The 8VI Holdings Ltd (ASX: 8VI) share price has been on an amazing rise so far this month as it wrapped up legal proceedings.

The 8VI share price has traded higher every day in October so far, gaining more than 200% in the process. In today’s trade, the company is trading 20.59% higher at $2.05.

What does 8VI do?

8VI is a Singapore-based financial educator that provides a smart stock analysis and screening tool infused with a social networking element.

The company was established in 2008, and aims to empower the ‘average Joe’ to make good investments “smarter, faster and easier”.

Its VI App is a stock analysis tool developed through 8BIT Global. The app crunches traditional financial data and simplifies complex stock analysis and decision-making for equity investors.

What driving the 8VI share price?

With the share receiving a speeding ticket this morning, the 8VI share price has been on an astonishing run since the turn of the month.

Shares in the financial educator are likely to have risen as a result of favourable legal proceedings with two former employees.

On 16 October, the company provided an update regarding the company’s ongoing appeal to the District Court of Taiwan. The appeal related to the company’s former director, supervisor and stakeholders, Joshua Lin and Jessica Kao, for breach of directors’ duties.

In late September, the District Court of Taiwan ruled in favour of 8VI and granted $575,000 in compensation and 69% of legal costs payable by Lin and Kao over the breach of directors’ fiduciary duties.

While the judgement ruled in favour of 8VI, the company is now appealing to correct the previous judgement to ensure accurate records in respect of future proceedings.

Foolish takeaway

8VI has seen its share price explode on the back of these proceedings. It marks a positive turnaround for a company that this time last year was trading at an all time low of 15 cents.

The share buy back in late August also helped provide impetus for the recent gain.

More reading

• Where to invest your first $500 into ASX shares today
• Why the Sunland (ASX:SDG) share price rocketed 50% higher today
• Oil Search (ASX:OSH) share price flat on Q3 FY20 update
• Leading brokers name 3 ASX shares to sell today
• Is the ASX 200 trading too high right now?

Motley Fool contributor Daniel Ewing 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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If you’re looking to make your first investment in the share market, then you may be wondering where to put your funds.

The good news is that I believe there are a large number of quality ASX shares which have the potential to generate strong returns for investors.

Now, if you have just $500 to invest, then I would suggest you think long-term. This is because the brokerage fees you pay will eat into your returns if you are always buying and selling shares.

With that in mind, I have picked out three ASX shares I would buy. Here’s why I think they would be great long-term options for a $500 investment:

Kogan.com Ltd (ASX: KGN)

The first ASX share to consider investing $500 into is Kogan. I think the rapidly growing ecommerce company could be a great long term option due to the accelerating shift to online shopping. This has underpinned explosive active customer, sales, and profit growth this year. Pleasingly, this strong form has even continued when retail stores reopened. This appears to be an indication that the pandemic has brought about a lasting change in consumer habits. In light of this, I believe Kogan is well-placed to grow its earnings at a very strong rate over the 2020s. This could be bolstered by value accretive acquisitions following its capital raising earlier this year.

Nearmap Ltd (ASX: NEA)

Another option to consider buying with the $500 is this aerial imagery technology and location data company. Nearmap has been growing very strongly over the last few years thanks to increasing demand for its services in the ANZ and North American markets. And while FY 2020 was a tough year because of a large customer churn event, I remain confident that its growth will accelerate over the coming years. Especially given its leading position in a highly fragmented market currently worth $2.9 billion per year. Furthermore, the company has the option to expand geographically in the future to increase its addressable market. I suspect it is only a matter of time before it is operating in the UK and Europe.

Pushpay Holdings Ltd (ASX: PPH)

A final ASX share to invest $500 into is Pushpay. It is a donor management and community engagement provider to the church market. Pushpay’s platform has been growing in popularity with churches over the last few years as they embrace the shift to the cashless society and the digitisation of the church. So much so, Pushpay reported a 42% increase in customer numbers to 10,896 in FY 2020. This strong customer growth led to the company delivering even stronger sales and earnings growth for the year. And pleasingly, more of the same is expected in FY 2021 and in the years that follow. I believe this makes Pushpay shares one of the best options for a buy and hold investment.

More reading

• 5 ASX shares hitting record all-time highs this week
• This is where I’d invest $1,000 right now into ASX tech shares
• New $259 million ASX tech player listing Thursday
• 10 must-buy ASX shares to snap up before it’s too late
• How to make $50,000 of passive income with ASX dividends

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 Kogan.com ltd, Nearmap Ltd., and PUSHPAY FPO NZX. The Motley Fool Australia has recommended Kogan.com ltd, Nearmap Ltd., 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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The Australian share market may have dropped lower on Tuesday, but the same cannot be said for the Sunland Group Limited (ASX: SDG) share price.

At one stage the residential property development and construction company’s shares were up a massive 50% to $2.00.

The Sunland share price eventually closed the day 46.5% higher at $1.95.

Why did the Sunland share price rocket higher?

Investors were fighting to get hold of the company’s shares after it revealed that its directors have undertaken a strategic review of its operations. This follows a consultation with external advisors.

According to the release, the company intends to sell certain inventory which is not currently under development. It also plans to complete the development of certain other projects, over a period likely to be approximately three years, with the intention of converting these assets into cash before repaying all liabilities and returning net asset value to its shareholders.

This remains subject to the sale of the inventory, financiers’ satisfaction, and regulatory and legislative requirements.

What is this worth to shareholders?

The release explains that the objective of the strategy is to return shareholders the current net asset value, where possible, of approximately $2.56 per share by way of progressive dividend and capital payments.

This current net asset value is based on an internal estimate undertaken at the end of September.

Why is Sunland doing this?

The company notes that over the last 10 years it has allocated approximately $680 million towards portfolio replenishment, share buy-backs, and dividend payments.

During this time, the consolidated net asset value for Sunland per share has increased from $1.20 to $2.56. It has also reduced the shares on issue from ~320 million to ~133 million.

However, despite this, the board notes that the Sunland share price performance has been disappointing for a number of reasons. This including because “the inherent value of the business has not been recognised by the market in the underlying share price.”

It added: “The Board has sought external advice on alternatives to return fair value to Sunland Group’s shareholders and the Strategy is considered an appropriate methodology to return value, which the market is not recognising.”

Judging by the share price reaction, the market appears to like this strategy and is finally seeing the true value of Sunland’s shares.

More reading

• Oil Search (ASX:OSH) share price flat on Q3 FY20 update
• Leading brokers name 3 ASX shares to sell today
• Is the ASX 200 trading too high right now?
• Here’s why the Perpetual (ASX:PPT) share price is falling today
• Why the Tyro (ASX:TYR) share price is sinking 6% lower today

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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The Oil Search Limited (ASX: OSH) share price is flat today following the release of its Q3 FY20 results.

At the time of writing, shares in the oil and gas company are down 0.1% to $2.86. Let’s take a look at how Oil Search progressed in the third quarter.

Q3 trading update

Oil Search achieved a mixed performance for the period ending 30 September.

Total production remained relatively unchanged from the prior quarter, up 0.1% to 7.3 of million barrels of oil equivalent (mmboe). Although there was a 7.2% increase on the prior corresponding period. This was underpinned by the ExxonMobil-operated PNG LNG project which continued to perform above expectations, offsetting COVID-19 challenges.

Total hydrocarbon sales jumped 11.2% to 7.55 mmboe on Q2 FY20 and up 16.7% on the pcp.

Total revenue however, fell 29% to US$189 million, and a 47.6% decline on Q3 FY19. The lower revenue was due to a large reduction in the average realised LNG and gas price. Other revenue comprising of rig lease income, infrastructure tariffs, electricity, refinery and naphtha sales also dropped to 32%, US$5.6 million.

Oil Search advised it had a liquidity of US$1.65 billion, including US$752.7 million in cash and US$895.6 million in undrawn credit facilities.

COVID-19 update

As the pandemic has caused challenging market conditions, Oil Search has continued to operate under strict COVIDSafe protocols. The company’s field-based workforce remains in quarantine zone to minimise the risk of transmission across critical field teams.

COVID-19 has heavily impacted global energy prices, with LNG demand not expected to fully recover until 2027. To preserve capital, Oil Search cut its capital investment guidance to US$390 million and US$460 million.

Expansion plans

The company said that it had made significant progress in finalising the optimisation studies for the Pikka Unit Development. Oil Search has moved onto developing the resource which will deliver increased capital efficacy and project breakeven cost of supply.

The company will provide further details at the strategy day on 19 November.

In addition, discussions between the PRL 3 (P’nyang) operator ExxonMobil and the PNG government are ongoing. All parties hope to secure fair and balanced fiscal terms of the P’nyang Gas agreement. Oil Search is seeking to strengthen its portfolio as it sees a long-term positive LNG price outlook.

Comments from management

Commenting on the mixed result, Oil Search managing director Keiran Wulff said:

The ExxonMobil-operated PNG LNG Project continued to perform well ahead of expectations, producing at record levels of 8.8 MTPA on average for the first nine months of the year. This included 6.55 mmboe from the PNG LNG Project, which produced at an annualised rate of 8.9 MTPA during the quarter.

A primary focus during the third quarter has centred around finalising the longer-term strategy for our business, taking into consideration the global economic and investment conditions and trends, as well as ensuring the company is resilient to lower oil prices and well positioned to optimally take advantage of its world class assets and deliver full value when conditions allow.

More reading

• 5 things to watch on the ASX 200 on Friday
• 4 ASX shares rated as strong buys by brokers
• Why ASX oil stock laggards are well placed to bounce in the COVID recovery trade
• Why Event, Flight Centre, Oil Search, & Orica shares are dropping lower today
• 5 things to watch on the ASX 200 on Thursday

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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On Monday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below.

Here’s why these brokers are bearish on these ASX shares:

Evolution Mining Ltd (ASX: EVN)

According to a note out of Ord Minnett, its analysts have retained their sell rating but lifted their price target this gold miner’s shares to $4.50. The broker is concerned about the gold sector due to the upcoming U.S. election. It suspects that a Biden win could boost the gold price in the short term but actually weigh on it in the longer term as the near term economic growth outlook improves. The Evolution share price is trading is at $5.88.

ResMed Inc. (ASX: RMD)

A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and $20.00 price target on this medical device company’s shares. Although the broker believes the current reimbursement environment is more favourable than in recent years, it sees competition risks. It fears this could put pressure on ResMed’s gross margin and ultimately its bottom line. The ResMed share price is changing hands for $25.50 this afternoon.

Zip Co Ltd (ASX: Z1P)

Analysts at Citi have retained their sell rating and cut the price target on this buy now pay later provider’s shares to $6.55. According to the note, the broker believes that Zip is well-placed for strong growth thanks to the increasing adoption of the payment method and its increased investment in the UK and United States. However, it sees risks to its margins from increased competition, which it fears could see it fall short of consensus growth forecasts over the medium term. Zip shares are fetching $7.14 on Tuesday.

More reading

• Douugh and Afterpay were among the most traded shares on the ASX last week
• ASX 200 down 0.2%: Afterpay rockets on Westpac deal, Zip climbs, BHP’s Q1 update
• 3 ASX 200 shares hit with broker downgrades
• Why Afterpay, Cochlear, Dicker Data, & Zip shares are charging higher today
• Zip (ASX:Z1P) share price defies broader market-sell off. Here’s why

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 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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The S&P/ASX 200 Index (ASX: XJO) is having a fairly ho-hum kind of day today. At the time of writing, the ASX 200 is down 0.67% to 6,190 points, after going as high as 6,241 points earlier in the day. At these levels, the index is still pretty close to the post-March crash highs that we saw last week.

The ASX 200 is up 6.7% over the past month. Since 23 March, the ASX 200 is now up 36.67%.

But how justifiable are these levels? The coronavirus pandemic is unfortunately still with us (albeit at a far more contained level than even a month ago). Economic growth is still sluggish. The Reserve Bank of Australia (RBA) is contemplating further easing, including an expansion of the quasi-quantitative easing programs it has been conducting throughout the year. Interest rates are widely tipped to be slashed again before too long as well, with many commentators suggesting a move from the current cash rate of 0.25% to 0.1% the most likely shift.

Add to that the impacts of the already-initiated government stimulus measures tapering off over the next few months, and the picture doesn’t exactly look bright.

So is the ASX 200 too high today?

Well, not if you look at what’s going on in the United States. Although the ASX 200 is up substantially since the lows of the March crash, it still remains down 7.18% year to date, and down 13.3% from the February all-time high of 7,162 points.

Looking at the US, which is arguably in a far worse economic state than Australia, and has been struggling far more in containing the pandemic, you would think that their markets would be a little more depressed than our own. But that is far from the case. Not only is the flagship S&P 500 Index (INDEXSP: .INX) back above the levels it was at at the start of the year, but it’s also been making all-time highs. All-time highs!

The highest level the S&P 500 has ever been at was 3,580 points, which was hit on 2 September 2020. Today, it’s a touch below that at 3,426. To me, there’s just something a little off about those numbers. Remember, we’re in the midst of one of the worst global recessions in a century. That’s not a time that you usually see share markets at all-time highs…

Saying that, the actions from central banks around the world have been unprecedented in 2020, which is (in my view) the primary reason we are seeing global markets at these kinds of levels. Near-zero interest rates seem normal today, but the reality is we are in uncharted waters on that front.

With interest rates at zero (or even in negative territory in some countries), there’s only one real way they can go from here: up.

Of course, this will probably take years though, at least if what the RBA governors are saying comes to pass.

Foolish takeaway

We might look at the ASX (or more conspicuously the US markets) and think they are too high, given the state of the global economy. But near-zero interest rates around the world have changed the game. Thus, when rates are at these levels, I don’t think we can say markets are too high. But I am worried about the day rates start climbing again. As always, the best answer to these kinds of questions is simply to find businesses that will do well, no matter the economic weather.

More reading

• 3 things to tell someone who has never invested in ASX shares
• ASX 200 down 0.2%: Afterpay rockets on Westpac deal, Zip climbs, BHP’s Q1 update
• ASX 200 shares are at a 100-day high. Is now the time to buy?
• Why the Silver Lake (ASX:SLR) share price is one to watch today
• 5 things to watch on the ASX 200 on Tuesday

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.

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The Perpetual Limited (ASX: PPT) share price is trading lower today after the company released its quarterly report for the period ending 30 September. At the time of writing, the Perpetual share price is trading 1.44% lower at $30.08. 

What Perpetual does

Founded in 1885 by Australia’s first prime minister Edmund Barton, Perpetual is a company steeped in history. Today, the diversified financial services company comprises four main businesses. These include Perpetual Investment, Perpetual Private, Corporate Trusts and Group Support Services.

First quarter update

The Perpetual share price is sliding today as the company released its first quarter business update. The drop comes despite Perpetual reporting a small increase in its assets under management (AUM) to $29 billion. This is a result of positive net inflows.

Furthermore, Perpetual’s launch of new funds in Australia is attracting strong interest and early inflows.

Regarding its Corporate Trust Funds, Perpetual’s funds under administration came in at $927.8 billion, down 1% on the last quarter. However, the funds continue to win new businesses, with an improving pipeline in debt market services.

Perpetual remains well-capitalised with increased financial flexibility after raising $275 million of new equity in late August.

What now for the Perpetual share price?

The company’s Barrow Hanley acquisition is on track for completion by 30 November. Perpetual CEO and managing director, Rob Adams, spoke about its integration into the company and the opportunities it presents:

In recognition of the importance of growth outside of Australia from 1H21, Perpetual will introduce a new business segment, ‘Perpetual International Asset Management’ which will include the operations of Trillium and Barrow Hanley and will be led by David Lane, Group Executive International Asset Management, reporting to Rob Adams. The new segment is expected to represent 29% of the group’s operating revenue and between 27-29% of cost base in FY21.

The Perpetual share price is trading 26% lower so far this year and shareholders will be hoping the acquisition can spur the stock back into positive territory.

More reading

• 5 things to watch on the ASX 200 on Thursday
• ASX 200 down 0.1%: CBA’s COVID-19 loan deferrals improve, Link receives takeover approach
• Link (ASX:LNK) share price rockets 26% higher on takeover approach
• 5 things to watch on the ASX 200 next week

Motley Fool contributor Daniel Ewing 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 Tyro Payments Ltd (ASX: TYR) share price is out of form and sinking notably lower on Tuesday.

In afternoon trade the payments company’s shares are down 6% to $4.04.

Why is the Tyro share price sinking lower today?

The catalyst for today’s weakness in the Tyro share price has been the selling of shares by a major shareholder.

According to a change of substantial shareholder notice, TDM Growth Partners has sold 35 million Tyro shares via a block trade to a range of institutional investors.

The Sydney based investment firm agreed a price of $4.055 per share, which represents a 5.5% discount to the last close price. It also values this parcel of shares at just under $142 million.

No explanation was given for the sale. But with the Tyro share price up over 47% from its December 2019 IPO price of $2.75, it appears as though the investment firm wanted to lock in some of these mouth-watering gains.

In addition to this, TDM Growth Partners has ceased to have a relevant interest in a further ~8.3 million shares. The notice explains that this change reflects an agreement between the investment firm and some of its clients which means that TDM Growth Partners no longer controls those shares.

Following both the sale and the change of relevant interest, TDM Growth Partners is no longer a substantial shareholder. However, its co-founder Hamish Corlett will remain a non-executive director of Tyro Payments.

Mr Corlett has also advised that he did not participate in the sale with any of his own shares. At the last count the director had a direct interest of 181,819 shares and 68,000 options.

Finally, TDM Growth Partners has advised that any remaining shares controlled by the investment firm will not be sold until after its half year results release next year.

More reading

• Why IDP Education, Perseus Mining, Lovisa, & Tyro shares are dropping lower
• Why Dicker Data, South32, Tyro, and Uniti shares are pushing higher today
• ASX 200 falls, Tyro (ASX:TYR) up on merchant deal
• Why Beacon Lighting, Medibank, Redbubble, & Tyro shares are racing higher today
• Tyro (ASX:TYR) share price shoots higher on Bendigo and Adelaide Bank (ASX: BEN) deal

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 Tyro Payments. 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 WISR Ltd (ASX: WZR) share price has been a strong performer today following the release of a trading update.

At the time of writing, the neo-lender’s shares are up 4.76% to 22 cents. This compares to the All Ordinaries Index (ASX: XAO) which is down 0.5% at 6,402 points in early afternoon trade.

Q1 FY21 record performance

Wisr reported a record performance for the quarter ending September 30. This was underpinned by a new business model that diversified funding structure and significantly improved margins.

Operating revenue grew to $4.1 million, a 358% increase on the prior corresponding period (pcp) and 37% increase on Q4 FY20. The robust result came from its Wisr Warehouse funding model which has uplifted unit economics and operating benefits.

New loan originations came to $61.9 million, up 47% on the pcp. This represented total loan originations of $306.7 million, with $50 million written under the first quarter.

In addition, Wisr said that its loan book continues to grow with prime credit customers. Just 2.2% of the company’s total portfolio loan balance, $4.6 million, is on a COVID-19 related payment arrangements. This is a 57% reduction compared to the $10.8 million reached in Q4 FY20.

Wisr advised it has a healthy balance sheet of $34.7 million in cash and liquid loan assets.

Making waves

Last month, Wisr launched its second major product into the market, secured vehicle finance. The new addition has already contributed to the accelerated growth achieved in Q1 FY21. It is expected that this will expand Wisr’s loan book originations and revenue for the remaining quarters.

In addition, the fintech is seeing more Australian enter its Wisr ecosystem with over 46,000 profiles created in Q1 FY21. The platform which allows customers to look at lending, credit score and round-up products, now totals just under 300,000 profiles.

What did the CEO say?

Commenting on the positive results, Wisr CEO Anthony Nantes said:

This quarter has seen the company deliver an exceptional set of results. Through the significantly improved unit economics and operational leverage of the Wisr Warehouse, we’ve delivered an outstanding 358% growth in revenue compared to this same period last financial year, combined with record low rates in arrears despite the macroeconomic conditions.

The growth in our loan book and revenue is a direct result of consumers demanding better products and services for their personal finance needs, and the differentiated business model we have delivered. Wisr is in prime position to continue aggressively growing market share with a fairer deal, and a smarter alternative for Australia’s prime credit consumers.

About the Wisr share price

The Wisr share price is up more than 240% since the pandemic hit in March, reaching a low of 6.5 cents. Although higher of late, the Wisr share price is still down 34% from its multi-year high reached in February.

More reading

• Why did the Forbidden Foods (ASX:FFF) share price tumble 5% today?
• Looking to invest in non-bank lending ASX shares?
• ASX 200 Weekly Wrap: Promises of easy money push ASX 200 to post-crash high
• Why the Nickel Mines (ASX:NIC) share price is up 16% today
• Why the MyFiziq (ASX:MYQ) share price is falling today

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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The Stockland Corporation Ltd (ASX: SGP) share price has edged down on a mixed Q1 result today. The property group reported its highest quarterly net sales in over three years in residential homes, strong sales in retirement living, and improved rent collections in retail. Yet, Stockland still recorded ongoing problems in rent collection in retail and workplace, or commercial real estate sectors. 

Factors supporting the Stockland share price

The residential sales represent the strongest element of the company’s Q1 performance. There are a multitude of reasons for this including current very low interest rates, the government stimulus, and improved credit availability. The company has also championed the preference for its master-planned communities. 

Sales moderated in August and September nationwide, although still settled above historical averages. In Victoria, trading remained subdued due to Stage 4 COVID-19 restrictions, despite enquiries remaining above pre-coronavirus levels. However, moving forward NSW is likely to continue performing strongly due to undersupply of vacant land. In addition, the company also believes Victoria is likely to see an increase in sales in Q2 FY21 as restrictions ease.

However, there are some constraints. Queensland and West Australia conversion rates are likely to moderate over the near term as some builders have reached capacity to deliver by the HomeBuilder commencement timeframe. While this is an impact on potential revenue generation, it is a better problem to have than collapsing demand.

Given the current residential demand, the company is focussing on restocking inventory with a number of significant opportunities. To clarify, the company is looking for opportunistic land acquisitions to maintain leading market share.

Retail, workplace and logistics

In the company’s retail town centres portfolio, footfall has risen to approximately 97% of pre-COVID levels. Unfortunately, Victoria represents 12% of the retail portfolio by rental income. This is likely to delay full rent recoveries further.

Lastly, logistics and workplace remain strong elements of the company’s portfolio. Logistics has a weighted average lease expiry (WALE) of 5.1 years, with a portfolio occupancy of 96.2%. Meanwhile, workplace, the companies commercial facilities, has a 93.4% occupancy, and a WALE of 2.9 years. 

Stockland is progressing a $3.1 billion future development pipeline in the industrial space. Within the workplace segment, the company is planning a $2.5 billion development pipeline which is progressing in line with expectations. This will increase the weight of these two segments within the company’s overall portfolio. 

Stockland company performance

The Stockland share price is slightly lower today on the mixed Q1 results, down 0.49% at $4.09. However, over the past month ths share price has risen by 12.5%. The company is currently trading at a price to earnings (P/E) ratio of 14.65 and has a trailing 12-month dividend yield of 5.9%.

More reading

• 1 ASX share to buy for the WA housing boom
• Look through short-term unpredictability for long-term ASX share price gains
• 3 ASX trends to watch in budget week
• Which shares to buy now with $10,000
• ASX 200 shares to buy for housing boom

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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