Last month, US tech megastocks spearheaded a global market sell-off, following the US Federal Reserve’s promise that interest rates will stay low through to 2023.

The ASX followed Wall Street’s volatile technology sell-off in mid-September. But, while many technology shares were plummeting, the Nearmap Ltd (ASX: NEA) share price has increased by more than 4% in the few weeks after the news.

Let’s look at how this company adds value to its clients in the Australia and New Zealand (ANZ) and North American markets, and whether the Nearmap share price could be a buy.

Unique intelligence product

This Australian-based aerial imagery technology and location data company owns highly sensitive data relating to location intelligence with customers across Australia, the US, Canada and New Zealand. Nearmap operates a subscription as a service (SaaS) business model, which means it is able to grow globally and replicate at scale.

North American market as the next growth driver

Despite the Nearmap share price reaching a 2-year low at $1.01 per share in March this year, the resilience of the company’s share price was demonstrated when it rebounded to between $2.30 and $3 per share, driven in part by it reaching an annual contract value (ACV) milestone of $102 million in May.

Unfortunately, the COVID-19 pandemic and the downgrade in value of 3 Nearmap’s contracts in FY20 caused a revision to its total contract value down to $102 million–$110 million, lower than its forecasted range of $116 million–$120 million. This resulted in a slowdown in Nearmap’s ANZ market growth, compared to the improving North American market.

After a revamp of its sales strategy against the backdrop of macroeconomic uncertainty, Nearmap has enjoyed the tailwind of increasing roofing, insurance and government business contracts in the US – which make up 40% of its group ACV portfolio.

There are more opportunities for the business to leverage its existing licensed technology to serve roofing geometry to partners in the roofing and insurance industries in the US. This is a huge market as there is an increase in frequency of severe weather, which drives the demand of such services.

Fundraising to support growth

To support the expansion plan mentioned above, in September Nearmap completed an institutional placement and further share purchase plan to raise $72.1 million and $20 million, respectively.

While the economic outlook in 2020 looks different from 2016 – when Nearmap banked $20 million after placing 28.6 million new shares to sophisticated, professional and institutional investors at the price of $0.70 per share – Nearmap is trying to replicate its success through entering the North American markets and develop more advanced technology.

In the past, Nearmap focused on creating not only high resolution 2D and oblique imagery but also natural colour point clouds and textured 3D meshes. Now in 2020, Nearmap has a plan to accelerate growth and roll out its Hyper Camera3 System to capture more accurate vertical imagery in adverse conditions.

Is the Nearmap share price a buy?

In my view, Nearmap is still doing well in keeping a positive growth rate of 11% in average revenue per subscriber in FY20 amid COVID-19.

The business is also growing very quickly and has a competitive advantage of being able to cover not just the metropolitan areas, but also the remote suburbs for commercial usage, as opposed to Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL)’s Google Earth.

I believe the current Nearmap share price of $2.48 (at the time of writing) looks attractive, particularly given the company’s growth prospects and plans to further commercialise its high tech products in the North American regions.

More reading

• 2 exciting ASX tech shares to buy and hold for a decade
• Is this 1000% runner the next Nearmap (ASX:NEA) share price?
• Will ASX media stocks get a $1.4 bn Google boost?
• Why EOS, Jumbo, Nearmap, & OceanaGold shares are dropping lower today
• ASX investors were buying Tesla (NASDAQ:TSLA) and Apple (NASDAQ:AAPL) shares last week

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Miles Wu 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 Alphabet (A shares) and Alphabet (C shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Nearmap 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.

The post Is the Nearmap share price a buy after the tech sell-off? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2SNHVaa

The NEXTDC Ltd (ASX: NXT) share price is on the move on Monday following the release of an update.

At the time of writing, the data centre operator’s shares are up almost 3% to a new record high of $13.10.

What did NEXTDC announce?

This morning NEXTDC provided the market with an update on its debt facilities.

According to the release, the company has entered into a new Syndicated Facility Agreement with the likes of Credit Suisse, HSBC, National Australia Bank Ltd (ASX: NAB) and Natixis to arrange and underwrite $1.5 billion in senior debt facilities.

These senior debt facilities will be split across three tranches, each with a tenor of five years. They comprise an $800 million term loan facility, a $400 million capital expenditure facility, and a $300 million revolving multi-currency credit facility.

Management notes that the new facilities provide a significant improvement in NEXTDC’s weighted average cost of debt and duration profile. They also come with materially improved financial covenants and flexibility.

NEXTDC intends to utilise the term loan facility to redeem all of its unsecured notes on issue at the next interest payment date of 9 December 2020.

The company’s CEO and Managing Director, Craig Scroggie, commented: “We are very pleased and encouraged by the support from our existing and new lending partners to the NEXTDC growth story. The new debt facilities provide NEXTDC with greater funding firepower as we continue to execute on our development pipeline in the coming years to satisfy growing customer demand.”

“We are grateful for the support provided by our fixed income investors to the Company through what was a critical phase of our growth. Our ability to achieve A$1.5 billion in Senior Debt Facilities is a testament to the maturity of the Company today,” Mr Scroggie added.

More reading

• Why NEXTDC (ASX:NXT) and these ASX shares are hitting new highs
• Top ASX growth shares to buy in October 2020
• 4 stellar ASX growth shares to buy right now
• Where to invest $10,000 into ASX shares next week
• Where to invest $20,000 into ASX shares immediately

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

The post NEXTDC (ASX:NXT) share price hits record high on debt update appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3nGv5sE

The S&P/ASX 200 Index (ASX: XJO) is on the verge of breaking out of its 5725 to 6200 point trading range. The job centric federal budget, recovery of United States president Donald Trump and additional stimulus packages, not just in the US but globally, could push the markets even higher. Here are 2 ASX 200 tech shares that I wouldn’t want to miss if the market rallies. 

2 ASX 200 tech shares I’m keeping a close eye on

1. Pointsbet Holdings Ltd (ASX: PBH) 

The PointsBet share price jumped an eye watering 80% following the announcement of its partnership with NBCUniversal last month. The company’s share price has held its ground amidst a volatile market in September and in light of a significant A$303 million capital raising at $6.50 per share to fund its NBCUniversal partnership.

The US sports betting landscape continues to evolve in favour of the PointsBet business. Illinois, for example, with its six retail sportsbooks and three online platforms generated a combined handle of nearly US$140 million, according to the Illinois Gaming Board. This US$140 million more than doubled the combined US$61.7 million handle it reported in the months of March, June and July. 

The PointsBet business continues to stay on its feet with the announcement of a sportsbook content deal with Genius Sports Group, becoming the first sports betting operator in the US to adopt streaming on its app. PointsBet will add thousands of live streams across a variety of sports and geographies, complete with official data-powered in-game pricing for every match. This type of innovation in a young market and the company’s first mover advantage could better position PointsBet against larger US bookmakers such as Draft Kings and Fan Duel. 

Morgan Stanley and JP Morgan estimate that the US sports betting and iGaming market will balloon to a potential combined 2025 market of US$12 billion. This is a significant revenue opportunity and PointsBet is positioned front and centre to take its bite. 

2. Tyro Payments Ltd (ASX: TYR) 

Tyro is Australia’s largest EFTPOS provider outside of the big four banks, providing tailored EFTPOS, business loans and banking solutions that support over 32,000 Australian businesses. Beyond credit, debit and EFTPOS card acquiring, it also offers Medicare and private health fund claiming and rebating services. 

I believe Tyro represents a comeback story following a very challenging year, particularly for its merchants with the impact of COVID-19 and bushfires. For the first half of the year, transaction values were up 30% over 1H19. This momentum continued into January and February 2020 with year-to-date transaction value growth up to February 2020 lifting 29% over the comparable period. However, the introduction of mandatory lockdowns across Australia from mid-March, saw its overall transaction value growth rate moderate back to 15% for the full year. This translated to an 11% increase in revenue to $210.7 million. 

The anticipated relaxation of lockdown measures in Victoria could be a catalyst for an improvement in the Tyro share price and its transaction volumes. Furthermore, this ASX tech share has made significant strides into additional fintech enabled business solutions. These include the release of new banking products such as a merchant cash advance as a loan offering for all Tyro merchants, a pilot of a new term deposit account for Tyro merchants, a payment and rebating solution for health practitioners and least cost routing to reduce costs for merchants.

More reading

• “Incredible surge” in Pointsbet (ASX:PBH) share price appears justified according to one of the country’s best performing funds
• 2 ASX tech shares I’d buy with $10,000
• Why Flight Centre, OneVue, Paradigm, & PointsBet shares are charging higher
• PointsBet (ASX:PBH) share price in focus after U.S. update
• Is it too late to buy the PointsBet (ASX:PBH) share price? 

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 Pointsbet Holdings Ltd and Tyro Payments. The Motley Fool Australia has recommended Pointsbet Holdings 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.

The post 2 ASX 200 tech shares I don’t want to miss if the market rallies  appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3jQZimx

The Bapcor Ltd (ASX: BAP) share price has stormed to a record high on Monday after the release of its first quarter update.

At the time of writing the automotive aftermarket parts distributor’s shares are up 6% to $8.08.

How did Bapcor perform in the first quarter?

According to the release, Bapcor has started FY 2021 strongly despite the negative impact of Government-imposed restrictions in Victoria and Auckland.

In fact, all of Bapcor’s businesses have continued to perform extremely well and delivered solid growth during the first quarter in comparison to the prior corresponding period.

For the three months ended 30 September, Bapcor’s revenue was up 27% compared to the first quarter of FY 2021. The key drivers of this growth have been its Retail and Specialist Wholesale businesses.

The Retail business has delivered a 47% increase in revenue thanks to Autobarn same store sales growth of 36% and AB Company same store sales growth of 50%.

The Specialist Wholesale business reported a 45% increase in revenue. This was partly due to acquisitions, with revenue up 18% excluding them.

This growth was supported by a 6% increase in New Zealand revenue and a 10% lift in Burson Trade revenue. The latter was driven by a 7.7% increase in same store sales. Excluding its Victorian stores, Burson Trade same store sales were up 17%.

Bapcor’s Chief Executive Officer and Managing Director, Darryl Abotomey, commented: “We are very pleased with the start to the FY21 financial year, despite the impact of the government imposed restrictions. Our talented team members have worked hard under challenging circumstances and delivered an exceptional result for the quarter.”

What is driving Bapcor’s strong growth?

Management notes that the automotive aftermarket is a resilient industry and historically has performed strongly in difficult economic circumstances.

It feels that recent trading is another example of its resilience, which has been assisted by the increase in sales of second hand cars, reduction in use of public and shared transport modes, and government stimulus.

Outlook.

Pleasingly, the company expects the impacts of COVID-19, including the expected increase in domestic tourism and increased use of vehicles, to continue to drive its businesses.

In light of this, Bapcor is continuing to invest in its various businesses. This includes through information technology, marketing, process and system upgrades, and capital investment in facilities to increase its footprint and drive improved efficiencies.

And while these investments will increase its cost base, management expects it help underpin further profit growth in the future.

Looking ahead, it advised that it is expecting to report a strong first half result in February. However, it has warned that the second half remains unclear due to the current economic uncertainties and any potential government restrictions. As a result, it is not in a position to provide earnings guidance for the full year at this stage.

More reading

• 5 ASX shares held by leading fund managers

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bapcor. 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 Why the Bapcor (ASX:BAP) share price just zoomed to a record high appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/33PHTFm

The stock market crash could improve your prospects of making $1 million. It has caused a number of high-quality businesses to trade at cheap prices that may undervalue their long-term prospects.

Through searching for such companies in unpopular sectors, and by analysing their financial updates, you could capitalise on low valuations across the stock market. Over time, this strategy may boost your returns and increase your chances of obtaining a seven-figure portfolio.

Searching in unpopular sectors

Following the stock market crash, some industries are relatively unpopular among investors. They are often those sectors that face challenging near-term outlooks, or that may struggle to adapt to a rapidly-evolving world economy following the coronavirus pandemic.

For example, sectors such as banking and energy are relatively unpopular at the present time. Banks face the prospect of an extended period of low interest rates that could negatively impact on their profitability. Similarly, demand for oil and gas has fallen this year, which has caused energy companies to report declining profitability in many cases.

While their challenges may continue over the short run, their low valuations prompted by the stock market crash could mean there are buying opportunities on offer for long-term investors.

Focusing on financial statements

As mentioned, the stock market crash has put pressure on the financial positions of many companies. Therefore, it is perhaps more important than ever to ensure that any stock you are thinking about buying has sound finances through which to overcome a tough period in the economy.

Through analysing a company’s annual report, you can ascertain its financial position and how likely it is to survive a period of slower growth. You may also gauge how easily it can adapt to a period of rapid change in consumer tastes, and whether it has the right strategy to return to strong growth.

Through buying unpopular companies with sound finances and solid strategies, you could enjoy strong capital growth potential in the coming years. Annual reports and recent updates are available for free online. This means that any investor can identify unpopular sectors, such as banking and energy, and then select the most attractive businesses to buy within them.

Making a million after the stock market crash

The stock market crash is not a one-off event. Equity markets have experienced bear markets and downturns fairly regularly over recent decades. Even with them included, investors can obtain a high single-digit annual total return simply from purchasing a diverse range of shares.

Assuming an 8% annual return, an investment of $100,000 would become worth over a million within 30 years. However, through buying cheap shares, you could obtain a higher rate of return that improves your chances of making a million as the stock market recovers in the coming years.

More reading

• 2 ASX shares I’d buy with $10,000 for growth with dividends 
• Is the Qube (ASX:QUB) share price undervalued?
• Where I’d invest $20,000 into ASX shares right now
• Why I’d watch the Platinum (ASX:PTM) share price this week
• 3 reasons I still think the Zip (ASX:Z1P) share price is a buy

Motley Fool contributor Peter Stephens 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 Stock market crash: How I’d find cheap shares to buy today to make $1 million appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3jQ9jQT

The S&P/ASX 200 Index (ASX: XJO) and All Ordinaries Index (ASX: XAO) continued to grind higher last week in light of the recent big spending federal budget. With a much anticipated improvement for the Australian economy moving forward, this could be an optimal time to pick up some ASX shares that offer investors both consistent dividends and potential capital upside.

2 ASX shares with both dividends and growth potential

1. People Infrastructure Ltd (ASX: PPE)

People Infrastructure is a leading workforce management company delivering innovative solutions to workforce challenges faced by Australia’s leading businesses. It provides managed workforce and staffing services with a key focus on healthcare and community care, information technology, and general staffing and specialist services. Its general staffing and specialist services business includes heavy and light industrial, mining, industrial services, food processing and transport. 

The company has a strong track record of growth with revenue increasing 34% to $374 million and earnings before interest, tax, depreciation and amortisation (EBITDA) increasing 49% to $26.4 million in FY20. It has delivered a compound annual growth rate (CAGR) of 24.8% for revenue and 26.3% for EBITDA between 2015 and 2020. I believe there aren’t many ASX shares that can beat this type of consistent growth while trading at a price-to-earnings (P/E) ratio of just 20.

A recovery in Australia’s job market combined with the federal budget’s infrastructure spending, JobMaker program and apprenticeship subsidy, could continue People Infrastructure’s strong growth record. The company currently pays a fully franked dividend yield of 2.8%. I believe its modest dividend combined with earnings growth could mean the best of both worlds for investors seeking ASX shares both income and growth. 

2. Money3 Corporation Limited (ASX: MNY) 

Money3 is a specialist provider of consumer finance for the purchase and maintenance of vehicles in Australia and New Zealand. Its business model and unique approach to customer care attracts customers that are underserved by mainstream banks. The company estimates that 1 in every 450 registered vehicles in Australia and 1 in every 700 registered vehicles in New Zealand are financed by Money3.  

Much like People Infrastructure, Money3 has a strong track record of growth with FY20 delivering a 35.3% increase in revenue to $124.0 million and 30.1% increase in normalised NPAT to $30.3 million. At the half year, its gross loan book had grown to $426.7 million but growth slowed significantly in the second half, driven by lower than expected new loan origination as a result of COVID-19 and tightened lending criteria. However, it is pleasing to see that many customers made efforts to increase loan repayments. Money3’s overall loan book quality has not deteriorated over FY20 reinforcing the resilience of its business model. 

Looking ahead, the company aims to expand its product reach into the near prime vehicle market, broadening its presence in sub-prime vehicle finance market via geographic expansion and accelerating growth through opportunistic acquisitions. I believe Money3’s fully franked 3.50% dividend yield combined with its strong growth record makes it another prime candidate as an ASX share for income and growth. 

More reading

• 2 growing ASX dividend shares to buy before it’s too late
• These ASX dividend shares could be stars of the future
• Looking for ASX dividend shares to buy? Try these
• 3 quality small cap ASX shares with very strong growth potential
• 3 ASX shares for beginners to buy

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia has recommended People Infrastructure 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.

The post 2 ASX shares I’d buy with $10,000 for growth with dividends  appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3jTCHG2

The Qube Holdings Ltd (ASX: QUB) share price rocketed 5.0% higher on Friday and could be back in the buy zone. The big question for investors right now is, how should we value the ASX logistics share?

What does Qube do?

Qube is Australia’s largest integrated provider of import and export logistics services. The Aussie company operates at more than 125 locations across Australia, New Zealand, Papua New Guinea and South East Asia.

There have been concerns about the coronavirus pandemic disrupting logistics routes and stifling trade. The Qube share price has been smashed 15.4% lower in 2020 but I think there could be some upside.

What do the numbers say?

Admittedly, the numbers don’t tell a great story. The Qube share price trades at a price-to-earnings (P/E) ratio of 52.8x which is quite pricey for a logistics/industrials group.

Qube does boast a $5.2 billion market capitalisation which means it is a heavy hitter on the ASX. It also has a 1.9% dividend yield which is nothing to sneeze at in the current environment. 

The Qube share price is trading 21.43% below its 52-week high of $3.50 per share which means there could be further potential upside on offer.

It’s hard to find equivalent ASX-listed peers for a technology/logistics company like Qube. 

Shares in rail freight operator, Aurizon Holdings Ltd (ASX: AZJ), trade at 13.9x earnings while tech stocks like Afterpay Ltd (ASX: APT) are valued at some eye-watering price-to-sales ratios.

Foolish takeaway

I think you really have to believe in the growth story to think the Qube share price is undervalued. If the pandemic has shown me anything, it’s that automation and outsourced logistics demand is climbing.

That’s good news for Qube and its business partners like Woolworths Group Ltd (ASX: WOW). If the logistics group can capitalise on this trend and continue to innovate, I think the Qube share price can bounce back strongly in 2021.

More reading

• ASX 200 drops, Trump has COVID-19, Mesoblast (ASX:MSB) share price sinks
• Why Afterpay, Genetic Signatures, Qube, & Serko shares are charging higher
• Qube (ASX:QUB) share price jumps as Woolworths logistics park gets backing
• Saracen (ASX:SAR) and 2 more ASX 200 shares to watch this week
• ASX 200 drops 0.3%, gold miners keep rising

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO and Woolworths Limited. The Motley Fool Australia has recommended Aurizon 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.

The post Is the Qube (ASX:QUB) share price undervalued? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3nF6nJc

There are a number of great ASX shares worth buying right now with $20,000 in my opinion.

Here are four of them, with a slant towards longer-term growth:

Pushpay Holdings Ltd (ASX: PPH) – $6,000

I think that Pushpay is one of the most promising ASX growth shares right now.

It’s a digital donation business that facilitates payments to large and medium US churches.

Pushpay was growing before COVID-19, but the restrictions and social distancing seem to have brought forward the adoption of Pushpay’s technology. It also offers a livestreaming service to connect with the church with its congregation.

The ASX share is now profitable and cashflow positive. Its profit margins are growing rapidly.

At the current Psuhpay share price it’s trading at 40x FY21’s estimated earnings.

A2 Milk Company Ltd (ASX: A2M) – $6,000

I think that A2 Milk is one of the best ASX growth shares with its strong brand power and large cash pile (with no debt).

A2 Milk is being disrupted by COVID-19 impacts. A2 Milk is struggling because of impacts to the daigou seller channel due to less students and less tourism from China. 

But I think the COVID-19 impacts are only going to be temporary on the ASX share. A2 Milk is rapidly building its Chinese based business, which will hopefully make up for the disrupted sales in Australia and New Zealand during the 2021 calendar year.

A2 Milk is guiding that it can grow its FY21 revenue by 4% to 10%. I think A2 Milk looks really good value when you look out to FY22 and FY23.

At the current A2 Milk share price it’s trading at 23x FY23’s estimated earnings.

Bubs Australia Ltd (ASX: BUB) – $4,000

Bubs is another infant formula business that is hurting right now.

It has also been suffering from pantry destocking in recent months just like A2 Milk. Demand was brought forward into the third quarter, so I don’t think it can be surprising that consumers didn’t need as much supplies over the next few months.  

There are a number of moving parts with the ASX share. Its core goat milk infant formula is growing well. In FY20 it grew total infant formula sales by 58%. This division is the most important one because it has a gross profit margin of around 40%, which is higher than other product lines.

Bubs is growing its export market revenue at a fast pace. In FY20 it grew direct sales to China by 32% and export markets outside of China grew by five-fold.

I think the ASX share’s international growth is very promising over the next few years, particularly in places like Vietnam.

It has a solid balance sheet which can be used to fund further growth until it’s cashflow positive, which I don’t think is too far away.

At the current Bubs share price valuation, I think it has very good long-term growth potential.

Future Generation Global Invstmnt Co Ltd (ASX: FGG) – $4,000

Future Generation Global is a listed investment company (LIC) which gives investors exposure to international shares.

The ASX share is invested in funds of some of the best Australian fund managers that target overseas shares.

Some of those managers include: Magellan Financial Group Ltd (ASX: MFG), Cooper, Caledonia, Marsico and Munro Partners.

These fund managers work for free so that Future Generation Global can donate 1% of its net assets to youth mental health charities. This is particularly important right now in my opinion because of everything that’s going on due to COVID-19.

Its portfolio has done very well over the short-term and the long-term. At 31 August 2020, Future Generation Global’s gross portfolio return had outperformed the MSCI AC World Index over the past month, six months, twelve months, three years and since inception in September 2015.

At the current Future Generation Global share price, it’s priced at a 14% discount to the net tangible assets (NTA) at 31 August 2020. The NTA could have grown since then.

These four ASX shares aren’t the only investment ideas I’ve got my eyes though. 

More reading

• The A2 Milk (ASX:A2M) share price looks great to buy this week
• 2 exciting ASX payments shares to buy
• 3 five-star ASX shares to buy next week
• How to replace your entire wage with ASX dividend shares
• This is where I’d invest $1,000 right now into ASX shares

Tristan Harrison owns shares of Future Generational Global Investment Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended A2 Milk and BUBS AUST FPO. The Motley Fool Australia has recommended 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.

The post Where I’d invest $20,000 into ASX shares right now appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3jQZp1o

The Platinum Asset Management Ltd (ASX: PTM) share price is one to watch this week after its September funds under management (FUM) update late last week.

Why is the Platinum share price on watch?

The Aussie fund management company experienced a somewhat disappointing month as it recorded net outflows of $203 million in September 2020.

Platinum’s FUM edged 0.94% lower to $21,472 million, down from $21,677 million the month prior.

The Platinum share price closed flat on Friday despite surging higher in early trade as investors weighed up the latest update following a disappointing August full-year result.

Platinum reported a 13.7% decrease in yearly FUM to $21.4 million as at 30 June 2020 with net outflows of $3 billion during the year. That saw management fees fall 6.5% for the year with total revenue down 0.2% to $298.7 million.

The coronavirus pandemic has hit many of the investment managers hard as poor performance combined with investor fear to reduce profitability.

How has the Platinum share price performed this year?

Shares in the Aussie wealth manager are down 25.8% this year, reflecting the softer market conditions we’ve since in 2020.

It’s far from the only ASX share to be struggling as the S&P/ASX 200 Index (ASX: XJO) has fallen 8.8% to 6,102.0 points.

Some fellow ASX wealth managers have seen their valuations fall even further than the Platinum share price. The IOOF Holdings Limited (ASX: IFL) share price has fallen 55.0% lower while AMP Limited (ASX: AMP) shares have slumped 26.3% to $1.42 per share.

The Magellan Financial Group Ltd (ASX: MFG) share price has managed to climb 8.7% higher despite its competitors’ struggles.

Foolish takeaway

The Platinum share price will be one to watch this week as investors take in the latest results and mull over further outflows.

I don’t think it’s panic stations by any means but it will be worth keeping an eye on the ASX wealth manager in coming months to see if there is any sentiment rebound before the end of the year.

More reading

• ASX 200 Weekly Wrap: Budget, US election sparks 5% surge in ASX shares
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 next week
• These were the worst performing shares on the ASX 200 last week
• 2 leading ASX 200 shares to buy for growth and income

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.

The post Why I’d watch the Platinum (ASX:PTM) share price this week appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3jOEOec

Zip Co Ltd (ASX: Z1P) shares have been on fire in 2020. Shares in the buy now, pay later (BNPL) leader have more than doubled and the company has a market capitalisation of nearly $4 billion right now. That might make some investors wary of buying in. But here are a few reasons I think the Zip share price still has further to run.

3 reasons I still like the Zip share price

1. Strong momentum behind Zip shares

Notwithstanding Friday’s falls, the Zip share price has been shooting higher in recent days and I think that’s an important consideration. Investors are clearly bullish on the BNPL share and I think strong support is important in these volatile times.

The Zip share price closed last week’s session at $7.56, up 16.49% on the previous Friday’s close. I think the momentum factor alone makes the BNPL share worth a look.

2. Cheaper than Afterpay on a relative basis

Relative valuation is a big deal, especially in a high-growth space like fintech. One of the big reasons I still like the Zip share price is simply because it’s considerably cheaper than Afterpay Ltd (ASX: APT).

Afterpay is a major rival although its $25.45 billion market capitalisation dwarfs Zip’s $3.90 billion valuation.

Neither company has actually made a profit despite the mad share price growth in recent years. Based on full-year earnings, the Afterpay share price is currently trading at roughly 48 times revenue while the Zip share price is trading at approximately 25 times.

3. Clear strategy for growth

Zip’s full-year results showed strong global and domestic growth which, I think, holds it in good stead for the future. The company’s profile continues to grow with strong penetration across Australia, New Zealand, the United States, the United Kingdom and South Africa.

Zip now has more than 4 million customers around the globe with 2.1 million in Australia and New Zealand. The acquisition of QuadPay in June 2020 opens up a new lucrative channel with more access to the $5 trillion US retail market.

The company’s FY20 revenue jumped 91.2% to $161.0 million after recording a 62% increase in customers to 2.1 million. Total transaction volume jumped 91% to $2.1 billion while net bad debt expense jumped 81 basis points to 2.24%.

All of these numbers point to a strong growth corridor which bodes well for further Zip share price growth.

Foolish takeaway

The Zip share price has been flying higher in recent times but I think there’s more potential growth in store.

More reading

• ASX 200 Weekly Wrap: Budget, US election sparks 5% surge in ASX shares
• 2 exciting ASX payments shares to buy
• 5 things to watch on the ASX 200 on Monday
• 3 excellent ASX growth shares to invest $3,000 immediately
• 5 things to watch on the ASX 200 next week

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 ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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 3 reasons I still think the Zip (ASX:Z1P) share price is a buy appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3lDTgpY