I’m a big fan of buy and hold investing and believe it is the best way for investors to grow their wealth.

To demonstrate how successful it can be, I like to pick out a number of popular ASX shares to see how much a single $20,000 investment 10 years ago would be worth today.

This time around I have picked out the three ASX shares that are listed below:

CSL Limited (ASX: CSL)

Although the CSL share price is trading some distance from its 52-week high, long term investors won’t be too disgruntled. Thanks to its consistently strong performance over the last decade, CSL shares have thoroughly outperformed the market return. This strong form has been driven by its successful research and development investments, the acquisition of the Novartis influenza vaccines business, its sprawling plasma collection network, and strong demand for its immunoglobulins. Over the last 10 years, CSL shares have generated an average total return of 22.5% per annum. This means a $20,000 investment into its shares in 2011 would have grown to be worth just over $150,000 today.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

In FY 2010 Domino’s was operating a total of 823 stores. This comprised 522 stores across the ANZ region and 301 stores in Europe. From these, the company recorded a net profit after tax of $17.8 million. Whereas last month Domino’s released its half year results and revealed that it now operates 2,800 stores across the ANZ, European, and Japanese markets. It also just reported a first half profit after tax of $96.2 million. That’s over five times greater than the full year profit it achieved in FY 2010. In light of this, it will not be a surprise to learn that Domino’s shares have smashed the market over the last 10 years. During this time, they have generated a total return of 30.8% per annum. This would have turned a $20,000 investment into almost $300,000. Pleasingly, management isn’t resting on its laurels and is aiming to double the size of its network later this decade. This could be a sign that these strong returns aren’t ending any time soon.

Fortescue Metals Group Limited (ASX: FMG)

This iron ore producer’s shares have managed to outperform the market over the last 10 years. This has been driven by its increasing shipments and lowering costs. For example, in FY 2010 Fortescue shipped 38.9 million wet metric tonnes of iron ore with cash costs of US$29 per tonne. Whereas in FY 2021, Fortescue is aiming to ship 178 million tonnes to 182 million tonnes with C1 costs in the range of US$13.50 to US$14.00 per tonne. This has led to bumper profit and dividend growth over the period, underpinning a total average return of 15.5% per annum over the 10 years. This means that $20,000 invested into Fortescue shares in 2011 would be worth approximately $85,000 today.

More reading

• Why it could be a good time to buy Domino’s (ASX:DMP) shares
• Outsourced AstraZeneca blockade not an issue for local COVID vaccine rollout
• Thursday’s top performing ASX 200 shares at the end of the session
• CSL (ASX:CSL) share price is now down 12% in 2 weeks
• Why are these ASX 200 healthcare shares sinking today?

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 recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post How to turn $20,000 into $300,000 in 10 years with ASX shares appeared first on The Motley Fool Australia.

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The Temple & Webster Ltd (ASX: TPW) share price has fallen by 32% since 25 February 2021.

It’s worth taking a second (or first) look at a business when the share price falls so much if the company is generating high levels of growth.

What does Temple & Webster do?

Temple & Webster claims to be Australia’s leading online retailer of furniture and homewares.

It now has over 200,000 products on sale from hundreds of suppliers. Temple & Webster also has a private label range of products which the company sources from overseas suppliers.

The company explains how its system works:

Temple & Webster runs an innovate drop-shipping model whereby products are sent directly to customers by suppliers, enabling faster delivery times and reducing the need to hold inventory, allowing for a larger product range.

COVID-19 impacts

The Temple & Webster share price has been one quite the rollercoaster since February 2021. Between 21 February 2020 and 23 March 2020 it dropped around 50%. It then shot higher by around 570% to $13.70 to the middle of October 2020.

Temple & Webster has seen enormous demand for its online offering since the COVID-19 pandemic began, with consumer shopping habits changing.

3 reasons why the Temple & Webster share price could be interesting

1: Growth continues

Temple & Webster hasn’t seen its demand completely fade away like some other sectors like infant formula. The e-commerce business has continued to experience high levels of customer growth.

Indeed, growth seems to continuing – it gave a trading update that said that year on year revenue growth was 118% for the second half of FY21 to 23 February 2021.

In the first half of FY21 it saw revenue growth of 118% to $161.6 million, earnings before interest, tax, depreciation and amortisation (EBITDA) growth of 556% to $14.8 million and net profit of $12.2 million (up from $2.9 million).

Net profit after tax had an income tax benefit of $0.9 million last year compared to an income tax expense of $2.4 million this year.

Temple & Webster’s customer base continues to rise strongly – active customers went up 102% to 678,000.

2: Increasing profit margins

The various profit margins that the company informed investors about improved over the period. The EBTIDA margin increased by 6.1 percentage points from 3.1% to 9.2%. The fixed costs as a percentage of revenue declined 4.1 percentage points from 11.6% to 7.5%.

Temple & Webster’s gross profit margin didn’t see quite as much of an increase, but that’s not where most of the operating leverage is accruing. The gross profit margin improved from 44.2% to 45.5%.

The company is investing in several areas to improve its margins further. It’s focusing on increasing its online market share, improving efficiencies, smarter pricing, better supplier terms due to scale, making slow investments in fixed costs and it’s being disciplined in its next growth businesses “e.g. international expansion”.  

3: Better valuation from a lower Temple & Webster share price

Temple & Webster is going to continue to invest in itself and grow regardless of whether the share price is higher or lower in any particular month.

However, a lower Temple & Webster share price could mean a better valuation for prospective investors.

According to Commsec, the Temple & Webster share price is valued at 38x FY22’s estimated earnings.

More reading

• 2 COVID-19 amplified ASX shares to buy
• Temple & Webster (ASX:TPW) share price sinks 8% despite 550% profit increase
• These ASX retail shares are smashing sales expectations
• 3 reasons why the Temple & Webster share price could be a buy
• ASX retail shares show strong signs of resurgence 

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 Temple & Webster Group Ltd. The Motley Fool Australia has recommended 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.

The post Down 32%: Why the Temple & Webster (ASX:TPW) share price could be a buy appeared first on The Motley Fool Australia.

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Despite its disappointing finish to the week, the S&P/ASX 200 Index (ASX: XJO) was on form and recorded a decent 0.6% weekly gain over the five days. It finished the period at 6,710.8 points.

Four ASX 200 shares that outperformed the market materially are listed below. Here’s why they were the best performers on the index last week:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

The ANZ share price was the best performer on the ASX 200 last week with a 10.2% gain. The banking giant’s shares were given a lift last week when analysts at Goldman Sachs upgraded them to a buy rating with a $29.00 price target. There were a number of reasons for the upgrade, including its balance sheet strength and net interest margin resilience. Rising bond yields also gave bank shares a boost.

Computershare Ltd (ASX: CPU)

The Computershare share price was on form and recorded a 9.3% gain over the five days. This also appears to have been driven by rising bond yields. Computershare’s performance has been impacted by falling interest rates in recent years. So the prospect of higher rates appears to have got investors excited.

BlueScope Steel Limited (ASX: BSL)

The BlueScope Steel share price wasn’t far behind with a gain of 9.2% last week. This appears to have been driven by a broker note out of Ord Minnett. According to the note, the broker has retained its accumulate and $24.00 price target on the steel maker’s shares. It notes that spot prices are currently at very favourable levels. So much so, it suspects the company may have to upgrade its earnings guidance in the near future.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price was a strong performer and jumped 8.9% over the period. This may also have been driven by a broker note. At the start of the week, analysts at UBS retained their buy rating and $2.30 price target on the coal producer’s shares. While the broker acknowledges that Whitehaven Coal’s first half result was disappointing, it still sees enough value in its shares at the current level to retain its buy rating.

More reading

• These were the worst performing ASX 200 shares last week
• ASX 200 drops again, Zip sinks, Worley wins
• This was the week that ASX dividend shares proved their worth
• Crown (ASX:CWN) share price facing double Royal Commission trouble
• Tilt Renewables (ASX:TLT) share price falls despite wind farm news

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.

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

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Even though the stock market has rallied since the 2020 market crash, the economic outlook remains very uncertain. Therefore, it could be prudent to seek dividend shares that offer defensive characteristics and a solid track record of paying shareholders a rising passive income.

Furthermore, buying dividend stocks that have improving outlooks could be a sound move. Successful growth strategies implemented by a business can make a very positive impact on the level of shareholder payouts over the long run.

Dividend shares with defensive characteristics

Dividend shares could offer an appealing means of generating a passive income in today’s low-interest-rate environment. However, they can be significantly riskier than other income-producing assets – especially with the challenging outlook that remains in place for the world economy.

As such, buying dividend stocks that have defensive characteristics could be a sound move. It may mean that an investor’s holdings have a greater chance of offering a rising passive income irrespective of economic conditions. This could mean searching for dividend stocks in sectors such as utilities and tobacco, where sales and profitability may be less impacted by the prospects for the economy than other industries.

A track record of dividend growth

Dividend shares that have strong track records of growing shareholder payouts could be relatively appealing. For example, they may have been able to grow, or at least maintain, their shareholder payouts in previous periods of economic turmoil. This could indicate that they have the capacity to adapt their strategies to evolving operating conditions.

The track records of dividend stocks can be easily accessed by searching their annual reports. They show detailed information of their previous payouts, as well as their reasoning behind specific strategy shifts. They could also provide guidance as to how a company has been able to evolve to meet changing consumer tastes, and how it plans to do so in future after what has been a very disruptive period for many industries.

An improving financial outlook

When searching for the most appealing dividend shares to buy today, it could be a good idea to check their growth strategies. This could provide an indication of the likelihood of them being able to increase profitability so they can afford a rising dividend in the coming years.

Clearly, assessing any company’s financial outlook or strategy is very subjective. Even if its prospects seem to be bright, there is never any guarantee that they will produce rising profitability or a growing dividend.

However, through buying such companies, an investor may be able to increase their chances of holding successful businesses that make attractive dividend shares. A wide range of such companies in a diverse portfolio could lead to attractive income returns that grow at a relatively fast pace in the long run.

More reading

• 4 ways to make your money work harder in 2021
• These were the worst performing ASX 200 shares last week
• Should you buy ASX shares in this volatility? Here’s Morgan Stanley’s view
• 2 COVID-19 amplified ASX shares to buy
• Why the Murray River Group (ASX:MRG) share price lifted today

Motley Fool contributor Peter Stephens 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.

The post 3 steps I’d take to find top dividend shares to buy in March and beyond appeared first on The Motley Fool Australia.

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The last 12 months has seen huge changes to the way we live our lives due COVID-19 and the associated impacts. There have been lots of changes in the money world too.

A few months ago, money website Canstar published a piece that the average household is saving around $854 a month according to ME Bank, which equates to about $10,250 a year. A lot of individuals (26%) are saving up to 10% of their after tax income each month and 7% of people are saving more than 40%. However, 21% of people aren’t saving anything.

Canstar then raised the question of how much should you save? It went on to say:

How much you should save really depends on your circumstances. Things like your employment history, your current debt levels, where you live and your short- and long-term goals and timeframes are some of the factors that could influence this.

There are a number of budgeting models you might like to consider. One well-known model is the ‘50/30/20 rule’, which was popularised by US Senator Elizabeth Warren. According to the rule, you should divide your after tax income into three parts: 50% for needs (like rent, food, utilities and transport), 30% for wants (such as new clothes or dining out) and 20% for your savings or to pay down debt.

How can you improve your savings rate?

Every household’s money circumstances are different. Some may have high levels of spending on the basics, whereas others may have a low level of spending. And then there’s wide differences when it comes to income as well.

Less than a month ago, Citi shared seven ways that people can reach their savings goals. Earning more and spending less are two of the key factors for people, so Citi shared some of the following tips:

Start a budget

Citi suggested downloading an online budgeting tool, such as the one provided by Moneysmart. Budgeting can lead to opportunities to find ways to improving savings. It can also help you ensure that you don’t forget about any particular expenditure that’s going to occur.

Separate your rainy day fund from your savings goal

Another point was about ensuring that if you have a savings goal that you create a plan on how to get there. For example, if you plan to go on an annual vacation then a smart way to save could be to split that savings goal into 12 equal monthly amounts throughout the year.

In terms of an emergency fund, Citi suggested that people should have at least three to six months of income set aside.

Could you make extra money?

‘Make extra money’ may sound like it’s easier said than done, particularly in this current uncertain economic environment.

Citi made the point that your existing job could be the main way to increase your earnings through training and boosting your skillset. This could make you the best candidate for a promotion.

There are also plenty of other options to consider such as AirBnB, selling items on eBay or car-sharing on Car Next Door, according to Citi.

Cut wasteful spending

This last tip is about being mindful about spending with money.

Citi pointed out that Aussies spend billions of dollars of things that we don’t end up using such as food, clothes, gym memberships and so on. It could be an idea to review these types of spending, whilst ensuring that you get value for money, not just a ‘bargain’.

More reading

• These were the worst performing ASX 200 shares last week
• Should you buy ASX shares in this volatility? Here’s Morgan Stanley’s view
• 2 COVID-19 amplified ASX shares to buy
• Why the Murray River Group (ASX:MRG) share price lifted today
• UK antitrust agency investigating apple over app store practices

Motley Fool contributor Tristan Harrison 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.

The post 4 ways to make your money work harder in 2021 appeared first on The Motley Fool Australia.

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Last week was a very volatile one for the S&P/ASX 200 Index (ASX: XJO). However, despite a poor finish to the period, the benchmark index recorded a weekly gain of 0.6% to end at 6,710.8 points.

Four ASX shares that were unable to follow the index higher last week are listed below. Here’s why they were the worst performers on the ASX 200:

IDP Education Ltd (ASX: IEL)

The IDP Education share price was the worst performer on the ASX 200 last week with a 13.6% decline. This appears to have been driven by a number of factors. One of those was its shares trading ex-dividend for its interim dividend on Thursday. In addition to this, profit taking after some very strong gains appears to have weighed on its shares. Especially given the concerns about rising bond yields.

Gold Road Resources Ltd (ASX: GOR)

The Gold Road share price wasn’t far behind with an 11.9% decline over the five days. Investors were selling Gold Road and other gold mining shares last week after rising bond yields put pressure on the gold price. This led to the S&P/ASX All Ords Gold index falling a disappointing 6% over the period.

Cimic Group Ltd (ASX: CIM)

The CIMIC share price was out of form last week and dropped 11.2%. This was despite the engineering company revealing that its UGL and CPB Contractors businesses have entered into an early contractor involvement contract with CuString. The agreement is for works relating to the Copperstring 2.0 project.

IGO Ltd (ASX: IGO)

The IGO price was a poor performer over the five days and tumbled 9.5% lower. Investors were selling the nickel, gold, and lithium producer’s shares despite analysts at UBS putting a buy rating and $8.00 price target on them. Weakness in gold and nickel prices sent investors to the exits last week. At one stage, the latter was down 16% in the space of just one week. This was driven by concerns over rising nickel stockpiles and higher supply.

More reading

• ASX 200 drops again, Zip sinks, Worley wins
• This was the week that ASX dividend shares proved their worth
• Why these 3 ASX mining shares are crashing today
• Crown (ASX:CWN) share price facing double Royal Commission trouble
• Tilt Renewables (ASX:TLT) share price falls despite wind farm news

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 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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Global investment bank Morgan Stanley has shared its view on whether it’s a good idea to buy (ASX) shares in this market volatility.

Morgan Stanley’s Lisa Shalett, chief investment officer of wealth management, says whilst buying the dip could be an attractive idea, a better approach could be to take a “more nuanced approach”.

Ms Shallet said that although share market benchmarks fell in the second half of February 2021 – such as the tech-focused NASDAQ index which dropped 6.4% from the peak in mid-February – Morgan Stanley doesn’t think it’s a buying opportunity at the moment.

Interest rate expectations

There has been a lot of talk about interest rates in recent weeks. Potential inflation is leading to worries that interest rates are going to rise sooner than expected, even though the RBA governor Dr Lowe has said interest rates probably aren’t going to move for three years.

But Morgan Stanley thinks that the interest rate dynamics may mean that market conditions are fundamentally changing.

A key number that investors focus on is the US Treasury 10-year bond yield, which has gone as high as 1.6% in recent times. In August 2020 it went as low as 0.5%.

Indeed, over the last 24 hours the US Treasury 10-year yield went back above 1.5% as the US Federal Reserve boss Jerome Powell mentioned that inflation may temporarily jump higher, according to reporting by CNBC.

Getting back to the views of Morgan Stanley, it noted that the market may be taking action based on the fact the US economy is recovering faster than expected. The investment bank has been increasing its estimates for economic growth.

Morgan Stanley warned that interest rate rises could come sooner if the economy gets back to the growth level of before COVID-19 came along.

So what does this mean?

The investment bank said that growth share valuations have benefited from expectations that ultra low interest rates would persist for longer, supporting “sky-high” price / earnings ratios (p/e ratios).

Ms Shalett explained:

Growth stocks are often valued against the yield on a low-risk Treasury bond—the wider the spread, the larger premium that an investor is expected to pay for the added risk of growth. As rates move higher, stock prices often adjust to reflect that narrowing gap. That may be a big reason why tech stocks, in particular, got hit so hard last week.

Morgan Stanley isn’t confident that this level of inflation is temporary.

The investment bank believes there are a few different reasons why inflation could be higher than the Federal Reserve is expecting, which may mean that the Fed has to respond.

What are some of those factors? Morgan Stanley reeled off a list including: “money-supply growth, higher wages and increased fiscal stimulus, against a backdrop of pent-up demand for consumer services”.

Ms Shalett said that investors may now be expecting an interest rate rise in early 2023 rather than the end of 2023.

In terms of which ASX shares that Morgan Stanley thinks is a buy, you’ll just have to keep an eye on the broker articles that my Fool colleagues and I write about its latest buy recommendations.

More reading

• 2 COVID-19 amplified ASX shares to buy
• Why the Murray River Group (ASX:MRG) share price lifted today
• UK antitrust agency investigating apple over app store practices
• ASX 200 drops again, Zip sinks, Worley wins
• Leaving growth? Don’t get caught by value traps when value investing

Motley Fool contributor Tristan Harrison 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.

The post Should you buy ASX shares in this volatility? Here’s Morgan Stanley’s view appeared first on The Motley Fool Australia.

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There are some ASX shares that have seen much higher levels of demand over the last year because COVID-19 has impacted both supply and demand in certain situations.

Obviously there are industries like travel and large events that are still struggling.

However, there are other businesses that are involved in e-commerce that are still seeing much stronger customer attention. There are also other companies that are directly involved in the healthcare response in some way.

Here are two ASX COVID-19 shares that could be worth looking at:

Ansell Limited (ASX: ANN)

Ansell is a business that is involved in manufacturing an array of safety items for people, including gloves and protective clothing.

The business is seeing customers from around the world wanting its products.

In the recent reporting season, Ansell reported that in the first half of FY21 its healthcare division saw strong volume growth across all business units, with a favourable price and mix impact, mainly in exam and single use products. The healthcare unit experienced organic growth of 37.3%.

Overall, Ansell HY21 sales went up 24.5% to US$937.8 million. This was driven by total organic growth of 22.9%, split between 12.3% volume growth and 10.6% from the price and mix.

Other growth statistics went up even more for the COVID-19 ASX share – earnings before interest and tax (EBIT) grew 64.3% to US$60.6 million and earnings per share (EPS) rose 64.7% to US$0.829.

Ansell Chair John Bevan said:

The first half of 2021 financial year continued to be dominated by the impacts of COVID-19, whether it was the need to ensure the safety of our employees, increased demand for enhanced personal protective equipment by end-users or the flow-on effects of lockdowns on the global economy. The company was able to successfully navigate through these to deliver record organic sales.

Ansell is now targeting a dividend payout ratio of between 40% to 50%, leading to a dividend increase of 52.6% to US$0.332 in the result.

According to Commsec, the Ansell share price is trading at 17x FY21’s estimated earnings.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is an online-only furniture and homewares business that is experiencing high levels of demand as consumers shift to e-commerce.

The COVID-19-amplified ASX share says that it’s benefiting from multiple tailwinds at the moment. There’s the ongoing adoption of online shopping, an acceleration of these trends due to COVID-19, an increase in discretionary income due to travel restrictions and the recovery of the housing market and unemployment levels.

In the first six months of FY21, Temple & Webster saw revenue grow by 118% year on year to $161.6 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) shot higher by 556% to $14.8 million and net profit after tax (NPAT) surged higher by 320% to $12.2 million.

There were a number of other pleasing statistics including active customers rising by 102% to 678,000 and the trade and commercial division growing by 89%. The operating leverage was also shown with the fixed cost as a percentage of sales decreasing from 11.6% to 7.5%.

Temple & Webster said that the second half has started strongly, with year on year revenue growth of 118% to 23 February.

The Temple & Webster share price has fallen by over 20% since 15 February 2021. That means the COVID-19 amplified ASX share is now trading at 40x FY22’s estimated earnings.

More reading

• ASX 200 slides lower, A2 Milk surges, Gold Road sinks
• Here’s why Warren Buffett prefers buybacks to dividends
• ASX 200 up 0.3%: Mesoblast raises US$110 million, tech shares rebound
• Ansell (ASX:ANN) share price jumps on share buyback news
• Temple & Webster (ASX:TPW) share price sinks 8% despite 550% profit increase

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 Temple & Webster Group Ltd. The Motley Fool Australia has recommended Ansell Ltd. 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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The Murray River Organics Pty Ltd (ASX: MRG) share price was trading more than 3% higher at 31 cents when the market closed today.

Shares in the food producer share price rose after the company announced it was selling one of its properties and appointing a new CEO.

Today share price lift compared well against the 0.8% drop in the S&P/ASX All Ordinaries Index.

Let’s take a closer look at what’s driving the Murray River Group share price.

CEO appointment

The company advised that interim chief executive officer Birol Akdogan has been appointed its new CEO.

Mr Akdogan has also spent time in the position of group chief financial officer. Before his employment at Murray River Group, he held positions as CFO at Ansell Limited (ASX: ANN) and CPI Group.

Commenting on the appointment, Murray River Group chair Andrew Monk said:

We believe that Birol has the necessary vision and skills to navigate [Murray River Group] through the next evolution of our business. His experience in tight cost control management in the [fast-moving consumer goods] market sector and his [mergers and acquisitions] experience in a large international company combine to give him the skill set to progress [Murray River Group]’s strategic plans.

Mr Akdogan added:

I am excited about the challenges that this opportunity affords me and look forward to reshaping the business to deliver value and profitability to shareholders and to see our branded products. grow and gain even more recognition on the shelves of our supermarkets and health stores.

Property sale

In today’s second announcement, the group advised it has sold its Gol Gol Property for $5 million, being $4.75 million for the property and $250,000 for the citrus crop within. The unconditional sale will be settled by the end of March 2021. Under the terms, Murray River Group will continue farming the land until the end of the harvest season, 15 May 2021.

The group said it expected to sign a 5-year grower supply arrangement with the new owner.

New CEO Akdogan said of the deal:

The Gol Gol property is predominantly a conventional citrus farm. The sale represents a great outcome for our shareholders with management now better able to focus on our fast-growing MRO branded organic retail products.

Over the last 6 months, we have secured over $15m of non-core asset sales as part of our ongoing turnaround strategy. With interest rates low, there is strong demand for Australian farming assets, and we are assessing opportunities to maximise shareholder value through our asset realisation program.

Murray River Group share price snapshot

The Murray River Group’s share price has been on a downward trajectory over the past 12 months, falling 44.5%. This time last year, shares in the company were swapping hands at 55 cents.

Given today’s closing price of 31 cents, shares would need a 94% gain to draw level with that price.

Murray River Group’s market capitalisation is $13.5 million.

More reading

• What’s lifting the Fonterra (ASX:FSF) share price today?
• The Liontown (ASX:LTR) share price is surging 17% today. Here’s why
• ASX 200 Weekly Wrap: Friday carnage ruins last week of ASX earnings
• Here’s why the Senex Energy (ASX:SXY) share price is 8% higher
• ASX 200 Weekly Wrap: ASX lower despite bumper dividends

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ansell 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Apple Inc‘s (NASDAQ: AAPL) App Store is attracting more controversy. On Thursday, the Competition and Markets Authority (CMA), an antitrust arm of the UK government, disclosed that it has launched an investigation into the US tech giant’s business practices with the online store.

The CMA said it was doing so in the wake of both complaints from developers about those practices and the agency’s own work in the digital sphere. These allege that Apple’s fairly strict terms for developers to get their software into the App Store are not fair and possibly in violation of the country’s competition law.

In other jurisdictions, such as the US, Apple has come under fire for the way it partners with developers in that marketplace. It takes a commission of 30% of all App Store sales and reaps similar fees for in-app purchases made by users. As the CMA pointed out in the press release announcing its investigation, the App Store is the only legitimate means for developers to distribute their offerings for Apple devices. It is also the only platform for Apple users to access them.

The CMA said that its investigation will focus on whether Apple’s terms and conditions are unfair or anti-competitive to developers. It will also take into consideration whether user choice is consequently being restricted or if those customers are paying unacceptably high prices for apps and add-ons.

“Millions of us use apps every day to check the weather, play a game or order [takeout food],” the CMA quoted its chief executive Andrea Coscelli as saying.

“So, complaints that Apple is using its market position to set terms which are unfair or may restrict competition and choice – potentially causing customers to lose out when buying and using apps – warrant careful scrutiny.”

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Eric Volkman owns shares of Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post UK antitrust agency investigating apple over app store practices appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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