There are a few top-performing small cap ASX shares that delivered strong performance in March 2021 that helped the 1851 Emerging Companies Fund outperform its benchmark.

What’s 1851 Emerging Companies Fund?

It’s a fund that invests on small cap companies outside of the S&P/ASX 100 Index (ASX: XTO). The 1851 Capital fund typically invests in 30 to 80 small cap ASX shares to try to beat the S&P/ASX Small Ordinaries Accumulation Index.

1851 Emerging Companies Fund has been a very strong performing fund since inception after it launched just before the COVID-19 crash. Since inception in February 2020, the fund has delivered a net investment performance per annum of 28.6%. That’s after all fees and expenses. Over the last year, to 31 March 2021, its net return was 100%.

At the end of March 2021, the five largest positions were Uniti Group Ltd (ASX: UWL), Capitol Health Ltd (ASX: CAJ), Frontier Digital Ventures Ltd (ASX: FDV), PSC Insurance Group Ltd (ASX: PSI) and Pinnacle Investment Management Group Ltd (ASX: PNI).

The fund’s net return of 1.1% in March 2021 was able to beat its benchmark’s return of 0.8%, partly thanks to these three shares:

Eureka Group Holdings Ltd (ASX: EGH)

The Eureka share price climbed 21% in March 2021. 1851 Capital explained that the business continued its rally after a strong result in February 2021.

In the result, the small cap ASX share reminded investors that its revenue streams are economically stable and highly resilient, with government pensions underpinning around 95% of revenue. It has 97% occupancy.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) went up 27% to $5.23 million, underlying profit before tax grew 39% to $3.57 million and net operating cashflow increased 16% to $4.05 million.  

1851’s investment team are impressed with the ASX share’s new board and management at the company who have sent an “impressive” platform for growth in the senior independent living sector.

People Infrastructure Ltd (ASX: PPE)

The People Infrastructure share price went up 18% last month. 1851 Capital attributed this rise to the “solid” result and return of the former CEO.

The small cap ASX share saw revenue growth of 3.1% to $201 million and normalised EBITDA rose 49.3% to $21 million. Normalised net profit after tax and before amortisation (NPATA) grew 51.5% to $13.7 million and NPATA per share grew 19% to 14.8 cents.

People Infrastructure is expecting to grow its normalised EBITDA to between $35 million to $37 million in FY21.

The business continues to look at both the opportunity to grow organically into new sectors as well use its acquisitions that would accelerate that growth.

Pentanet Ltd (ASX: 5GG)

Perth-based telecommunications business Pentanet saw its share price increase 20% over the month. 1851 Capital pointed to strong subscriber growth and optimism around the cloud gaming launch.

On 27 January 2021, the small cap ASX share commenced online registrations of interest by allowing future Australian users of GeForce NOW to reserve their usernames and register for an invitation to the beta program.

Since that announcement, over 24,300 gamers have registered. This level surpassed initial business case expectations and provided strong confidence to scale up its initial launch plans.

Pentanet has proceeded with the placement of an initial hardware order with NVIDIA in line with the cloud gaming strategy. It is buying 18 RTX game servers at an approximate capital cost of A$3.2 million. The aim is to roll out the beta offering this year, with a commercial to launch after that.

More reading

• Leading broker names its best ASX share ideas for April
• Uniti (ASX:UWL) share price on watch following bullish broker note
• Top broker picks the best ASX shares to buy for the new quarter
• 2 ASX dividend shares to buy
• Brokers think these 2 top ASX shares are buys in April 2021

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

The post 3 top ASX small cap shares that delivered for this fund’s portfolio appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2Oqcpk0

The Whispir Ltd (ASX: WSP) share price is under pressure on Wednesday.

In afternoon trade, the communications workflow platform provider’s shares are down 3% to $3.42.

This compares to gains of 0.6% by the S&P/ASX 200 Index (ASX: XJO) and 0.8% by the  S&P/ASX All Technology Index (ASX: XTX).

Why is the Whispir share price sinking?

Today’s decline appears to have been driven by an announcement released by Whispir this afternoon.

According to the release, the company’s Chief Financial Officer, Justin Owen, has handed in its resignation less than a year after joining the company.

Mr Owen intends to remain in the role until the middle of August and will oversee the completion of the company’s FY 2021 full year results. He will also ensure a smooth transition to his successor.

In the meantime, Whispir advised that it has initiated a global executive search for a new Chief Financial Officer. It will announce a replacement following the completion of this process.

The company notes that Justin Owen joined Whispir as Chief Financial Officer in June 2020 and oversaw the company’s global finance function during the initial phases of COVID-19 impacts.

Over this time, he has supported the company in a number of equity events. This includes the recent $45 million capital raising and the streamlining and strengthening of its core financial capabilities.

Whispir’s CEO, Mr Jeromy Wells, said: “We thank Justin for the contribution he has made to Whispir and its growth as a leading ASX technology company, placing it in a strong position to capitalise on its future growth plans. We wish him well with his future endeavours.”

Is this a buying opportunity?

One broker that might see the weakness in the Whispir share price as a buying opportunity is Ord Minnett.

Last month the broker put a buy rating and $4.25 price target on the company’s shares. This price target implies potential upside of 24% over the next 12 months.

More reading

• 2 of the best small cap ASX shares to watch
• These ASX tech shares are all trading near their lowest prices in months
• 2 of the best small cap ASX shares to buy
• 2 exciting small cap ASX shares with huge growth potential
• Brokers name 2 exciting small cap ASX shares to buy

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 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.

The post Why the Whispir (ASX:WSP) share price is sinking today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3sYW58P

I have a question for you, based on an upcoming article I’ve written for Money Magazine. What do you reckon was the average share price return for Australia’s Big Four banks over the five years to December 2020?

While you’re thinking, I’ll give you a hint: The ASX 200 gained about 24% over the same timeframe.

Still not sure?

Here’s an alarming stat: The worst performing Big Four bank, over that time, was down 48% (yes, fourty-eight!).

Still thinking?

Want the number for the best performing back to help you frame up your guess?

-4%

Yes. Minus 4.

Here’s the tale of the tape:

Westpac: -42.3%
NAB: -25.2%
ANZ: -18.8%
CBA: -4.0%

Bottom line: Not one of the Big Four Aussie banks delivered a positive share price return between January 1 2016 and December 31, 2020.

And if you held all four in equal parts, your return was -22.6%. Remember, the ASX was up 24.4% over that same timeframe.
You would have underperformed the index by 47 percentage points.

Ouch.

Now, I don’t want to pile on, here.

I know many of our readers and some of our members own banks. Some of you own a lot of them. For many long term bank shareholders, they might make up 40%, 50% or 60% of your portfolios. Maybe more.

I’m not here to kick an investor when they’re down.

And I’m not revelling in your misfortune.

But I do want to give you a little tough love. See, I’ve been saying, for a long time, that I think the banks’ best days are behind them. Industry consolidation is done. Interest rates are as close to zero as any of us should hope to see. House prices are through the roof.

The length of a standard new mortgage has increased from 25 to 30-year terms. Second incomes have inflated our ability to pay. Innovators and disruptors are nibbling away at the most profitable products.

…

The banks have had a stellar run.

They’ve done wonderfully.

But I think we’ve seen the best. Famous last words? Maybe. But ask yourself: Where does the next decade of profit growth come from? Which of the above tailwinds, now stopped, will start blowing again? What others will turn up? Because I’m buggered if I know.

I just can’t see it. Maybe I’m wrong. But ask yourself what’s more likely: Will the three-decade-long tailwinds suddenly start blowing again, just as strongly? Or will the good ship SS Australian Banking be sitting, listless, in becalmed waters in future?

I think it’s probably the latter.

And let’s take this a step further.

Even if I’m wrong, are they really likely to be the ASX’s best performers over the next decade?

Nah, I don’t think so either.

(And if you’re thinking ‘yeah, but the Capital Gains Tax’, have another look at the difference in gains from those banks and the index between 2016 and 2020. You could have essentially paid CGT at the top concessional rate in 2016, bought an index fund, and you’d have had a lot more, five years later, even after paying the taxman.)

Look, as I said, I’m not here to rain on anyone’s parade.

And I’ve made my share of investing mistakes, so I’m sure as hell not throwing stones from my little glass house. I’m just asking you to imagine what the future might look like, based on the prevailing economic and business conditions, for banks in particular, and the rest of the market in general.

Don’t you, deep down, think I might be right? Should you sell the banks? That’s a call you have to make for yourself. But I think it’s a question you need to ask.

You don’t need to suddenly buy speculative rubbish. You don’t have to abandon sensible, thoughtful, long-term investing.

In fact, quite the opposite.

You need to embrace it.

And you need to look for tomorrow’s winners, not yesterday’s. The Big Four banks were certainly among the latter for many years. But I don’t know they’ll be atop the list of the former. The economic and market recovery of the past few months has been good to the banks.

Maybe… just maybe… now is the right time to think about what you should own, instead…

More reading

• Will China’s great emissions wall crash the Bitcoin price?
• 3 reasons Bitcoin could double your money (and more)
• Pivoting from infant formula, what’s next for the Jatcorp (ASX:JAT) share price?
• Leading broker names its best ASX share ideas for April
• Up 940% since last year: What’s with the EcoGraf (ASX:EGR) share price?

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Big Four Banks. Big Gains? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3wyEB5o

The Bitcoin (CRYPTO: BTC) price is down 1.4% over the past 24 hours. However, it’s still almost doubled in value so far in 2021. One Bitcoin is currently worth US$58,017 (AU$75,347).

According to data from CoinDesk, US$61 billion worth of Bitcoin changed virtual hands over the last full day.

And therein lies a potential pin to deflate the Bitcoin price in a world that’s racing to decarbonise.

Bitcoin’s China problem

How do Bitcoin transaction volumes impact greenhouse gas emissions? And what’s all this about China?

I was hoping you’d ask.

First, if you’re not aware, Bitcoin uses something called the blockchain. Essentially, it runs by a series of unaffiliated computer jockeys to verify and process every transaction. You’ll hear this called Bitcoin mining. This occurs as the people or companies running the computers are paid for their efforts with, you guessed it, Bitcoin.

Second, as of this time last year, China accounted for approximately 75% of the world’s Bitcoin blockchain transactions. That’s largely due to the Middle Kingdom’s lower energy costs. Consequently, (greenies, you may wish to look away) analysts say is partly due to the nation’s prevalence of cheaper coal-burning power plants.

The problem is this. Many years ago in Bitcoin’s infancy, you may have been able to do a spot of mining with a powerful home computer. However, now the companies behind the bulk of Bitcoin transactions run massive computer networks. Consequently, hoovering up astounding amounts of energy in the process.

How much energy does Bitcoin really use?

As reported by Bloomberg, according to a research study at the University of Chinese Academy of Sciences, Cornell University, Tsinghua University and the University of Surrey, Bitcoin blockchain operations are “projected to peak in 2024 at around 297 terawatt-hours, generating 130 million metric tons of carbon emissions”.

And that means:

China’s energy consumption from Bitcoin mining in 2024 will exceed the total energy consumption level of countries like Italy and Saudi Arabia, the study said, and the carbon emissions will exceed the annual greenhouse gas emissions outputs of countries including the Netherlands, Spain and Czech Republic.

Twenty years ago, when most of the world was merely paying lip service (at best) to the concept of global warming and carbon reduction, these figures would have mattered little.

Today it’s a vastly different playing field. Global carbon mitigation efforts and cross-border legislation are likely to become more stringent rather than less over the coming years.

Global and domestic concerns have already seen Chinese President Xi Jinping sign onto the Paris Agreement. China has agreed to hit peak carbon output by 2030 and be carbon neutral by 2060.

While 2030 is still some time off, the move to curb emissions may well Chinese regulators descend upon the nation’s multitude of Bitcoin miners.

According to the researchers mentioned above:

Without appropriate interventions and feasible policies, the intensive Bitcoin blockchain operation in China can quickly grow as a threat that could potentially undermine the emission reduction effort taking place in the country.

Depending on how Chinese regulators approach the matter, Bitcoin could be in for some major disruptions.

More reading

• 3 reasons Bitcoin could double your money (and more)
• Bitcoin price mania spreads as Ether price hits record highs
• What’s driving the Bitcoin price back towards new record highs?
• Goldman Sachs plans to let wealthy clients invest in Bitcoin
• ASX 200 Weekly Wrap: ASX 200 gets its mojo back

Bernd Struben 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 Bitcoin. 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 Will China’s great emissions wall crash the Bitcoin price? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3cWXtUc

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.

At Tuesday’s prices, Bitcoin (CRYPTO: BTC) is up more than 700% in the past year, and 13,500% in the past five years. Those are life-changing returns — and some analysts still see big gains on the horizon.

For instance, investment bank JPMorgan Chase said Bitcoin’s price could hit $146,000, a massive increase from today’s prices around $58,000. More recently, Ark Invest CEO Cathie Wood explained how its price could climb to over $400,000. In other words, there’s still time for investors to cash in on cryptocurrency.

Here are three reasons Bitcoin could double your money (and more).

1. Bitcoin is powered by blockchain

Blockchain is the ingenious recordkeeping system behind decentralized cryptocurrencies like Bitcoin. To understand why that matters, it’s necessary to know how mining works.

As Bitcoin transactions occur, they are grouped into blocks. These blocks are secured by cryptography (i.e. complex math problems) — specifically, all data within a block is run through a cryptographic hash function, which generates a unique signature for that block. Notably, each block’s signature is added to the subsequent block, allowing them to be linked in chronological order.

Miners use expensive hardware to solve these complex math problems. Once they find a solution, it is verified by all other nodes (computers) on the network, and then the validated block is added to the blockchain.

This process is important for two reasons: First, when miners successfully solve the cryptographic puzzles, they are awarded Bitcoin as compensation — and this is the only way Bitcoin can be created. Second, by validating blocks and adding them to the blockchain, miners create a ledger of all past transactions.

In other words, Bitcoin does not need to be (and cannot be) controlled by any central authority. There is no need for a central bank to issue new currency or keep records because the network takes care of both by itself. This system is not only efficient, but it’s also very secure.

If anyone attempted to alter information within an existing block (i.e. fabricate new Bitcoin), it would alter the output of the cryptographic hash function, changing the block’s signature. That means the new signature would no longer match the signature incorporated into the subsequent block.

As a result, the network would recognize the fraudulent change and reject it, reverting to its original state. In fact, in order to successfully hack the Bitcoin blockchain, an individual would need to control at least 51% of all computing power on the network. That’s virtually impossible.

So here’s the takeaway: Blockchain is a highly secure and self-governing database, both valuable qualities in a financial system.

2. Bitcoin benefits from scarcity

The supply of Bitcoin is limited to 21 million tokens. That’s because every 210,000 blocks, the mining reward is cut in half. Currently, miners receive 6.25 Bitcoin for adding a block to the blockchain, but eventually, that figure will drop to zero. After that, miners will only earn transaction fees.

The idea of scarcity may sound trivial, but it’s actually critical to Bitcoin’s long-term value. According to economic theory, supply and price are inversely related. So if supply rises to infinity, the price should fall to zero — that’s the problem with cryptocurrencies that have no supply limits. But if supply is held constant, the price will rise as demand increases, or fall as demand drops.

As a practical example, assets like gold have value because they exist in limited supply. Bitcoin has been called digital gold because it benefits from the same economic principles.

3. Bitcoin is the most popular cryptocurrency

Bitcoin was the first digital currency, and it remains the most popular. In fact, the combined value of all Bitcoin in circulation is now roughly $1.1 trillion — more than four times that of second-place Ether. More to the point, its real-world utility is improving.

Fintechs like Square and PayPal now allow consumers to trade Bitcoin, and PayPal recently launched Checkout with Crypto, making it possible to fund purchases with Bitcoin. Likewise, Mastercard and Visa have launched crypto payment cards, which serve a similar purpose.

These products make one thing clear: Cryptocurrency is gaining popularity. And Bitcoin — the first and largest cryptocurrency — has an advantage over the rest. Going forward, as more payment processors and merchants accept digital currencies, Bitcoin is virtually guaranteed to be their first choice, which should perpetuate its popularity and drive demand.

A final word

Investors should remember Bitcoin is a highly volatile asset. In fact, it has lost over half its value several times over the last decade. For instance, between December 2017 and December 2018, the price of a token fell more than 80% — and it’s possible (perhaps even likely) that a similar event will occur again.

However, for investors who can tolerate that type of risk and volatility, Bitcoin could be a rewarding long-term investment.

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Trevor Jennewine owns shares of Mastercard, PayPal Holdings, Square, and Visa. The Motley Fool owns shares of and recommends Bitcoin, Mastercard, PayPal Holdings, Square, and Visa. The Motley Fool recommends the following options: long January 2022 $75.0 calls on PayPal Holdings. The Motley Fool has a disclosure policy.

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

More reading

• Bitcoin price mania spreads as Ether price hits record highs
• What’s driving the Bitcoin price back towards new record highs?
• Goldman Sachs plans to let wealthy clients invest in Bitcoin
• ASX 200 Weekly Wrap: ASX 200 gets its mojo back
• Did the Bitcoin (CRYPTO:BTC) price fly too high too fast?

Trevor Jennewine owns shares of Mastercard, PayPal Holdings, Square, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Bitcoin. 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 reasons Bitcoin could double your money (and more) appeared first on The Motley Fool Australia.

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

from The Motley Fool Australia https://ift.tt/3wzwpCc

The Jatcorp Ltd (ASX: JAT) share price was up 11% over lunch today after the company received approval from China to sell its newly developed skincare product.

However, the Jatcorp share price has since lost much of that ground and is up 3.7% trading at 2.8 cents at the time of writing.

Jatcorp share price higher on Chinese approval 

Jatcorp has been busy making a pivot into new lines of business alongside its traditional infant formula segment. This is in response to a new COVID-19 environment that has seen minimal sales through daigou channels and a lack of international tourism.

On Wednesday, the company announced that its first product, Poupin Silky Brighten Revitalising Serum, has been approved by the Chinese Government authority, CFDA, for sale in China through off-line channels, including local department stores and specialty cosmetics stores. Jatcorp also intends on selling its products through major online platforms, including the most popular social media web influencer sales channels. 

In today’s announcement, Jatcorp also notes that its subsidiary, Sunnya Ltd, has successfully opened its Neurio milk powder range to the Singapore market. The sale of products will now occur in Singapore’s local pharmacies and through online platforms in Indonesia, Malaysia and Philippines. 

Falling Chinese sales drive pivot

Jatcorp follows a similar narrative as the A2 Milk Company Ltd (ASX: A2M) with COVID affecting its core infant formula business. 

In the company’s 1H21 results, its revenues slumped from $30.6 million in 1H20 to $13.5 million in 1H21. Its decreased revenue was caused by lockdown measures, closed daigou stores and the paused flow of Chinese students and tourists into Australia. Despite its revenues falling by more than 50%, its loss after tax was relatively stable at $2.5 million compared to the $2 million in 1H20. 

Today’s announcement reiterates the company’s strategic decision to diversify its business and seek new opportunities to increase revenues. Jatcorp managing director Wilton Yao commented on the COVID-19 headwinds saying:

To meet this challenge, and considering the negative effect of tensions between Australia and China, the board has taken necessary actions to manage under the difficult situation.

JAT has moved part of its plant-based meat operation into China, appointed new contract manufacturing in New Zealand and other countries and signed agreements with Chinese state-owned companies and large private enterprises to improve the stability of the business operation.

Meanwhile the board is continuing to seek new business opportunities to increase the operational scale and sales revenues.

More reading

• Is there more pain ahead for the a2 Milk (ASX:A2M) share price?
• Is the A2 Milk (ASX:A2M) share price too cheap to ignore?
• These are the 10 most shorted shares on the ASX
• 2 ASX growth shares to buy in April
• These were the worst performing ASX 200 shares in March

Motley Fool contributor Kerry Sun 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 Pivoting from infant formula, what’s next for the Jatcorp (ASX:JAT) share price? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/31UIt2x

One of Australia’s leading broker has released its best ideas for the month of April.

These ideas are the ones that the broker believes offer the highest risk-adjusted returns over a 12-month timeframe and are supported by a higher-than-average level of confidence.

What has changed this month?

The broker has added coal port operator Dalrymple Bay Infrastructure Ltd (ASX: DBI) and online listings company Frontier Digital Ventures Ltd (ASX: FDV) to its best ideas list this month.

Morgans notes that Dalrymple Bay Infrastructure offers a very generous dividend yield which is secured by contracts over the next five years.

Its analysts currently have an add rating and $2.57 price target on Dalrymple Bay Infrastructure’s shares.

In respect to Frontier Digital Ventures, the broker believes it is well-placed for growth. Morgans notes that many of its businesses are facing COVID headwinds, which should ease as vaccines roll out. In addition to this, cost reductions are expected to result in operating leverage, underpinning strong earnings growth.

The broker has an add rating and $1.63 price target on Frontier Digital Ventures’ shares.

They are replacing rail freight company Aurizon Holdings Ltd (ASX: AZJ) and ecommerce company Redbubble Ltd (ASX: RBL) on the list.

What else is on the list?

Also on the list are Aristocrat Leisure Limited (ASX: ALL) and Coles Group Ltd (ASX: COL), among others.

Commenting on Aristocrat, Morgans said: “There are strong product tailwinds for ALL and it is clearly excelling in the land based arena with game content outperforming peers. Digital will continue to improve as it introduces additional content into already successful titles and we believe the company is well placed in the current environment with strong demand expected for their games.”

Morgans has an add rating and $37.31 price target on its shares.

In respect to Coles, it commented: “While vaccines are being rolled out across Australia, we think people will continue to spend more time at home due to the risk of COVID-19 flare-ups with the working-from-home trend also likely to stay for some time. This will be beneficial for the major supermarket operators. We continue to prefer COL (~20x FY22F PE and 4% yield) over WOW (25x FY22F PE and 3% yield) mainly due to valuation.”

The broker currently has an add rating and $19.45 price target on the supermarket giant’s shares.

More reading

• Will the Kogan (ASX:KGN) share price making a comeback in April?
• Why this top broker thinks the Woolworths (ASX:WOW) share price can break new record highs
• Beat low rates with these quality ASX dividend shares
• Lynch Group (ASX:LGL) share price falls after completing $206 million IPO
• 2 fast-growth ASX tech shares that have been sold off

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 Frontier Digital Ventures Ltd. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool Australia has recommended Aurizon Holdings Limited and Frontier Digital Ventures Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Leading broker names its best ASX share ideas for April appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/31OR1YW

The last 12 months on the ASX have been a rollercoaster for the EcoGraf Limited (ASX: EGR) share price. At the time of writing, the EcoGraf share price is trading for 62 cents, down 3.88%. However, overall the share price is up 940% over the last 12 months. As well as 267% year to date.

A year ago, you could have grabbed a share in EcoGraf for a mere 6 cents. Now, the EcoGraf share price is 63 cents apiece.

So, what’s driving the graphite producers share price? Let’s take a deep dive into EcoGraf’s last 12 months on the ASX. 

What does EcoGraf do? 

EcoGraf produces battery graphite for electric vehicles and lithium-ion battery manufacturers.

It also has a leader in the recycling graphite from disused lithium-ion batteries.

The company mines graphite from Tanzania. It is in the process of developing a processing plant in Kwinana, Western Australia.

Battery business boom

EcoGraf’s meteoric share price rise didn’t gain huge traction until January 2021.

Then, with no warning at all, it shot up 116% over a week without a word of news from the company. When questioned by the ASX as to why it answered that growing interest in the lithium battery sector and its purification technology may have been to blame.

Over the next 4 weeks, the EcoGraf share price climbed a monumental 511%. In that time EcoGraf updated its debt facility and completed a capital raising.

Then, at the beginning of last month, the company’s Kwinana facility was awarded major project status by the Australian Federal Government. It then announced the Tanzanian Government had approved its $60 million debt facility for its Epanko Graphite Mine.

Though the EcoGraf share price continues to be one of the ASX huge gainers of 2021, the excitement surrounding it at the beginning of the year seems to have died down.

Since the middle of February, it has dropped by 43%. Whether  EcoGraf shares will regain their spark, we can only wait to find out.

But investors who got on board this time last year can still rub their hands with glee.

EcoGraf Limited share price snapshot

At the time of writing, the EcoGraf share price has fallen by 3% since yesterday’s close. Today’s drop is just the latest, as the company’s shares are down 8% this month.

EcoGraf has a market capitalisation of around $293 million, with approximately 454 million shares outstanding.

More reading

• Which ASX shares with ethical values are seeing returns in 2021?
• Ecograf (ASX:EGR) share price powers up on government approval news

Motley Fool contributor Brooke Cooper 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 Up 940% since last year: What’s with the EcoGraf (ASX:EGR) share price? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3fKJWkh

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:

88 Energy Ltd (ASX: 88E)

This oil and gas exploration company’s shares were easily the most traded share on the ASX last week. 88 Energy’s shares accounting for 6.1% of trades on Commsec, with 55% of the volume coming from buyers. Those buyers will have been delighted to see the 88 Energy share price surge 135% higher over the four days amid excitement over its Merlin-1 project in northern Alaska. However, it is worth noting that its shares have come crashing back down to Earth this week following a disappointing update.

Zip Co Ltd (ASX: Z1P)

Once again, Zip’s shares were popular with investors last week. The buy now pay later provider’s shares were attributable to 2.1% of trades on the platform, with 52% coming from the buy side. Unfortunately for these buyers, the Zip share price edged lower over the four days. This was its sixth weekly decline in a row.

Red Sky Energy Limited (ASX: ROG)

This oil and gas acquisition and development company is a new entry to the top five. It accounted for 2% of trades on CommSec last week, with buyers making up the majority of the volume. They will have been very pleased to see the Red Sky Energy share price rocket a whopping 250% higher over the period. This strong gain resulted in the ASX giving it a speeding ticket. Management suspects the gains were caused by its 22 March announcement relating to the Killanoola Oil project.

Afterpay Ltd (ASX: APT)

Afterpay’s shares were heavily traded last week. The payments giant’s shares were responsible for 1.7% of trades on the platform. On this occasion, only 44% of these trades were from buyers. Like rival Zip, the Afterpay share price fell slightly over the shortened week.

Airtasker Ltd (ASX: ART)

Airtasker shares were popular with investors again last week. The jobs marketplace provider’s shares were attributable to 1.6% of trades on CommSec, with almost two-thirds coming from buyers. Unfortunately for those buyers, the Airtasker was unable to repeat its heroics from the previous week. The company’s shares lost over 19% of their value during the four days.

More reading

• Is Canva coming to the ASX?
• Are ASX tech shares like Afterpay (ASX:APT) back to the races?
• Why Zip (ASX:Z1P) and this ASX growth share could be buys
• Why ASX 200 shares are at a 6-week high
• ASX 200 jumps, Cleanaway’s treasured acquisition, Afterpay soars

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 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.

The post 88 Energy and Airtasker were among the most traded ASX shares last week appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3wAyldl

When an ASX investor considers an exchange-traded fund (ETF) for their portfolio, normally the goal is to bring in the market’s average return. The whole point of an index fund is, after all, to mimic the market, nothing more, nothing less. But not all ETFs are index funds. That in itself is a source of danger. Remember, beating the market is hard, and most of us statistically don’t manage it. That includes active fund managers too.

But one ASX ETF has done a pretty good job. That ETF is the VanEck Vectors Wide Moat ETF (ASX: MOAT).

MOAT is an ASX-listed ETF that tracks a basket of US shares. Not just any or all US share though. This ETF holds a basket of roughly 50 companies that all demonstrate one defining feature: the presence of a moat. A moat is a term originally popularised by the great investor, Warren Buffett. The moat Buffett originally described refers to a companies’ intrinsic ability to protect itself from its competition, just as a moat used to do for a castle in days of yore. There are many forms a moat can take, but characteristics such as a strong brand, a cost of stitching away from a company’s products or an ability to profitably sell goods or services at the lowest cost on the market are the most well-known.

All of the companies that the MOAT ETF holds display these characteristics. VanEck describes its selection process as “exposure to a diversified portfolio of attractively priced US companies with sustainable competitive advantages according to Morningstar’s equity research team”.

MOATs float the boat

Here are some of MOAT’s current holdings: Facebook Inc (NASDAQ: FB), Coca-Cola Co (NYSE: KO), McDonald’s Corp (NYSE: MCD), Amazon.com Inc (NASDAQ: AMZN), Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL), and Kellogg Company (NYSE: K).

Can you identify what might give some of these MOAT holdings their edge? Well, Facebook is the most dominant social media company in the world by a long shot. Alphabet’s Google has a virtual monopoly on internet search, as well as internet videos with its YouTube platform. Coca Cola and McDonald’s are two of the world’s most dominant food and beverage brands, recognised in almost every country on the planet. Kellogg Co is the name in cereal, with the original Corn Flakes brand. And Amazon is, well, Amazon.

But there is a method in this madness. MOAT has handily outperformed ETFs tracking the ASX market like the iShares Core S&P/ASX 200 ETF (ASX: IOZ) per annum over the past 3 and 5 years.

It has also dominated its own benchmark, the US-based S&P 500 Index (INDEXSP: .INX). According to VanExk, MOAT has returned an average of 16.86% per annum over the past 3 years, and 17.74% over the past 5. In contrast, the S&P 500 has returned an average of 13.73% and 14.28% respectively. The iShares ASX 200 ETF has returned an average of 9.53% and 10.10% per annum over the same periods.

The numbers are clear here: the VanEck Vectors Wide Moat ETF has smashed the market. Especially where it counts: over the long term.

More reading

• Is GameStop the next Blockbuster, Amazon, or Best Buy?
• Amazon just passed a major milestone in the digital advertising market
• Why Facebook stock gained 14% last month
• Afterpay (ASX:APT) leads Zip by 40% on one critical measure
• 2 quality international ETFs for ASX investors to buy

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares), Coca-Cola, Facebook, Kellogg, McDonalds, and VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Amazon, and Facebook and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Alphabet (A shares), Amazon, Facebook, and VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post This ASX ETF is smashing the ASX 200… and the S&P 500 appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2Py69rd