Why is it that we often find ourselves holding long-term investments in companies that align with our interests, or visions for the future?

We can all appreciate that profits are important – nay, necessary – to an investment over the long term. Yet, vision holds increasing importance on capital allocation to many… there might be some solid logic behind that.

In the book, The Infinite Game by Simon Sinek, the concept of business as an infinite game is explained. A game whereby the objective is not to ‘win’, but rather to stay in the game.

The reasoning is, simply put, there is no ‘winning’ in business. The rules and the competitors are ever-changing – making it impossible to declare victory. By what metrics? In what time frame? Against whom? Simon Sinek argues, there is only ahead or behind.

In that case, the real ambition of the company is to stay in the game for as long as possible.

The infinite investing game

Well, you might be scratching your head wondering how this relates to investing. To put it in a nutshell – there are infinite and finite-minded led companies listed on the ASX, as there is throughout the world. Simon Sinek makes the case the short-sightedness of finite-minded leadership leads to the premature demise of companies.

If we are playing the long game, ourselves as investors, we certainly don’t want our investments to disappear before we do.

We’ll run through a few ASX shares that hold, what Simon Sinek would describe as, a ‘just cause’ – a vision that people are willing to make sacrifices in order to help advance, and ultimately, stay in the infinite game.

People caring for people

Ramsay Health Care Limited (ASX: RHC) was founded in 1964 by Paul Ramsay AO, to which he would be chairman of for the remainder of his life, passing away in 2014. Today, the healthcare operator is now a global group, spanning 11 countries. This speaks to the inspiring nature of the ‘people caring for people’ mantra.

The Ramsay share price has taken a hit over the last 12 months, falling 13.74%. This is, in part, due to the operational impacts of coronavirus. Unfortunately, elective surgery was restricted in most operating jurisdictions.

In addition, Ramsay also entered partnership agreements with governments to make its facilities available to assist with the pandemic response. Ramsay only sought to be compensated for net receivable costs.

This hurt the bottom line, as reported in its 2020 annual report, net profit after tax for the group decreasing by 43% compared to the prior year. Although, by taking this action, the value to human life that may have been added is incalculable.  

Ramsay Health today sits at a market capitalisation of $14.23 billion. Since listing in 1999, the share price has come to return 3,815% across the nearly 21 years.

Build a connected future so everyone can thrive

Telstra Corporation Ltd (ASX: TLS) origins extend as far back as 1901. Originally, the telco was a part of a combined entity, known as the Postmaster-General’s Department, that eventually separated into Telecom Australia and Australia Post in 1975. These days, Telstra is the largest wireless carrier in Australia, serving 18.8 million subscribers.

The telecommunications behemoth has faulted over the last few years, with dividend cuts and other substantial cost cutting initiatives. However, the company appears to be setting its sights on being the Australian leading provider of 5G. In its annual report, it boasted 5G coverage of a third of the Australian population.

Head of networks at Telstra, Nikos Katinakis, recently spoke with The Australian Financial Review. Nikos mentioned he is working to “maximise the utilisation” available from the ‘ultra-fast’ 5G millimetre wave spectrum. The first auction for which will be held in March.

Goldman Sachs recently reiterated its buy rating on Telstra with a $3.60 price target.

We help people hear and be heard

Cochlear Limited (ASX: COH) started with a vision of one man, after watching his father suffer from the hardship and isolation of hearing loss. Graeme Clark knew from that point that he wanted to “fix ears”. Cochlear was founded in 1981 in Sydney.

From humble beginnings, the company now has operations in more than 20 countries and is a dominant player in the implantable hearing device market. Currently, more than 450,000 people now have the ability of hearing, thanks to Cochlear.

Cochlear’s operations were also heavily impacted as a result of non-essential surgery restrictions earlier in the year. Resulting in underlying net profit decreasing by 42% to $153.8 million. Once patent litigation expenses and innovation fund gains were factored in, Cochlear recorded a net loss of $238.3 million for FY20.

The impact prompted the company to initiate a $1.1 billion capital raise and a $225 million increase to its debt back in March and April.

Cochlear remains optimistic for the future outlook, with its continued investment in R&D of $185 million for the year. Reportedly the company had received approvals for new products, and others currently in the approval pipeline.

The shares have traded 11.6% lower in the last months. While Macquarie analysts have an outperform rating and $241 price target on the shares.

Foolish takeaway

Take from this what you will. To have an impactful vision for a company alone won’t lead to its success. Those that do though often can attract good talent to the business, as what they are aiming for inspires others to join in the mission. 

If nothing more, this reminds us when looking for long-term investments, that there are qualities of companies that aren’t necessarily quantifiable, that still hold significant value. You just mightn’t find them on a balance sheet.

More reading

• These were the best-performing ASX IPOs in 2020
• The Telstra (ASX:TLS) share price sank 15% lower in 2020: Time to buy?
• Sonic Healthcare (ASX:SHL) share price gets fresh COVID boost
• 2 ASX blue chip shares tipped as buys for 2021
• Can the ugliest ASX 200 dogs of 2020 turnaround in the New Year?

Mitchell Lawler owns shares of Ramsay Health Care Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended Cochlear Ltd. and Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Clean Seas Seafood Ltd (ASX: CSS) share price is defying the market weakness and surging higher on Tuesday.

At the time of writing, the yellowtail kingfish producer’s shares are up 8.5% to 83 cents.

Why is the Clean Seas Seafood share price surging higher?

This morning Clean Seas Seafood revealed that its sales volumes have rebounded significantly thanks to the reopening of restaurants and its diversification into new channels.

According to the release, Australian sales volumes increased from 196 tonnes in the fourth quarter of FY 2020 to 294 tonnes in the first quarter of FY 2021 and then 456 tonnes in the second quarter.

This second quarter result is a 3% increase on the prior corresponding period. This is a big positive given that this prior period was before COVID-19 impacts first appeared.

Over in Europe the company’s sales benefited from an easing of restrictions in the first quarter of FY 2021. Volumes normalised from 94 tonnes in the fourth quarter to 267 tonnes in the first quarter. Though, the reinstatement of COVID restrictions did lead to volumes easing to 174 tonnes in the second quarter.

In North America Clean Seas achieved sales of 157 tonnes to Hofseth North America in support of retail launches in this market. Management revealed that its Kingfish is now being sold in 80 retail stores across North America through this partnership. Further retail and home meal kit channel launches are pending for the upcoming months.

Finally, management advised that despite the ongoing disruption in the food service channel, Clean Seas achieved sales of 1,413 tonnes in the first half of FY 2021. This compares to 1,016 tonnes in the second half of FY 2020 and 1,406 tonnes in prior corresponding period. It feels this is a good outcome in a highly disrupted global market.

Production issues.

Taking some of the shine off its sales improvement was news of production issues at Boston Bay.

According to the release, the company has experienced an increase in fish mortalities within its marine leases at Boston Bay. Fortunately, Clean Seas’ other farming locations on the Spencer Gulf are unaffected.

Management has identified a range of contributing factors and taken multiple steps to mitigate the risk of further mortalities. This includes removing fish from the affected location. Pleasingly, these actions have seen a decline in mortalities and an improvement in fish health.

Nevertheless, there will be a financial impact from this production issue. Management advised that the additional mortalities incurred are expected to represent ~4.5% of Clean Seas’ live fish biomass. This is expected to result in a reduction in its fair value of biological assets of ~$3 million.

Pleasingly, some of this will be offset by a $1 million saving from reduced feed and operating expenses.

Clean Seas’ CEO, Rob Gratton, commented: “Clean Seas has exited the challenging 2020 year in a good position, with sales volumes in Q2 FY21 slightly above pre-COVID levels, and a strong balance sheet with the recent renewal of the company’s banking facilities. Sales in existing channels have rebounded strongly as restrictions ease, and importantly, the strategic relationship with Hofseth is gaining traction with sales of Kingfish into North American markets diversifying, strengthening and growing the Clean Seas business.”

More reading

• Why the Santos (ASX:STO) share price is dropping lower
• Why the Ramelius (ASX:RMS) share price is storming higher today
• Why ASX energy stocks are set to be among the worst performers on the ASX today
• Why the Money3 (ASX:MNY) share price is on watch today
• The worst mistake Moderna investors can make right now

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.

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The Santos Ltd (ASX: STO) share price is dropping lower this morning after softening oil prices offset the release of a positive announcement.

In morning trade the energy producer’s shares are down 2% to $6.31.

What did Santos announce?

This morning Santos provided the market with an update on its Bayu-Undan Joint Venture.

According to the release, the company has made a final investment decision and will push ahead with the US$235 million Phase 3C infill drilling program at the Bayu-Undan field in the Timor Sea, offshore Timor-Leste.

The program comprises three production wells (two platform and one subsea) and will develop additional natural gas and liquids reserves. This will extend field life and production from the offshore facilities and the Darwin LNG plant.

The sanction of the project comes less than seven months after Santos became operator of the Bayu-Undan Joint Venture following the completion of its acquisition of ConocoPhillips’ northern Australia and Timor-Leste assets.

What’s next?

The release explains that the wells will be drilled using the Noble Tom Prosser jack-up rig, with the first well scheduled to spud in the second quarter of 2021. After which, production from the first well is expected in the third quarter of 2021.

Santos’ Managing Director and Chief Executive Officer, Kevin Gallagher, was very pleased with the news.

He said: “We are delighted to be able to pursue an opportunity that wasn’t on the table 12 months ago, which will optimise field recovery, extend production and deliver significant value to both the BayuUndan Joint Venture and the people of Timor-Leste.”

“This infill drilling program adds over 20 million barrels of oil equivalent gross reserves and production at a low of cost of supply and extends the life of Bayu-Undan, reducing the period that Darwin LNG is offline before the Barossa project comes on stream,” he added.

What about the sell-down?

At present, Santos currently owns a 68.4% interest and operatorship in Bayu-Undan and Darwin LNG.

However, it is in the process of selling a 25% stake to SK E&S, which will reduce its interest to 43.4%.

Mr Gallagher commented: “Completion of the SK E&S sell-down is now well advanced with consent from BayuUndan/DLNG Joint Venture and Timor-Leste regulator received before Christmas last year and we are well progressed with Australian regulatory approvals. The sell-down will complete once the Final Investment Decision on Barossa is taken in 1H 2021.”

More reading

• Why ASX energy stocks are set to be among the worst performers on the ASX today
• 5 things to watch on the ASX 200 on Monday
• Why the Woodside (ASX:WPL) share price slumped 33% in 2020
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday

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.

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The Ramelius Resources Limited (ASX: RMS) share price is storming higher on Tuesday following the release of its quarterly update.

At the time of writing, the gold miner’s shares are up 6.5% to $1.89.

How did Ramelius perform in the second quarter?

For the three months ended 31 December, Ramelius outperformed its quarterly guidance range of 67,000 ounces to 72,000 ounces.

The company delivered quarterly production of 72,896 ounces, which comprises 43,055 ounces at Mt Magnet and 29,841 ounces at Edna May.

This brought its first half production to a total of 144,240 ounces, which compares favourably to its guidance of 132,000 ounces to 142,000 ounces.

At the end of the period the company’s balance sheet was in a very strong position. Ramelius had cash and gold of $221.5 million and a reduced debt figure of $8.1 million.

This left it with a net cash position of $213.4 million. Which, excluding dividend payments and stamp duty, was a $34.5 million increase since the end of September.

Looking ahead, management advised that the company continues to deliver gold into its forward sales book. At the end of the quarter, it had 229,750 ounces forward sold at an average price of A$2,288 ounce.

What else is lifting the Ramelius share price?

Also giving the Ramelius share price a boost on Tuesday has been a rise in the gold price overnight.

According to CNBC, the spot gold price rose 2.7% to US$1,946.70 an ounce. This followed a selloff on Wall Street and weakness in the US dollar.

In light of this, fellow gold miners Newcrest Mining Limited (ASX: NCM) and St Barbara Ltd (ASX: SBM) are also on the rise today and helping drive the S&P/ASX All Ordinaries Gold index higher. The gold miner index is up 2.2% at the time of writing.

More reading

• ASX 200 down 0.6%: Flight Centre sinks, big four banks lower, Ramelius jumps
• Why Costa, Galaxy, Oil Search, & Ramelius shares are pushing higher
• Is the surging Bitcoin an existential threat to ASX gold miners?
• ASX 200 up 0.5%: Big four banks rise, Smartgroup guidance, Transurban distribution update
• ASX 200 down 0.85%: ANZ CFO resigns, tech shares tumble, iron ore jumps

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.

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ASX energy stocks are set to take the brunt of the sell-off this morning as the OPEC+ meeting rocked the oil price.

The Brent crude price tumbled 2.1% to US$50.74 a barrel as members of the oil cartel failed to reach an agreement on output quotas.

The Oil Search Ltd (ASX: OSH) share price, Woodside Petroleum Limited (ASX: WPL) share price and Santos Ltd (ASX: STO) are likely to come under more pressure than most other ASX stocks from the news.

Split in OPEC+ adds pressure to ASX energy sector

As it is, the S&P/ASX 200 Index (Index:^AXJO) is expected to fall by 0.4% at the open on the back of a big drop in US stocks overnight. The broad-based sell-off is due to worries that the Democrats might win the Senate in the Georgia run-off.

But oil-exposed ASX stocks have an addition worry. The Organization of the Petroleum Exporting Countries and allies (called OPEC+) can’t seem to agree on how much oil the group should supply the market from February.

One reason the oil price managed to stage a sharp “V-shape” recovery from the COVID‐19 market mayhem in 2020 is because of OPEC+. These major oil producing nations managed to overcome self-interests to work together to limit supply as demand crashed.

Stalemate between Russia and Saudi Arabia

But self-interests could be dominating again. Reuters reported that Russia wants to lift output as it believes the global economy is regaining momentum, while Saudi Arabia warns it’s too early.

Russia thinks the end of the pandemic is near as mass vaccinations against COVID started in the US and UK. It warns that the failure to increase supply will allow US shale producers to win market share as the oil price is around levels that would make unconventional oil financially viable.

On the other hand, Saudi Arabia pointed to fresh rounds of lockdowns in many parts of the world as a reason to hold quotas in check.

New oil supply in the pipeline

Further, Iran may be allowed to turn on its oil spigots in the coming months. Incoming US President Joe Biden indicated he’s willing to remove sanctions against the Persian nation if it dismantles its nuclear program.

“Anything can happen, but Russia may not want to lose face and capitulate so easily,” Reuters quoted Bjornar Tonhaugen, head of oil markets at Rystad Energy.

“It looks like we may be in for some lengthy negotiations.”

Is it time to sell ASX-energy stocks?

However, this may not be the time for investors to dump ASX energy stocks. OPEC+ may yet work out a compromise. After all, this isn’t the first time the bloc has cracked.

While these countries haven’t had a great track record of cooperating before, in the last 12-months or so, they have shown considerable discipline.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 rises 1.5%
• Is it better to buy 2020’s best or worst ASX shares?
• Why the AGL Energy (ASX:AGL) share price is climbing today
• Will the Fortescue (ASX:FMG) share price double again in 2021?

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

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The Money3 Corporation Limited (ASX: MNY) share price is one to watch on Tuesday, as the company announced the full completion of its Automotive Financial Services (AFS) acquisition.

The acquisition was first announced to the market on 3 December.

The Money3 share price closed on Monday at $2.86.

Why is the Money3 share price in focus today?

It will be interesting to watch the performance of the Money3 share price today after the company advised its AFS acquisition has been completed in full. The acquisition comprises a total purchase consideration of $10.8 million, made up of a cash settlement of $3.24 million and the issue of 2.88 million ordinary shares of Money3 Corporation Limited.

The non-bank lender says the acquisition of AFS will boost Money3’s product offering in Australia, and accelerate the company’s growth into the new, used and commercial vehicle finance market.

AFS specialises in vehicle loans of up to $100,000.

Money3 has advised that AFS is a good strategic fit and aligns with its own strategy of financing a broader market.  The deal will also boost the company’s product offering along the credit curve.

According to Money3, the acquisition will add $48.8 million of gross loan book as of 1 January 2021. Money3 also reported that AFS has a strong loan book quality, with less than 1% of the loan book in 30+ days arrears.

The acquisition will also be earnings accretive immediately, and is expected to improve Money3’s FY22 earnings by $2 million in net profit after tax (NPAT), with improving NPAT contribution in future years.

Money3 Managing Director and CEO Scott Baldwin said the acquisition will strengthen Money3’s addressable market, stating:

The acquisition increases the company’s market share to approximately 4% of the $6bn annual used vehicle finance market.

Money3 has experienced strong demand for vehicle finance during the first half of FY21 with record new loan originations in November 2020 and the strongest half year result the company has ever produced.

This acquisition will enable us to continue to increase our market share further in 2021. 

More about Money3

Money3 is a specialist provider of consumer finance for the purchase and maintenance of vehicles in Australia and New Zealand.

According to the company, its unique approach to customer care attracts customers that are underserved by mainstream banks.

The company estimates that 1 in every 450 registered vehicles in Australia and 1 in every 700 registered vehicles in New Zealand are financed by Money3.  

About the Money3 share price

The Money3 share price has returned around 20% over the past year. 

In November, the company announced positive first quarter results, with statutory net profits after tax (NPAT) increasing by 33.3% against the prior period.

It also announced a new, low-cost warehouse facility of $250 million from international bank Credit Suisse Group (NYSE: CS), which would save the company more than $10 million per year in funding costs. 

Based on the current Money3 share price, the company commands a market capitalisation of around $578 million.

More reading

• Why Bapcor, Event, Money3, & Tyro shares are dropping lower

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

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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.

In late 2018, Moderna Inc (NASDAQ: MRNA) went public in the largest biotech initial public offering (IPO) in history. Its value barely moved until mid-February 2020, when COVID-19 cases in the U.S. started showing up in multiple states. Now that its coronavirus vaccine has received Emergency Use Authorization, some investors might think there is limited upside left in the stock. That thinking might lead shareholders of Moderna to do the worst thing they could do right now.

Warp speed and beyond

Working with the National Institute of Allergy and Infectious Diseases, the company delivered a vaccine just 42 days after the genome sequence of the novel coronavirus was made public. Since then, the U.S. government has provided $4.1 billion to the company to get the drug to market, and will purchase 200 million doses of the vaccine with an option to buy 300 million more. Management’s base case is for 600 million of the doses to be available by the end of 2021.

Much has been made about using mRNA for its vaccine, but patented fat molecules that deliver the genetic instructions to the cell are also part of the secret sauce. Without these, a strong response from the immune system would destroy both carrier and cargo. On a December investor conference call, CEO Stephane Bancel referenced the 20 products in the company’s pipeline using this approach, asserting capital had been a limiting factor in the past. Now, with $4 billion of cash on the balance sheet, he expects more successful launches such as the potential for $2 billion to $5 billion in sales from the company’s cytomegalovirus vaccine, which is currently in a phase 2 trial. 

Selling the stock now that one drug is authorized may lock in a profit, but Moderna’s most valuable asset could be its platform for drug development. If so, it will take years to play out. Shareholders who sell now could be giving up on the company just as it’s starting to revolutionize how diseases are treated.

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

More reading

• Why Moderna stock fell 32% in December
• Moderna’s stock has surged 488% in 2020: Is it a buy for 2021?
• Here are the US shares ASX investors are buying
• How the 21st century actually started in 2020
• Where will Moderna be in 5 years?

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

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

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Making a passive income large enough to give up work is likely to be a major ambition for many people.

Through buying a diverse range of high-quality dividend shares today, it is possible to obtain a worthwhile income alongside generous capital returns.

Although holding some cash means lower returns in the short run, it can act as a buffer to protect an investor from market downturns such as the 2020 stock market crash.

Buying dividend shares for a passive income

Dividend shares offer the most attractive passive income among mainstream assets at the present time. Low interest rates and high property prices mean that the income returns of savings, bonds and property are relatively low. As such, for investors who have capital available to invest today and require an income right now, dividend stocks are likely to be the obvious choice.

They could also provide strong capital growth in the long run. This makes them attractive for investors who are seeking to build a portfolio from which to obtain an income in the long run. The high yields of many income shares suggests that they offer good value for money at the present time, which could translate into capital growth. Meanwhile, their appeal versus other assets could lead to growing demand that pushes their valuations higher in the long run. This may lead to a larger retirement portfolio that makes it easier to generate a passive income in older age.

Diversifying among dividend stocks

Whether an investor is seeking a passive income today or in future, diversifying among a wide range of dividend shares is an important consideration. The future outlook for the economy is very uncertain at the present time. Some companies, industries and regions could be hit harder by factors such as political change and the future path of the coronavirus pandemic.

Therefore, it makes sense to have a broad range of stocks from a variety of industries and locations in a portfolio. This reduces an investor’s reliance on a small number of stocks for their capital returns or income. The end result could be a stronger, and more resilient, passive income in the long run.

Holding cash to reduce risk

As mentioned, cash savings offer a disappointing passive income due to low interest rates. However, holding some cash can be a sound move.

For investors who seek an income today, cash can act as a buffer should the economic outlook deteriorate. This was the case in the first part of 2020, when many companies postponed or cancelled their dividends in response to the coronavirus pandemic.

Similarly, holding cash can allow an investor who is building a portfolio to take advantage of sudden declines in share prices. This may enable them to use market cycles to their advantage in building a larger portfolio with a more generous passive income in the long run.

More reading

• Why the Treasury Wine (ASX:TWE) share price crashed 43% lower in 2020
• These were the best-performing ASX IPOs in 2020
• ASX mining shares that delivered the best returns in 2020
• Warning: 2021 is going to be difficult
• 2 ASX dividend shares with attractive 2021 yields

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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Treasury Wine Estates Ltd (ASX: TWE) share price was well and truly out of form in 2020.

Over the 12 months the wine company’s shares lost approximately 43% of their value.

Why did the Treasury Wine share price crash lower in 2020?

There was one major catalyst for the company’s bitterly disappointing share price performance over the last 12 months.

It started in August when reports first emerged suggesting that China was preparing to put import duties on Australian wine exports amid allegations of wine dumping.

This then became a reality in November when the Chinese Ministry of Commerce (MOFCOM) officially announced tariffs on Australian wine exports.

Treasury Wine was hit particularly hard and revealed that the MOFCOM had applied a deposit rate of 169.3% to the imported value of its wine in containers of two litres or less.

This provisional measure is in place until 28 August 2021 at the latest. Though, the company advised that the final determination of the anti-dumping investigation will determine if the measure will be maintained, adjusted, or removed beyond that date.

What impact does this have?

Unfortunately for Treasury Wine, it has been generating a significant amount of revenue in the China market.

In FY 2020, China represented approximately two-thirds of the total Asia region earnings or 30% of its overall group earnings. This is predominantly from its luxury and masstige wine, which can ill-afford to have prices increased by ~169%.

In light of this, management has warned that while the provisional measure remains in place, demand for its portfolio in China is expected to be extremely limited.

Will 2021 be better for Treasury Wine?

Management has been busy developing a detailed response plan which aims to reduce the impact on its earnings and maintain the long-term diversification and strength of its business model and brands.

However, it notes that the benefits are likely to be limited in FY 2021 and will progressively reach their full potential over a two to three-year period.

As a result, 2021 looks set to be a tough year for the wine company. But with its share price losing half of its value in 2020, it’s probably fair to say that this is already reflected in its valuation.

Though, one broker that is still sitting on the fence is Goldman Sachs. It has a neutral rating and $8.60 price target on its shares.

Goldman is forecasting earnings per share of 31 cents, 46 cents, and 53 cents, respectively, over the next three years. This means its shares are changing hands for 31x estimated FY 2021 earnings at present.

More reading

• My biggest regrets from 2020
• 2 ASX dividend shares with generous yields
• ASX 200 shares hardest hit by COVID-19 in 2020
• These ASX dividend shares offer investors attractive yields
• 2 ASX dividend shares with big yields

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

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Private companies climbed over one another to go public in 2020 to grab all the money on offer in a hot share market.

But with such a wide range in quality, some did better than others after listing on the ASX.

“Some [were] taking advantage of a short term boost to profits from COVID. With the market placing high valuation multiples on some of these sectors, they got the double benefit of high valuation multiples on cyclically high profits,” Prime Value portfolio manager Richard Ivers told The Motley Fool last week.

“Others were high quality businesses with a solid long term outlook.”

Sudden share price spikes in the early life of ASX shares don’t necessarily equate to long-term investment worth.

But it’s still interesting to look at which initial public offerings (IPOs) performed the best last year after listing. It indicates confidence from investors that the company has some sort of future.

The Motley Fool has picked out the six newly listed companies which delivered the highest share price gains in 2020. (Mining companies, often speculative, have been excluded from the rankings.)

Douugh Ltd (ASX: DOU): 467% return

This fintech has gone gangbusters since listing in October. Investors lucky enough to pay 3 cents per share during the IPO saw the Douugh share price end the year off at 17 cents.

Douugh has an eponymous smartphone app that helps users use artificial intelligence to “simplify” everyday banking. It analyses spending, pays bills, and helps customers reach savings goals.

The company also has a partnership with Mastercard Inc (NYSE: MA) to issue virtual debit cards under that badge.

Douugh shares have been in a trading halt since before market open on 21 December, pending an announcement regarding an acquisition.

Cosol Ltd (ASX: COS): 290% return

Cosol is a technology services provider, specialising in enterprise asset management systems. 

It managed to list in January before COVID-19 really struck Australia with an IPO price of 20 cents per share. Shares in the Brisbane business sold for 78 cents when the trading year ended.

The company revealed at its annual general meeting in November that it had won contracts with big clients like the Australian Defence Force and Energy Queensland.

4DMedical Ltd (ASX: 4DX): 233% return

Another technology company, 4DMedical is the inventor of a medical imaging system called XV Lung Ventilation Analysis Software. The business reaps revenue from both software and hardware.

4DMedical sold shares for 73 cents a piece during its IPO. The 4DMedical share price has taken off since its float on the ASX in August, trading at $2.43 at the end of 2020.

The Melbourne and Los Angeles-based firm received approval for its technology from the Therapeutic Goods Administration in September, and scanned its first commercial patient in December.

Playside Studios (ASX: PLY): 130% return

Playside Studios is an electronic games maker. The company sold for 20 cents a share during its IPO but after less than a month of ASX trading it ended the year at 46 cents. 

Read about Playside’s work in our 3 mammoth IPOs of 2020.

Credit Clear Ltd (ASX: CCR): 113% return

You can see by now there is a definite theme among the highest-returning IPO shares in 2020.

Credit Clear is yet another tech provider that sells accounts receivables software. The app provides the payer with an option for paying in instalments and allows the payee to access business intelligence about its customers.

After selling for 35 cents during its IPO, the Credit Clear share price surged 133% in just its first week on the ASX in October.

It has somewhat moderated now but still went for a very nice 74.5 cents when the year closed.

Aussie Broadband Ltd (ASX: ABB): 99% return

Aussie Broadband is an internet services provider, mainly selling NBN plans.

The company deliberately markets itself as a premium provider, pointing out its superior speed, bandwidth and Australian customer service call centre.

The Victorian company sold its IPO shares for $1 a piece, including to some lucky customers. When it floated on 27 October, Aussie Broadband’s market capitalisation was $190 million.

Now, with the Aussie Broadband share price doubling in just two months, it is using the capital raised to build its own dark fibre network. This means in the long term it will no longer have to pay lease fees to Telstra Corporation Ltd (ASX: TLS).

“It also means we can connect businesses directly to our own fibre. So we’re not paying the NBN or someone else for those services,” Aussie Broadband managing director Phillip Britt told The Motley Fool back in September.

“We’ve got some fairly lofty ambitions. The capital markets was the obvious way to raise cash to do what we want to do.”

More reading

• The Telstra (ASX:TLS) share price sank 15% lower in 2020: Time to buy?
• 3 mammoth IPOs of 2020
• 2 exciting small cap ASX shares to watch in 2021
• Here are 6 of the top performing ASX fintech shares of 2020
• Can the ugliest ASX 200 dogs of 2020 turnaround in the New Year?

Tony Yoo 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 Mastercard. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Aussie Broadband Limited. The Motley Fool Australia has recommended Mastercard. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post These were the best-performing ASX IPOs in 2020 appeared first on The Motley Fool Australia.

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