• The Afterpay (ASX:APT) share price is up almost 20% this month

    Two happy people use their hands as binoculars, indicating a positive ASX share price or on watch

    The Afterpay Ltd (ASX: APT) share price has made a strong rebound in April following a significant underperformance in late-February and March

    Why the Afterpay share price is bouncing back this month 

    The Afterpay share price hit a one-month high of $123.99 this morning, or a 23% increase this month before cooling down to around $121.85 at the time of writing. That’s a gain of 17.8% this month.

    Interestingly, the company has not announced any market sensitive news or catalysts this month that could otherwise drive the share price. 

    The improvement in the Afterpay share price could be seen as a broader rally in tech shares after a brutal sell-off in late-February. The S&P/ASX Information Technology (INDEXASX: XIJ) is up almost 10% in April, after falling more than 20% between 11 February and 9 March.

    Morgan Stanley has been the only broker to provide updates for the Afterpay share price so far in April.

    The broker assessed the Commonwealth Bank of Australia (ASX: CBA) and its entry into the Australian BNPL market. CBA has made the move to undercut merchant fees which could put pressure on merchant margins for Afterpay.

    As a result, the broker reduced Afterpay’s group merchant margins by 13 basis points and Australian merchant margins by 60 basis points for FY23. 

    The Afterpay share price is the odd one out this month

    The Afterpay share price is a standout performer amongst its BNPL rivals this month. In terms of returns this month: 

    What immediately stands out is that ASX-listed BNPL shares with significant US exposure including Afterpay, Zip and Sezzle are outperforming. While Afterpay’s additional exposure to countries such as France, Spain and Italy could be a driver of its outperformance. 

    Excluding Affirm, the weaker BNPL shares also have a smaller market capitalisation relative to Afterpay, Zip and Sezzle. While Sezzle is approaching a $1 billion market capitalisation, Openpay and Laybuy have market caps of less than $200 million. 

    Where to invest $1,000 right now

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

    *Returns as of February 15th 2021

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    Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Humm Group Limited and Sezzle Inc. 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 high yield ASX dividend shares rated as buys

    janus henderson share price increasing represented by pile of australian one hundred dollar notes

    If you’re looking for some high yield ASX dividend shares to bolster your income portfolio, then look no further.

    Listed below are two shares that have been tipped to provide their shareholders with very generous yields in FY 2021. Here’s what you need to know:

    Fortescue Metals Group Limited (ASX: FMG)

    The first dividend share to consider buying is Fortescue. This iron ore producer has been a very positive performer in FY 2021 and is on course to reward shareholders with bumper dividend payments.

    This has been driven by its low costs, record shipments, and, of course, the sky high iron ore price. In respect to the latter, Fortescue achieved an average realised price of US$114 per dry metric tonne for its iron ore during the first half. This was up 42.5% on the prior corresponding period.

    Positively, the spot iron ore price is currently fetching US$172.15 a tonne. This puts the company in a position to have an even stronger second half.

    Analysts at Credit Suisse are positive on the company. They currently have an outperform rating and $23.50 price target on its shares. The broker is also forecasting a full year dividend of ~$3.61 per share. Based on the current Fortescue share price, this will be a stunning fully franked 17% yield.

    Super Retail Group Ltd (ASX: SUL)

    Another dividend share to consider buying is Super Retail. As with Fortescue, it has been performing very positively so far in FY 2021.

    During the first half, the company reported a 23% increase in sales to $1.78 billion and a 139% increase in underlying net profit after tax to $177.1 million.

    This allowed the retailer behind the BCF, Macpac, Rebel, and Super Cheap Auto brands to declare a fully franked 33 cents per share interim dividend.

    Analysts at Goldman Sachs are positive on the company and have a buy rating $15.00 price target on its shares.

    The broker expects Super Retail to have a strong second half, allowing it to pay a fully franked dividend of ~81 cents per share in FY 2021 (including a special dividend). Based on the current Super Retail share price, this equates to a ~6.8% yield.

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    Returns As of 15th February 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 and has recommended Super Retail Group 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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  • Laybuy (ASX:LBY) share price climbs on March trading update

    A young woman smiling and looking happy, indicating a positive share price movement on the ASX market

    The Laybuy Holdings Ltd (ASX: LBY) share price is climbing in early-afternoon trade following the release of a trading update. At the time of writing, the buy now, pay later (BNPL) provider’s shares are trading at 93 cents, up 1%.

    Trading update

    Investors are pushing Laybuy shares higher after the company delivered a robust performance for the month of March.

    For the month ending 31 March 2021, Laybuy reported annualised (multiplied by 12) gross merchandise value (GMV) of NZ$704 million. In addition, 479 active merchants and 23,000 active customers signed on to Laybuy’s platform.

    Predominately, the United Kingdom market is the company’s largest revenue source, achieving NZ$296 million in annualised GMV for FY21. It’s worth noting that this market has significantly grown 504% over the prior corresponding year. The company said its UK merchants, along with strategic partnerships, are driving the rapid growth.

    The Australia New Zealand region closely follows with NZ$293 million in annualised GMV for the current financial year.

    In total, this reflects an increase of 159% on FY21 GMV to NZ$589 million, slightly above previous forecasts.

    Active merchants stood at 9,126 at the end of the period, representing a 75% increase from 31 March 2020. Furthermore, active customers came to 756,000, a surge of 87% over the same time frame.

    Laybuy stated that it has funding options and a capital efficient business model to facilitate future growth. The UK retail market has an addressable opportunity of NZ$757 billion, highlighting an attractive pathway.

    In addition, the company said that it was well-placed to respond to any regulatory changes in the BNPL sector.

    Laybuy share price review

    Over the past 12 months, the Laybuy share price has fallen more than 50%, with close to 30% down year-to-date. The company’s shares have been trending lower ever since its listing in early September 2020.

    Based on the current share price, Laybuy presides a market capitalisation of roughly $163.1 million, with 174.4 million shares outstanding.

    Where to invest $1,000 right now

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    Motley Fool contributor Aaron Teboneras 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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  • Why Codan, Flight Centre, Magellan, & Woolworths are sinking

    Fall in ASX share price represented by white arrow pointing down

    The S&P/ASX 200 Index (ASX: XJO) has run out of steam and is dropping lower on Friday. At the time of writing, the benchmark index is down 0.35% to 6,974.5 points.

    Four ASX shares that are falling more than most are listed below. Here’s why they are sinking:

    Codan Limited (ASX: CDA)

    The Codan share price is down 2.5% to $17.08. This decline appears to have been driven by profit taking by investors after some very strong gains. In fact, the Codan share price reached a record high of $17.79 earlier this. A strong performance in the first half of FY 2021, new acquisitions, and its inclusion in the ASX 200 have helped drive its shares higher.

    Flight Centre Travel Group Ltd (ASX: FLT)

    The Flight Centre share price has fallen 2.5% to $18.50. Investors have been selling travel shares on Friday amid concerns over the rollout of COVID-19 vaccines across Australia. This follows the Government’s announcement that under 50s would not be receiving the Astra Zeneca vaccine due to blood clotting worries.

    Magellan Financial Group Ltd (ASX: MFG)

    The Magellan share price is down over 2% to $47.87 following the release of its funds under management update for March. In March, Magellan experienced net inflows of $206 million. This comprises net retail outflows of $15 million and net institutional inflows of $221 million. The retail outflows may have caught the eye of investors.

    Woolworths Group Ltd (ASX: WOW)

    The Woolworths share price has fallen 2% to $41.00. This decline may have been triggered by speculation that a price war is brewing in the supermarket industry. This follows a decision by Coles Group Ltd (ASX: COL) to heavily discount a number of items. The market appears to believe this is being done in an effort to win back market share from its rivals. Price wars are never good news for margins.

    Where to invest $1,000 right now

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

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

    *Returns as of February 15th 2021

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths Limited. The Motley Fool Australia has recommended Flight Centre Travel Group 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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  • Renascor (ASX:RNU) share price flat despite strong gold results

    A woman lying face down on the couch, indicating a flat ASX share price

    The Renascor Resources Limited (ASX: RNU) share price remains flat today despite the company confirming and extending gold mineralisation at its Soyuz Prospect.

    The Renascor share price is sitting at 11 cents per share at the time of writing.

    Renascor is engaged in exploring graphite, copper, gold, uranium and other minerals in Australia. Its projects include the Siviour Graphite Project, which recently expanded capacity, and the Carnding project in South Australia, home to its Soyuz prospect.

    It also has interests in projects including Munglinup, Eastern Eyre, Farina, Gairdner, Olary, and others. Renascor has a market capitalisation of $183.24 million.

    Renascor gold mineralisation at Soyuz

    The company advised that 13 out of 14 holes drilled intersected gold mineralisation, with significant gold intervals recorded proximate to previous high-grade gold intercepts. These intercepts included 11 metres at 0.9 g/t and 4 metres at 2.0 g/t.

    Renascor says the results confirm the presence of a broad gold zone defined by a stacked system of gold mineralisation along the granite margin, with potential for further shallow high-grade gold shoots.

    The company says it will still need to delineate the size and continuity of gold mineralisation and potential for economic gold deposits. Its next steps are more infill soil sampling and further evaluation of its priority targets in Soyuz.

    Renascor has also yet to test for gold in soil geochemical anomalies along the granite boundary to the southwest. 

    Renascor share price snapshot

    The Renascor share price hit an all-time-high on 25 March of 18.5 cents before settling at 16 cents and has fallen over the past few weeks to its current price.

    The initial investor excitement was created by Renascor signing a non-binding MOU with Hanwa CoLtd (Hanwa) to supply purified spherical graphite. Hanwa is one of the largest traders of battery chemicals in the Asian region.

    Since that flux, the Renascor share price quickly returned to 15 March levels, where it remains now. However, it’s still up 1,471% this year, beating the basic materials sector by 1,522%.

    Where to invest $1,000 right now

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

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

    *Returns as of February 15th 2021

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    Motley Fool contributor Lucas Radbourne-Pugh 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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  • Fund managers have been buying Webjet (ASX:WEB) and this ASX share

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

    I like to keep an eye on substantial shareholder notices. This is because these notices give you an idea of which shares large investors, asset managers, and investment funds are buying or selling.

    Two notices that have caught my eye are summarised below. Here’s what these fund managers have been buying:

    Catapult Group International Ltd (ASX: CAT)

    A notice of change of interests of substantial holder reveals that ICE Investors has been buying more of this sports analytics and wearables company’s shares. According to the notice, the Melbourne based fund manager has increased its holding by approximately 3.9 million shares following a series of purchases between 28 January and 1 April.

    Its most recent purchase came on the latter date when it picked up 1.9 million shares for a total of ~$3.68 million. This equates to an average of ~~$1.94 per share, which compares to the current Catapult share price of $2.12. These purchases have increased ICE Investors’ stake from 5.03% to 6.77%.

    ICE Investors aims to invest in ASX listed franchise companies with a sustainable competitive edge. Judging by its investment, Catapult appears to tick a lot of boxes for it.

    Webjet Limited (ASX: WEB)

    Another notice of change of interests of substantial holder reveals that Ausbil has been increasing its stake in this online travel agent. According to the notice, the leading boutique fund manager has added almost 7 million shares to its position since 23 February.

    This means the fund manager now has a total of ~29.2 million shares, which equates to an 8.6% interest in the company. This is up from 6.6% previously.

    Ausbill was buying shares as recently as 1 April when the Webjet share price was fetching $5.28. So, with its shares trading only a fraction higher than this level today, it may not be too late to follow this fund manager’s lead.

    One broker that would support this is Ord Minnett. Its analysts currently have a buy rating and $5.85 price target on Webjet’s shares.

    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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    *Returns as of February 15th 2021

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    James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Catapult Group International Ltd. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Catapult Group International 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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  • Why the Greenland Minerals (ASX:GGG) share price is rocketing 17% today

    rising asx share price represented by boy dressed in business suit with rocket wings

    The Greenland Minerals Ltd (ASX: GGG) share price is rocketing today, up 17% in afternoon trading after earlier posting gains of more than 30%.

    This comes after the ASX rare earths share crashed 45% yesterday before entering a trading halt pending today’s announcement.

    We look at that announcement, and what’s been driving Greenland Mineral’s wild share price swings, below.

    What did Greenland Minerals announce today?

    Greenland Minerals’ shares are soaring after the company released an announcement to calm investor fears about the recent election in Greenland.

    For a spot of background, the ASX listed resource share has been operating in Greenland since 2007. The company’s predominant focus is developing its Kvanefjeld rare earth project in that nation.

    Atop of rare earth elements – including neodymium, praseodymium, terbium and dysprosium – the company also had plans to recover uranium during its rare earths production at the project. And that plan may have largely been responsible for yesterday’s 45% share price retreat.

    That’s because Greenland’s newly elected government, the Inuit Ataqatigiit party, won 37% of votes. And the environmentally friendly party has pledged to stop the Kvanefjeld project amid concerns from locals about radioactive waste polluting the nearby farmland.

    In response, this morning Greenland Minerals stated:

    Greenland Minerals Ltd has operated its 100%‐owned Kvanefjeld rare earth project effectively under all successive Greenland governments since commencing operations in 2007. The company looks forward to engaging with the new government once it has been established.

    The company said it has operated in strict accordance with Greenland’s Minerals Act and that the project was “shaped by extensive Greenland stakeholder engagement at a community and government level”.

    Greenland Minerals noted that the Inuit Ataqatigiit party had “expressed an anti‐uranium position” during the campaign and maintains that position after its election win.

    It highlighted that uranium “is not of great economic significance to the Kvanefjeld Project, however revenues along with those from other by‐products would serve to reduce rare earth production costs”.

    Greenland Minerals share price snapshot

    Still struggling to regain yesterday’s massive selloff, Greenland Minerals shares remain down 4.5% over the past 12 months. But comparison the All Ordinaries Index (ASX: XAO) is up 33% since this time last year.

    So far in 2021 the Greenland Minerals’ share price is down 63%.

    Where to invest $1,000 right now

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

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

    *Returns as of February 15th 2021

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    Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • How would Warren Buffett invest in the share market today?

    Warren Buffett chair and CEO of Berkshire Hathaway Inc. (NYSE: BRK.A)(NYSE: BRK.B) is well-known for being one of, if not the, best investors in the world. As such, his investing habits are closely scrutinised. Even so, there’s only one real way of knowing Buffett’s moves. And that’s through the US 13F filings. These are quarterly notices that tell investors exactly what Berkshire has been doing with its money. The only problem is that they come out over 3 months, and we only get to know what Buffett has done after he’s done it. 

    For instance, Buffett’s last 13F filing came out in February. But that covered the 3 months to 31 December 2020. We probably won’t get to see what Buffett has been doing in the 3 months to 31 March until next month. In the 3 months to December last year, Buffett did more selling than buying. So what would he think of the market today?

    Well, one of Buffett’s most famous and memorable quotes is “be greedy when others are fearful, and be fearful when others are greedy”.

    Right now, the S&P/ASX 200 Index (ASX: XJO) is at a 14-month high, despite today’s pullback. Yesterday, we saw the ASX 200 reach the 7,000 point level for the first time since the coronavirus hit. 

    Over in Buffett’s native United States, the flagship S&P 500 Index (INDEXSP: .INX) is sitting at all-time highs (not post-COVID highs), having recently crossed 4,000 points for the first time in history.

    A Buffett of greed?

     What’s more, there is real evidence that ‘fear’ is at the lowest levels we have seen for months. Over in the States, market volatility (a proxy for fear) is measured on an index known as the Vix. The Vix is currently at its lowest level since mid-February 2020 after some recent small spikes probably caused by the Suez Canal blockage and rising bond yields. That tells us that investors are certainly not fearful right now. So are they greedy? Should we be fearful instead, like Buffett preaches?

    Well, that’s a harder question to answer. It’s possible the markets are treading a path between these two emotions right now. But shares are being pushed to record highs. One could easily make the case that this indicates a greedy market. Judging by the February 13F filing, Buffett is trimming positions here and there, but otherwise doing a whole lot of not much. There are certainly worse investors to take a cue from.

    Where to invest $1,000 right now

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

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

    *Returns as of February 15th 2021

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    Sebastian Bowen 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 Berkshire Hathaway (B shares) and recommends the following options: short June 2021 $240 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Berkshire Hathaway (B shares). 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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  • Fears of new supermarket war could hit Coles (ASX:COL) and Woolworths (ASX:WOW)

    Coles Woolworths supermarket warA man and a woman line up to race through a supermaket, indicating rivalry between the mangorsupermarket shares

    The threat of a new round of a price war between the major supermarkets could haunt the Coles Group Ltd (ASX: COL) share price and Woolworths Group Ltd (ASX: WOW) share price.

    Coles dropped prices on 250 products and it’s not done yet, reported the Australian Financial Review.

    Is Coles about to start a supermarket price war?

    The move is an attempt by Coles to claw back lost market share, particularly from archrival Woolies. Coles is also believed to have lost share to Metcash Limited (ASX: MTS) during the COVID-19 lockdown.

    This triggers painful memories of the last bruising supermarket wars when the leading chains slashed prices as discount grocer Aldi entered the market.

    Price cuts put pressure on supermarket margins

    Coles reportedly lowered its prices on hundreds of private label and branded products by between 5% and 35%. These items include breakfast cereals, pasta, tinned tuna, convenience foods, healthcare, pet food – just to name a few.

    The supermarket will be dropping prices on more products next week and the week after, according to the AFR.

    Why Coles is falling behind

    Coles has been losing ground to its rivals due in part to its larger store exposure to Victoria. This is the state with the worst track record in controlling the pandemic.

    The supermarket is also squeezed on two other fronts. It failed to benefit as much from the shift to local shopping during the lockdown as Metcash did, while its online shopping system is inferior to Woolworths.

    Some believe that the only lever Coles has to stem the slide is to cut prices, which will almost definitely illicit a response from rivals.

    Coles-Woolworths supermarket war isn’t a done deal

    But not all experts are convinced that another supermarket price war is looming. The AFR reported that JPMorgan’s analyst Shaun Cousins is one such optimist. He believes that Woolworths will simply price match Coles instead of going harder.

    Woolworths will not want this to turn into a race to the bottom as it doesn’t need to. It has the upper hand and its best placed to capitalise on the structural shift to online grocery shopping.

    Fortunately for Woolworths and Coles, Aldi is not moving into the online space – at least not yet.

    What’s also notable is that Cole’s price cutting program comes at a time when the risk of inflation is growing.

    Disruptions to supply chains from COVID and rising soft commodity prices are putting upward pressure on prices.

    Where to invest $1,000 right now

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

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

    *Returns as of February 15th 2021

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    Motley Fool contributor Brendon Lau owns shares of Woolworths Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • With the Bitcoin price up overnight your crypto Tesla just got cheaper

    orange yellow bitcoin logo with a man at the end

    The Bitcoin (CRYPTO: BTC) price is up 3.5% over the past 24 hours. One Bitcoin is currently worth US$58,279 (AU$75,687).

    Bitcoin is now less than 6% off its record highs reached on 14 February this year, according to data from CoinDesk.

    Should you take Elon Musk up on his Bitcoin offer?

    In March, Tesla Inc (NASDAQ: TSLA) founder Elon Musk made global news (again) when he announced the company would accept Bitcoin in payment for its electric vehicles. Commencing in the United States, that offer is expected to go global later in 2021.

    At the current Bitcoin price, you’ll need just under 2 Bitcoin to purchase a base Tesla Model S Down Under.

    But should you?

    For that answer, we turn to Mena Theodorou, co-founder of the digital currency trading platform Coinstash.

    He told the Motley Fool, “More investors are starting to realise that there is real potential for crypto assets adoption as both a store of value as well as functional currencies among retail customers.”

    Theodorou continued:

    As we move into a true digital revolution, it [buying a Tesla with Bitcoin] actually makes sense. I would recommend starting to get used to the idea of digital currencies as the future of money. It’s only a matter of time until people start to realise how easy and convenient it is to assign utility to crypto assets in their day-to-day lives.

    An intelligent investor could even get a loan for a Tesla in a cryptocurrency and pay the instalments with the interest they earn on crypto assets sitting in their crypto wallet as the interest rate on these products are generally relatively high since they’re not regulated by a central bank.

    Earning interest on crypto currencies

    If you’re not familiar with the concept of earning interest on your stored Bitcoin or other cryptocurrencies, you’re not alone.

    But digital tokens don’t need to sit idly in your digital wallet.

    According to Theodorou:

    At Coinstash, we are working on tools that will allow bitcoin holders to put their “stored” crypto assets back to work by earning interest or serving as collateral for loans. This is why assets like stablecoins and altcoins have a lot of potential to function as alternative currencies to Bitcoin.

    Where to next for the Bitcoin price?

    With Bitcoin up more than 100% in 2021 and Ether – the world’s second largest crypto by market cap – up 182%, we asked Theodorou what’s been driving the big resurgence in the dominant cryptos. He said:

    Most economists and anyone with a basic understanding of supply and demand would agree that printing money to cover national debt is a short-term solution that can lead to catastrophic market devaluation. The fact that most crypto assets are not tethered to fiat currencies (like the US dollar or Australian dollar) is perhaps one of the key reasons that crypto assets have taken off so well amongst the masses, especially over the past few months.

    So where to next for the Bitcoin price?

    According to Theodorou, “This is the million-dollar question. In the long term, I believe bitcoin has the potential to hit US$100,000.”

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    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 and Tesla. 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 With the Bitcoin price up overnight your crypto Tesla just got cheaper appeared first on The Motley Fool Australia.

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