The Douugh Limited (ASX: DOU) share price has returned to trade this morning after approximately six weeks in suspension.

At the time of writing, the embattled mobile app company’s shares are down 18% to 14 cents.

Why was the Douugh share price suspended?

The Douugh share price initially went into a trading halt in December as it prepared an announcement for the acquisition of the Goodments wealth management app and its 12,700 app users.

However, while it was in a trading halt, the ASX investigated the company’s backdoor ASX listing and a recent $16 million placement.

That investigation found that the parents of one of the company’s directors, Bert Mondello, were issued a significant number of shares in breach of listing rule 10.11 before selling them for a big profit.

Douugh has now advised that the company intends to hold a general meeting to seek shareholder approval to facilitate a selective capital reduction, for consideration equal to the subscription price of the breached shares. The company has entered into share cancellation deeds with each of the entities that hold these breached shares.

In addition, Douugh revealed that the profit that was made by Mr Mondello’s parents will now be donated to charity.

It has also undertaken a review of its corporate governance plan to strengthen its policies and procedures in relation to issues of equity to persons in a position of influence, related party transactions, and its risk management policy.

Finally, the company has advised that it is “considering” making changes to the composition of the current board.

Still no user numbers

One thing the company is still yet to update the market on is the number of users of its Douugh app since its launch in November.

Douugh talked up its app ahead of launch but has been very quiet on its progress since its release. And based on available app download data, it doesn’t appear to be gaining any traction in the highly competitive US market.

More reading

• Douugh (ASX:DOU) share price still in limbo. Here’s why
• Does Xinja’s downfall mean neobanks are dead?
• Douugh (ASX:DOU) share price remains suspended after listing rule breaches were found
• Here’s why the Douugh (ASX:DOU) share price remains suspended

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 Why the Douugh (ASX:DOU) share price is crashing 18% lower appeared first on The Motley Fool Australia.

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

The Janus Henderson Group CDI (ASX: JHG) share price has come under pressure and is sinking lower today.

In morning trade, the fund manager’s shares are down 7% to $39.66.

Why is the Janus Henderson share price sinking?

Investors have been selling the company’s shares this morning following the release of its fourth quarter update last night.

According to the release, Janus Henderson achieved fourth quarter operating income of US$227 million. This was up 45% on the third quarter and 47.1% on the prior corresponding period.

Management advised that the increase in operating income was primarily due to higher average assets under management (AUM), seasonal performance fees, and improved investment gains compared to the prior quarter.

In respect to its AUM, Janus Henderson’s AUM increased 12% to US$401.6 billion compared to the prior quarter. This reflects positive markets and improved outflows of US$1.1 billion.

Dai-ichi Life sells stake

Overshadowing this strong profit growth was news that one of its major shareholders is selling its stake.

The release explains that Dai-ichi Life intends to exit its equity investment in Janus Henderson to focus capital on its global insurance business. Dai-ichi will be offloading 30,668,922 shares and relinquishing its board seat.

However, the two companies intend to work closely together for the foreseeable future.

Seiji Inagaki, President of Dai-ichi Life, commented: “Our relationship with Janus Henderson has benefited both our organizations over the last eight years, and we are pleased that our partnership will continue, even as we strategically reallocate capital investments.”

“Janus Henderson remains a powerful franchise in the global Asset Management market and we hold their teams in high regard. Janus Henderson has been a great partner for the past 8 years. We are confident in Janus Henderson’s quality and leadership and look forward to continuing our strategic relationship with the firm going forward,” he added.

Janus Henderson’s CEO, Dick Well, echoed this sentiment.

Mr Well saidi: “We look forward to continuing the strong relationship with Dai-ichi through the new co-operation agreement, building on eight years of trust. Although we are disappointed to lose Dai-ichi as a shareholder, today’s news does not change the path that Janus Henderson is on to deliver Simple Excellence across our business. We remain committed to delivering strong risk-adjusted returns for all of our clients and long-term value and profit growth for all of our shareholders.”

More reading

• ASX 200 rises, Worley dumped, Mesoblast rises
• Worley (ASX:WOR) share price crashed on profit warning
• ASX 200 rose 1.6%

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 Why the Janus Henderson (ASX:JHG) share price is sinking 7% today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/36LFc8O

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.

GameStop Corp (NYSE: GME) stock is the recipient of an extraordinary amount of attention lately. It is caught up in the middle of a buying frenzy that started on the Reddit forum subgroup r/WallStreetBets. At one point, the price for one share of GameStop stock rose a jaw-dropping 1,063% just in January. That increase was fueled in part by some investors scrambling to cover shares they held short. 

Although the reason for the excessive GameStop share purchases and sales is more related to some (potentially lucrative and potentially damaging) quirks of stock trading, fundamentally GameStop as a company does have one undeniable advantage that might make it a worthy stock to own longer-term. 

Hardcore gaming enthusiasts are the key 

GameStop is a video game retailer with over 5,000 locations in at least 10 countries. Having so many locations is not ideal when there also happens to be a major shift in the video game market to digital purchases underway. Further, next-gen gaming consoles are now out, and selling well, that allow for digital-only versions of games with the intent of persuading consumers to accelerate their shift to digital purchases. Manufacturers of video games prefer to sell them digitally as it reduces the costs of packaging and shipping the products to customers and it limits the resale of those games by the initial purchaser. That may partly explain why since 2019, GameStop has been forced to close over 800 brick-and-mortar locations, with plans to close 200 more.

However, some of the most enthusiastic gamers (the ones who play so many hours that they get bored of games quickly) would rather have a physical copy. Why? That’s because when they are finished playing a game they can sell it, or trade with friends — an option not available to them with a digital copy. Catering to this crowd, GameStop offers trade-ins and used games for purchase. This allows hardcore gamers an opportunity to recoup some of their purchase price for video games, and allows others the option to buy used games at prices discounted from the retail versions. 

At the moment, digital games typically sell for the same retail price as their physical counterparts. For game enthusiasts, the physical copy is still the better option, and therein lies the undeniable advantage that GameStop currently has. Unless game manufacturers are willing to lower prices on digital versions or allow digital games to be used as trade-ins to purchase new games, GameStop will continue to be a destination for game enthusiasts. 

What this could mean for investors

At the very least, this continued demand means that GameStop will not be made irrelevant anytime soon. This advantage is certainly not enough to grow sales, but it could be enough to buy GameStop management time to pivot its business model. After all, over the last decade revenue is only declining at a compounded annual rate of 3.3%, which is not catastrophic. Of course, 2020 revenue for the brick-and-mortar retailer was much worse because of temporary store closures required due to the pandemic, but the launch of new gaming consoles from Sony and Microsoft helped comparable store sales increase by 4.8% in the nine-week holiday period.

Admittedly, this advantage may not be enough to justify its currently elevated stock price, which is trading at a price to sales ratio similar to that of several FAANG stocks (see chart above). In fact, it is trading at a higher forward P/S ratio than Amazon.

Unfortunately for GameStop shareholders, the stock is tumbling down from its per-share high of near $350 to $60 as of this writing. Investors wanting to make a prudent decision would be better off putting their money into more proven winners. 

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

More reading

• GameStop effect: 3 more shorted ASX shares that could skyrocket
• These central bankers aren’t worried about share market bubbles. Should you be?
• GameStop (NYSE:GME) appoints 3 new Vice Presidents from Amazon and Chewy
• The worst isn’t over for GameStop: Here’s why
• GameStop chaos: How Aussie fund doubled money in 2 days

Parkev Tatevosian has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and Microsoft 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 Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post GameStop has 1 undeniable advantage 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/2O8SXIb

An economist has revealed some figures that are food for thought for retail investors trying to figure out whether ASX shares are in a bubble.

Predictions for 2021 have been polarised, to say the least.

Many experts are optimistic, citing near-zero interest rates, COVID-19 government support and coronavirus vaccines to charge up the economy.

“I think in 2021 we will see our equity market deliver at least 10% return,” said Tribeca Investment Partners portfolio manager Jun Bei Liu last month at a GSFM briefing.

“A big part of that will be dividends – however, we should see some of the best growth yet.”

Commonwealth Bank of Australia (ASX: CBA) chief economist Stephen Halmarick at the end of December said that Australia had done a fantastic job of controlling the virus.

“We do expect a solid recovery in 2021, with global growth forecasts at 5.2 per cent – led by the US and China.”

In the opposite camp are wise owls like GMO founder Jeremy Grantham, who is warning of a massive share market bubble about to pop soon.

“Featuring extreme overvaluation, explosive price increases, frenzied issuance, and hysterically speculative investor behavior, I believe this event will be recorded as one of the great bubbles of financial history – right along with the South Sea bubble, 1929, and 2000,” he said to clients last month.

“And here we are again, waiting for the last dance and, eventually, for the music to stop.”

Now BetaShares chief economist David Bassanese has come up with some numbers to support the bull case.

2021 will see an earnings-driven rally

Bassanese has seen that in January the S&P/ASX 200 Index (ASX: XJO) only rose by 0.3% even though an impressive 6.4% growth in forward earnings was recorded.

“This meant the PE ratio edged back further to 19.2, from a recent month-end peak of 21.8 at end-August.”

He thus predicts the ASX 200 will head up 6% from 31 January to the end of the year, which means hitting the 7,000-point barrier.

“Current market expectations imply 6% growth in forward earnings by year-end, though there appears scope for further upgrades due to the faster than generally expected turnaround in the economy.”

Bassanese’s view was supported further this week when the Reserve Bank emphasised that it couldn’t see the cash rate increasing until 2024.

ASX shares, with a 3.1% loss, had also underperformed compared to other regions over the last 12 months. The S&P 500 Index (SP: .INX)and the Nikkei 225 Index (NIKKEI: NI225) were up 17.2% and 21.5% respectively over the same period. 

This means the local bourse, heavily dominated by finance and mining, may be ready to ride the recovery train into the sunset.

“With bond yields only expected to rise modestly further, and the earnings-to-bond yield gap close to recent averages at around 4%, PE valuations may not need to correct back all that much over the coming year.”

More reading

• Here’s how ASX equal-weight ETFs stack up to index funds
• ASX 200 falls 0.9%, Nick Scali reports, Vulcan jumps
• This chart shows why the ASX bull market can keep running
• Top brokers just upgraded these 3 ASX shares to “buy”
• ASX 200 down 0.7%: AGL & Origin sink lower, Qantas pushes higher

Motley Fool contributor Tony Yoo 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 ASX shares to rocket 6% this year appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3tqP41p

Exchange-traded funds (ETFs) are an increasingly popular investment vehicle for investors as we start 2021. In fact, (as we reported at the time), 2020 was one of the best years ever for ETFs, which experienced record inflows.

The most popular ETFs by far with ASX investors are index funds. Index funds are very simple in nature as they methodically track a major index such as the S&P/ASX 200 Index (SAX: XJO). Indexes like these are usually market capitalisation weighted, meaning that the largest companies in the index account for the largest holdings.

As an example, the largest constituent of the iShares Core S&P/ASX 200 ETF (ASX: IOZ) is currently Commonwealth Bank of Australia (ASX: CBA) with an 8.13% weighting. Since CBA is currently the largest company by market cap on the ASX, it’s commensurately the largest holding in the index (and IOZ).

Most index funds work in this way. If a company grows in value over time, its weighting in any index that holds it will also grow. That’s why Afterpay Ltd (ASX: APT) has the 14th largest weighting in the index right now, even though it wouldn’t have been there at all a few years ago.

Equally, if a company falls on foul fortune and decreases in value, it will progressively be moved down the index to reflect this. Fallen agents like AMP Limited (ASX: AMP) now occupy a far smaller space in the ASX 200 than they did in days of yore.

However, not all indexes follow this weighting methodology. There is a different breed of ETFs out there that have a following, known as “equal-weighted ETFs”. As the name implies, an equal-weighted ETF does not allocate larger companies a larger piece of the ETF’s weighting. Instead, all companies, regardless of size, are treated equally.

Some are more equal than others…

Take the VanEck Vectors Australian Equal Weight ETF (ASX: MVW). Instead of the method described above, this ETF assigns an equal weighting to each constituent. Thus, CBA is equally weighted to Afterpay, or AMP.

This ETF doesn’t track the ASX 200, instead holding 101 companies at the current time. That essentially means that each company gets slightly below a 1% weighting each. Now, these holdings can (and will) move around their initial allocation over time. But this is all part of the process. If say Afterpay has a particularly strong month, and doubles to 2% of the ETF’s weighting, it will simply be trimmed at the next quarterly rebalancing of the ETF.

MVW isn’t the only equal-weighted WTF on the ASX either.

The iShares S&P 500 ETF (ASX: IVV) tracks the US S&P 500 Index (INDEXSP: .INX) in the conventional, market-cap weighted manner. But the BetaShares S&P 500 Equal Weight ETF (ASX: QUS) instead follows an equal-weighting methodology similar to MVW. Ford Motor Company (NYSE: F) will have the same weighting as Apple Inc (NASDAQ: AAPL) and Tesla Inc (NASDAQ: TSLA).

But is equal weight worth the effort?

How do equal weight ETFs stack up?

There are some arguments that carry logic with this one. One for instance, is the common criticism of the ASX 200 has being dominated by ‘banks and miners’. Indeed, the Financials and Materials sectors of the ASX 200 together make up almost 50% of the entire index. In MVW’s case, this is instead around 36%.

But what of performance?

Well, MVW has returned an average of 11.49% per annum over the past 5 years. In contrast, IOZ has returned an average of 9.88%.

Maybe the shoe doesn’t fit every foot. The iShares S&P 500 ETF has returned an average of 14.03% per annum over the past 5 years. In contrast, the BetaShares S&P 500 Equal Weight ETF has returned an average of 9.74% per annum over the same period.

So clearly equal weight works well in some situations but isn’t anything close to a ‘silver bullet’ of higher returns. Its effectiveness may depend on different market, different companies within those markets, or just pure chance.

Before you make a decision on whether equal weighted ETFs are something you want to pursue, make sure you keep fees in mind. As they are most costly to run (and less popular), equal weight ETFs often have higher fees than their market cap cousins. Take MVW – it charges a management fee of 0.35% per annum. IOZ on the other hand charges 0.1%.

It’s a similar story with the US ETFs. IVV charges a fee of 0.04%, whereas QUS asks 0.29%. Those fees can make a difference over time, so keep them in mind.

More reading

• ASX 200 falls 0.9%, Nick Scali reports, Vulcan jumps
• This chart shows why the ASX bull market can keep running
• Top brokers just upgraded these 3 ASX shares to “buy”
• ASX 200 down 0.7%: AGL & Origin sink lower, Qantas pushes higher
• Commonwealth Bank (ASX:CBA) tipped to increase dividend by 50% next week

Sebastian Bowen owns shares of Ford and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple and Tesla. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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 Here’s how ASX equal-weight ETFs stack up to index funds appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3pQe3Jg

Are you sick of hearing that ASX growth shares are now overvalued?

Do you feel like you’ve missed the boat?

One fund manager has picked out a recently floated ASX share that he reckons has outstanding growth potential but is still cheap.

Datt Capital principal Emanuel Datt wrote in a research memo this week that home fragrance retailer Dusk Group Ltd (ASX: DSK) is in an intriguing situation.

“Dusk is the largest player in the local market holding approximately 22% market share, whilst running only around 115 physical stores,” he said.

“The company foresees the potential to grow to around 160 stores throughout Australasia by 2024. Over the last 12 months, the company’s online presence grew significantly making up at least 10% of overall group revenue.”

Datt added that COVID-19 restrictions last year certainly boosted the company’s fortunes, as Australians spent more money on homewares.

“Whilst Dusk was forced to close its physical stores for a short period of time, growth was barely dented with like-for-like sales growth of >17% for FY2020.”

Dusk listed on the ASX in November with an initial public offering (IPO) price of $2 per share. The Dusk share price was trading at $2.55 by market close on Thursday.

Dusk’s case for growth

Despite the prospect of coronavirus vaccines liberating Australians from the confines of their homes, Datt still sees expansion opportunities.

“Dusk intends to penetrate its core Australian market fully and [start] to roll out its stores in New Zealand,” he wrote.

“It aims to grow outside the ANZ region by establishing online stores in key geographies.”

The fragrance retailer doesn’t currently sell to the United States and United Kingdom, but it still sees “a significant” 1% of web traffic from those locations.

“We would expect that Dusk may one day have larger international operations than domestic. The company intends to begin international order fulfilment and to test demand in overseas markets starting from FY2022.”

WAM Microcap Ltd (ASX: WMI) last month agreed with Datt, naming Dusk as an ASX share it held and had great hopes for.

How are Dusk shares cheap?

Datt uses the ‘enterprise value to EBIT’ ratio to support its claim that Dusk shares are considerably cheaper than other discretionary retail businesses:

ASX-listed discretionary retail businesses
ASX share	Enterprise value	EBIT	Ratio
Premier Investments Limited (ASX: PMV)	$3.4bn	$233m	14.7
Baby Bunting Group Ltd (ASX: BBN)	$628m	$33m	19
Lovisa Holdings Ltd (ASX: LOV)	$1.16bn	$30.6m	37.9
City Chic Collective Ltd (ASX: CCX)	$850m	$22m	38.6
Nick Scali Limited (ASX: NCK)	$860m	$88m	9.8
Kathmandu Holdings Ltd (ASX: KMD)	$855m	$56m	15.3
Accent Group Ltd (ASX: AX1)	$1.26bn	$136m	9.3
Adairs Ltd (ASX: ADH)	$665m	$82m	8.1
Dusk	$112m	$33m	3.4
Figures sourced from guidance and actual results Source: Datt Capital. Table created by author

“If we assume as a conservative measure that Dusk can achieve the lowest valuation multiple out of its peers at 8.1x, we could expect to see the company trade at an enterprise value of $267 million or $4.24 per share (84% more than the current price),” he said.

“Note that this figure excludes the company’s existing significant cash balance. No matter which way we examine the company, it still trades cheaply by any metric.”

Dusk reminds Datt of jewellery retailer Lovisa, which was also once owned by private equity firm BBRC.

“Lovisa listed at a market value of around $200 million. It is now valued at around $1.2 billion with normalised EBIT of around $30 million,” he said.

“This company itself, we consider having lower growth potential than Dusk at this point given the product range and current geographic spread.”

What’s the downside?

The investor memo from Datt speculates that the Dusk IPO was “a sell-down” by the private owners rather than a genuine capital raising.

“It would not have made sense for Dusk to raise fresh capital considering the company was strongly capitalised at the time of the IPO,” Datt said.

“Accordingly, the IPO allowed the two largest holders, Catalyst and BBRC, to reduce their shareholding in the group.”

The analyst wasn’t too concerned though, as private equity firms like Catalyst need to have an exit strategy to realise gains for their investors.

The other uncertainty, of course, is the pandemic.

“Our thesis is that people are spending more on themselves and their home environment in lieu of travelling overseas and interstate,” said Datt.

“Whilst we cannot say with certainty when travel will become commonplace, we expect this time of restricted physical movement to last at least another 12 months.”

More reading

• 2 ASX shares that this fundie really likes right now
• Revealed: ASX company underpaid staff $2.3 million
• Wilson Asset Management thinks these 2 small cap ASX shares are a buy

Tony Yoo owns shares of Dusk Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. The Motley Fool Australia has recommended Accent Group and ADAIRS FPO. 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 growth share is cheap like a value stock appeared first on The Motley Fool Australia.

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

If you’re looking to gain exposure to the small side of the market, then you might want to take a look at the small cap ASX shares listed below. 

Here’s why these small cap ASX shares could be ones to watch:

Bigtincan Holdings Ltd (ASX: BTH)

Bigtincan is a provider of enterprise mobility software to sales and service organisations. It has been designed to allow users to increase sales win rates, reduce expenditures, and improve customer satisfaction through improved mobile worker productivity.

The company released its second quarter update last week and revealed annualised recurring revenue (ARR) of $48.4 million. This represents growth of 50% on the prior corresponding period and was driven predominantly by organic growth.

MyDeal.com.au Limited (ASX: MYD)

MyDeal.com.au is an online retail marketplace with a focus on furniture, homewares, appliances, technology, baby products, and hardware. It has been a big winner from the accelerating shift to online shopping caused by the pandemic.

The company recently released its half year update and revealed first half gross sales of $126.7 million. This was a 217% increase over the same period last year. Management advised that this was driven by a strong increase in active customers to a record 813,764 and higher levels of repeat use.

Nitro Software Ltd (ASX: NTO)

A final small cap to watch is Nitro Software. It is a growing software company aiming to drive digital transformation in organisations around the world across multiple industries. Its key solution is the Nitro Productivity Suite, which provides integrated PDF productivity and electronic signature tools.

Last week it released its fourth quarter update and revealed that its ARR reached US$27.7 million at the end of December. This was up 64% on the prior corresponding period and ahead of its previously upgraded guidance of US$26 million to US$27 million. Management advised that the company now serves 11,700 business customers, including 68% of the Fortune 500.

More reading

• 2 ASX growth shares to buy right now
• 2 explosive ASX growth shares to buy immediately
• Leading brokers name 3 ASX shares to buy today
• 3 growing small cap ASX shares to watch
• Top brokers name 3 ASX shares to buy next week

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 BIGTINCAN FPO. The Motley Fool Australia has recommended BIGTINCAN FPO and Nitro Software Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 3 fast-growing small cap ASX shares to watch appeared first on The Motley Fool Australia.

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

If you’re an income investor searching for dividend shares to buy, then you may want to take a look at the ones listed below.

These ASX dividend shares offer investors very attractive yields in the current low interest environment. Here’s what you need to know about them:

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first ASX dividend share to look at is the Charter Hall Social Infrastructure REIT. It is the largest ASX-listed real estate investment trust investing in social infrastructure properties.

These properties include high quality assets in strategic locations with specialist use, limited competition, and low substitution risk. This includes childcare centres and government properties. Management believes that targeting these types of assets will result in high tenant retention rates over the long term and ongoing capital growth.

Goldman Sachs is a fan of Charter Hall Social Infrastructure REIT. It currently has a conviction buy rating and $3.35 price target on its shares.

In addition, the broker is forecasting a 15 cents per share dividend in FY 2021. Based on the current Charter Hall Social Infrastructure REIT share price, this represents a 4.8% yield.

Wesfarmers Ltd (ASX: WES)

Another dividend share to consider buying is Wesfarmers. Thanks largely to its key Bunnings business, this conglomerate has been a very positive performer over the last 12 months. Bunnings’ strong form has been driven by government stimulus and a redirection of consumer spending from holidays to home improvements.

The good news is that the Bunnings business continues to perform well and is being supported by growth in other businesses such as Kmart, Target, and Catch. This appears to have positioned the company to deliver a strong full year result in FY 2021.

Credit Suisse is a fan of the company and has an outperform rating and $55.83 price target on its shares. The broker is also expecting a $1.90 per share fully franked dividend this year. Based on the latest Wesfarmers share price, this will mean a ~3.5% dividend yield.

More reading

• 4 most trusted ASX companies (and the 4 least trusted)
• 2 ASX 200 shares to buy for growth
• ASX 200 Weekly Wrap: Reality (and GameStop) finally hits ASX
• RBA to cut the cash rate again? These ASX dividend shares have attractive yields
• What to expect from the Wesfarmers (ASX:WES) first half result

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

The post 2 ASX dividend shares with very attractive yields appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2YIt6bR

Over the last couple of weeks there are some fast-growth ASX tech shares that are being sold down.

Here are two examples:

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price dropped 6.4% yesterday and it has fallen almost 25% since 25 January 2021.

The ASX tech share released its FY21 half-year result this week.

Temple & Webster reported that its revenue for the six months to 31 December 2020 went up by 118% to $161.6 million. Whilst mostly a consumer business, the company also reported that its trade and commercial division grew 89% year on year.

During the period, the number of Temple & Webster active customers went up 102% to 687,000. It recorded its first day of $3 million of checkout revenue, which was achieved in November.

Temple & Webster’s earnings before interest, tax, depreciation and amortisation (EBITDA) surged 556% to $14.8 million.  

The ASX tech share’s fixed cost as a percentage of sales decreased from 11.6% to 7.5%, which the company said demonstrated continued operating leverage.

Growth has continued in the start of the 2021 calendar year, with January’s revenue growth tracking in excess of 100%.

Temple & Webster said that it continues to experience strong tailwinds. It says that it’s benefiting from the ongoing adoption of online shopping to structural and demographic shifts. The company is seeing an acceleration of those trends due to COVID-19. Another tailwind is that there’s an increase in discretionary income due to travel restrictions. The final tailwind is the continued recovery of the housing market and unemployment levels.

It’s committed to growth, saying that it will continue its reinvestment strategy, investing into growth areas of the business to cement its online leadership and drive market share.

The CEO, Mark Coulter, commented that the operating leverage and profit growth will allow the company to invest into areas such as data, technology, private label and brand awareness.

Redbubble Ltd (ASX: RBL)

Since 25 January 2021, the Redbubble share price has fallen by around 9%.

The company hasn’t made any market sensitive announcements in 2021 yet. However, in October it gave a trading update for the first quarter of FY21.

The ASX tech share reported continuing growth on top of what was achieved in FY20. Excluding a positive adjustment relating to delivery times reverting back to more normalised levels, marketplace revenue rose by 98% to $139.3 million, gross profit increased by 118% to $59.6 million and it generated $17.2 million of earnings before interest and tax (EBIT).

The company is focused on four initiatives that it describes as key for generating ongoing profitable growth. The first area is artist acquisition, activation and retention. The next area is user acquisition and transaction optimisation. The third area is customer understanding, loyalty and brand building. The final area of focus is further physical product and fulfilment network expansion.

One of the physical product lines that Redbubble launched in FY20 was masks, which generated millions of dollars of revenue for the ASX tech share.

At the time of the FY21 first quarter update, Redbubble CEO Martin Hosking said: “The strategic priority for the group now is to ensure we extend the market leadership we have established. We intend to invest in the customer experience to improve loyalty and retention and ensure long-term higher levels of growth. The company has the resources to undertake the anticipated investments and margin structure to ensure it can do so while remaining profitable.”

More reading

• 3 compelling ASX tech shares to buy
• Why Amcor, Carsales, Rent.com.au, & Temple & Webster are surging higher
• Where next for the Temple & Webster (ASX:TPW) share price?
• 3 reasons why the Temple & Webster (ASX:TPW) share price could be a buy
• ASX 200 jumps 1.5%, RBA doubles QE, Afterpay soars

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 2 fast-growth ASX tech shares that are being sold off appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2MDa3gG

On Thursday the S&P/ASX 200 Index (ASX: XJO) ended its winning streak with a disappointing decline. The benchmark index fell 0.9% to 6,765.5 points.

Will the market be able to bounce back from this on Friday? Here are five things to watch:

ASX 200 expected to rebound

The Australian share market looks set to rebound this morning and end the week on a high. According to the latest SPI futures, the ASX 200 is poised to open the day 64 points or 0.95% higher this morning. In late trade on Wall Street, the Dow Jones is up 0.9%, the S&P 500 is up 0.9%, and the Nasdaq is also up 0.9%.

REA Group half year update

The REA Group Limited (ASX: REA) share price will be on watch this morning when it releases its half year results. According to a note out of Morgans, its analysts expect a largely flat profit result. The broker is forecasting a slight revenue decline due to the impact of the Melbourne shutdown impact, which will be offset by increased cost control.

Oil prices push higher

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could be on the rise after another positive night for oil prices. According to Bloomberg, the WTI crude oil price is up 1.1% to US$56.29 a barrel and the Brent crude oil price has climbed 0.7% to US$58.39 a barrel. Oil prices were given a lift by OPEC sticking to a reduced output policy to help rebalance supply and demand.

Gold price sinks lower

It could be a tough day for gold miners including Newcrest Mining Ltd (ASX: NCM) and Resolute Mining Limited (ASX: RSG) after the gold price dropped lower. According to CNBC, the spot gold price is down 2.3% to US$1,792.80 an ounce. Both the gold price and the silver price tumbled lower after the U.S. dollar strengthened.

Origin rated as a buy

The Origin Energy Ltd (ASX: ORG) share price sank lower on Thursday after downgrading its guidance for FY 2021. Analysts at Goldman Sachs think this is a buying opportunity for investors and have reaffirmed their conviction buy rating and $6.50 price target on its shares. It commented: “Origin’s FY21 earnings guidance downgrade is linked to continued impacts on the market from the Covid-19 pandemic, but in our view the expected rebound in oil prices through FY21 and FY22 more than offsets the weakness in Energy Markets electricity and gas segment gross profit.”

More reading

• Why is the Origin (ASX:ORG) share price tanking today?
• Fossil fuels vs renewables: What’s ahead for ASX energy shares?
• Why AGL, Bubs, BWP, & Origin shares are dropping lower
• ASX 200 down 0.7%: AGL & Origin sink lower, Qantas pushes higher
• Why Alliance Aviation, REA Group, SEEK, & Vulcan shares are charging higher

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

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3azR6n9