The Northern Star Resources Ltd (ASX: NST) share price will be one to watch on Wednesday following the release of its fourth quarter update.

How did Northern Star perform in the fourth quarter?

During the quarter ending 30 June 2020, Northern Star generated underlying free cashflow of $217.9 million from the sale of 262,717 ounces of gold.

This took Northern Star’s total sales for FY 2020 to 900,388 ounces from gold production of 905,177 ounces. This was ~1.6% below the lower end of its FY 2020 guidance, which was withdrawn in March due to uncertainties stemming from the pandemic.

Something else that was withdrawn in March was the payment of its fully franked 7.5 cents per share interim dividend. This payment has now been reinstated and will be made to eligible shareholders on 16 July. After which, the company expects to resume dividend payments in the ordinary course of business.

The company certainly has sufficient liquidity to pay its dividends. At the end of the period its cash, bullion, and investments had risen by 40% over the three months to $769.5 million.

Though, it is worth noting that since the end of the financial year, Northern Star has elected to pay down its corporate bank debt by $200 million. This leaves it with a debt of $500 million.

Costs rise.

The company didn’t provide any details on its all-in sustaining costs for the quarter, but hinted that costs rose because of the pandemic,

Northern Star Executive Chair, Bill Beament, commented: “The health and safety of our people and the communities in which we operate is always our first objective and the measures we adopted in response to COVID-19 reflected that.”

“As we foreshadowed at the time, these measures incurred additional costs, reduced productivities and restricted production,” he added.

Nevertheless, Mr Beament was very pleased with the company’s performance during the quarter.

He said: “To generate quarterly free cashflow of A$217.9 million in these circumstances is an outstanding result which reflects the performance of our staff and business partners, our success in being able to operate continuously throughout the pandemic and the underlying strength of our assets.”

No guidance for FY 2021 was provided with today’s update.

Also on watch today will be the Saracen Mineral Holdings Limited (ASX: SAR) share price after the release of its quarterly update. It delivered record FY 2020 production of 520,414 ounces, ahead of its guidance of 500,000+ ounces.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday
• Should you buy ASX gold shares like Saracen Minerals in July?
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It’s not often you look at an ASX blue-chip and think it’s undervalued, but that’s what I think about the BHP Group Ltd (ASX: BHP) share price right now.

How has the BHP share price performed this year

Shares in the Aussie iron ore miner jumped 1.3% higher to $36.10 per share in yesterday’s trade.

That means the BHP share price is now down 7.3% from where it started the year. For reference, the S&P/ASX 200 Index (ASX: XJO) is down 10.1% in 2020.

That means BHP is already outperforming many of its ASX 200 peers. So, where could the boost to intrinsic value come from in 2020?

Macroeconomic tailwinds could be the key

I think a surging iron ore price is a big factor here. Resources shares like BHP are largely beholden to whatever the commodity price is at the moment.

According to Market Index data, iron ore prices are currently at US$101.54 per tonne. That means the key commodity price is now up 36.9% since 23 March when we saw the bottom of the bear market.

That’s good news for the BHP share price and its FY20 earnings in August. Higher iron ore prices should translate to higher revenues and more cash flow available for dividends and reinvestment.

I see a potential infrastructure boom as a key tailwind for the BHP share price. The coronavirus pandemic proved to be the trigger for Australia’s first recession since 1991/92.

It’s purely speculative at this point, but it’s not hard to see the federal and state governments turning to infrastructure to kickstart the economy. Infrastructure projects can employ huge numbers of people and require significant resources.

That includes significant amounts of steel for major projects, which could boost demand for iron ore.

Why I see good value in the iron ore miner today

If it’s all good news, why is the BHP share price still down 7.3% in 2020?

For one, the Aussie dollar could make or break Aussie exports in 2020. A low dollar is good for exports as it makes Aussie products relatively cheaper for other countries. However, the AUD–USD exchange rate has rocketed higher since March and the Aussie dollar is now buying 69 US cents.

Many miners are facing increased scrutiny over their operations at the moment after some high-profile controversies in recent months. On top of mounting pressure, there’s also the question of whether the BHP share price is a strong relative buy versus its peers.

Shares in the company are trading at a price-to-earnings (P/E) ratio of 13.5 as at yesterday’s close. That’s nearly double that of Fortescue Metals Group Limited (ASX: FMG) and near-identical to Rio Tinto Limited (ASX: RIO).

That says to me that investors don’t see enough upside in the BHP share price right now. While investors aren’t piling in just yet, I think BHP is worth keeping an eye on this year at the very least.

If we do see an infrastructure boom, I think that could be the key to boosting the BHP share price back into the positive in 2020.

More reading

• Why the CBA share price is worth watching this quarter
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 drops on return of lockdown in Melbourne
• These ASX shares are swept up by the new Victorian COVID-19 lockdown
• Why brokers have just downgraded BHP and these ASX stocks today

Motley Fool contributor Ken Hall 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 100 index is home to some of Australia’s biggest and brightest companies.

Whilst I wouldn’t be in a rush to invest in all of the shares on the index, there are a number which I believe are great buy and hold investment options right now.

Here are three ASX 100 shares I like:

CSL Limited (ASX: CSL)

The first ASX 100 share that I would buy is this biotherapeutics giant. I’ve been very impressed with the way CSL has consistently delivered strong profit growth over the last decade. The good news is that there’s no sign of this trend ending anytime soon after its positive form continued in FY 2020. And with demand for immunoglobulins products remaining strong and the company possessing a potentially lucrative pipeline of new products, I believe this trend will continue for a long time to come and drive the CSL share price notably higher over the 2020s.

NEXTDC Ltd (ASX: NXT)

The newest member of the ASX 100 is NEXTDC. It was deservedly added to the index at the latest rebalance. NEXTDC is a technology company providing innovative data centre outsourcing solutions, connectivity services, and infrastructure management software. Its partner ecosystem hosts Australia’s largest independent network of carriers, cloud, and IT service providers. This allows NEXTDC’s customers to source and connect with cloud platforms, service providers, and vendors to build integrated hybrid cloud deployments and scale their IT infrastructure and services. I feel the quality of its centres and the cloud computing boom have put NEXTDC in a position to grow its earnings at a strong rate over the next decade. I expect this to lead to the NEXTDC share price outperforming the ASX 100 over the period.

ResMed Inc (ASX: RMD)

A final ASX 100 share to consider buying is this medical device company. It has a portfolio of cloud-connected devices treating people with sleep apnoea, chronic obstructive pulmonary disease, and other chronic diseases. Demand for its industry-leading devices has been very strong in recent years, underpinning stellar earnings growth. The good news is that the sleep treatment market is tipped to grow rapidly over the next decade, which I believe puts ResMed in a position to continue growing its earnings at an above-average rate for some time to come.

More reading

• How to beat the market with 2 kids and no time
• Where to invest $1,000 in ASX tech shares today
• Why CSL and these ASX 200 shares could be fantastic buy and hold options
• Why NEXTDC and these high flying ASX shares just hit record highs
• 2 ASX shares I would buy for growth and income

James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has recommended ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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I find the Commonwealth Bank of Australia (ASX: CBA) share price a fascinating one to watch.

With a market capitalisation of $126.1 billion, this banking behemoth is one of the largest listed companies in Australia. That means when the CBA share price moves, often the S&P/ASX 200 Index (ASX: XJO) does too.

On top of that, CommBank is Australia’s largest bank. It’s no secret that a huge proportion of the Aussie economy can be attributed to the Financials and Resources sectors. And I do tend to think that CommBank’s share price movements can act as a barometer of sorts for the wider ASX.

So, for all of its intriguing attributes, why am I specifically watching this ASX bank share in July?

Why I’m watching the CBA share price right now

I’m not really one for technical analysis, but watching CommBank’s trading patterns makes for interesting viewing. Having hit a new 52-week low of $53.44 in the March bear market, the CBA share price has hovered around the $68-$72 per share mark for the last month. I think that’s pretty indicative of where the market is at right now. In fact, I wouldn’t be surprised to see the S&P/ASX 200 Index move largely sideways until the August earnings season.

There are plenty of headwinds facing the economy and many were there even before the coronavirus pandemic smashed global economic growth. However, despite all the economic gloom, markets have rebounded strongly. This has largely been due to record-low interest rates, strong government stimulus and expansionary monetary policy.

On the surface, all of these measures should be good for the CBA share price. However, this economic quarter (i.e. July to September) could be one that makes or breaks the ASX bank share.

For one, the heavy government stimulus is likely to be rolled back in September or October. Once these safety nets are removed, we should get a real idea of where the economy is headed for the remainder of 2020 and beyond. Having already hit a recession in the June quarter, I’m bracing for more bad economic news. That could be in the form of even higher unemployment, rising corporate insolvencies and/or higher default rates.

We should also see CommBank release its quarterly Basel III Pillar 3 disclosure report at the end of September. That document should give an indication of the bank’s key regulatory metrics such as Common Equity Tier 1 (CET1) ratio and other capital adequacy measures.

Foolish takeaway

If it was all doom and gloom right now, investors wouldn’t still be buying in at the current CBA share price. It’s easy to be negative but there is still some pretty strong fundamental support for ASX shares.

One big factor is the implicit government support that underpins the Aussie banking system. It’s unlikely that we’d see a major credit crisis from the big four given they are ‘too big to fail’ and the government would invariably step in to help if necessary. There are also the extensive efforts of central banks around the world to prop up the economy. Significant quantitative easing has boosted liquidity in capital markets to keep key lending mechanisms in play right now.

If we see a gradual re-opening of state economies in Australia, this could also boost corporate earnings in 2020. Higher earnings means better debt serviceability which is good news for Aussie bank earnings (and balance sheets).

All in all, I think the CBA share price is interestingly poised right now. For me, the September quarter looms large in determining whether or not to buy into the Aussie bank in 2020.

More reading

• Why I see good value in the BHP share price today
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 drops on return of lockdown in Melbourne
• These ASX shares are swept up by the new Victorian COVID-19 lockdown
• Why brokers have just downgraded BHP and these ASX stocks today

Motley Fool contributor Ken Hall 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 Pacific Smiles Group Ltd (ASX: PSQ) share price rose by 3.23% yesterday. This was due to a management services agreement with HBF in Western Australia. 

Pacific Smiles Group operates dental clinics and provides all of the resources necessary to enable dentists to give optimal clinical services. The company has independent dentists who benefit from consistency of systems and standardised training for all staff. In addition, dentists practising from Pacific Smiles centres typically have preferred provider agreements in place. 

What moved the Pacific Smiles share price?

Yesterday the group announced it has signed an initial 10-year base term management services agreement (MSA) with HBF.

HBF is the leading health fund in Western Australia, where it has over 50% market share. It is Australia’s fifth largest health insurer and the country’s second largest not-for-profit health fund.

Under the MSA, HBF will build a minimum of 5 HBF Dental (HBFD) clinics in WA over the next 18 months. Additionally, Pacific Smiles will be the exclusive operator of these and any additional clinics in Western Australia for the term of the agreement.

Pacific Smiles will receive a percentage of revenue from the operations. In return, the company provides comprehensive operational support for the design, construction, and all aspects of the clinics’ day to day operations. Correspondingly, HBF will be responsible for funding capital expenditure and in-clinic operating costs.

Furthermore, the 2 organisations are working on extending HBF Member Plus to all dentists from Pacific Smiles clinics in the eastern states. 

Mr Phil McKenzie, Pacific Smiles’ Chief Executive Officer said:

This relationship consolidates Pacific Smiles’ position as the leading organic growth focused dental services organisation in Australia. We see this partnership as a compelling way to provide our services to an entirely new population of patients and dentists, and we are delighted that HBF has placed its trust in us to deliver a high quality dental care experience for their members.

How has Pacific Smiles performed recently?

The company’s share price rose by 3.23% yesterday to $1.60 per share, valuing Pacific Smiles at $245.62 million with a price-to-earnings ratio of 28.73. At this price, the company has a trailing 12 month dividend yield of 3.69%.

The company has seen a decline in FY20 revenues against the prior year by approximately 0.7% due to the COVID-19 crisis. However, as restrictions have started to ease in May the company has seen steady growth in bookings.

More reading

• Why I see good value in the BHP share price today
• 3 high quality ASX 100 shares to buy right now
• Why the CBA share price is worth watching this quarter
• REX share price on watch after funding update
• Why Etherstack and these shares were the most traded on the ASX last week

Motley Fool contributor Daryl Mather 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 Regional Express Holdings Ltd (ASX: REX) share price is on watch today after the company released an announcement following the close of trading on Tuesday. REX is Australia’s largest independent regional airline. The company originated in 2002 when investors purchased two small airlines owned by Ansett after it went into administration.

On 29 June this year, the company announced the board had approved a plan to begin domestic operations in Australia. Instead of only flying regional routes, this would mean flying between the major cities of Sydney, Brisbane and Melbourne. Accordingly, the Board approved an initiative to raise a minimum of $30 million to launch these domestic jet operations from March 2021.

Why is the REX share price on watch?

One of the ideas floated in the Board’s initial proposal was a leaseback arrangement. For instance, the company would sell its aircraft fleet, or a portion of it, to a buyer and then lease it back. 

The company announced yesterday it had received term sheets from three different lessors. All expressed interest in the sale-and-leaseback of about 15 aircraft for $30 million. 

The REX Board is still actively considering alternative funding avenues, including funding from equity partners. Consequently it will make its final decision on the source of funding and the amount to be raised before the end of July 2020.

The crowded skies

With the easing of lockdowns, Australians can already fly between several state capitals. Presumably, before long, this will extend to almost all states depending on how the new wave of COVID-19 infections in Victoria plays out. Today, our main carriers are Qantas Airways Limited (ASX: QAN) and Virgin Australia Holdings Limited (ASX: VAH), with the latter still operating while in administration. Moreover, the new owners of Virgin Australia appear to be moving towards a lower cost operation. 

Alliance Aviation Services Ltd (ASX: AQZ) has also embarked on an equity raising initiative to raise approximately $120 million in total. The company operates a diverse business model which includes charter flights and fly-in-fly-out services for resource companies. Alliance has targeted increasing its fleet to offer more services to existing clients, as well as new services for new clients. Additionally, the company specifically mentioned opportunities to expand its tourism operations.

This means REX will be going head to head with Qantas and a newly cost-conscious Virgin Australia, as well as likely facing new competition in its existing routes from Alliance Airlines and QantasLink. On 5 June, REX announced it would be increasing its flights in response to QantasLink having doubled its flights into ports in competition with REX.

The REX share price

The company’s share price has fallen by ~5% over the past week. It currently has a price to earnings ratio of 8.52. At this price the company has a trailing 12 month dividend yield of 10.62%.

More reading

• ASX 200 falls 0.7%, Qantas and Afterpay make a partnership
• The most popular US shares that Aussies are buying includes a few surprising names
• Afterpay share price pushes higher on Qantas partnership
• ASX 200 edges higher: Afterpay and Qantas join forces, big four banks push higher
• The Webjet share price is dividing analysts even as it becomes a likely takeover target

Motley Fool contributor Daryl Mather 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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Investment platform provider CommSec has just released data on the five most traded ASX shares on its platform from last week.

Among the five are some very familiar names, but also a couple which may take investors by surprise.

Here are the most traded ASX shares from last week:

Etherstack PLC (ASX: ESK)

Etherstack shares were in demand with investors last week and became the most traded on the ASX. It accounted for 3.8% of total trades on the CommSec platform. Over the period the UK based tech company’s shares rocketed an incredible 658% higher. Investors were buying Etherstack’s shares after it announced a global agreement with Samsung Electronics.

Alterity Therapeutics Ltd (ASX: ATH)

The next most traded share was Alterity Therapeutics, which accounted for 2.7% of total trades. Alterity Therapeutics is a developer of therapeutic drugs for the treatment of a number of neurological disorders. Last week the U.S. FDA provided it with a development pathway for its ATH434 candidate. ATH434 is the company’s lead compound for the treatment of Multiple System Atrophy (MSA), a Parkinsonian disorder. The buying was so strong it drove the Alterity Therapeutics share price as high as 41 cents. The excitement appears to have worn off now. Its shares have fallen back to a lowly 4 cents.

Zip Co Ltd (ASX: Z1P) 

This buy now pay later company’s shares weren’t far behind and accounted for 2.1% of total ASX trades on the CommSec platform. Over the period the company’s shares climbed a decent 5.3%. This was despite there being no news out of Zip Co last week. However, with the pandemic accelerating the shift to online shopping, investors appear confident that the buy now pay later sector is well-placed to profit.

Afterpay Ltd (ASX: APT) 

This fellow buy now pay later provider was just a touch behind Zip Co and accounted for 2% of all trades on the platform. Afterpay’s shares were very strong performers during the week and recorded an impressive 18% gain. This took the payments company’s shares to a new record high. It looks set to be another eventful week for its shares. On Tuesday Afterpay announced an $800 million capital raising and released a very strong trading update.

Flight Centre Travel Group Ltd (ASX: FLT) 

Finally, this travel agent giant was the fifth most traded stock over the week, accounting for 1.9% of total trades. Last week Flight Centre announced that it secured a debt facility of up to £65 million in the UK to help it navigate the tough trading conditions. While this was a positive, a spike in coronavirus cases in Victoria offset this news and weighed on its shares.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 drops on return of lockdown in Melbourne
• You’re probably a customer of these 3 ASX shares. Should you own them too?
• Afterpay’s founders are selling shares. Should you?
• Leading brokers name 3 ASX 200 shares to sell 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 ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Flight Centre Travel Group 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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At the small end of the Australian share market I believe there are a number of companies with the potential to grow materially in the future.

Five that I think are standouts are listed below. Here’s why I think they should be on your watchlist:

Alcidion Group Ltd (ASX: ALC)

The first small cap share to watch is Alcidion. It is an informatics solutions company providing software which has been designed to improve the efficacy and cost of delivering services to patients and reduce hospital-acquired complications. I believe it is well-positioned for growth because of the shift to a paperless environment in the healthcare sector.

Bigtincan Holdings Ltd (ASX: BTH)

Bigtincan is a provider of enterprise mobility software. This software allows sales and service organisations to increase sales win rates, reduce expenditures, and improve customer satisfaction through improved mobile worker productivity. It has a large number of blue chips using its platform. This includes banking giant Australia and New Zealand Banking GrpLtd (ASX: ANZ).

ELMO Software Ltd (ASX: ELO)

ELMO is a cloud-based human resources and payroll software company which provides a unified platform to streamline processes for employee administration, recruitment, on-boarding, learning, performance, remuneration, compliance training and payroll. It has a massive opportunity in the ANZ market and the option to expand internationally in the future.

Mach7 Technologies Ltd (ASX: M7T)

Mach7 is a medical imaging data management solutions provider to watch. It uses software to create a clear and complete view of the patient. This software helps to inform diagnosis, reduce care delivery delays and costs, and improve patient outcomes. Mach7’s total addressable market is estimated to be US$2.75 billion.

Whispir (ASX: WSP)

Whispir is a software-as-a-service communications workflow platform provider. It provides an industry-leading software platform that allows governments and organisations to deliver actionable two-way interactions at scale using automated multi-channel communication workflows. Its platform has been experiencing incredible demand during the pandemic and appears to have positioned Whispir perfectly to deliver a very strong full year result in August.

More reading

• Why you should watch these exciting small cap ASX healthcare shares closely
• 2 exciting small cap ASX shares that could be destined for big futures
• Why Afterpay, Bigtincan, Dicker Data, & NIB shares are racing higher
• Bigtincan share price jumps 18% on Red Bull deal
• Alcidion Group share price jumps 10% on new contract

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 and recommends Elmo Software. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Alcidion Group Ltd, BIGTINCAN FPO, MACH7 FPO, and Whispir Ltd. The Motley Fool Australia has recommended Alcidion Group Ltd, BIGTINCAN FPO, Elmo Software, MACH7 FPO, and Whispir Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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