My ASX share of the week is listed investment company (LIC) PM Capital Global Opportunities Fund Ltd (ASX: PGF).

The best performers over the last few months have been growth shares that are leveraged to the change in the way that people are now spending or living. Usually those strong performers have a strong digital presence. Some of the ASX shares that have performed really well have been Afterpay Ltd (ASX: APT), Temple & Webster Group Ltd (ASX: TPW) and Pushpay Holdings Ltd (ASX: PPH). I think it will be hard for them to perform as well over the next six months as the last six months.

It’s getting harder to find good value. The businesses that are doing well are priced highly and the rest face a lot of uncertainty over the next six months or longer.

But I think there are some ASX shares like LICs that look good value which are trading at an attractive discount to their net tangible assets (NTA).

You may be wondering what a LIC actually does. It’s pretty simple, it’s just a listed investment fund that invests in other shares on your behalf. I think globally-focused LICs are good investment ideas because ASX shares only represent 2% of the global share market. You may be missing out on exposure to good opportunities. 

Overview of ASX share PM Capital Global Opportunities Fund

It’s a LIC that invests in international shares. It’s run by PM Capital, an investment management business led by Paul Moore. The ASX share was listed in December 2013, though there has been an unlisted version of the fund operating since October 1998.

The LIC charges a management fee of 1% per annum of the portfolio and a performance fee of 15% of the investment return above the benchmark return. The benchmark is the Morgan Stanley Capital International World Index (AUD).

What shares does it invest in?

The ASX share can invest in any global share. It’s not restricted by country, industry sector or market capitalisation. It only invests in businesses that it has conviction in. It generally holds around 40 globally listed shares in its portfolio.

Each month the LIC discloses what percentage of its portfolio is invested in a particular theme or sector. At the end of May, 8% of the portfolio was invested in businesses related to housing Ireland and Spain, global domestic banking was a 24.4% weighting, service monopolies had a 14.8% allocation, Macau gaming was a 8.3% weighting, alternative investment managers had a 12.6% allocation, industrial European businesses had a 6.7% allocation, materials had a 11.4% weighting and ‘other’ had a 12% allocation.

The LIC can also short shares if it wants to. It had short positions amounting to 8.2% of the portfolio at the end of May 2020.

Some of the actual names it actually owns include: Cairn Homes, Bank of America, Visa, MGM China, KKR & Co, Siemens and Freeport-McMoRan Copper.

Why I think it’s good value

I think the ASX share represents good value. Many of the businesses that it’s invested in are somewhat cyclical, those shares have been punished more than others due to COVID-19. I’m not expecting rapid returns, but some of those holdings do look cheap. When investing in cyclical shares the best time to invest is during the bottom of a cycle.

PM Capital Global Opportunities Fund releases a weekly NTA update. At 26 June 2020 it had NTA before tax of $1.12 per share. This is an 18% discount to the current PM Capital Global Opportunities Fund share price of $0.92.

The large NTA discount also boost the potential dividend yield from the ASX share. Assuming it pays 4 cents per share over the next 12 months, it has a grossed-up dividend yield of 6.2%.

Foolish takeaway

I think that over the next 24 months, or less, the shares that the LIC owns could perform well as the global economy recovers to a new normal. I’d be very happy to buy some shares today for the long-term. Both for capital growth and dividends. 

More reading

• Do you have $1k to invest? Buy 1 of these ASX shares
• 3 top international ASX shares for growth and income
• Have $1,000? You should pick one of these 8 ASX shares

Tristan Harrison owns shares of PM Capital Global Opportunities Fund Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended PUSHPAY FPO NZX and Temple & Webster Group 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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On Friday, defence contractor Electro Optic Systems Holdings Limited (ASX: EOS) announced it had entered into negotiations with the Commonwealth Government. This arose out of the government’s $270 billion investment being made in the Australian Defence Force (ADF) announced last week. During his speech, the Prime Minister specifically referred to high technology sensors, which are at the core of Electro Optic’s product range.

The EOS share price jumped by 16.1% following Mr Morrison’s speech, then went into a trading halt at the close of business on Wednesday. It begins to trade again today.

Defence spending negotiations

Electro Optic Systems is in negotiations with the government over the sale of 251 remote weapon stations over the next 12 months as part of the defence spending initiative. The systems will be added to the Army’s Bushmaster and Hawkei protected mobility vehicles and allow for operation from a protected position. 

These negotiations represent welcome news for the company after the recent impacts of COVID-19 on its business. In late May, Electro Optic Systems reported delays of 6 months to $100 million of receipts due to delivery issues. In addition, the company advised it has deferred $70 million in revenue and expects margins to fall from 13.5% to 11%.

As yet, it is unclear precisely which products are included as part of the negotiations. The company makes a range of vehicle-mounted, remote weapon stations of varying size and capability. Furthermore, it supplies comprehensive drone defence technologies which are battle tested. 

About the company

The privatisation of Commonwealth of Australia space activity formed Electro Optic Systems in 1983. The core of the company is its sensor technology which it has commercialised in the aerospace, defence and communications industries.

The weapons systems mentioned above include this sensor technology. In addition, it has also been applied in the Space Situational Awareness (SSA) partnership with the United States. SSA monitors and tracks orbiting space-based objects such as satellites and debris using ground-based radar and optical stations.

Electro Optic Systems presently has active contracts with several NATO naval forces and the Royal Australian Navy. It is the global market leader in lightweight remote weapons systems. 

The company expects to meet its FY20 guidance announced in April, 2020 of 38% revenue growth to $230 million.

More reading

• Electro Optic Systems share price on watch after winning major government defence contract
• Best growth shares to buy with $4,000
• Keep a watch on these 3 ASX trends next week

Daryl Mather owns shares of Electro Optic Systems Holdings Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Electro Optic Systems Holdings Limited. The Motley Fool Australia has recommended Electro Optic Systems Holdings 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 Mayne Pharma Group Ltd (ASX: MYX) share price will be one to watch on Monday following the release of a positive update by the pharmaceutical company.

What did Mayne Pharma announce?

This morning Mayne Pharma announced that it has entered into a long-term supply agreement with Novast Laboratories for 13 U.S. generic oral contraceptive products. This includes five new products not previously marketed by the company.

Novast Laboratories is a pharmaceutical company based in Nantong, China. It develops and commercialises generic drugs for global markets. Novast has a significant number of products approved by the U.S. Food and Drug Administration (FDA), including hormone products and sustained-release oral dosage forms.

According to the release, four of the additional products are FDA approved and include generic equivalents of two of the highest prescribed oral contraceptive products in the United States.

These are Ortho Cyclen and Ortho Tricyclen, as well as Loestrin 24 FE and Desogen. The fifth new product included in the agreement is still pending review with the FDA.

Mayne Pharma’s CEO, Scott Richards, commented: “We are very pleased to have partnered with Novast, who have an outstanding quality track record manufacturing and supplying oral contraceptives to the US market. This transaction expands our women’s health portfolio and secures supply on more favourable terms of eight products previously acquired from Teva Pharmaceuticals to continue to drive growth of our women’s health franchise.”

What is the market opportunity?

The company notes that, according to IQVIA, the annual U.S. market sales for the five additional products were US$500 million, with more than 1.3 billion tablets sold annually.

This agreement has given Mayne Pharma’s women’s health portfolio a major boost in respect to its market opportunity.

Mr Richards said: “Mayne Pharma’s women’s health portfolio today includes 27 marketed and pipeline products, including a novel oral contraceptive E4/DRSP and two generic contraceptive products targeting markets with sales of US$1.2 billion and targeted to launch in FY21.”

Finally, with the Mayne Pharma share price down 22% since the start of the year, shareholders will no doubt be hoping this is the catalyst to narrowing this decline and ultimately taking its shares higher for the year in the near future.

More reading

• Why the Mayne Pharma share price is climbing today
• These 5 ASX shares saw the biggest losses last week
• ASX 200 Weekly Wrap: ASX back in the green
• These were the worst performers on the ASX 200 last week
• ASX 200 finishes higher by 0.8%, Carsales share price driven up by FY20 guidance

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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Last week was a strong one for ASX 200 shares as the S&P/ASX 200 Index (ASX: XJO) surged 2.60% higher to 6,057.90 points.

Investors put aside fears of a second wave to push share prices higher on the back of a strong United States jobs report. There’s no doubt the coronavirus pandemic is weighing heavily on global markets. However, there are growing signs that economic growth could return sooner than expected.

Last week I was watching Tassal Group Limited (ASX: TGR), Tabcorp Holdings Limited (ASX: TAH) and Saracen Mineral Holdings Limited (ASX: SAR).

The Tassal share price jumped 4.1% higher last week while Tabcorp and Saracen shares climbed 2.4% and 8.2%, respectively.

Now find out why I’m watching Altium Limited (ASX: ALU) and two other ASX 200 shares in the week ahead.

Altium and 2 more ASX 200 shares to watch this week

The Altium share price jumped 4.6% higher on Friday and I think it could carry that momentum into this week.

Altium is in an interesting place given it spans both the US and Australia. In fact, the printed circuit board (PCB) software design company was founded in Tasmania but has its core research and development operations in San Diego, California.

Stronger economic and jobs data is a good thing for the ASX 200 tech share. If we see the US economy bounce back quicker than expected, this could mean a stronger business sector and potentially more North American sales for Altium.

Staying with the tech theme, I also like the look of NextDC Ltd (ASX: NXT) shares this week. 

The NextDC share price rocketed 15.5% higher last week, hitting a new record high of $11.12 per share. The ASX 200 tech share now boasts an impressive market capitalisation of just over $5.0 billion and sits within the S&P/ASX 100 Index.

Given the strong tailwinds I’m seeing in the data security and storage industry, I wouldn’t bet against NextDC. Particularly given the strong momentum behind the company’s share price from last week.

Finally, I think I’ll be keeping an eye on the Vicinity Centres (ASX: VCX) share price this week. The Vicinity share price dropped 3.7% lower on Friday to end the week on a disappointing note.

While the ASX 200 REIT share could be volatile for some time, I think it’s worth watching. The group has a strong portfolio of retail assets including Chadstone Shopping Centre in Melbourne and Queen Victoria Building in Sydney’s CBD.

If we see restrictions continue to tighten as they have been in Victoria, the Vicinity share price could slump lower in 2020. However, more good news on the pandemic front could trigger a quick recovery for the Aussie REIT.

Foolish takeaway

It’s easy to get carried away with what ASX 200 shares are doing week-to-week. While it’s great to keep on top of what’s happening, don’t forget to keep in mind that you’re investing for the long haul.

More reading

• Why Domino’s and these ASX 200 shares have just hit new highs
• ASX 200 Weekly Wrap: Afterpay, Tech push ASX 200 back above 6,000
• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to buy next week
• Gold at record highs! Are ASX gold miners or ETFs a better bet?

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Altium. 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) was a very strong performer last week and charged materially higher. The benchmark index climbed a total of 153.8 points or 2.6% to end the week at 6057.9 points.

Given this strong form, it will come as no surprise to learn that a good number of shares raced notably higher. The positive investor sentiment even sent some shares to new highs.

Three ASX 200 shares that hit new highs are listed below. Here’s why they are on form:

Domino’s Pizza Enterprises Ltd (ASX: DMP) 

The Domino’s share price hit a multi-year high of $75.00 at the end of last week. Investors have been buying the pizza chain operator’s shares over the last few months after it revealed solid sales growth from the majority of its businesses during the pandemic. This appears to have put Domino’s in a position to deliver a solid result in FY 2020. In addition to this, management has reiterated its medium term outlook. It continues to target new store openings of 7% to 9% per year and same stores sales growth of 3% to 6% per year.

ResMed Inc. (ASX: RMD)

The ResMed share price continued its positive run and rose to a record high of $28.21 on Friday. The sleep treatment focused medical device company’s shares have been strong performers in FY 2020 thanks to its impressive earnings growth. The key drivers of this have been the increasing demand for its sleep treatment hardware and software and, most recently, ventilators. The latter are in great demand at present as countries battle the COVID-19 pandemic.

Saracen Mineral Holdings Limited (ASX: SAR)

The Saracen share price reached a record high of $5.83 last week. Investors have been fighting to get hold of the gold miner’s shares this year following a sharp rise in the gold price and its strong operational performance. In respect to the latter, during the March quarter Saracen reported record quarterly gold production of 158,132 ounces at an all-in sustaining cost (AISC) of A$1,133 per ounce. This brought its production for the first nine months of FY 2020 to 374,584 ounces with an AISC of A$1,081 per ounce. This AISC is significantly lower than the price it is commanding for its gold right now, putting it in a position to deliver bumper free cash flows. The Saracen share price was also given a boost after being included in the ASX 100 index at the June quarterly rebalance.

More reading

• Altium and 2 more ASX 200 shares to watch this week
• ASX 200 Weekly Wrap: Afterpay, Tech push ASX 200 back above 6,000
• 5 things to watch on the ASX 200 on Monday
• Where to invest $10,000 into ASX shares in July
• Gold at record highs! Are ASX gold miners or ETFs a better bet?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Domino’s Pizza Enterprises Limited and 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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