I’ll let you in on a little secret: more often than I’d like to admit, my scribblings are inspired by conversations with the investing team here at The Motley Fool.

Not that it’s a bad thing, of course, but I just have to acknowledge having far fewer great ideas than I’d like to admit…

This is one such piece.

See, I really hope you haven’t noticed, but the ASX has been frozen for most of the trading day, today.

(Why do I hope you haven’t noticed? We’ll get to that, but suffice it to say, I don’t own shares in the ASX, nor do I benefit from an uninformed market!)

We’re not the sort of investors who avidly watch the market here at The Motley Fool, but we have mentioned the ASX’s woes a couple of times today.

We’ve wondered whether it was related to the website relaunch, recently.

One of the team unkindly suggested the ASX should reconsider the quality and/or quantity of its tech team.

And yet another was happy, given the market was up 1.2% when everything went offline, to just call today a ‘win’ and come back tomorrow!

And then one of our investors, Kevin Gandiya, made an astute observation:

“Time for [an article] from Scott Phillips with the following Buffett quote, ‘I buy on the assumption that they could close the market the next day and not reopen it for five years’.”

My only objection was that I wish I’d thought of it before he did!

Because today really is a great ‘teaching moment’ as the HR gurus call them.

Yes, we’re all used to the market closing on weekends. 

And yes, on most public holidays.

But today? When it’s supposed to be open?

What on Earth are we to think? And to do?

Certainly a decent proportion of my social media feeds include varying amounts of criticism, hand-wringing and not just a little ‘what do we do now?’.

And you can bet there’ll be recriminations, both inside the ASX itself and people taking potshots from the sidelines.

It’ll get headlines.

More than one writer will compare it to the US or other markets, and bemoan that we’ll look unprofessional, and like a backwater for not having a working market.

Now, I don’t know what time you’ll read this. For all I know, the ASX will be trading again by then.

But let’s just take stock, shall we?

What do we really lose, if the market isn’t open?

Some brokers lose some money from those of us who would have bought or sold today.

A lot more brokers will lose a lot more money from those who’d otherwise over-trade or day-trade today. Frankly, the ASX’s tech team has done those traders a favour!

But other than that?

BHP Group Ltd (ASX:BHP) is still digging up iron ore today.

Woolworths Group Ltd (ASX: WOW) is still serving millions of us.

Cochlear Limited (ASX: COH) is still manufacturing and supplying hearing implants (and working on the next generation of them).

In other words, business as usual for 99.999% of the economy.

Those companies won’t feel any impact of the ASX’s tech glitch.

At all.

And those of us who own shares, who owned them yesterday and still owned them tomorrow? 

No impact for us, either.

I have to say, I’d be completely fine with the ASX only opening one day a week.

Even once a fortnight.

If there’s something I want to buy, it’s nice to have the convenience of being able to do it, 5 days a week. But if I had to wait until Wednesday, or Friday… well, that’s fine by me.

It would save many of us from ourselves… and save traders plenty of money, besides.

It won’t happen, of course.

These days, it’s all about immediacy.

24/7 access.

I want it all, and I want it now.

(That one’s not Buffett, but you probably know that. I’m not sure what sort of investor Brian May is, but I’d bet he’s a better songwriter and guitarist.)

I’m going to suggest to you that such an approach, though common, is not a great one for investors.

Yes, yes, we’re all used to instant access. We demand our every whim is sated, stat.

And the peanut gallery will have a field day bagging the ASX, and those poor bastards who are, as I write this, sweating up a storm trying to find and fix the problem.

But does it actually matter?

Nope. Not a bit.

In fact, that approach I suggested – where the ASX is only open once a week – is probably a useful mental model for most investors.

Why not limit yourself to checking your portfolio once a week. Ideally after the market closes, say on Friday.

Because, unless you think a company you own is suddenly hugely overvalued, checking the price isn’t very productive.

Unless you want to buy shares in a company, checking the share prices of your watchlist isn’t very productive, either.

If you must, use your broker’s website to set SMS ‘alerts’ if they have them, to let you know if a company goes into your Buy or Sell zone.

Otherwise, just pretend the ASX is down all week.

You’ll almost certainly be a better investor as a result.

(And thanks, Kevin, for the idea!)

Fool on!

More reading

• ASX 200 Weekly Wrap: ASX continues to hit post-COVID highs
• These blue chip ASX dividend shares offer 5%+ yields
• After 8 months, ASX 200 shares are finally out of correction territory
• Woolworths (ASX:WOW) share price flat after AGM and sustainability update
• Best and worst ASX retail stocks to own in the COVID recovery

Scott Phillips 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. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended Cochlear 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.

The post What can you do when the ASX is down? appeared first on Motley Fool Australia.

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The pandemic has hit the global economy hard this year and has been stifling the growth of a large number of companies in FY 2021.

However, not all companies are being held back by the crisis. In fact, some have continued their unstoppable growth this year.

Here’s why these three ASX shares are growing rapidly in FY 2021:

Afterpay Ltd (ASX: APT)

Thanks to the ongoing popularity of the buy now pay later payment method, the shift to online shopping, its successful international expansion, and the growing frequency of use, this payments company was on fire in FY 2020. Pleasingly, its strong growth has not abated in FY 2021. Afterpay recently released a trading update which revealed that it recorded underlying sales growth of 115% to $4.1 billion in the first quarter.

Kogan.com Ltd (ASX: KGN)

This ecommerce company has been a big winner during the pandemic. With most retail stores across the country closing to stop the spread of the virus, shoppers migrated online in large numbers. Many of these making the shift for the first time. This led to Kogan delivering a very strong FY 2020 result in August. As with Afterpay, this strong form has continued in FY 2021. During the month of August, the company reported gross sales growth of more than 117% and adjusted EBITDA growth of more than 466%. This was driven by the addition of 152,000 new customers to its platform during the month, bringing its total to 2,461,000. A further update will be provided at its annual general meeting later this week.

Pushpay Holdings Ltd (ASX: PPH)

Finally, Pushpay is a fast-growing donor management and community engagement provider to the church market. It has been an extremely strong performer this year. This has been driven by its high quality platform, its strong market position, and the COVID-induced shift to a cashless society. Earlier this month the company released its half year results and revealed a 48% increase in total processing volume to US$3.2 billion and a 53% increase in operating revenue to US$85.6 million. Things were even better for its earnings, thanks to further operating leverage. Pushpay reported EBITDAF growth of 177% to US$26.7 million.

More reading

• Fund managers have been buying Kogan (ASX:KGN) and this ASX share
• ASX ends trading early, ASX 200 up 1.2%
• This cheap ASX share is supplying US giants: fundie
• Leading brokers name 3 ASX shares to buy today
• ASX 200 up 1.2%: Afterpay ASIC response, Elders result, CSL vaccine facility

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 Kogan.com ltd and PUSHPAY FPO NZX. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Kogan.com ltd and PUSHPAY FPO NZX. 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 These ASX shares have been unstoppable in FY 2021 appeared first on Motley Fool Australia.

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The Auscann Group Holdings Ltd (ASX: AC8) and Cannpal Animal Therapeutics Ltd (ASX: CP1) share prices will be on watch tomorrow. (Assuming, of course, that the ASX system has returned to functionality by then!)

Both companies entered a trading halt on Friday, prior to revealing that Auscann has entered into a scheme implementation deed (SID) with Cannpal.

Neither company escaped the ravages of the COVID-19 market rout in February and March. But Cannpal came roaring back, with shares up 8.3% year-to-date. Auscann shareholders have had a more difficult year, with Auscann’s share price down 53.3% since 2 January. By comparison the All Ordinaries Index (ASX: XAO) is down 1.8% for the year.

What do Auscann and Cannpal do?

Auscann is a pharmaceutical company based in Western Australia. Its focus is on developing, producing and distributing a range of cannabinoid treatments for use in Australia and internationally.

CannPal Animal Therapeutics develops natural plant-based therapeutic products for pets. The company has a research focus on cannabinoids, the active pharmaceutical ingredients extracted from the cannabis plant, to provide veterinarians and pet owners a means to treat animals in a safe and ethical way.

What’s the plan?

Auscann advised the ASX this morning that it had entered into a SID to acquire 100% of Cannpal for around $17.5 million.

That works out to 18.4 cents per Cannpal share, 53% more than the closing price of 12 cents per share on Thursday 12 October.

The company expects the transaction to create a larger and complementary product offering across both human and animal health, with 2 products already in the market and 2 more products expected to be launched within 12 months.

Other benefits should be increased research and development (R&D) capabilities and an expanded geographic footprint.

Commenting on the deal, CannPal chair Geoff Starr said:

There is a great logic to combining Cannpal Animal Therapeutics Ltd with AusCann Group Holdings Ltd with the new business having enhanced capability to exercise the potential for new and stronger commercial pathways.

The synergies around local and overseas market knowledge and research and development know-how will enable faster to market solutions. It represents a unique and compelling value proposition for both companies.

Auscann chair Max Johnston added:

The combined business is expected to have the financial resources and technical expertise to accelerate the growth, commercialisation and market penetration of its pipeline products in Australia and offshore.

The scheme still needs to clear the normal hurdles, such as receiving Cannpal shareholder and court approvals.

The Auscann and Cannpal share prices emerge from their trading halts tomorrow.

More reading

• Why the Global Health (ASX:GLH) share price is surging up today
• Why the DroneShield (ASX:DRO) share price shot up 10% today
• The Cleanspace (ASX:CSX) share price is soaring 12% higher today. Here’s why.
• Sky Network (ASX:SKT) share price shoots 6% higher on upgraded guidance
• Auscann (ASX:AC8) share price climbs higher on sale agreement

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. 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 Look out for the Auscann (ASX:AC8) and Cannpal (ASX:CP1) share prices post trading halt appeared first on Motley Fool Australia.

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By now, we’d probably all be familiar with most of the effects of the coronavirus pandemic that have come to dominate 2020. From working from home to food shortages at supermarkets, the pandemic has resulted in many changes across society. The same can be said of the investing world. 2020 has seen the S&P/ASX 200 Index (ASX: XJO), as well as markets around the world, have one of the shortest and sharpest market crashes in history, followed by one of the most rapid and enthusiastic recoveries we have ever seen. We have also witnessed the first recession Australia has had in almost three decades.

In Australia, it has been a recession like no other. That’s what a piece from Vimal Gor, head of bond, income and defensive strategies at Pendal Group Ltd (ASX: PDL) in the Australian Financial Review (AFR) asserts anyway. Mr. Gor points out that, unlike recessions of the past, the 2020 coronavirus-induced recession has seen an unprecedented influx of government spending, which has cushioned a large portion of the workforce.

Mr. Gor eloquently sums this paradigm up with the following:

Tragically, small businesses, particularly in hospitality, where people… create their own living, have felt the full impact. Public servants and most employees in big business, cashing their guaranteed pay cheques, have actually got richer. Most super funds are back to levels of a year ago and real estate prices are actually higher in many places. Hardly a standard recession.

Property and ASX shares set to benefit

He also commented on the government’s response to the recession. He noted that “the RBA [Reserve Bank of Australia] has flooded the system with cash… Not surprising then that when encouraged to invest, not save money, many reach for the only tool they know, property investment.”

And it’s not just property that Mr. Gor thinks will do well out of this situation. ASX shares also stand to benefit from the RBA’s actions, as Mr. Gor states:

Equities also promise to keep rising as the economy opens up. Some earnings may be under pressure for a while but with zero rates, massive fiscal stimulus and an improving economy, the highs from February are within our sights.

So, according to Mr. Gor, as a direct result of the RBA’s actions this year, property is set to boom, as is the share market. And he thinks this trend will continue for a while yet, noting that the Treasurer and RBA governor have both said they will “keep their foot to the floor for some time”.

So what does this mean for investors? Well, the report concluded with the following:

So we will leave this pandemic with a large proportion of the population richer. As per usual, owners of capital get rescued and policymakers wait for the trickle down.

More reading

• ASX ends trading early, ASX 200 up 1.2%
• Update: Trading on ASX remains in ‘enquire’ state after market data error
• ASX 200 up 1.2%: Afterpay ASIC response, Elders result, CSL vaccine facility
• Afterpay (ASX:APT) share price underperforming after ASIC finds more BNPL customers falling behind
• ASX 200 Weekly Wrap: ASX continues to hit post-COVID highs

Motley Fool contributor Sebastian Bowen 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 the pandemic is making some investors super-rich appeared first on Motley Fool Australia.

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

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

It’s a question that cuts straight to the heart of investors’ indecision. Is this the time to seek safety in numbers, or does one take a shot on what’s arguably the market’s highest-quality stock?

Either choice would be fine, for the record. But Apple Inc (NASDAQ: AAPL) is a better pick than a broad-based fund for most investors right now, even when that fund includes all 30 blue-chips found within the Dow Jones Industrial Average Index (DJX: .DJI). Although the iPhone is losing steam as the company’s breadwinner, more than a few blue-chip stalwarts are bumping into a headwind at the same time Apple’s poised to catch at least one tailwind.

Apple’s catalyst

Apple’s impending tailwind is 5G connectivity. While most wireless carriers deployed some 5G coverage last year, this is the year these long-awaited wireless broadband speeds have finally become widely available to consumers. AT&T Inc. (NYSE: T) has launched hundreds of new 5G markets since March. T-Mobile US Inc (NASDAQ: TMUS) added 5G service in 121 cities in October alone. Verizon Communications Inc. (NYSE: VZ) is in the fight as well, announcing last month that its 5G service is now available to more than 200 million people in 1800 US cities.

Largely missing from this explosion, however, are the smartphones capable of 5G connections.

That’s not to say they’re not out there. The Galaxy S20 Plus from Samsung has been well received, and Alphabet Inc‘s (NASDAQ: GOOGL) (NASDAQ: GOOG) Pixel 5 has garnered some respect even if reviewers balk at its price.

If there’s any one single 5G phone consumers have been holding out for, however, it’s the iPhone 12 series unveiled last month. As Counterpoint’s research director Jeff Fieldhack commented in October: “There is significant pent-up demand from iOS subscribers putting off upgrades until these 5G devices launch.”

The iPhone 12 was available for pre-order earlier this month, and deliveries began just a few days ago.

Of course, these next-gen iPhones are a means to an increasingly important end for Apple. That’s sales of apps and digital services. While services only accounted for 22% of Apple’s revenue last quarter (versus the iPhone’s 40%), service sales grew 16% year over year. Product margins are also significantly higher on digital goods than they are on hardware. Firm demand for the iPhone 12 should lead to equally firm growth in service revenue and overall earnings, though, since the former fuels the latter. That is to say, faster wireless broadband speeds make a smartphone much more functional.

This bullish dynamic could persist for a long, long time.

Too many drags

Of course, this isn’t to suggest diversification is no longer important. It is important. Being a collection of 30 hand-picked stocks, however, the Dow Jones Industrial Average isn’t nearly as diversified as, say, the S&P 500 Index (SP: .INX). And more than a few of its old-school constituents are running into challenges that may be size and age-related.

Take Cisco Systems Inc (NASDAQ: CSCO), for instance. Once the king of networking hardware, it’s struggled to maintain its edge now that smaller rivals such as Juniper Networks Inc (NYSE: JNPR) and Arista Networks Inc (NYSE: ANET) have figured out how to compete with the behemoth. Cisco shares have been sliding lower since mid-2019 to nearly reach March’s low late last month, reflecting this challenge. They’re still down 33% from that 2019 high, and still trending lower.

IBM (NYSE: IBM) is another Dow name that’s proven problematic. It finally snapped a multi-year streak of declining quarterly revenue in 2018, but only temporarily. The tech giant remains unable to meaningfully plug into the industry’s most important area opportunities right now — like cloud computing and cybersecurity — despite investments on those fronts, while it continues to languish with its legacy businesses like mainframe computers. It’s planning a breakup to better focus on its individual product lines, but with no guidance offered in last quarter’s report (and none on the horizon), shares continue their march into multi-year low territory.

Walgreens Boots Alliance Inc (NASDAQ: WBA), Intel Corporation (NASDAQ: INTC), and Boeing Co (NYSE: BA) are three other Dow names struggling for reasons beyond mere market volatility. All three face company-specific hurdles like COVID-19-crimped consumerism, failure to make competitive technological advancements, and the fallout from a flawed aircraft design, respectively. None of those hurdles will be cleared quickly, or easily.

These weak constituents won’t be enough to hold the Dow Jones Industrial Average down from posting solid gains over time. They are enough of a drag on the index right now, however, to favor the risk/reward proposition offered by a name like Apple.

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

More reading

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• What has Warren Buffett been up to lately?
• Tesla (NASDAQ:TSLA)’s ‘Teslaquila’ tequila sells out in hours
• Here are the US shares that CommSec customers are buying
• Why ASX 200 technology shares are again racing higher

James Brumley owns shares of AT&T and Boeing. Suzanne Frey, an executive at Alphabet, 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), Apple, and Arista Networks. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Intel, T-Mobile US, and Verizon Communications. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Apple, Arista Networks, and T-Mobile US. 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 Better buy: Apple (NASDAQ:AAPL) or every Dow Jones stock? appeared first on Motley Fool Australia.

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

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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 today are summarised below. Here’s what these fund managers have been buying:

Bravura Solutions Ltd (ASX: BVS)

According to a notice of change of interests of substantial holder, Mawer Investment Management has taken advantage of weakness in the Bravura share price to top up its position. The notice reveals that the Canadian fund manager has picked up almost 3 million shares over the last few months.

Its most recent purchase was on 11 November when it bought 485,083 shares for a total consideration of $1,514,477. This works out to be an average of $3.12 per share. This means that Mawer Investment Management now owns a total of 18,163,832 shares, which is the equivalent of 7.35% of its total shares.

The Bravura share price is currently fetching $3.23, which is down a sizeable 46% from its 52-week high.

Kogan.com Ltd (ASX: KGN)

Another notice of change of interests of substantial holder reveals that Fidelity Investments has been increasing its holding in this ecommerce company over the last few weeks.

Between 29 October and 9 November, the fund manager picked up a total of net 1,104,164 shares. It was buying for as low as $20.30 at the start as the month and for as much as $23.42 last week. This lifted the fund manager’s holding to a total of 8,838,029 shares, which represents an 8.36% stake in the company.

The good news for investors is that the Kogan share price is now trading at $19.72, which is a discount of almost 16% to what Fidelity was very happy to pay just a week ago.

More reading

• This cheap ASX share is supplying US giants: fundie
• Are these beaten down ASX shares bargain buys?
• Here’s where this ASX fund manager is investing right now
• Why Coles, Incitec Pivot, Kogan, & Northern Star shares are crashing lower
• The OFX (ASX:OFX) share price slumps with ASX tech stocks after posting its results

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 Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd. The Motley Fool Australia has recommended 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.

The post Fund managers have been buying Kogan (ASX:KGN) and this ASX share appeared first on Motley Fool Australia.

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The S&P/ASX 200 Index (ASX: XJO) went up by 1.2% today to 6,484 points.

However, that rise was achieved in early trading and then the ASX halted transactions for the rest of the day due to technical problems.

Before the ASX’s normal trading, it said that ASX equity markets will not open for the remainder of today. The underlying cause of the issue has been identified and a resolution path is in place to allow trading to commence tomorrow at 10am.

BWX Ltd (ASX: BWX)

BWX held its annual general meeting today. At the AGM the company said that it expects FY21 first half revenue for Mineral Fusion to be down but it’s focused on achieving a recovery in the second half.

BWX also announced a strategic partnership with THG, which is a global technology platform specialising in taking brands direct to consumers to grow BWX in Europe and Asia.

THG will provide a full service solution including localised digital capabilities for taking BWX brands direct to consumers. It’s initially targeting five priority markets, which will increase to 14 markets in FY22.

The aim of this agreement is to help BWX reach its revenue target of $30 million to $50 million for Europe by the end of FY23.

BWX’s chief operating officer Rory Gration said the partnership was important for bringing BWX’s product innovation to more consumers at a time when the natural beauty category is thriving:

“We are delighted to announce our partnership with THG, as we leverage the already-strong consumer connection to our brands Sukin and Andalou Naturals in the UK market over recent years.

“Combining BWX’s house of natural brands and insights with THG’s digital services, cross-border expertise and sophisticated technology means we can build more meaningful footprints in what is a fast-evolving retail environment.”

The BWX share price rose 3.7% today, in the early trading that was possible.

ASIC report about the buy now, pay later (BNPL) industry

ASIC released a report into the BNPL sector today. Both Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) made announcements relating to this.

Both of them pointed out that they don’t rely on late fees to generate most of their revenue.

Afterpay said that ASIC’s consumer research identified the potential for financial stress among users of different financial products categorised as BNPL. Afterpay’s own research of 144,000 of Afterpay customers found there is no casual link between spending on Afterpay and changes in spending on essentials.

The ASX 200 BNPL company said that the report highlights that ASIC’s new product intervention power and the forthcoming design and distribution obligations, which focus on consumer outcomes and harms rather than imposing prescriptive compliance obligations, will play an important role in promoting good consumer outcomes. ASIC also commented that there is a significant role for industry self-regulation with broad industry support and commitment to ensure good consumer outcomes.

The ASIC data shows that 20% of customers have missed a payment.

Zip co-founder Peter Gray said that whilst it’s good that the industry is developing a code of practice, “while we believe the code is a very good start, Zip will continue to implement its own higher standards, particularly around customer suitability.”

CSL Limited (ASX: CSL)

The ASX 200 healthcare giant said that it’s going to build a new influenza vaccine manufacturing facility.

Seqirus, a subsidiary of CSL, plans to invest more than $800 million into the construction of this Melbourne-based facility to supply influenza vaccines to Australia and the rest of the world.

This investment decision follows the agreement with the Australian government for the supply over 10 years of influenza pandemic protection for the Australian population, anti-venoms for Australian snakes, spiders and marine creatures and Q-fever vaccine.

The new facility will be built at the Melbourne Airport Business Park will use innovative cell-based technology to produce influenza vaccines for both seasonal and pandemic purposes.

CSL CEO Paul Perreault said: “Providing safe and effective influenza vaccines is essential in securing our defences against serious public health threats.

“The facility will be an important addition to our global influenza manufacturing supply chain, incorporating the technology platform used in our Holly Springs, North Carolina facility.”

CSL explained that cell-influenza vaccine technology offers many advantages like being more scalable and offering faster production, particularly for influenza pandemics.

More reading

• Is the BWX (ASX:BWX) share price a buy?
• This cheap ASX share is supplying US giants: fundie
• Leading brokers name 3 ASX shares to buy today
• Why the CSL (ASX: CSL) share price is climbing higher today
• Update: Trading on ASX remains in ‘enquire’ state after market data error

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 CSL Ltd. and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended BWX Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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 ASX ends trading early, ASX 200 up 1.2% appeared first on Motley Fool Australia.

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The past month has been a busy period for the share market, with headline news such as the coronavirus vaccine success, the United States election, and the lifting of restrictions gracing our front pages. Some share prices were notably adversely affected by the news, but many reacted positively as the ASX surged ahead by 8% just in the last week of trading.

Let’s take a look at 3 shares that have strongly outperformed their respective sectors during the past month. 

Coca-Cola Amatil Ltd (ASX: CCL)

Coca-Cola Amatil’s recent share price move has been largely driven by the $9 billion impending takeover from Coca-Cola European Partners (NYSE: CCEP). The latest offer from the European giant came at $12.75 per share, and Coca-Cola Amatil’s share price has been hovering around that level since late October. The Australian beverage maker is still mulling over this offer price, and analysts believe that CCEP may have to increase its price to win over investors who believe the bid is too low and doesn’t reflect recent efforts by Amatil to restructure its cost base.

The Coca-Cola Amatil share price has risen by 22% this month to $12.70 at today’s trading, driven by the anticipation that the $12.75 offer could be accepted by shareholders. In comparison to the overall sector, the ASX 200 Consumer Staples Sector Index (ASX: XSJ) has risen by only 4% during the past month.

Oil Search Limited (ASX: OSH)

Oil producer Oil Search has not had a fantastic FY20, releasing a rather downbeat Q3 trading update in October. In that announcement, it reported a 29% fall in revenue to $189 million, which was a 47.6% decline on the third quarter of FY19. At the time, the company said that COVID-19 had severely impacted its business, and that it did not expect LNG demand to fully recover until 2027.

However, the Oil Search share price received a strong boost last week when Pfizer Inc (NYSE: PFE) announced clinical trial success on its COVID-19 vaccine. The vaccine news triggered asset price rises on multiple fronts, including the Brent Crude oil price which also rose by 10% since the news broke out. The increase in oil price has been the main catalyst for Oil Search’s strong price performance.

The Oil Search share price has risen by 30% in past month, compared to the sector’s average return of 13%, as measured by the ASX Energy Sector Index (ASX: ZEJ) – giving it an outperformance of 17% over the sector. Oil Search shares are trading today at $3.76.

ResMed Inc (ASX: RMD)

Sleep-treatment device company ResMed has had a great month, in which its share price increased by 19%. The catalyst for this latest gain has been the recent release of a first quarter update which smashed expectations. In that announcement, Resmed reported a 10% increase in revenue to US$751.9 million. Management advised that it was experiencing strong demand for ventilators because of the COVID-19 pandemic.

More importantly, the share price of ResMed kept rising even after the vaccine news was announced. In fact, ResMed’s share price was given an upgrade, as analysts at Credit Suisse believe the company is well-placed for growth. They have upgraded ResMed’s shares to an outperform rating with a $31.00 price target. The analysts believe ResMed is well-placed to benefit from a shift to home healthcare following the pandemic.

ResMed’s share price’s return of 19% has beaten the health-care sector return during the past month by 14%, as measured by the ASX Health Care Index (ASX: XSJ). ResMed’s share price is currently trading at $55.80.

More reading

• 2 top ASX healthcare shares that could be market beaters
• ASX 200 Weekly Wrap: ASX continues to hit post-COVID highs
• These were the best performing ASX 200 shares last week
• 2 ASX healthcare shares that have risen since Pfizer’s vaccine news
• ASX 200 surges again on Wednesday

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ResMed Inc. 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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Papyrus Australia Ltd (ASX: PPY) shares were on fire today. They rose 26.32% to 7.2 cents per share this morning (before the ASX was suspended anyway). The Papyrus share price had closed at 5.8 cents on Friday afternoon last week. But it opened at 6.7 cents this morning and rose to 7.2 cents before the ASX was suspended (it remains suspended at the time of writing).

It’s been an… interesting year for the Papyrus share price. This company has spent most of 2020 (and indeed, most of the past decade) stuck at around just 1 cent per share, with the occasional spike to 2 cents. However, last month, we began seeing some volume come into this company, which pushed up Papyrus shares to 4 cents. Then, between 5 and 9 November, the company jumped to 7 cents a share before bouncing around over the following days.

Today’s moves mean Papyrus is up 260% since 5 November, and 620% since late August. So what is this company? And why are Papyrus shares swelling again today?

What is Papyrus?

The more historically-literate readers out there might recognise the term ‘papyrus’ from the Ancient Egyptians’ precursor to modern paper. Papyrus was fashioned out of fibres from the papyrus plant back then. It was made into a crude form of paper that was used for both writing/scribing and as a building material.

And that’s where this ASX company presumably finds its inspiration.

Papyrus Australia describes itself  as “the developer of a world-first technology that converts the waste trunk of the banana palm into alternatives to forest wood products to be used in the paper, packaging, furniture, building, construction and other industries.” It currently operates a factory to this end in Egypt.

The company has identified that fibres produced from ‘secondary fibre crops’ like banana, sugar cane, cereals, palm oil and tobacco, have far lower environmental and economic costs that ‘primary fibre crops’ like cotton, hemp and flax. The company focuses on banana and plantain (a less popular species of banana that isn’t as nice to eat) trees. That’s because it has identified these plants as being “sustainable, renewable and abundant secondary fibre crop available all year round” in comparison to other options.

Papyrus has developed its ‘”proprietary technology” as a result of “15 years of research and development”. The company tells us that its technology can facilitate the manufacture of a variety of products. These include plywood components, cartons, moisture-resistant laminates for cartons and boxes, grease-resistant packaging, stationery, and furniture.

Why did the Papyrus share price rocket today?

We can probably put Papyrus’ share price movements today down to an ASX announcement the company released to the market before open. In this release, Papyrus told investors that it has completed a major institutional investment. This “cornerstone” investment comes from L39 Capital, a venture-style wholesale fund. Papyrus also noted it has recently received a funding round from Union Pacific Equities as well. These funding rounds have reportedly provided a much firmer financial footing for the company. Papyrus stated this “ensures that the Company is currently in a financially healthy state meeting all near-term working capital needs, and securing a platform for business growth”.

As part of the arrangement, L39 Capital has nominated its director, David Attias, to join the Papyrus board as a director. Here’s some of what Mr Attias had to say on this development:

We have now formally completed an in-depth due diligence of Papyrus with no major areas of concern highlighted. We are now ready to begin working actively with Papyrus to achieve the vision of zero-waste micro-factories globally as part of the circular economy. Shareholders can expect to see a lot of news flow from Papyrus as it undergoes this transformation.

Papyrus chair, Ted Byrt, also commented:

The days of us worrying about funding and liquidity are over. This is a rebirth of Papyrus where we can focus on the business and the growth strategy for the next 12 months… We are delighted to now formally collaborate with L39 Capital. David will enhance our corporate governance and strategic planning to help us build a global business

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Motley Fool contributor Sebastian Bowen 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 Blackmores Limited (ASX: BKL) share price has been a particularly positive performer over the last month.

Since this time in October, the health supplements company’s shares have risen an impressive 18%.

Why is the Blackmores share price up 18% in a month?

Investors have been buying the company’s shares over the last few weeks following the release of its annual general meeting update. 

That update revealed that Blackmores is on course to end its downturn and deliver profit growth in FY 2021. Though, management did explain that this profit growth would come predominantly from the second half of the financial year.

Another positive that went down well with investors was comments on its cost savings. Blackmores revealed that its restructuring is set to deliver $15 million of gross annualised savings from the second half.

In addition to this, further savings of $10 million have been identified in relation to its cost of goods sold.

Is it too late to buy Blackmores shares?

According to one leading broker, the Blackmores share price may be fully valued now.

A note out of Goldman Sachs reveals that its analysts have put a neutral rating and $75.40 price target on this company’s shares. This compares to the current Blackmores share price of $76.78.

While the broker is positive on the company’s outlook, it has a neutral rating on its shares for valuation reasons.

Goldman explained: “We revise earnings forecasts in the ANZ and China region based on the positive progress towards the cost savings and turnaround strategies as well as the more supportive high frequency data from e-commerce. We revise FY21 and FY22 EBIT [earnings before interest and tax] forecasts by +11.4% and +9.4%, respectively, based on these changes, but less materially by +1.7% in FY23.”

This means EBIT of $53.3 million in FY 2021 and then $70.9 million in FY 2022.

“Our revised 12-month Target Price is A$75.40, offering a [then] total return of +2.1%. While we note positive progress on multiple fronts, we believe that the ability to secure a partner in China and successful execution in new markets like India are outstanding risks for the firm. BKL trades at a +55% premium to the ASX200 on a P/E basis vs. historical average of +37%. We maintain a Neutral rating on BKL,” it concluded.

More reading

• ASX 200 down 0.1%: Xero hits record high, Telstra and Wesfarmers updates impress
• Here’s why the Blackmores (ASX:BKL) share price jumped 11% higher in October
• These were the 5 best performing ASX shares last week
• ASX 200 Weekly Wrap: ASX 200 has another shocker as US election approaches
• Top brokers name 3 ASX shares to sell next week

Motley Fool contributor James Mickleboro 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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