Mention the phrase ‘buy now, pay later’ (BNPL) to an ASX investor and which company names pop up? The big players Afterpay Ltd (ASX: APT), Zip Co Ltd (ASX: Z1P). Then there’s Sezzle Inc (ASX: SZL) and Openpay Group Ltd (ASX OPY).

BNPL has taken the ASX by storm in the past 2 years, with multiple companies such as those listed above recording triple-digit share price gains since 2018.

But Paypal Holdings Inc (NASDAQ: PYPL) is probably not one of them. PayPal is known for its e-commerce prowess. It has become almost as ubiquitous as the card payment giants Visa Inc (NYSE: V) and Mastercard Inc (NYSE: MA) in the global payments scene over the past decade or so.

PayPal and BNPL

According to the Australian Financial Review (AFR), PayPal has benefitted enormously from the changes that the coronavirus pandemic has brought to society. The US payments giant is very close to reporting more than US$1 trillion in annualised transaction value, with BNPL payments making “tremendous” progress, the AFR reported.

PayPal chief executive Daniel Shulman was quoted as saying:

I’m extraordinarily pleased with the success we’re having with buy now, pay later… We rolled this out in France several months before we introduced this into the US and UK, and the up-tick that we’re seeing in the French market is well beyond any of our expectations. We just rolled out in the US and the demand is tremendous.

PayPal offers a BNPL product called “Pay in 4” or “Pay in 3”, which, as the name suggests, allows customers to pay in 3 or 4 interest-free instalments. Unlike the products offered by ASX players like Afterpay and Zip, PayPal’s offering doesn’t charge any merchant fees for the privilege of using the BNPL option beyond its established pricing structure.

PayPal has also been expanding into other ‘unconventional’ payment methods like bitcoin and other cryptocurrencies.

What can ASX investors take from this news?

It will be interesting to see if PayPal’s data shows a shift towards the BNPL payments trend as a whole, or if it shows a shift within BNPL to larger global players like PayPal at the expense of ASX players like Aferpay and Zip. Remember, Zip and Afterpay are also trying to expand into the same markets that PayPal serves, such as the US and the UK.

One thing is for certain though: it looks as though the BNPL concept is very much here to stay.

More reading

• Afterpay (ASX:APT) share price still higher than these big broker targets
• Zip and Credit Clear were among the most traded shares on the ASX last week
• Laybuy (ASX:LBY) launches tap to pay digital card
• Why these 5 fintech ASX shares are surging
• These were the best performing ASX tech shares in October 

Sebastian Bowen owns shares of Mastercard and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Mastercard, PayPal Holdings, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc and recommends the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Mastercard, PayPal Holdings, and Sezzle 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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During a day when the entire world seems to be focused on the US election, there were a number of ASX tech shares that enjoyed big gains. Here’s a closer look at today’s winners, and what was moving their share prices.  

4 ASX tech shares with massive share price gains today

Healthcare technology

The Nanosonics Ltd. (ASX: NAN) share price rocketed by 12.50% today. Nanosonics sells products related to reducing infection. Today it posted a business update with a lot of good news in it for the past four months. For example, the company has posted a 4% increase in consumable units installed. Moreover, the number of new trophon units installed was 91% of the prior corresponding period (pcp). 

Industry software

The Infomedia Limited (ASX: IFM) share price closed out the day’s trade up by 10.49%. Infomedia is a leading software provider in parts, service and data insights to the global automotive industry. 

The company today signed a strategic pan-European contract with Ford Europe. This is to provide the next generation (Next Gen) of its Microcat electronic parts catalogue (EPC) in the region. The total contract value of this for the ASX share is approximately $14 million over 5 years.

The Vection Technologies Ltd (ASX: VR1) share price rose by 9.09% today. This company provides 3D virtual reality software so that designers can interact with their designs of products. For example, the company’s product, FrameS, is used by luxury car makers to provide virtual showrooms for customers. This includes brands such as Lamborghini, Maserati, Volvo and Philip Morris.

Vection announced a partnership with Luiss Business School yesterday. This company has accreditations that will allow Vection to accelerate the promotion of its augmented reality suite of healthcare solutions across the public and private healthcare sectors. The school is the creator of the Italian model for risk management in healthcare.

Fintech ASX shares

RAIZ Invest Ltd (ASX: RZI) is an fintech company in Australia, Indonesia and Malaysia. It allows Australian customers to micro-invest the remaining round up of everyday purchases in exchange traded funds. Today, the company published a business update filled with good news. 

This includes a 55% increase in customer sign ups on pcp. In addition, a 57.1% increase in investment accounts on pcp, and a 43.8% increase in active accounts. In fact, the total funds under management increased by 27.9%, reaching just over half a billion. The Raiz share price finished the day up by 4.76%.

More reading

• ASX 200 ends mixed on Wednesday
• Infomedia (ASX:IFM) share price up 7% on contract win
• The Nanosonics (ASX:NAN) share price is surging higher
• Why the Vection (ASX:VR1) share price has jumped another 9.5%
• ASX stock of the day: Purifloh (ASX:PO3) shares surge 22% on update

Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Infomedia and Nanosonics Limited. The Motley Fool Australia has recommended Nanosonics 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 S&P/ASX 200 Index (ASX: XJO) finished slightly down by 0.07% to 6,062 points as the US election result remains unknown.

Here are the highlights from the ASX today:

Nanosonics Ltd (ASX: NAN)

The Nanosonics share price was the best performer today, it rose by 12.5% in reaction to an update.

It gave an update for the first four months of FY21. The ASX 200 healthcare business said that unit purchases of consumables by end customers in the four months to 31 October 2020 were up 4% compared to the prior corresponding period – this refers to a period before the COVID-19 pandemic.

However, when comparing unit purchases of consumables by end customers in the first fourth months of FY21 to the last four months of FY20, there has been growth of 25%.

In the four months to 31 October 2020, the number of new Trophon units installed was 91% of the prior corresponding period (meaning it was down 9%). Compared to the last four months of FY20, the number of new Trophon units installed was up 16%.

Nanosonics CEO Michael Kavanagh said: “During the second wave of COVID-19 in North America, we have observed that hospitals in that region appear better equipped to manage the impact of the pandemic. Accordingly, ultrasound procedure volumes requiring high level disinfection did not seem to be impacted to the same degree as in the first wave. However, this does not guarantee that future waves will follow the same pattern in North America or other regions.

“Despite ongoing periods of uncertainty we remain optimistic about the future and investments in our growth agenda continue across the business as we look to further expand our geographical footprint and product portfolio. We remain committed to doing everything we can as an infection prevention company to support all of our customers during these unprecedent times.”

Pushpay Holdings Ltd (ASX: PPH)

Digital giving business Pushpay announced its FY21 half-year result today. The Pushpay share price fell 11% in reaction, despite upgrading its guidance.

Pushpay announced that its total processing volume increased by 48% to US$3.2 billion. Management said it expects to grow its processing volume as it wins more churches and there is further adoption of digital giving.

Pushpay’s revenue grew by 51% to US$86.6 million with operating revenue growth of 53% to US$85.6 million.

The gross profit margin improved by three percentage points to 68% and is expected to stay around this current level over the rest of the financial year.

Pushpay’s earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) rose by 177% to US$26.7 million. The EBITDAF margin improved from 17% to 31%.

The company said its net profit after tax (NPAT) improved by 107% to US$13.4 million and operating cashflow jumped 203% to US$27 million.

Pushpay upgraded its full year EBITDAF guidance range to be between US$54 million to US$58 million. It’s still aiming for US$1 billion of revenue in the long-term.

Woolworths Group Ltd (ASX: WOW)

The ASX 200 supermarket giant announced its first quarter sales update today.

Overall, total sales rose by 12.3% to $17.85 billion. Australian food sales grew by 12.9% to $12 billion. New Zealand food grew total sales by 6.9%, in New Zealand dollar terms, to NZ$1.88 billion.

Now to the non-food businesses. Big W sales went up 20.4% to $1.1 billion. Endeavour Drinks revenue grew by 21.4% to $2.65 billion and hotels revenue dropped 33.2% to $313 million.

There was a large increase in the amount of e-commerce sales with growth of 86.7% to $1.5 billion.

Woolworths also reported that $164 million was paid to remediate salaried team members for salary payment shortfalls. In total, $281 million has been paid to date.

In October 2020, Australian food comparable sales growth was in the high single digits, which moderated over the month. Growth in New Zealand also moderated compared to the first quarter of FY21. Endeavour Drinks and Big W have “continued to perform strongly.” Despite the Victorian closures, the hotels business was profitable in the first quarter by materially down on last year.

More reading

• With interest rates near zero these ASX income shares are in focus
• ASX copper miners brush off latest Chinese tariff threat
• The Nanosonics (ASX:NAN) share price is surging higher
• Quantitative Easing (QE) is here. What does it means for ASX shares?
• Here’s why the Woolworths (ASX:WOW) share price is inching higher

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 Nanosonics Limited and PUSHPAY FPO NZX. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended Nanosonics Limited 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.

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Downer Edi Limited (ASX: DOW) share price has dropped 2.17% to $4.51 today on news of a lost laundry bid. Shares in the integrated services provider rallied up to $4.62 in mid-afternoon trading before falling sharply.

Downer Edi provides a range of services in Australia and New Zealand in transport, utilities, facilities, engineering, construction, maintenance and mining.

What happened?

South Pacific Laundry has withdrawn its bid to acquire Spotless Laundries, which is part of Spotless Group Holdings and wholly owned by Downer.

Spotless is one of Australia’s largest commercial laundry operations, alongside the South Pacific Laundry operation. But a merging of two major players caused concerns with regulators.

In a statement in August, Australian Competition and Consumer Commission (ACCC) commissioner Stephen Ridgeway said:

This transaction would combine the two largest commercial laundry suppliers in Sydney and Adelaide, and two of the biggest suppliers in Melbourne and Perth, increasing market concentration where there are already a limited number of comparable suppliers.

The failed offer from South Pacific Laundry follows a similar failed bid from Alsco Pty Ltd last month. Alsco also withdrew its bid for the laundry titan as a result of similar regulator concerns. 

More on the Spotless Group

Spotless and Downer both offer multiple service streams to multiple clients. Service lines include security, cleaning, catering and asset management to industries including defense, education, transportation and healthcare amongst others. 

Downer acquired about 88% of the Spotless Group in 2017 and bought the remaining shares this year. 

Spotless Laundries operates 13 commercial laundries servicing 4,800 clients across Australia and New Zealand. The business itself has been around since 1946, starting as a single dry cleaning shop in Melbourne. 

Why is Spotless trying to sell its laundry business?

Downer CEO Grant Fenn said that the Spotless Laundries business was not core to Downer’s service offerings.

He said Downer was focusing on building to its strength, which was an “asset-light, services-focused” business model.

Spotless Group has invested $47 million in capital improvement projects since 2017. FY20 revenue for the laundries business sat at $265 million in recent reports.

About the Downer share price

The Downer share price has performed poorly in 2020, losing as much as 40%. The coronavirus pandemic hit the share price hard and it’s struggled to recover. The Downer share price has regained less than half it’s lost ground since March.

More reading

• CSL (ASX:CSL) share price and 2 other ASX stocks among latest broker “buy” ideas
• Why Downer, ELMO, Netwealth, & Sezzle shares are storming higher today
• How the federal budget will impact on your ASX stock portfolio

Motley Fool contributor Glenn Leese 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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In 2020 so far, a total of 43 companies went public by floating their shares on the Australian Stock Exchange through initial public offerings (IPO).

Although some of those companies are struggling to maintain their initial share price , other IPO shares have been strong performers.

Today I’m going to talk about the 3 best-performing companies from this group, all of which have seen their share prices increase markedly since their debut.

Douugh Ltd (ASX: DOU)

Neobank company Douugh first listed in early October at an oversubscribed IPO share price of 3 cents. It’s currently trading at 25 cents, giving investors a 733% return in just one month. 

For those unfamiliar, neobanks perform almost identical functions to traditional brick-and-mortar banks, but do so exclusively online without physical branches.

The company’s core product is its AI-powered smart phone app and bank account that the it hopes will allow its customers to take control of their financial wellness. Significantly, the company entered into a global partnership with Mastercard in 2019.

Douugh is one of a handful of Australian neobanks with the likes of Volt, 86 400 and Xinja – none of which are currently listed on the ASX.

Cosol Ltd (ASX: COS)

IT services provider Cosol listed its shares on the ASX in January at an IPO share price of 20 cents. Today it is trading at 67 cents, a remarkable 235% increase in just 10 months.

Cosol’s main offering is the ABB’s Ellipse enterprise asset management (EAM) software solution powered by Hitachi. EAM is basically a process that manages the lifecycle of a company’s physical assets to maximise their use and economic return.

Cosol also has partnerships with solution providers SAP (NYSE: SAP) and IFS (NYSE: IFS), working largely in the mining industry.

It also recently acquired the US-based EAM specialist company AddOns for US$1.5 million. Cosol said the acquisition is in line with its ambitions of becoming a global player in EAM.

Of most significance, Cosol was awarded a $3.24 million contract in August by the Australian Department of Defence to manage the department’s EAM systems.

4DMedical Limited (ASX: 4DX) 

Health technology company 4D Medical made its debut on the ASX in August at an IPO share price of 73 cents. It is currently trading at $2.25, which represents a 212% increase in three months.

4D Medical is an early stage lung imaging software maker. The company’s proprietary product is the XV Technology, which converts X-ray images into four-dimensional quantitative data. Its goal is to replace old technology such as X-ray and CT scans, which according to the company are ”out-of-date and not fit for purpose anymore”.

4D Medical’s main clients are obviously hospitals. Its main selling point to hospitals is that its software does not require any large capital expenditure, as the company is able to integrate its software with the hospital’s existing systems. 4D Medical charges a fee on a per scan basis, charging US$175 per test using the XV Technology.

As mentioned, the product is still at an early stage and needs to be commercialised on a mass scale.

More reading

• Douugh and Ioupay were among the most traded shares on the ASX last week
• Why the Douugh (ASX:DOU) share price is up almost 1000% since its IPO
• Douugh and Afterpay were among the most traded shares on the ASX last week
• Top ASX tech shares to buy in October 2020
• Why the 4DMedical (ASX:4DX) share price is reaching new highs

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. 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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Gold producer Alkane Resources Limited (ASX: ALK) provided key updates on its drilling project at Roswell at today’s annual general meeting (AGM). At the time of writing, the Alkane share price is trading 4.84% higher at $1.30. 

What’s moving the Alkane share price?

The Alkane share price is on the move today after the company provided some key updates on its ongoing drilling project at Roswell.

Over the past two years, Alkane Resources has undertaken extensive exploration at the Roswell and San Antonio deposits with the aim of identifying an inferred mineral resource.

The Roswell deposit is part of the 440sq km Tomingley Gold Project in New South Wales.

At today’s AGM, the company said that after an additional 29,000 metres of drilling, the Roswell deposit now stands at 10.1 million tonnes grading 2.04g/t of gold, or around 660,000 oz. This is an increase of 50% from the previous update in January, which is significant.

It also mentioned that the drilling is continuing to the south of Roswell, and an update on the San Antonio deposit is anticipated in December. 

Other key takeaways from the AGM

• The company holds liquid assets of $92 million in cash, bullion and listed investments as at 30 September 2020.
• Significant shareholder value was created through the demerger of Australian Strategic Materials Ltd (ASX: ASM) in July.
• There are strong indications of large deposits at Boda, where a further 30,000-metre drilling operation is still in progress. 
• Investments with strategic alliances are intact. These include 19.9% of Genesis Minerals Ltd (ASX: GMD) and 12.17% of Calidus Resources Ltd (ASX: CAI).

How has Alkane Resources performed?

Alkane Resources has produced return on equity of 13.77%, 11.52%, and 5.3% for the last three years respectively.

The company has also been reporting solid liquidity on its balance sheet, with the current ratio sitting comfortably at 4.87, supported by today’s announcement that it holds $92 million in liquid assets. 

The Alkane share price has performed impressively this year, up by more than 120%, which includes today’s gain of nearly 5%. At its current price, Alkane has a market capitalisation of around $740 million.

More reading

• With interest rates near zero these ASX income shares are in focus
• MyDeal.com.au (ASX:MYD) share price up 7% on trading update
• ASX copper miners brush off latest Chinese tariff threat
• Travel shares are flying higher today. Here’s why.
• Pendal (ASX:PDL) share price falls 7% on disappointing FY20 result

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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There were three big events I, and most Aussies, had a close eye on yesterday.

We’re still awaiting the definitive outcome of the United States elections. Both the White House and the Senate can potentially go to Joe Biden and the Democrats, or Donald Trump and the Republicans.

We do know that Twilight Payment, ridden by Jye McNeil, took first place at the Melbourne Cup.

And, of far more significance to Australia’s savers, we know that the Reserve Bank of Australia (RBA) cut the official cash rate, as was widely expected. The cash rate was dropped from the already historic low 0.25% to a new razor thin 0.10%

Debtors, rejoice.

Savers, not so much.

The RBA also announced an unprecedented (for Australia) level of new quantitative easing (QE). The RBA will now buy $100 billion of government bonds over the next 6 months, vowing “to do more if necessary”.

So when can Australia’s savers, reliant on the income of their term deposits to keep ahead of the bills, expect to see interest rates head comfortably higher?

Don’t hold your breath.

The central bank stated the cash rate won’t go up until inflation “is sustainably within the 2 to 3 per cent target range”.

And how long, pray tell, is that?

According to the RBA, “Given the outlook, the Board is not expecting to increase the cash rate for at least three years.”

RBA governor acknowledges low deposit rate “difficulties”

Even with inflation running below 2%, the returns from term deposits are effectively negative. Meaning each year, after you add in the dwindling interest earned on your cash deposit, your savings are worth less than you started with.

Conundrum?

You bet.

And one that RBA Governor Philip Lowe openly acknowledged, saying:

The Board recognises that low rates can encourage some additional risk-taking as investors search for yield. It also recognises that low deposit rates can create difficulties for some people. These issues will need to be closely watched over the months ahead. But the Board judged that the bigger risk at the moment was the threat to our economy and to balance sheets from an extended period of high unemployment. Today’s decision will lessen that risk.

What’s a diligent saver to do?

With negligible to negative real returns on term deposits, the spotlight is on the income potential of ASX dividend shares. These are companies that pay out (regularly, you hope) some of their profits to shareholders.

You also hope that the share price of these ASX dividend shares goes up in time, as any capital losses can offset the dividend payments, potentially leaving you worse off.

Which is why the RBA acknowledged that searching for yield does involve “some additional risk-taking”.

That’s because term deposits – especially with banks covered by the Australian government’s deposit guarantee – are, well, as safe as money in the bank. Which is not 100% safe, mind you. But about as close as you can get.

2 stand-out ASX dividend shares to consider

With that said let’s look at 2 high-performing income shares, both of which are part of the S&P/ASX 200 Index (ASX: XJO).

First up is Sonic Healthcare Limited (ASX: SHL), the world’s third largest pathology medicine company with operations in 8 countries. Sonic pays a 2.4% trailing dividend yield, 26% franked.

It also has a lengthy proven track record of increasing share prices, dating back to 1999. Not that there weren’t some down periods in that time. But the trend has been steadily higher, with Sonic’s share price up 1,204% since January 1999.

The Motley Fool’s own Edward Vesely first recommended Sonic in his investment advisory, Dividend Investor, on 16 July 2019. He noted the company’s solid cash flows and defensive earnings, its growth opportunities in highly fragmented overseas markets, and a consistent and growing dividend as reasons to buy.

On 20 October, Edward wrote that Sonic, “has seen revenue surge to start the new financial year. So far the company has conducted more than 9 million Covid-19 tests globally”, while adding the caveat that, “this level of growth will not continue indefinitely.”

Atop the dividend payments, Sonic’s share price is up 33% since Edward first tipped the stock to his members. Over that same time the ASX 200 is down 10%.

The second ASX dividend paying share in the spotlight today is Amcor CDI (ASX: AMC). Amcor was also recommended by Edward in Dividend Investor. He tipped the global packaging company on 19 November 2019.

Edward cited the anticipated benefits from Amcor’s merger with Bemis, its shareholder-friendly management, and 4.6% trailing dividend yield (unfranked) as reasons to buy.

Atop the regular dividends, Amcor’s share price is up 9.4% since 19 November last year, while the ASX 200 is down 11.9%.

At the current share price, both Sonic Healthcare and Amcor retain a buy rating over at Dividend Investor.

More reading

• ASX copper miners brush off latest Chinese tariff threat
• Quantitative Easing (QE) is here. What does it means for ASX shares?
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 finished 2% higher on Tuesday
• Here’s what an interest rate of 0.1% means for ASX shares

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Amcor Limited. The Motley Fool Australia has recommended 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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The MyDeal.com.au Ltd (ASX: MYD) share price has pushed higher following the company’s release of a Q1 trading update and investor presentation.

About MyDeal.com.au

The MyDeal.com.au share price had an initial public offering price (IPO) of $1.00 with an indicative market capitalisation of $258.8 million at the offer price. It is an online retail marketplace operating within the Australian e-commerce market for household goods such as furniture and homewares. The platform connects merchants with consumers via its scalable proprietary marketplace technology and capital-lite business model. 

According to the company, MyDeal.com.au sees significant growth in Australia over the next 5 years due to improvements in technology and millennials entering its core demographic age. It describes online penetration rates in Australia for furniture and homeware sales as in its infancy compared to the United Kingdom and United States. MyDeal estimates that online sales penetration is approximately 5.1% compared to the respective 15.2% and 16.6% in the UK and US. 

Q1FY21 trading update 

The company highlighted FY21 first quarter gross sales of $56.7 million, up 317% year on year. This represents a gross sales run rate of approximately $226.7 million. Its active customers increased 268% year on year to a record 669,897 as at 30 September 2020.

The company launched its own private label business, Duke Living, to leverage its proprietary marketplace data to offer quality products at affordable prices. Duke Living follows a just-in-time inventory model and outsourced warehousing to reduce capital requirements. It also possesses the flexibility to sell goods through other marketplaces such as those operated by eBay Inc (NASDAQ: EBAY) and Amazon.com, Inc (NASDAQ: AMZN) to drive volumes. This brand has generated gross sales exceeding $1.6 million between its launch in June 2020 and 30 September 2020. 

Taking a closer look at its customer metrics, MyDeal points to an increase in new customers and repeat orders as drivers in its run rate growth. In this quarter, approximately 50% of its transactions were from repeat customers. From a demographic perspective, its core customer base sits within the key disposable income demographic with 25% of customers within the 25-34 age bracket and 20% within the 35-44 age bracket. 

Moving forward, MyDeal aims to build an iOS and Android app that will improve the mobile shopping experience, reduce marketing costs and increase customer stickiness. The company will also be on the lookout for any acquisitions that complement its vision and objectives. 

The MyDeal.com.au share price is currently up 6.56% at the time of writing following its solid maiden quarterly update and a wider rebound in the ASX 200. 

Change in director’s interest 

In addition to its positive quarterly update, MyDeal.com.au also announced one of its board members had acquired an additional 200,000 shares at $1.296 per share.

Insider purchases don’t always equate to positive medium to long-term share price performance. However, it does show the confidence of management and its willingness to put skin in the game. 

More reading

• These 3 ASX shares to IPO recently are struggling
• Are these small cap ASX shares the next Kogan (ASX:KGN) and Nearmap (ASX:NEA)?
• Here’s how Adore Beauty (ASX:ABY) and these new IPOs have fared since listing
• Zebit Inc (ASX:ZBT) share price crashes 21% lower following IPO
• MyDeal (ASX:MYD) share price rockets 120% higher following IPO

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends eBay and recommends the following options: long January 2021 $18 calls on eBay, short January 2021 $37 calls on eBay, short January 2022 $1940 calls on Amazon, and long January 2022 $1920 calls on Amazon. The Motley Fool Australia has recommended Amazon. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Shares in ASX copper miners are outperforming today even as multiple reports confirmed China added Australian copper to its list of “banned” imports.

The Sandfire Resources Ltd (ASX: SFR) share price jumped 3.4% to $4.27 and the OZ Minerals Limited (ASX: OZL) share price added 1% to $14.82 during lunch time trade.

In contrast, the S&P/ASX 200 Index (Index:^AXJO) is struggling at breakeven while the Fortescue Metals Group Limited share price and Rio Tinto Limited (ASX: RIO) share price tumbled.

ASX copper miners the latest victims of China’s tantrum

The outperformance of our copper miners comes even as Bloomberg reported that China is ordering its traders to stop buying at least seven types of Aussie commodities.

On top of Aussie copper ore and concentrate, other imports being targeted include wine, coal, barley, lobsters, sugar and timber.

It’s the clearest sign yet that relations between Australia and its most important trading partner are continuing to deteriorate.

Why copper is holding firm despite trade threat

But Sandfire Resources is downplaying the risk to its earnings from the copper ban. It believes it can find other buyers for its copper, reported the Australian Financial Review.

What’s more, the miner’s cash pile that stands close to $400 million will buy it time to seek out new markets.

OZ Minerals is also brushing off the threat. Its chief executive Andrew Cole pointed out that China can’t produce its own copper, unlike coal or wine. This means, China will still need to import the red metal from somewhere, if not Australia.

If the trade tension drives the price of copper higher, Chinese authorities may very well have to swallow their pride and reverse the decision.

China is world’s largest importer of copper

China buys around half of Australia’s copper exports and is the largest importer of the commodity in the world, according to data from Statista.

The Asian giant purchased US$40.8 billion worth of copper in 2019, which is more than the next five largest importers.

Outlook for ASX copper miners still look bright

Further, the COVID‐19 pandemic may be providing a net benefit to copper producers. While global factory production may have tumbled in the near-term, copper exports from Latin America may be impeded for years.

For instance, production at Escondida, which holds the world’s largest copper reserves and is co-owned by BHP Billiton Ltd (ASX: BHP) and Rio Tinto, may not recovery to pre-COVID levels for three years.

In the meantime, industrial production (particularly in China) is starting to recover.

Cost blowouts and longer-than expected lead times in getting new copper mines up and running will further crimp supply.

This explains why analysts remain upbeat on the outlook for copper as the price of the commodity improved 0.2% to US$3.09 a pound today despite news of the Chinese tariff.

More reading

• Quantitative Easing (QE) is here. What does it means for ASX shares?
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 finished 2% higher on Tuesday
• Here’s what an interest rate of 0.1% means for ASX shares
• Why IDP Education, Sandfire, Telix, & Treasury Wine shares are dropping lower

Motley Fool contributor Brendon Lau owns shares of BHP Billiton Limited, OZ Minerals Limited, and Rio Tinto Ltd. Connect with me on Twitter @brenlau.

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 ASX copper miners brush off latest Chinese tariff threat appeared first on Motley Fool Australia.

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Yesterday, we heard from the Reserve Bank of Australia (RBA) after its monthly meeting concluded for November. Most headlines discussed how the RBA lowered interest rates to yet another record low of 0.1%, down from the previous level of 0.25%. This will have many ramifications, some of which we discussed yesterday.

However, the RBA made another very important announcement that I think is worthy of discussion today. In addition to the cash rate cut, the RBA also announced that it would be undertaking a massive government bond-buying program, which some are calling Quantitative Easing (QE). QE is a new policy in Australia, but not around the world. In fact, the United States Federal Reserve has initiated several rounds of QE over the past decade, starting in the immediate aftermath of the global financial crisis. QE involves the central bank buying massive amounts of government bonds. This has the effect of lowering borrowing costs throughout the economy, which in turn is supposed to spur and encourage economic growth as a result.

Until now, Australia has avoided QE, but no longer. The RBA yesterday announced it would be going on a bond-buying spree of its own, promising to purchase $100 billion worth of government bonds over the next 6 months, with an aim to buy $5 billion worth every week until then.

According to reporting in yesterday’s Australian Financial Review (AFR), RBA Governor Philip Lowe told Australians that “the lower interest rates and our plan to buy $100 billion of government bonds over the next six months will help people get jobs and support the recovery of the Australian economy”.

So what does this mean for ASX shares?

QE for the ASX?

QE is normally viewed as highly supportive of assets like shares. That’s because it crowds out buyers in the bond market, forcing more capital into those markets, which then tends to spill over into other asset markets. It also lowers the yields of government bonds, which also pushes out buyers not willing to accept rock-bottom bond yields.

We’ve seen this play out over in the US. Since November 2010, the Dow Jones Industrial Average Index (DJX: .DJI), a flagship US index, is up more than 145%, whilst the Nasdaq Composite (NASDAQ: .IXIC), another flagship index, is up more than 330%.

One could conclude that QE has played a significant part in these returns. Thus, that’s probably why the S&P/ASX 200 Index (ASX: XJO) was up a hefty 1.9% after the RBA’s QE program news yesterday. 

More reading

• ASX copper miners brush off latest Chinese tariff threat
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 finished 2% higher on Tuesday
• Here’s what an interest rate of 0.1% means for ASX shares
• ASX 200 has explosive start to trading ahead of RBA decision

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 Quantitative Easing (QE) is here. What does it means for ASX shares? appeared first on Motley Fool Australia.

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