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.

Microsoft Corporation (NASDAQ: MSFT) recently dropped its 40-minute time limit on video chats for Teams’ free users, and will allow them to stay connected for 24 hours with up to 300 participants “in the coming months.”

That decision, which will last “until further specified,” indicates Microsoft wants to pull users away from Zoom Video Communications Inc (NASDAQ: ZM), which has become synonymous with video chats during the pandemic. At the time of Microsoft’s announcement, Zoom capped its free meetings at 40 minutes for up to 100 participants.

But shortly afterward, Zoom announced it would temporarily remove its time limit for free users on Nov. 26 and Nov. 27. Does Microsoft’s challenge spell trouble for Zoom, or is it too late for the tech giant to catch up?

Moving on from Slack to Zoom

Microsoft initially launched Teams as a competitor to Slack Technologies Inc (NYSE: WORK) in the unified enterprise communications space three years ago. Microsoft subsequently bundled Teams into Office 365 as a free service, with sparked antitrust complaints from Slack.

In October, Microsoft revealed that Teams had 115 million daily active users (DAUs), up over 50% from 75 million just six months earlier. Slack only had about 12 million DAUs last September, and it hasn’t updated that figure since.

Slack’s revenue continued to rise, but it remained unprofitable and is now reportedly willing to be acquired by Salesforce.com Inc (NYSE: CRM). Slack’s antitrust complaints and retreat indicate Microsoft’s free strategies are paying off. After all, Microsoft can easily afford to run Teams at a loss for years to drive smaller players out of the market.

That’s why Microsoft is now setting its sights on Zoom. Zoom became a household name because it was free, easy to use, and hosted more users than traditional video conferencing services. But it also struggled with privacy and security problems as hundreds of millions of new users joined its platform.

Those missteps encouraged bigger tech companies with more robust security frameworks — including Microsoft, Cisco Systems Inc (NASDAQ: CSCO), and Alphabet Inc‘s (NASDAQ: GOOG) (NASDAQ: GOOGL) Google — to promote their own alternatives to Zoom. Cisco’s Webex currently has a free time limit of 50 minutes, and Google Meet has an official time limit of 60 minutes — but it’s offering unlimited meetings until next spring.

Therefore, it wasn’t surprising to see Microsoft remove Teams’ time limit. It’s also allowing users who don’t have Microsoft accounts or the Teams app to freely join meetings through a web browser — which mirrors Zoom’s streamlined browser-based meetings.

Is it too late to catch up to Zoom?

Zoom’s number of daily active meeting participants rose from 10 million at the end of 2019 to over 300 million in April. But that doesn’t mean Zoom has 300 million DAUs since each individual user can be counted as multiple participants if they join more than one Zoom meeting per day. Microsoft also stated it had 200 million daily active participants in a single day back in April.

Zoom and Teams still can’t be considered direct competitors, since Zoom is built on video calls while Teams is a unified communications platform for enterprise users. Microsoft’s brand also doesn’t seem to be strongly associated with video calls anymore, as seen with the tepid market response to its other Zoom competitor, Skype Meet Now, earlier this year.

That’s why Microsoft is now leveraging the strength of Teams in the enterprise market to enter the consumer-facing market. It launched Teams for consumers earlier this year, which targets friends and families instead of co-workers, and removing time limits and login barriers might convince more people to try out the service.

Unfortunately, I think it will still be tough for Microsoft to pivot Teams from the enterprise to mainstream users. Microsoft expanded Teams in the enterprise market with aggressive bundling strategies, but it lacks that advantage in the consumer market, where Zoom enjoys a first-mover’s advantage.

Teams will also face stiff competition from free alternatives like Facebook Inc‘s (NASDAQ: FB) Messenger Rooms and its own neglected Skype platform — which still attracted 40 million DAUs back in March. In other words, offering free all-day calls probably won’t stop most people from using Zoom as a verb for video calls in general.

The bottom line

Microsoft is leveraging Teams to expand Office 365, a core component of the commercial cloud business that generated over $50 billion in revenue (more than a third of its top line) in fiscal 2020. On its own, Teams won’t generate significant revenue for Microsoft. But it’s still a valuable tool for locking users into its Office ecosystem and keeping disruptive challengers like Slack and Zoom at bay.

Therefore, Microsoft will continue challenging Zoom in the video conferencing market with Teams, even though it could be a futile effort. Meanwhile, Zoom’s investors should be more concerned about the stock’s frothy valuations and a potential slowdown after the pandemic ends instead of Microsoft’s latest moves.

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

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• Dubber (ASX:DUB) share price shoots up 14%, nears 52-week high
• Ask a fund manager: Totus Capital’s Sam Granger reveals the methods behind his outperforming High Conviction Fund

Leo Sun owns shares of Cisco Systems and Facebook. Suzanne Frey, an executive at Alphabet, 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. 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. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Facebook, Microsoft, Salesforce.com, Slack Technologies, and Zoom Video Communications and recommends the following options: short January 2021 $115 calls on Microsoft and long January 2021 $85 calls on Microsoft. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Facebook, Slack Technologies, and Zoom Video Communications. 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.

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In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to start the month on a positive note. At the time of writing, the benchmark index is up 0.7% to 6,565.3 points.

Four shares that are climbing more than most today are listed below. Here’s why they are charging higher:

Collins Foods Ltd (ASX: CKF)

The Collins Foods share price is up 2.5% to $9.58. Investors have been buying the quick service restaurant operator’s shares after the release of its half year results. For the six months ended 30 September, Collins Foods delivered a 11.3% increase in revenue compared to the prior corresponding period to $499.6 million. And on the bottom line, underlying net profit after tax came in 15.1% higher to $27.5 million.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The Domino’s share price has jumped 10% higher to $81.54. The catalyst for this appears to be a broker note out of Goldman Sachs this morning. Its analysts have upgraded Domino’s shares to a conviction buy rating with an $88.00 price target. The broker believes the company has the “potential to maintain double digit EBITDA CAGR in the medium term despite various levels of COVID impacts in each of their markets.”

Macquarie Telecom Group Ltd (ASX: MAQ)

The Macquarie Telecom share price is up 2% to $49.93 following the release of its investor day update. That update reveals that management is expecting further earnings before interest, tax, depreciation, and amortisation (EBITDA) growth in FY 2021. It has provided first half EBITDA guidance of $36 million to $37 million. This will be a 13.9% to 17.1% increase on the $31.6 million it achieved in the prior corresponding period.

PolyNovo Ltd (ASX: PNV)

The PolyNovo share price has jumped 6% to $3.41. Investors have been buying the medical device company’s shares after it announced that it would bring its Breast device development program in-house effective immediately. Chairman David Williams advised that “the new product development and extension opportunities in front of us dictate that we need to build our research and development team and efforts.”

More reading

• 2 ASX 200 healthcare shares that outperformed in November 
• Collins Foods (ASX:CKF) share price jumps 7% on strong half year result
• Leading broker upgrades Domino’s (ASX:DMP) share price to conviction buy rating
• These were the worst performing ASX 200 shares in November
• 5 things to watch on the ASX 200 on Tuesday

James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of POLYNOVO FPO. The Motley Fool Australia has recommended Collins Foods Limited and Domino’s Pizza Enterprises Limited. 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.

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There are some ASX shares that are growing their dividends rapidly, much faster than the current inflation rate.

Dividends are a way for businesses to reward shareholders whilst the company is growing over the long-term.

Whilst the starting dividend yield is low, the dividend growth over time can turn the yield on cost into a larger yield over time, whilst hopefully benefiting from capital growth.

Here are three of those ASX shares growing dividends at a fast pace:

Kogan.com Ltd (ASX: KGN)

In FY20 it grew its total dividend by 64.6% to 13.5 cents per share.

Kogan.com is an e-commerce ASX share that was founded by Ruslan Kogan. It’s now one of the largest online retail companies in Australia.

A large number of products are sold through its websites including TVs, computers, phones appliances, furniture and clothes. It also sells other services like mobile plans, internet, energy and insurance. 

The dividend growth by the ASX share was largely matched by the profit growth. Kogan.com’s FY20 net profit after tax rose by 55.9% to $26.8 million, driven by gross sales growth of 39.3%.

Using Commsec data, the Kogan.com share price is valued at 25x FY23’s estimated earnings. It’s projected to have a FY23 dividend of 46.7 cents per share, which would be a grossed-up dividend yield of 4.1%.

Altium Limited (ASX: ALU)

In FY20 Altium grew its total dividend by 15% to AU$0.39 per share.

Altium is an electronic PCB software business with various offerings for different clients. Altium Designer is the flagship offering, which the company is aiming to reach global market leadership with by 2025 with a goal of 100,000 Altium Designer subscribers.

The ASX share has grown its profit significantly over the past five years, which helped fund the dividend increase last financial year after normalised earnings per share (EPS) only grew by 5% in FY20.

Altium recently announced that it was going to restructure the business to focus towards its cloud offering called Altium 365. It sees an opportunity for direct monetisation opportunities either through transaction fees on manufacturing (like an Airbnb model) and/or premium services (like the Amazon Prime model).

Looking at Commsec data, the Altium share price is priced at 44x FY23’s estimated earnings. It also has a projected FY23 dividend per share of $0.754. That translates to an unfranked dividend yield of 2.1%.

Hub24 Ltd (ASX: HUB)

The ASX share decided to increase its FY20 full year dividend by 52% to 7 cents per share.

Hub24 is a fintech business that connects advisers and clients. It has an investment and superannuation platform that gives broad product choices and can be personalised based on the adviser and client. It serves a growing number of large financial services companies.

In FY20 Hub24 grew platform revenue by 37% and its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) went up by 60%.

Profit growth for the ASX share is driven by funds under administration (FUA) growth. In the three months to 30 September 2020, it grew FUA by 32% over the prior corresponding period to $19 billion. It saw record net inflows for a September quarter of $1.36 billion. This helped the Hub24 platform market share increase to 2.1%.

However, Hub24 said it’s continue to absorb some of the impact of the historically low interest rate since the RBA reduced the cash rate earlier in 2020.

Using Commsec estimates, the Hub24 share price is valued at 39x FY23’s estimated earnings. It’s also projected to pay a dividend of $0.269 per share, which equates to a grossed-up dividend yield of 1.8%.

More reading

• 4 ASX growth shares to buy in December
• Why these All Ords shares have been smashed this month
• The NAB (ASX:NAB) share price is up 25% in November
• 10 fantastic ASX shares to buy in December
• 4 great ASX growth shares to buy

Tristan Harrison owns shares of Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd and Kogan.com ltd. The Motley Fool Australia has recommended Hub24 Ltd and Kogan.com ltd. 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.

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The S&P/ASX Healthcare index finished November just 2.72% higher compared to the 9.5% surge in the S&P/ASX 200 Index (ASX: XJO). Sectors that benefitted from lockdowns including technology, ecommerce and consumer staples underperformed in November, while beaten up sectors such as financials, travel and real estate did the heavy lifting for the index.

ASX 200 healthcare heavyweights flat in November 

ASX 200 healthcare shares that dominate the index weightings finished relatively flat in November. The CSL Limited (ASX: CSL) share price closed 4% higher, the Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price was down just 1.25%, Sonic Healthcare Ltd (ASX: SHL) was the worst performing, down almost 6% and Cochlear Ltd (ASX: COH) shares finished up by only 2.5%. 

The underperformance of these heavyweights reiterate the rotation narrative into cyclicals and value stocks, and the recent fallout of stocks that benefitted from the lockdowns and COVID-19. 

Despite the flat performance, there were some hidden gems in the ASX 200 that delivered significant returns. 

Another crazy month for Mesoblast Limited (ASX: MSB)

It’s been a wild ride for Mesoblast shares as the biotech continues its research while burning through cash. Previously, the Mesoblast share price crashed 40% after the United States Food and Drug Administration did not approve its highly anticipated Remestemcel-L treatment and advised an additional randomised controlled study. 

Rather than moving into the much needed commercialisation of its treatment, the company was sent packing to undertake additional study. This saw the Mesoblast share price nose dive more than 40% on 2 October. 

Its shares have since turned around to surge 35% in November. This follows the company’s exclusive worldwide license and collaboration agreement with Novartis for the development, manufacture and commercialisation of its mesenchymal stromal cell (MSC) product, Remestemcel-L. 

The initial focus will be on the development of the treatment of acute respiratory distress syndrome (ARDS), including that associated with COVID-19. 

From a revenue perspective, Novartis will make an upfront US$50 million payment including US$25 million in equity. Mesoblast may receive a total of US$505 million pending achievement of pre-commercialisation milestones for ARDS indications. 

Polynovo Ltd (ASX: PNV) soars on expansion and sales growth 

The Polynovo share price pushed 30% higher in November into record territory. The company is experiencing a rapid increase in revenue as it commercialises its NovoSorb BTM product globally. 

When trauma to the skin occurs, large portions of the surface of the skin and its deeper layers are destroyed. NovoSorb BTM may be used to temporarily close the wound and aid the body in generating new tissue.

NovoSorb sales increased from $9.3 million in FY19 to $19.06 million in FY20. More recently, the company has been expanding its presence and growing its sales team across Europe and Asia. 

More reading

• The PolyNovo (ASX:PNV) share price is up 30% in November
• Why Platinum Asset’s healthcare fund doesn’t own CSL (ASX:CSL) shares
• ASX 200 Weekly Wrap: ASX 200 on track for a top month
• These are the 10 most shorted shares on the ASX
• Top brokers name 3 ASX shares to sell next week

Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd., CSL Ltd., and POLYNOVO FPO. The Motley Fool Australia has recommended Cochlear Ltd. and Sonic Healthcare Limited. 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.

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Commonwealth Bank of Australia (ASX: CBA) is facing court action over overcharging allegations first aired at the finance industry Royal Commission. 

Australian Securities and Investments Commission (ASIC) has started a civil case against CBA for charging an overdraft interest rate “substantially higher” to what its business customers were told.

Over more than 6 years starting from December 2011, ASIC alleges the bank told customers an overdraft rate of 16% per annum, while actually slugging them 34%.

The lower rate continued to be published on periodic statements, the watchdog claims.

The bank tried to manually fix the overcharging error after a complaint was received in 2013.

However, the fix was unsuccessful and clients continued to be overcharged until March 2018, according to ASIC.

In total the overcharged interest amounted to more than $2.9 million.

The Motley Fool has contacted CBA for comment.

ASIC is seeking penalties and remediation orders from the court for multiple breaches of the ASIC and Corporations Acts.

The Motley Fool understands CBA has already created a compensation scheme that’s delivered $4 million to victims.

Commonwealth Bank shares went on an absolute tear in November, gaining 24% in value. It’s at $78.89 in early Tuesday trade.

More reading

• Here’s when your ASX bank dividends are being paid in December
• Why the banks are back in the ASX 200 spotlight
• ASX 200 Weekly Wrap: ASX 200 on track for a top month
• Is the CBA (ASX:CBA) share price overvalued?
• Which of these ASX bank shares offers the highest dividend?

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. 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.

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The McPherson’s Ltd (ASX: MCP) share price has dropped by nearly 35% this morning after the company reduced its first-half FY21 underlying profit forecast range from $10.2 – $11.1 million to $6.5 – $7.5 million. At the time of writing, the McPherson’s share price is trading at $1.20 after closing yesterday’s session at $1.84.

What’s driving the McPherson’s share price lower?

The McPherson’s share price is today plummeting after the wellness and beauty supplier advised that the lower revised profit forecast is due to its key China joint venture partner, Access Brands Management (ABM), reporting sales from the 11/11 event were below expectations. 11/11 is the largest online trading event day in the world.

This has left ABM with higher than forecast inventory levels of Dr LeWinn’s products at the end of November.

McPherson’s says it is continually working with ABM to materially improve the second-half outcome through further promotional investments, and innovation in new products. Consequently the company believes its FY21 second-half sales will be stronger than the second half of FY20.

This improvement will be underpinned by a very strong growth of 40% to 50% in Dr LeWinns sales to its reseller community in calendar year 2021, the company says. 

McPherson’s has, however, withdrawn its full year guidance.

What else did McPherson’s say?

The company says that the Global Therapeutics acquisition was settled successfully on 30 November 2020, marking the establishment of the McPherson’s Health and Wellness Division. McPherson’s had purchased the business from Blackmores Limited (ASX: BKL) for $27 million.

At the end of November 2020, McPherson’s had a net bank debt of around $10 million.

McPherson’s chief executive, Laurence McAllister, said this as part of today’s announcement:

We will utilise our strong balance sheet, funding capacity and sales, marketing and distribution competencies to fund bolt-on acquisitions that offer synergies, enhance and accelerate our capabilities, and complement our existing brand portfolio.

McPherson’s share price performance in 2020

In October, McPherson’s reported that its  sales revenue for the first-quarter of FY21 was up 4% on the prior corresponding period to $49.7 million. This was underpinned by 8% growth in sales revenue from owned brands to $41.7 million. It also reported an 84% lift in underlying profit before tax to $2.9 million.

The McPherson’s share price has lost 51% this year, including the 35% fall today. It commands a market capitalisation of $235 million.

More reading

• Why these All Ords shares have been smashed this month

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores Limited. 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.

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The Adore Beauty Group Ltd (ASX: ABY) share price has dropped lower again on Tuesday following the release of an announcement.

At the time of writing, the online beauty retailer’s shares are down 1.5% to $6.40.

What did Adore Beauty announce?

This morning Adore Beauty provided the market with an update on its performance since listing on the Australian share market at the end of October.

According to the release, the company’s sales during the Black Friday and Cyber Weekend promotional sales period were stronger than it was expecting.

In addition to this, management revealed that its sales during the first half have been boosted by the extension of the COVID 19 lockdown in Victoria.

What does this mean for the first half?

In light of this stronger than expected trading, Adore Beauty has upgraded its guidance for the first half of FY 2021.

It is now expecting revenue to come in at approximately $95.2 million for the six months. This exceeds its prospectus forecast of $89 million by 7%.

Management advised that the expected uplift in revenue is also anticipated to have a positive impact on its operating earnings forecast for the half. Though, no guidance has been provided at this stage.

The company advised that this trading update is based on provisional management accounts and remains subject to the completion of the half year period and an external audit review.

Adore Beauty’s CEO, Tennealle O’Shannessy, commented: “We are pleased to report strong sales ahead of our Prospectus forecasts. The business has continued to scale, deliver content and meet the needs of our customers at a time when they need it most.”

Surprisingly, despite upgrading its guidance this morning, the Adore Beauty share price is still trading well below its IPO listing price of $6.75.

More reading

• 2 quality mid cap ASX shares to buy in December
• Fund managers have been buying Galaxy Resources (ASX:GXY) and this ASX share
• The Adore Beauty (ASX:ABY) share price on watch after Morgan Stanley “overweight” recommendation
• This cheap ASX share is supplying US giants: fundie
• 2 ASX mid cap shares that are growing strongly

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. 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.

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Shares are set to boom over the next 6 to 12 months, according to one prominent economist.

AMP Capital chief economist Shane Oliver said Tuesday that the successful suppression of COVID-19 in Australia is stimulating the economy.

“Our Australian Economic Activity Tracker edged higher over the last week and is continuing to trend up nicely in contrast to the weaker trends in the US and Europe,” he told Switzer Daily.

“All things being equal this should be relatively positive for the Australian share market and the Australian dollar.”

Australian shares just finished their best month in more than 30 years. Both the All Ordinaries Index (ASX: XAO) and S&P/ASX 200 Index (ASX: XJO) climbed 10% in November.

As such, Oliver expects there could be a “short term pause” — but the market will pick up again.

“We are now into a seasonally strong period of the year for shares and on a 6- to 12-month view shares are expected to see good total returns on the back of ultra-low interest rates and a strong pick-up in economic activity helped by likely vaccines.”

Moody’s Investors Service last week was also upbeat about the Australian market.

“The broad diversification of Australian industry, and the flexibility and competitiveness of the economy will support a sustainable recovery over the next few years, with limited likelihood of severe financial stress destabilising the economy,” said Moody’s vice president Martin Petch.

Stimulus and vaccines also tailwinds for Aussie shares

Government assistance is putting a rocket under ASX shares too.

“First NSW now Victoria – fiscal stimulus continues to ramp in Australia as states take on board the RBA’s advice to provide plenty of stimulus,” said Oliver. 

“The extra stimulus in Victoria – focussed around infrastructure, housing, regional Victoria and hospitals – will add another 1% to national fiscal stimulus in this financial year, which is similar to that from NSW.”

Petch agreed that Australian government handouts have had the desired effect.

“The government’s substantial stimulus package highlights Australia’s flexibility and capacity to use fiscal policy to support its credit profile in a difficult global economic environment,” he said.

The news about the potential of multiple coronavirus vaccines is also pumping up optimism, according to Oliver.

“There is a good chance based on current production plans along with those who have already had the virus of reaching herd immunity globally by the end of 2021 or early 2022, particularly with AstraZeneca-Oxford committing to selling their vaccine without profit across a large part of the developing world.”

Australian dollar to hit 80 US cents

Unfortunately the northern hemisphere is currently dealing with a third wave of COVID-19 as it heads into winter.

European cases seem to be plateauing thanks to a fresh round of restrictions, but the US is worryingly still climbing up.

“In the US there are only tentative signs of a slowing in new cases with deaths rising well above the August high which in turn is resulting in more areas tightening restrictions,” said Oliver. 

“Japan and Canada are also seeing a strongly rising trend in new cases.”

Therefore the strength of the Australian economy might mean bad news for our exporters, according to Oliver.

“Although the Australian dollar is vulnerable to bouts of uncertainty about coronavirus, the economic recovery and China tensions and RBA bond buying will keep it lower than otherwise, a continuing rising trend is likely to around $US0.80 over the next 12 months helped by rising commodity prices and a cyclical decline in the US dollar.”

The Australian dollar was as low as 58 US cents in March amid the first wave of COVID-19. It’s currently sitting at 73 US cents. 

More reading

• These were the worst performing ASX 200 shares in November
• These were the best performing ASX 200 shares in November
• 5 things to watch on the ASX 200 on Tuesday
• Why the Magellan (ASX:MFG) share price dipped lower today
• ASX 200 drops on Monday

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. 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.

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The Sky Network Television Limited (ASX: SKT) share price is falling lower in morning trade today. This comes after the company announced a replacement for its chief executive. At the time of writing, the Sky share price is down 3.1% to 15.5 cents.

Let’s take a closer look at what happened within the Sky management team.

Executive change

The Sky share price is dropping lower today after its chief executive decided to resign from the company.

Management advised that current Sky chief executive, Mr Martin Stewart, will be departing the company. The reason given was that Mr Stewart wished to return home to Europe and spend more time with family.

Mr Stewart first joined Sky in February 2019, and, according to the company, led the team through a significant turn-around, despite COVID-19 challenges. A reached mutual agreement will allow Mr Stewart to assist in the three-month handover to Sky’s current chief commercial officer, Ms Sophie Moloney. The position, effective immediately, will see former head, Mr Stewart, provide support to ensure a smooth transition.

Sky highlighted that Ms Moloney will be the first woman appointed to the position in its history.

With over 20 years’ experience in international media, Ms Moloney has held a range of commercial, legal and strategic roles.

Having first joined Sky’s United Kingdom commercial legal team in 2003, Ms Moloney subsequently undertook other legal commercial secondment roles thereafter. These positions included executive directorships with companies such as Sky News Arabia, Abu Dhabi Media and OSN.

After spending time in the Middle East within those roles, Ms Moloney returned home to New Zealand in 2018. From there she took up the position of general counsel at Sky New Zealand.

In June 2019, Ms Moloney was promoted to chief legal, people and partnerships officer. And in July 2020, she was appointed chief commercial officer.

Ms Moloney holds a Bachelor of Laws (Hons) from Canterbury University, New Zealand. Furthermore, she is also an executive director of Sky Investment Holdings Ltd.

Management commentary

Sky chair, Mr Phillip Bowman, commented on former chief executive Mr Stewart’s achievements. He said:

Since joining Sky in February 2019, Martin has led a successful turnaround and the Board acknowledges his significant contribution.

Despite an exceptionally challenging year in 2020, the business is well positioned to achieve its strategic priorities of strengthening our core satellite business, growing streaming services, delivering broadband services and securing the rights to bring the best of sport and entertainment to our customers.

The Board respects Martin’s decision to leave and is pleased we have been able to reach a mutual agreement for him to do so. We thank him for his significant contribution to Sky.

In addition, Mr Bowman went on to speak about the new appointment of Ms Moloney as head of Sky, saying:

Sophie has performed outstandingly in a wide range of commercial, legal and strategic roles and has the unanimous support of the Board of Directors. She brings excellent commercial and strategic thinking, a proven record of developing new business opportunities, strong leadership skills and successful delivery.

Sophie’s recent achievements include securing the commercial agreement with Spark to secure Rugby World Cup Rights for pubs and clubs around New Zealand, leading the team that secured New Zealand Rugby and SANZAAR rights, negotiating the new Optus satellite agreement and spearheading Sky’s purchase of entertainment streaming service Lightbox.

Sky Network share price summary

The Sky share price has been charging higher since the beginning of August, up almost 30%. Although, when looking at the bigger picture, shareholders would be disappointed. The Sky share price is down a massive 60% over the past 12 months, reflecting weak investor sentiment.

More reading

• Sky Network (ASX:SKT) share price shoots 6% higher on upgraded guidance

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. 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.

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Seeking to find top stock picks to buy at cheap prices could be a worthwhile use of an investor’s time. It may enable them to unearth high-quality businesses that have been overlooked by other investors. It may also mean that their holdings have greater scope for capital growth than the wider stock market.

As such, by comparing companies to their sector peers, focusing on their track records and considering their long-term growth strategies, it is possible to find the most attractive buying opportunities at the present time.

Comparing top stock picks with their peers

Identifying top stock picks could be made easier through a comparison between a company and its peers. This may provide guidance to an investor in areas such as a company’s market position and how stable its financial performance could be in future. It may mean that an investor can find the strongest businesses in a sector that have the widest economic moats. Such companies may be able to capitalise more easily on the sector’s long-term growth prospects.

Furthermore, an investor may be able to identify which companies offer the best value for money on a relative basis. For example, two companies in the same sector may have very different financial positions and the sizes of their economic moats may differ greatly. However, they may trade on the same valuations. This could mean that the stronger of the two companies is among the best top stock picks on a long-term basis.

Changing strategies for the long run

As well as comparing companies to their peers, analysing past performance may help an investor to unearth today’s top stock picks. The current economic environment and its outlook are very uncertain. Therefore, assessing how a company has previously adapted to similar conditions could act as a guide as to how well they may cope with a difficult 2021. If they have been able to adapt their business model to embrace change in the past, they may be worthy of a premium valuation.

Furthermore, considering a company’s strategy may provide an insight into how its future financial performance may change. For example, analysing recent investor updates and annual reports may act as a guide to determine whether a company has the right strategy to improve its financial performance. It may be taking too many risks, or not enough risks, to gain a greater competitive advantage over its peers.

A long-term approach

Of course, today’s top stock picks may take time to produce high returns. However, by comparing their prices with historic averages, as well as those of similar companies, it is possible to determine which stocks have the most appealing long-term capital appreciation potential. Over time, they could offer the most appealing prospects of outperforming the stock market.

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• Collins Foods (ASX:CKF) share price jumps 7% on strong half year result
• AUB Group (ASX:AUB) share price falls on acquisition deal
• COVID-19 recovery can’t happen without this sector: fundie
• Why the Telstra (ASX:TLS) share price stormed 14.5% higher in November
• 2 turnaround ASX shares rated as buys by leading fundie

Motley Fool contributor Peter Stephens has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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 How I’d find top stock picks at cheap prices for December appeared first on Motley Fool Australia.

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