The Blackmores Limited (ASX: BKL) share price is on form for once on Monday.

In afternoon trade the health supplements company’s shares are up 1.5% to $70.15.

Despite this gain, the Blackmores share price is still down 27% from its 52-week high.

Is this a buying opportunity?

Although the Blackmores share price is trading notably lower this year, I wouldn’t be in a rush to invest just yet. This is due to its uncertain performance and the high multiples its shares are trading on.

This is a view that I share with analysts at Goldman Sachs. This morning the broker retained its neutral rating and cut its price target on Blackmores’ shares to $71.00.

It notes that the company is going through a major transformation at present.

Goldman explained: “BKL is progressing through a period of significant change as it vertically integrates production through its Braeside manufacturing facility, offloads underperforming assets (Global Therapeutics) and reestablishes its growth model into China and more broadly through Asia.”

This transformation is weighing on its earnings momentum and is expected to continue doing so in the near term.

However, based on the current Blackmores share price, Goldman suspects that the market is pricing in a much swifter turnaround.

It said: “Earnings momentum remains steadfastly negative, but growth expectations are strong and BKL’s PE remains elevated suggesting the market is pricing in a portion of a turnaround. We now forecast an underlying FY21 EBITDA of A$69.1mn and EPS of A$1.58.”

This means the Blackmores’ share price is trading at a lofty 44x FY 2021 earnings right now. And looking even further ahead, the broker is forecasting earnings per share of $2.21 in FY 2022. This equates to a multiple of 32x FY 2022 earnings for its shares.

In light of this, I would suggest investors either wait for a better entry point or for the company’s performance to improve.

In the meantime, I would sooner buy A2 Milk Company Ltd (ASX: A2M) shares. Goldman estimates that they are changing hands at 28x estimated FY 2021 earnings and 24x estimated FY 2022 earnings.

More reading

• ASX 200 Weekly Wrap: ASX 200 snaps 4 week losing streak… just
• These were the best performing ASX 200 shares last week
• Why I’m watching the Blackmores (ASX: BKL) share price this year
• Half of ASX 200 stocks at risk as China-Australia relations hit new low
• ASX 200 Weekly Wrap: Earnings drag ASX back to reality

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. The Motley Fool Australia owns shares of A2 Milk. 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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I think that there are aren’t too many S&P/ASX 200 Index (ASX: XJO) shares that can be classified as reliable because of what has happened during COVID-19. Some businesses have been hit hard. 

Quite a few shares like National Australia Bank Ltd (ASX: NAB) and Woodside Petroleum Limited (ASX: WPL) have sunk and not recovered (yet).

However, there have been other ASX 200 shares that have been reliable during this difficult period.

I’m not suggesting that my two reliable ideas are amazing value or likely to smash the market over the medium-term. However, I think they have proven themselves through both this COVID-19 period as well as before that in ‘normal’ times.

Here are my two reliable ASX 200 share ideas:

Wesfarmers Ltd (ASX: WES)

Wesfarmers is a diversified business that has been around for many decades. It has proven its worth during this difficult COVID-19 period with the huge surge of people looking to buy home office equipment from Officeworks as well as home improvement project supplies from Bunnings.

In FY20 the company saw divisional earnings before tax (EBT), excluding significant items, rise by 1.3% to $2.89 billion. This was completely driven by the 13.9% EBT increase from Bunnings to $1.85 billion and the 13.8% increase to EBT by Officeworks. All the divisions saw declines in EBT, particularly Kmart Group and the industrial and safety division which saw EBT declines of 23.5% and 53.5% respectively.

Wesfarmers’ continuing net profit rose 8.2% after excluding significant items.

I really like the diversification offered by Wesfarmers and its various segments. The acquisition moves to buy lithium miner Kidman Resources and online retailer Catch could prove to be very sound investments.

The outlook for Wesfarmers in FY21 is uncertain due to COVID-19 and the Target restructuring. But over the long-term I think the ASX share can continue to generate good performance with a focus on shareholder returns (meaning dividends). It’s probably one of the best ASX dividend shares in the ASX 200.

At the current Wesfarmers share price it’s trading at 23x FY22’s estimated earnings.

CSL Limited (ASX: CSL)

CSL is currently the biggest business in the ASX 200. It has been a true success story over the past decade with the CSL share price rising 794%.

The healthcare biotech giant has done extremely well at expanding its product portfolio. Each product represents a defensive earnings stream. I think this difficult COVID-19 period has shown how important it is that a population takes healthcare seriously and how valuable CSL’s services are.

The ASX 200 share is actually going to be involved in manufacturing two of the most promising COVID-19 vaccines. One is the Oxford University candidate and the other one is the University of Queensland vaccine.

CSL continues to invest heavily in its research and development of new products. If you exclude that large R&D spending then the CSL share price valuation doesn’t look as high as it seems. That expenditure will hopefully open up new exciting treatments to help people and unlock more earnings growth.

In FY20 the ASX 200 share generated net profit after tax (NPAT) of US$2.1 billion. It also grew its full year dividend. In FY21 management has provided net profit guidance of US$2.1 billion to $2.265 billion. Further profit growth would be a good result considering all of the COVID-19 impacts, particularly when it comes to plasma collection centres.

At the current CSL share price it’s trading at 38x FY22’s estimated earnings.

Foolish takeaway

Both CSL and Wesfarmers are quality ASX 200 shares and overall have shown they can generate reliable profit growth even during a global pandemic. FY21 may be volatile over the coming months, but I’d feel content to own these businesses for many years to come at today’s valuations.

More reading

• ASX 200 drops another 0.8%, Magellan (ASX:MFG) reveals a large investment
• Is it time to buy Telstra and these high quality ASX 200 shares?
• Latest ASX 200 stocks hit by broker downgrades today
• Two ASX infrastructure shares to buy before the October budget
• What you need to know about Tyro’s share price roller coaster today

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. The Motley Fool Australia owns shares of Wesfarmers 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 Advance NanoTek Ltd (ASX: ANO) share price is crashing lower on Monday afternoon after the release of a sales update.

At the time of writing the advanced materials company’s shares are down 11% to $3.35.

This leaves the Advance NanoTek share price trading 52% lower than its 52-week high and within sight of its 52-week low of $3.20.

What was in Advance NanoTek’s update?

Today’s update revealed that the company’s poor performance has continued in FY 2021 due to negative impacts from the pandemic.

According to the release, based on current distributor forecasts for the second quarter, the company expects its first half sales to be lower than the prior corresponding period.

Management explained that travel restrictions are reducing demand for sunscreen, which is having a knock-on effect on sales of its zinc oxide product. In addition to this, it believes its shortened delivery times are having a negative impact on near term demand.

The company explained: “ANO understands the delay in sales orders is due to the significant travel restrictions caused by the second and third waves of COVID-19 in Europe and the US.”

“We are also seeing distributors destocking due to us offering much shorter delivery times. Distributors prepared to comment, have indicated that Q3 sales should improve as customers are gearing up for the next season and continue to improve over foreseeable future,” it added.

What now?

In light of this sales uncertainty, the company advised that it can longer say that its first half result will be stronger year on year. Nor can it accurately predict its full year results because of the uncertainty.

Though, it has advised that the Board is working on a number of initiatives in an effort to diversify its product offerings. It is also looking to increase its distribution network and prepare the company for a potential significant increase in demand for zinc oxide over the next three years.

More reading

• Latest ASX 200 stocks hit by broker downgrades today
• 3 ASX shares moving higher today
• Where I’d invest $500 into ASX shares
• Brainchip (ASX:BRN) share price shoots 9% higher on software development centre
• Afterpay (ASX:APT) one of top 10 lockdown winners

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 Advance NanoTek Limited. 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 S&P/ASX 200 Index (Index:^AXJO) started the week on a negative footing. But some ASX stocks have suffered bigger losses after being downgraded by top brokers.

The top 200 stock benchmark fell 0.5% in after lunch trade as negative overseas leads weighed on sentiment.

But the fall is nothing compared to the 6.5% tumble by the Virgin Money UK CDI (ASX: VUK) share price. The UK bank lender is the second worst performer on the ASX 200 at the time of writing with the Unibail-Rodamco-Westfield CDI (ASX: URW) share price taking the wooden spoon.

Negative rates trigger downgrade

Virgin Money is underperforming after Bell Potter downgraded the stock to “hold” from “buy” as the broker warned that storm clouds are gathering.

The Bank of England is likely to use negative interest rate to support the country’s sagging economy. The outlook for the UK darkened significantly as it struggles to contain a new COVID-19 outbreak.

Negative rates could render mortgages unprofitable and that poses a big risk to Virgin Money as these account for 82% of its loan book.

Virgin Money more exposed than peers

What’s more, the lenders more at risks are smaller institutions and those that have greater dependency on retail deposits for funding. Virgin Money fits into both categories!

“While VUK continues to expect a FY20 [net interest margin] of 155-160bp, we feel the overall outlook will be more challenging in FY21 given reduced flexibility to reprice liabilities among other things,” said Bell Potter.

The broker’s 12-month price target on the stock was cut to $1.80 from $2 a share.

Dust yet to settle

Another underperformer today is the DEXUS Property Group (ASX: DXS) share price. Shares in the office property group retreated 3.2% to $8.73 at the time of writing.

The fall coincides with Morgan Stanley’s decision to downgrade the stock by two full notches to “underweight” (or “sell”) from “overweight”.

The broker believes the outlook for the Australian office property market is tougher than it originally thought.

“Office is going through a societal shift, where longer-term decisions are being postponed, as exemplified by tenants requesting shorter-term deals on recent expiries,” said the broker.

“DXS may look good value today, but as we think tenants have yet to work out where they stand on Work-from-Home, a bounce back is unlikely in the next 12 months.”

Cheap but not yet cheap enough

Dexus may be trading at around a 15% discount to net tangible assets, but the stock traded at a 60% discount during the GFC.

Sure, the GFC isn’t quite the same as the COVID carnage, but that experience shows equity valuations can overshoot the physical market in a down- and upcycle, noted Morgan Stanley.

The broker also cut its 12-month price target on Dexus to $8.15 from $10.20 a share.

More reading

• Two ASX infrastructure shares to buy before the October budget
• What you need to know about Tyro’s share price roller coaster today
• Why Byron Energy, Clover, DEXUS, & Webjet shares are sinking lower today
• ASX 200 down 0.5%: Harvey Norman (ASX:HVN) update, Magellan (ASX:MFG) makes Barrenjoey investment
• Why I like Saracen (ASX:SAR) and these ASX mining shares today

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. 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 200 Index (ASX: XJO) is sitting low today, with the index having fallen 0.77% at the time of writing. However, a few ASX shares moving higher today are swimming against the tide. Here are three of them:

3 ASX shares rising today

Sonic Healthcare Limited (ASX: SHL) 

The Sonic Healthcare share price is up 2.43% today after jumping from a closing price on Friday last week of $32.50 to currently trade at $33.29. Sonic Healthcare is a global healthcare company. It specialises in a number of niches including medicine/pathology, radiology/diagnostic imaging and primary care services. Sonic is based in Sydney.

Recently, Sonic announced a final dividend of 51 cents per share, bringing the total dividend to 85 cents per share for the year. In recent reporting, Sonic provided some solid numbers, with earnings before interest, tax, depreciation and amortisation (EBITDA) coming in higher than anticipated. The Sonic Healthcare share price recently slumped, however now looks set to chase its 52-week high of $38 if it maintains this new bullish course.

Frontier Digital Ventures Ltd (ASX: FDV)

The Frontier Digital Ventures share price continues to enjoy the bullish action it has seen over the last 3 trading sessions. On Thursday last week, Frontier shares moved up more than 8%. On Friday, the price rose 4.2% and today it has moved as much as 11.4% in intraday trade. A heavy pullback around lunchtime has seen much of today’s gains reversed, however we normally see some volatility after a few days of bullish action.

Frontier is a private equity firm specialising in developing and investing in online classified advertising businesses. Investing in the automobile and property advertising niches are some of Frontier’s top choices. Frontier has offices in both Australia and Malaysia.

Recently in early September, Frontier announced that it had partnered with Brazilian digital real estate brokerage platform AoCubo, through its investee business InfoCasas. This is a significant opportunity for Frontier to expand interests into the Brazil market.

This industry has proven to be very lucrative for bigger players such as REA Group Limited (ASX: REA), Domain Holdings Australia Ltd (ASX: DHG) and Carsales.Com Ltd (ASX: CAR).

Whitehaven Coal Ltd (ASX: WHC) 

The Whitehaven Coal share price has surged as much as 8.5% in intraday trade today. Coming off the back of a few stagnant and down days in the back half of last week, this is a welcome change for investors.

Whitehaven operates coal mines in New South Wales and Queensland. It is headquartered in Sydney and sells its product (coal) to many international markets. These include buyers located in Japan, Taiwan, Korea, India, China, Malaysia and many others.

The company has had a bad run recently. The Whitehaven share price has been on a downward slope with falling coal prices and and increased regulation from foreign governments. I don’t think Whitehaven has quite hit a turning point yet, but it’s great to see a green day on the market for the company.

Foolish takeaway

It’s always a good idea to pay attention to the shares moving higher today, as it can give you an indication of what the rest of the week might bring. These companies are running out of the gate, so hopefully we will see continued momentum.

More reading

• ASX 200 down 0.5%: Harvey Norman (ASX:HVN) update, Magellan (ASX:MFG) makes Barrenjoey investment
• ASX 200 down 0.1%: Tech shares push higher, AMP (ASX:AMP) sinks lower
• ASX 200 drops 1.2%, Mineral Resources (ASX:MIN) fell 9%
• Why Northern Star, SeaLink, THC Global, & Whitehaven Coal shares are dropping lower
• ASX 200 up 0.7%: Afterpay (ASX:APT) higher, QBE Insurance (ASX:QBE) lower on UK update

glennleese 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 Frontier Digital Ventures Ltd. The Motley Fool Australia has recommended carsales.com Limited, Frontier Digital Ventures Ltd, REA Group Limited, 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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I think that there are a few different ASX share options that would be good ideas for a $500 investment.

It can be hard to know where to start investing when there are so many different options. I think there are a few good places to start like exchange-traded funds (ETFs) and listed investment companies (LICs).

Both ETFs and LICs give investors the ability to invest in a large group of shares through a single investment. Most ETFs are index-based and LICs are run by an investor or an investment team.

I think an ETF or a LIC is a good start for a $500 ASX share investment because it creates instant diversification and you can’t go too wrong with most of them (as long as you pick a decent one – there are some very left-field ETFs out there).

Here are two ASX share ideas, one being an ETF and one LIC:  

Betashares Global Quality Leaders ETF (ASX: QLTY)

This ETF is invested in quality global businesses which rank well on return on equity (ROE), have low debt levels and display earnings stability.

Betashares Global Quality Leaders ETF is invested in 150 of these global names right across the world. Whilst around two thirds of the ETF is allocated to US businesses, the other third is spread across Japan, Switzerland, France, Denmark, Hong Kong, the UK and so on.

The ETF doesn’t invest in ASX shares – it specifically excludes Australia from the potential investment list.

Betashares Global Quality Leaders ETF is heavily invested in IT and healthcare. These two sectors offer secular growth with many high quality names. The IT sector had a 32.4% allocation at 31 August 2020 whilst healthcare had a 25.7% allocation. The other sectors that make up more than 5% of this ETF’s holdings are communication services, consumer discretionary and financials.

So what businesses actually display these quality credentials? At the end of last month its biggest positions were: Nvidia, Apple, Adobe, Facebook, Intuit, Accenture, Intuitive Surgical, Nike, Alphabet and Texas Instruments.

BetaShares only launched the ETF in November 2018. Over the past year it delivered a net return of 17.6% and since inception it has delivered net returns per annum of 19.6%.

WAM Microcap Limited (ASX: WMI)

WAM Microcap invests in ASX shares with market capitalisations under $300 million.

It’s run by the investment team at Wilson Asset Management. The idea of picking small caps is that they can deliver strong outperformance if you can find an idea whilst it’s still relatively undiscovered or undervalued before its growth story is picked up by the wider market.

WAM Microcap has performed very strongly since inception in June 2017. The WAM Microcap gross portfolio return (before fees, expenses and taxes) over the past year has been 25.4%. Since inception the gross portfolio return has been 21.7% per annum, outperforming the S&P/ASX Small Ordinaries Accumulation Index by 13.3% per annum.

The LIC has been very effective at finding small cap growth opportunities like Citadel Group Ltd (ASX: CGL), Redbubble Ltd (ASX: RBL), City Chic Collective Ltd (ASX: CCX) and FINEOS Corporation Holdings PLC (ASX: FCL).

It would be unwise to expect that WAM Microcap’s long-term performance will continue to be more than 20% per annum. But it shows the level of returns that the WAM team can generate over good periods for the overall ASX share market. It’s quite hard for small caps to outperform when the market crashes.

At the current WAM Microcap share price it’s probably trading at close to its net tangible assets (NTA) per share. It also offers an grossed-up ordinary dividend yield of 5.6%.

Foolish takeaway

Both of these ASX shares seem like good investments to me. WAM Microcap was one of my main buying targets earlier this year. I’d definitely be happy to buy more if there was another market dip.

More reading

• Where I’d invest $20,000 into ASX shares right now
• How to generate $1,000 a month in dividends
• Why Mineral Resources, Redbubble, Saracen, & Temple & Webster shares are pushing higher
• Is the Redbubble (ASX:RBL) share price on a path to $10.75?
• Why I’m more excited about WAM Microcap shares

Tristan Harrison owns shares of WAM MICRO FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends FINEOS Holdings plc. The Motley Fool Australia has recommended Citadel Group Ltd and FINEOS Holdings plc. 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 Brainchip Holdings Ltd (ASX: BRN) share price has jumped 9.3% to 47 cents at the time of writing. The sharp Brainchip share price movement comes following an announcement of the company establishing a software development centre.

This compares with the All Ordinaries Index (ASX: XAO) which is down 0.73% to 6,025 points.

Brainchip presence in India

In mid-afternoon trade, the Brainchip share price is surging after the company advised the market it has established a software development centre in Hyderabad, India. A leading provider of ultra-low power, high performance artificial intelligence (AI) technology, Brainchip will seek to support development of its Akida Neuromorphic System-on-Chip (NSoC).

The new asset addition is expected to concentrate on the software and firmware development of the Akida NSoC. This includes critical components such as software for device drivers, the CPU complex and firmware for commercial implementation.

The development centre will be staffed by five software engineers and local management. Brainchip said that it does not expect the new entity to add any incremental expenses to its historical cash flows. This is due to staff having previously served the company as contracted service providers over several quarters.

Brainchip also stated that it has provided funds for the new facility and cost of equipment.

The company’s India division will complement the team in France, which hones in on the software environment and networks on the Akida neuron fabric. The implementation is intended to provide ease of use and execution in leveraging ultra-low power, event-based capability.

What did management say?

Brainchip CEO, Louis DiNardo, validated the company’s new establishment to shareholders. He said:

We have established BrainChip Systems India to support the requirement for robust system software and firmware. As Akida is implemented commercially, it is important that our software is mature and provides a positive user experience.

Furthermore, Mr DiNardo commented:

We have a very seasoned management and engineering team in Hyderabad. Having a BrainChip entity in India will allow us to recruit and retain experienced engineering professionals as we expand operations to meet market demands. The India group has been working exclusively on Akida software and firmware development for several quarters and we are fortunate to have them join us as we bring Akida to market.

Is the Brainchip share price too cheap to ignore?

The Brainchip share price has taken shareholders on a wild ride in recent times. Brainchip shares started the year at 4.7 cents, and climbed to an all-time high of 97 cents. However, the last two weeks of heavy selling in Brainchip shares have been attributed to profit takers. Nonetheless, the Brainchip share price is still up over 1000% in the last nine months.

In my opinion, Brainchip has a lot of promise that could one day see it become a multibillion-dollar market cap share. Its advanced Akida chip may offer huge advantages for company projects such as NASA’s future missions.

At a market capitalisation of $700 million, Brainchip is still a small-cap share that is growing. Should the company be able to deliver on its potential, I think that the Brainchip share price is extremely attractive at a price of 47 cents.

More reading

• These 4 ASX shares have grown more than 100% this year
• Could this be the large cap version of the Brainchip (ASX:BRN) share price? 
• BrainChip (ASX:BRN) share price crashes a further 20% lower: Where next for its shares?
• Why the BrainChip (ASX:BRN) share price is crashing 21% lower today
• BrainChip (ASX:BRN) and Zip (ASX:Z1P) were among the most traded shares on the ASX last week

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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It’s no secret that the coronavirus pandemic – and associated economic lockdowns – produced a bevy of both winners and losers. The social and commercial changes that we all went through during March and April were massive. And some companies just seemed to be in the wrong place at the wrong time. Think Qantas Airways Limited (ASX: QAN) as one such example. 

Of course, there have been others where the pandemic came at the best possible time, and are sitting in a healthy tailwind today. Netflix Inc (NASDAQ: NFLX) is one, Zoom Video Communications Inc (NASDAQ: ZM) another.

But those are the obvious winners, and the pandemic (unfortunately) is likely to be with us long enough for some real structural changes to become permanent in the economy. Luckily, accounting firm KPMG has produced a list of the 10 brands in Australia that were voted the best at delivering excellent customer service during events of 2020 so far. Some of the names you’ll know, others might come at a  surprise. So I think this report is worth analysing for any investor looking to navigate the uncharted waters we’re all sailing through right now.

So without further ado, here are the top 10 brands, as selected by Australian consumers, that have been serving their customers the best during the lockdowns:

1. First Choice Liquor
2. IKEA
3. Afterpay
4. Boost Juice
5. Rebel
6. PayPal
7. Red Energy
8. Dan Murphy’s
9. ING
10. Best & Less

Some very interesting names here to be sure.

So, Of these 10 names, just 4 are owned by ASX-listed companies. 1 is an Australian government-owned company, with 4 being owned by foreign companies (public and private), and one being a privately-owned Australian company. Let’s dig in:

Some Aussie winners from the lockdown

So going down the list, first up we have First Choice Liquor. First Choice is a bottleshop chain owned by Coles Group Ltd (ASX: COL), Australia’s second-largest grocery chain.

Next, we have Swedish furniture giant IKEA, which is a privately-owned company based in Sweden.

Afterpay is (of course) owned by Afterpay Ltd (ASX: APT), the buy now, pay later (BNPL) pioneer, and ultra-popular growth-share as of late.

Boost Juice is an Australian company, but not a public one. It is owned by both co-founder Janine Allis, as well as by Retail Zoo, which is, in turn, owned by both Allis and private capital company Bain. This is an Australian success story, but unfortunately not one you can buy shares of today.

Rebel is a sports outlet owned by the ASX-listed Super Retail Group Ltd (ASX: SUL), which also owns the Super Cheap Auto chain, as well as the Macpac and BCF chains.

PayPal is owned by the eponymous Paypal Holdings Inc. (NASDAQ: PYPL), an American-listed company. Red Energy is an energy retailer fully owned by Snowy Hydro, the Australian government-owned power generator.

Dan Murphy’s is another bottle-chop chain that competes with First Choice Liquor. Unsurprisingly, it is owned by Coles arch-rival Woolworths Group Ltd (ASX: WOW).

Lastly, we have ING, a bank listed in the Netherlands, as well as discount retailer Best & Less, currently owned by a private South African company called Pepkor.

The report quotes Amanda Hicks, a national managing partner at KPMG, as stating the following regarding this list:

Looking at our findings through a COVID-19 lens, companies which were able to maintain a level of commercial cadence, the rhythm associated with how customers and organisations transact and interact, ranked highest

Foolish takeaway

I think all of the company’s and brands listed in KPMG’s report are quality companies. Of the ASX-listed companies mentioned, I’m most excited about Super Retail Group and Afterpay. Dan Murphy’s and First Choice are quality businesses as well. But in reality, both are small components of Coles and Woolworths’ overall businesses. It just goes to show that both the importance of healthy customer relations, as well as that winners can keep on winning, even under seemingly bleak circumstances.

More reading

• What you need to know about Tyro’s share price roller coaster today
• Openpay (ASX:OPY) share price pushes higher on business update
• ASX 200 Weekly Wrap: ASX 200 snaps 4 week losing streak… just
• 5 things to watch on the ASX 200 on Monday
• Forget term deposits and buy Coles and this ASX dividend share

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Netflix, PayPal Holdings, and Zoom Video Communications. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and recommends the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths Limited. The Motley Fool Australia has recommended Netflix, PayPal Holdings, 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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With so many shares to choose from on the ASX, it can be hard to decide which ones to buy.

The good news is that brokers across the country are doing a lot of the hard work for you.

Three top shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Clover Corporation Limited (ASX: CLV)

According to a note out of Ord Minnett, its analysts have retained their buy rating but reduced the price target on this specialist ingredients company’s shares to $3.00. The broker notes that Clover delivered a full year result in line with expectations last week. And while its guidance for FY 2021 was a bit disappointing due to de-stocking, its analysts feel confident that this is just a short term issue. They expect trading conditions to improve in the coming months. Outside this, the broker believes Clover is well-placed to benefit from potential changes to infant formula regulations in China. I think Ord Minnett makes some great points and Clover could be worth considering as a long term option.

St Barbara Ltd (ASX: SBM)

Analysts at Morgan Stanley have retained their buy rating and $3.85 price target on this gold miner’s shares. This follows an issue at the Gwalia gold mine which has impacted its production in the first quarter. However, the broker notes that management expects to make up for this shortfall in the second quarter and has reiterated its full year production guidance. In addition to this, the broker has previously spoken positively about its Atlantic Gold acquisition. It likes it due to the diversification and production upside it brings to the table. While it isn’t my top pick in the sector, I think St Barbara could be a good option for investors wanting exposure to gold.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

A note out of Goldman Sachs reveals that its analysts have retained their buy rating and $6.16 price target on this airport operator’s shares. Although the broker acknowledges that the future of domestic and international travel has become more uncertain in recent months, its analysts remain positive on Sydney Airport. They believe the company is very well-placed to hibernate through to when the recovery commences and then similarly well-placed to leverage it when it does. I think Goldman Sachs is spot on and Sydney Airport could be a great option for patient investors.

More reading

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• Why the St Barbara (ASX:SBM) share price is climbing higher today

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 Clover Limited. 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 DWS Ltd (ASX: DWS) share price is off to the races today, soaring 31%. The surge in the DWS share price follows this morning’s announcement that the company will be acquired by global giant HCL Technologies Ltd.

Today’s huge leap sees DWS shareholders handily in the green for 2020, with the share price up 9% year to date. Savvy (or lucky) investors who bought DWS shares at the 24 March lows are enjoying gains of 115%.

By contrast, the All Ordinaries Index (ASX: XAO) is down 12% so far this year.

We’ll look at the details of the acquisition offer in a tick, but first…

What do DWS and HCL do?

DWS was founded in 1991 by its current CEO, Danny Wallis. Shares first started trading on the ASX in June 2006. The company provides a range of IT services including consulting for custom application development, digital solutions and project management. FY20 revenue came in at $167.9 million.

Operating out of 49 countries, HCL Technologies works to deliver companies the technology they need for the decade ahead. The company offers its services and products through three business units: IT and Business Services (ITBS); Engineering and R&D Services (ERS); and Products & Platforms (P&P). For the financial year ending 30 June, HCL had consolidated revenue of US$9.93 billion (AU$13.6 billion) and as of this morning had a market capitalisation of US$29 billion.

What is HCL offering DWS shareholders?

HCL is offering to buy 100% of the DWS shares by way of a scheme of arrangement. Shareholders will receive a total cash consideration of $1.20 per share plus 3 cents per share dividend. If shareholders approve of the deal (and it passes the needed regulatory hurdles) DWS will become a wholly owned subsidiary of HCL.

DWS plans to make use of HCL’s global resources and expertise to offer expanded platforms to its Australian customer base.

The implied price of $1.23 per share still exceeds the current $1.18 cents per share even after this morning’s 31% surge.

Danny Wallis, CEO and Managing Director, DWS said:

We are delighted the DWS team is joining HCL. As a leading name in the global technology industry and with over 150,000 employees across 49 countries, they bring best in class technology capabilities, global scale and a wide network of clients and partners across industries. This acquisition represents an outstanding outcome for all DWS stakeholders: shareholders, employees, clients and other business partners.

Michael Horton, Executive Vice President & Country Manager, Australia & New Zealand, HCL Technologies added:

We are excited for this expansion of HCL Technologies in Australia and New Zealand and are confident that our combined strengths will further accelerate the digital transformation journeys of our clients and innovations for their end customers. HCL has invested in the region for over 20 years and is committed to enabling digitilisation and growing the local ecosystem. DWS has forged a sterling reputation, powered by highly talented consultants who enable organizations to be at the cutting edge of technology.

More reading

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• Brainchip (ASX:BRN) share price shoots 9% higher on software development centre
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• Leading brokers name 3 ASX shares to buy today
• All-time high! Here’s why the Baby Bunting (ASX:BBN) share price is soaring today

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.

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