed that worldwide spending on cybersecurity is predicted to be around US$250 billion by 2023 and US$224 billion in 2022.

    The ETF provider also reminded investors that there are very few cybersecurity businesses on the ASX and the entire technology sector only makes up a small part of the ASX share market.

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    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 BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of BETA CYBER ETF UNITS. The Motley Fool Australia has recommended 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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  • These ASX shares have doubled in value in 2021

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    The market may be pushing higher in 2021, but its modest gain is nothing in comparison to those recorded by the two ASX shares listed below.

    Here’s why these ASX shares have doubled in value this year:

    AnteoTech Ltd (ASX: ADO)

    The AnteoTech share price has been rocketing higher in 2021 and is up 127% since the turn of the year. Investors have been scrambling to buy the nanotechnology company’s shares due to developments with one of its major customers.

    That customer is Ellume. Earlier this year the Australian medical device company signed a US$230 million (A$300 million) agreement with the U.S. Department of Defense (DOD) for its Emergency Use Authorization (EUA) COVID 19 at home test.

    Ellume’s COVID-19 test was the first at-home test to gain US FDA emergency approval. It reportedly has an accuracy rate of approximately 95%.

    This is good news for AnteoTech because Ellume integrates the company’s AnteoBind technology into its proprietary quantum dot diagnostics platform. Furthermore, the technology appears to be a key part of Ellume’s test. Management notes that AnteoBind uses coordination chemistry and multipoint binding to optimise an assay’s conjugation performance. This leads to better tests and better results.

    Piedmont Lithium Ltd (ASX: PLL)

    The Piedmont Lithium share price has been on fire this year and is up 147% year to date. Investors have been fighting to get hold of the lithium developer’s shares for a number of reasons.

    One is the increasingly positive outlook for the battery making ingredient due to the electric vehicle boom. This has supported a sharp rise in both demand and pricing.

    In addition to this, an announcement late last year has got investors very excited about Piedmont Lithium’s future. In September, the company signed a binding sales agreement with electric vehicles giant Tesla.

    The two parties have signed an initial five-year term for the supply of spodumene concentrate (SC6) from Piedmont Lithium’s North Carolina deposit. The deal also includes the option for a further five-year extension by mutual agreement.

    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.*

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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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  • 2 rapidly growing small cap ASX shares to buy

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    If you’re interested in adding some exposure to the small side of the market to your portfolio then you might want to take a look at the shares listed below.

    Here’s why these ASX small caps have been tipped as buys:

    Universal Store Holdings Limited (ASX: UNI)

    The first small cap to look at is Universal Store. It is a fashion retailer which delivers an ever-changing and carefully curated selection of on-trend products to the younger fashion-focused customer.

    Universal Store has been an exceptionally strong performer during the pandemic. This culminated in the company delivering a half year result in February which revealed stellar sales and profit growth. For the six months ended 31 December, Universal Store posted a 23.3% increase in sales to $118 million and a massive 63.6% increase in underlying net profit after tax to $21.1 million.

    Key drivers of this growth were strong like for like store sales growth and a surge in online sales. Positively, its like for like sales growth has accelerated since the end of the half. During the first seven weeks of the second half, Universal Store reported like for like sales growth of 28.2%.

    Morgans is positive on the company and has an add rating and $8.37 price target on its shares.

    Volpara Health Technologies Ltd (ASX: VHT)

    Another small cap to look at is Volpara. This healthcare technology company’s VolparaEnterprise software solution is a cost-effective, mission-critical tool that helps clinics deliver the highest-quality breast imaging services.

    In addition to this, the company has a growing number of add-on solutions that work with VolparaEnterprise. These include VolparaDensity, VolparaDose, VolparaPressure, VolparaLive, and VolparaPositioning.

    These add-ons are expected to support an increase in its average revenue per user (ARPU) metric in the future. Management believes that its whole suite of products equates to US$10 per user, which is eight times greater than its current ARPU of US$1.22. Combined with further market share gain, this could support significant revenue growth in the future.

    Morgans is also a fan of Volpara. It currently has an add rating and $1.94 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 and recommends VOLPARA FPO NZ. The Motley Fool Australia has recommended VOLPARA FPO NZ. 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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  • These are the 10 most shorted shares on the ASX

    most shorted shares

    At the start of each week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

    This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

    With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

    • Webjet Limited (ASX: WEB) remains the most shorted ASX share after its short interest rose to 12.1%. Short sellers appear concerned that the travel market may take longer to recover than hoped. Last week Webjet undertook another capital raising, much to the dismay of shareholders.
    • Tassal Group Limited (ASX: TGR) has seen its short interest slide to 9.9%. This high level of short interest appears to have been driven by weak salmon prices and trade war fears.
    • Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest rise to 8.8%. With travel markets taking longer to recover than hoped, short sellers appear to believe its shares are overvalued.
    • Inghams Group Ltd (ASX: ING) has 8.25% of its shares held short, which is flat week on week. Last week the poultry company announced the sudden and surprise exit of its CEO.
    • Resolute Mining Limited (ASX: RSG) has seen its short interest rise week on week to 7.7%. This gold miner’s shares have fallen heavily this year due to a disappointing full year result, weak guidance, and the termination of its Bibiani mining licence.
    • Metcash Limited (ASX: MTS) has seen its short interest rise to 7.3%. Last month this wholesale distributor received a mixed reaction to its new growth strategy. Investors appear concerned by notably higher than expected capex plans.
    • InvoCare Limited (ASX: IVC) has 6.5% of its shares held short, which is down slightly week on week. Concerns that the funeral company could be losing market share may be weighing on its shares.
    • JB Hi-Fi Limited (ASX: JBH) has seen its short interest fall to 6.3%. Some short sellers may believe its shares are overvalued now after they made strong gains over the last 12 months.
    • Temple & Webster Group Ltd (ASX: TPW) is a new entry to the top ten with short interest of 6%. Short sellers may have concerns over the sky high multiples this online furniture retailer’s shares are trading at. Especially given rising bond yields.
    • A2 Milk Company Ltd (ASX: A2M) has 5.9% of its shares held short, which is down slightly week on week. This infant formula company’s shares have fallen heavily this year due to its poor performance and bleak outlook. This is being caused by weakness in the daigou channel and a resurgence in Chinese infant formula brands.

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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 Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended A2 Milk and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited, InvoCare Limited, and Temple & Webster Group 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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