Last week the Australian share market was back on form and recorded a solid weekly gain.

While the majority of shares on the market pushed higher, some climbed more than most.

In fact, the three ASX shares listed below climbed so much they hit new record highs. Here’s why they are on fire right now:

The Kogan.com Ltd (ASX: KGN) share price continued its positive run and hit a record high of $14.75 on Friday. The ecommerce company’s shares have been on fire over the last few months thanks to its stellar sales and profit growth during the pandemic. The company recently took advantage of this strong share price performance to raise funds via a capital raising. It intends to use the proceeds for value accretive acquisitions.

The Sezzle Inc (ASX: SZL) share price climbed to a record high of $4.16 at the end of last week. Investors have been piling into the buy now pay later industry over the past few weeks on the belief that the pandemic has accelerated the adoption of the payment method and the shift to online shopping. In addition to this, earlier this month it was announced that Sezzle would be one of a number of shares added to the All Ordinaries index. This is likely to have led to increased demand for its shares from fund managers with strict mandates and index-tracking ETFs.

The Splitit Ltd (ASX: SPT) share price zoomed to a record high of $1.92 last week. As well as benefiting from increased interest in the buy now pay later space, investors were buying Splitit’s shares after a positive announcement. That announced revealed that the company has signed a partnership with payments giant Mastercard. This follows a similar partnership with Visa in March. Time will tell whether these partnerships have a material impact on its performance, but I’m not overly confident it will be enough to justify its current +$500 million valuation.

More reading

• Which shares to buy if the ASX tumbles
• ASX 200 up again, ASX retailers make big gains
• Grow your wealth with these 3 ASX fintech shares
• Why the Splitit share price has shot up 135% in 2 days
• Why Adairs, Nick Scali, SEEK, & Splitit shares are storming higher

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

The post Why Kogan, Sezzle, & Splitit shares just hit record highs appeared first on Motley Fool Australia.

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

My ASX share for the week is A2 Milk Company Ltd (ASX: A2M).

I think the infant formula business still has plenty more growth potential for the years ahead.

The company was recently added into the S&P/ASX 50 Index at the expense of AMP Limited (ASX: AMP).

I have been continually impressed by A2 Milk’s growth over the past five years. You may not have thought that A2 Milk is the kind of business to grow even faster during a global pandemic, but it is so far.

How is FY20 going?

A couple of months ago the ASX share gave an update that said that revenue for the three months to 31 March 2020 was above expectations. Customers were buying more product to stock the pantry. A2 Milk is also benefiting from the fact that its Chinese segment revenue is transacted in US dollars which was helped by foreign currency movements.

A2 Milk said it’s expecting FY20 revenue to be in the range of $1.7 billion to $1.75 billion. This would be growth of 30% to 34% on FY19’s revenue. I think that would be a really strong result considering it’s after years of good growth already.

The ASX share also said that the full year earnings before interest, tax, depreciation and amortisation (EBITDA) margin is expected to be higher than what was advised at the half-year result and in the range of 31% to 32%. That estimate includes spending the full $200 million marketing budget, weighted to the second half of FY20, will be fully spent before the end of the financial year.

I think this shows how profitable A2 Milk can be if/when its marketing cost growth can rise at a slower pace when it has reached sufficient scale in a region. 

There were three main reasons for the higher EBITDA margin. I’ve already mentioned the first two – higher revenue (and therefore higher margins) and the favourable exchange rate. There were also lower than expected costs for travel and other costs relating to delayed recruitment.

The A2 Milk board is still aiming for an EBTIDA margin of 30% in the medium-term to maintain a balance between growth and investment.

Why A2 Milk is my ASX share of the week at this price

In this type of uncertain environment I think it’s a good idea to go for businesses that can keep growing whether there’s more global lockdowns ahead or not.

In the short-term there could be another spike in demand. Particularly from Chinese customers because there are more COVID-19 Chinese restrictions again.

Over the longer-term I believe that this ASX share still has a long growth runway ahead. A2 Milk is expanding into the Canadian market with Agrifoods for the production, distribution, sale and marketing of A2 Milk branded liquid milk. Canada is a sizeable potential market for A2 Milk.

What’s most attractive about A2 Milk’s growth plans is the US and Asia. In the FY20 half-year result the company said USA revenue increased by 115.7% and Asian revenue rose by 76.7%. These markets could continue to generate great results because they have such big populations and A2 Milk’s market penetration isn’t that big, particularly in the US. It has been rapidly increasing its US store distribution over the past three years but it takes time to win over new customers.

A2 Milk is only just getting started in Canada too and there are plenty of other countries for A2 Milk to expand into.

Is A2 Milk a buy?

The ASX share is generating excellent revenue and profit growth each year. The growth is on par with some of the highly-valued ASX tech shares. Yet A2 Milk’s price/earnings ratio seems much more reasonable for its growth rate. It’s currently trading at 28x FY22’s estimated earnings. I’d be happy to buy some shares today for the long-term.

More reading

• Top brokers name 3 ASX 200 shares to buy next week
• How to become a millionaire in 25 years with $20 a day
• Why a2 Milk, Afterpay, and Pushpay shares just hit record highs
• The a2 Milk share price just hit a record high: Is it too late to invest?
• ASX 200 down 1.3%: Big four banks tumble, Afterpay tipped to go higher

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk. 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 My ASX share for the week appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2AOisZ7

The S&P/ASX 200 Index (ASX: XJO) decisively shook off the wobbles and was well and truly back in the green last week.

After smashing the previous 6-week winning streak with a week of volatility and heavy selling activity over the prior week, last week was a healthy return to form for the ASX 200 – making it 7 out of 8 weeks of gains as we start another week anew.

The week began with news that the United States Federal Reserve has initiated an unprecedented purchasing program for corporate bonds on the secondary market. This new wave of central bank intervention saw a massive shift in sentiment for both US and ASX shares that carried through the week.

But it wasn’t the blue chips that were in the ASX 200 driving seat. Instead, it was retail and tech shares that were making waves.

ASX 200 retail and tech shares shine

Some surprisingly positive retail sales figures were released to the market on Friday, which showed that retail sales during the month of May surged 16.3% to $4.03 billion – the largest increase in 36 years. This is obviously fantastic news for both the struggling retail sector and the broader economy.

As a result (and as you would expect), most ASX retail shares had an impressive day on Friday. Some noteworthy performers included Wesfarmers Ltd (ASX: WES), JB Hi-Fi Limited (ASX: JBH), Harvey Norman Holdings Limited (ASX: HVN) and, in particular, Adairs Ltd (ASX: ADH) and Nick Scali Limited (ASX: NCK), which were up 10.53% and 19.65% respectively over Friday’s trading.

For less obvious reasons, ASX tech shares also had a top week. Appen Ltd (ASX: APX) was a standout performer, despite no major news of significance coming out of the dataset provider. In fact, Appen shares were up close to 14% last week alone and hit a new, all-time high of $34.03 on Friday. Appen shares are now up 115% since March. Also in the ASX tech space, Xero Limited (ASX: XRO), WiseTech Global Ltd (ASX: WTC) and (of course) Afterpay Ltd (ASX: APT) also had strong weeks.

How did the markets end the week?

It was a tale of two markets on the ASX last week. On the surface, the ASX 200 started the week off at 5,847.8 points and finished at 5,942.6 points – a 1.6% bump for the week.

Monday was all about the bears. The ASX 200 lost a hefty 2.2% that day and looked in danger of breaching the 5,700 point threshold. But then we heard from the US Fed overnight and everything changed. Tuesday saw one of the best days in recent months with a 3.9% surge. This was followed up on Wednesday by another 0.8% rally tempered with Thursday’s cool-off that gave us a 0.9% drop. Friday was a dramatic day which saw ASX 200 shares spike early above a 1% gain, which was then whittled away until we were left with a mere 0.1% gain for the day. All in all, it was a very unpredictable week!

Meanwhile, the All Ordinaries (INDEXASX: XAO) also had a topsy-turvy week, but managed to eke out a 1.7% gain.

Which ASX 200 shares were the biggest winners and losers?

Let’s now brew a pot of tea and have a look at which ASX 200 shares were the week’s biggest winners and losers on the Foolish gossip pages. As always, let’s start with the losers:

Worst ASX 200 losers	% loss for the week
Pilbara Minerals Ltd (ASX: PLS)	(16.13%)
Mayne Pharma Group Ltd (ASX: MYX)	(14.63%)
Orora Ltd (ASX: ORA)	(12.17%)
Fortescue Metals Group Limited (ASX: FMG)	(6.89%)

Taking out the wooden spoon last week was lithium miner Pilbara Minerals – a company that hasn’t delivered too much joy to its investors for a few years now. Pilbara shares slumped over 16% last week after the miner was kicked out of the ASX 200 Index. Pilbara shares remain more than 50% below where they were trading at this time last year.

The same fate as Pilbara awaited Mayne Pharma last week, whilst Orora’s slump can be attributed to the company’s shares going ex-dividend last week.

Lastly, Fortescue is a rare sight in the losers column these days. It’s possible that some investors were looking to take some profits off the table. This mining giant has made several new, all-time highs in recent weeks and is still up nearly 28% year to date.

With the losers out of sight and mind, let’s take a look at which ASX shares were making investors happiest last week:

Best ASX 200 gainers	% gain for the week
Clinuvel Pharmaceuticals Limited (ASX: CUV)	21.3%
Healius Ltd (ASX: HLS)	19.76%
Appen Ltd (ASX: APX)	14.68%
Viva Energy Group Ltd (ASX: VEA)	13.92%

Clinuvel Pharma continued its massive run of recent months, taking out top spot with a 21.3% gain. This doesn’t appear to have been catalysed by anything of substance, although the shares have been strongly in favour since March, more than doubling in value since then.

Helius was in the spotlight after announcing the sale of its medical centres arm. Clearly investors approved of the company using the proceeds to pay down debt.

We’ve already discussed the positivity surrounding ASX tech shares like Appen, but Viva Energy surprised investors with upbeat guidance for the first half of the year. Investors always love to be pleasantly surprised, after all.

What is this week looking like for the ASX 200?

Last week demonstrated (yet again) how much of an impact the monetary policy of the United States can have on our markets. We were seemingly heading for a nasty week before the Fed (literally) intervened.

This week, I’m keeping my eye on the worrying possibility of another outbreak of coronavirus infections in Victoria and elsewhere across the country. This could have a significant impact on investors’ confidence this week, so I think it’s a situation well worth keeping an eye on. It’s also an unfortunate reminder that we’re not out of the woods with this pandemic just yet.

Before we begin it though, here’s a snapshot of how the major ASX blue chips are looking:

And finally, here is the lay of the land for some leading market indicators:

•     S&P/ASX 200 (XJO) at 5,942.60 points
•     All Ordinaries (XAO) at 6,061.6 points
•     Dow Jones Industrial Average at 25,871.46 points after falling 0.8% on Friday night (our time)
•     Gold (Spot) swapping hands for US$1,743.95 per troy ounce
•     Iron ore asking US$103.04 per tonne
•     Crude oil (Brent) trading at US$41.92 per barrel
•     Crude oil (WTI) going for US$39.43 per barrel
•     Australian dollar buying 68.16 US cents
•    10-year Australian Government bonds yielding 0.85% per annum

Foolish takeaway

As we start yet another week, we’re all keeping our fingers crossed that the success Australia has had in fighting the coronavirus continues on its current trajectory. We all knew from the start that this fight wasn’t to be quick or easy and last week we got another uninvited reminder of this. That’s why I think investing with a long-term mindset is more important than ever. So as always, stay safe, stay rational and stay Foolish!

More reading

• Beat low interest rates with Telstra and these ASX dividend shares
• These are the 10 most shorted ASX shares
• 5 things to watch on the ASX 200 on Monday
• These fantastic healthcare ASX shares could make you wealthy
• Are these small cap ASX tech shares the next Afterpay or Appen?

Sebastian Bowen owns shares of National Australia Bank Limited, Newcrest Mining Limited, and Telstra Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd., WiseTech Global, and Xero. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO, Appen Ltd, COLESGROUP DEF SET, Transurban Group, Wesfarmers Limited, and Woolworths 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 ASX 200 Weekly Wrap: ASX back in the green appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3137vgF

The most recent weekly economic report from Westpac Banking Corp (ASX: WBC) reveals that its team continues to forecast the cash rate staying at the record low of 0.25% until at least the start of 2022.

Given the state of the economy, unemployment, and inflation, I suspect that this forecast will prove accurate. Which means the interest rates on offer with savings accounts and term deposits are likely to remain lower for longer.

But don’t worry, because these three ASX dividend shares could help you beat low rates:

BWP Trust (ASX: BWP)

BWP is a real estate investment trust which leases the majority of its warehouses to Bunnings. I think the hardware giant is arguably the highest quality retailer in the country and a fantastic tenant to have. Especially right now when Bunnings is delivering very strong sales growth despite the pandemic, which should make rental increases easier. At present, I estimate that BWP’s units offer investors a forward 4.9% yield.

Dicker Data Ltd (ASX: DDR)

Another dividend share to consider buying is Dicker Data. It is a wholesale distributor of computer hardware and software which has consistently grown its earnings and dividends at a solid rate over the last few years. This has been driven by new vendor agreements and solid demand. Things are going particularly well in FY 2020. As a result, the company intends to increase its dividend by 31% to 35.5 cents per share. This represents a 5% fully franked dividend yield.

Telstra Corporation Ltd (ASX: TLS)

A final dividend share to consider buying this week is Telstra. I believe the telco giant’s outlook is the best it has been in a long time due to the easing NBN headwind and its T22 strategy. This strategy is simplifying its business and cutting costs materially. While a return to growth may still be a couple of years away, I’m confident its dividend cuts are over now and 16 cents per share is sustainable. This represents a very attractive fully franked 5% dividend yield.

More reading

• ASX 200 Weekly Wrap: ASX back in the green
• What is the price/earnings (p/e) ratio?
• Consider these blue chip ASX shares for strong dividend yields
• The ASX big bank stock with the best forecast dividend yield for the new year
• ASX 200 up 0.9%: Big four banks rebound, Appen hits record high

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited and Telstra 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 Beat low interest rates with Telstra and these ASX dividend shares appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3dj8LyN

At the start of each week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Speedcast International Ltd (ASX: SDA) is now the most shorted share on the Australian share market with short interest of 13.2%. Short sellers have done very well with this one. The communications satellite technology provider is currently in the process of declaring itself bankrupt.
• Myer Holdings Ltd (ASX: MYR) has seen its short interest slide to 13%. Short sellers have been targeting the retailer amid concerns that the pandemic has accelerated the structural decline of department stores.
• Super Retail Group Ltd (ASX: SUL) has seen its short interest pull back to 9.6%. Short sellers may believe that some of this retailer’s brands are going to underperform in a tough retail market.
• Webjet Limited (ASX: WEB) has seen its short interest rise to 9.6%. I suspect that short sellers are targeting the online travel agent due to its current valuation. It is worth noting that although its shares have crashed lower this year, its market capitalisation is actually higher than it was in January.
• Inghams Group Ltd (ASX: ING) has 9.35% of its shares held short, which is up slightly week on week. Earlier this year management warned that a change in its sales mix could weigh on the poultry company’s performance in FY 2020.
• Perpetual Limited (ASX: PPT) has entered the top ten with short interest of 9.2%. This fund manager has been a poor performer in FY 2020, reporting a 14% decline in profit in the first half. This was driven by fund outflows and lower performance fees.
• Nearmap Ltd (ASX: NEA) has seen its short interest edge lower again to 8.9%. Short sellers continue to close their positions after the aerial imagery technology company impressed with its performance during the pandemic.
• Clinuvel Pharmaceuticals Limited (ASX: CUV) has seen its short interest fall to 8.8%. Short sellers may be regretting this one. Last week the biopharmaceutical company’s shares rocketed a massive 21% higher.
• Bank of Queensland Limited (ASX: BOQ) has entered the top ten with 8.4% of its shares held short. Investors appear to believe the regional bank is going to have a tough 12 months.
• JB Hi-Fi Limited (ASX: JBH) has seen its short interest fall to 8.1%. Short sellers have been closing their positions in a hurry after the retailer revealed explosive sales growth during the second half.

More reading

• ASX 200 Weekly Wrap: ASX back in the green
• These were the best performers on the ASX 200 last week
• Short-sellers are stepping up their attack against these popular ASX shares
• Australian retail sales up 16.3% in May
• Temple & Webster shares continue to grow despite coronavirus restrictions

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 Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited and Webjet Ltd. The Motley Fool Australia has recommended 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 These are the 10 most shorted ASX shares appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/37ZTYIx

On Friday the S&P/ASX 200 Index (ASX: XJO) finished a very positive week with a small gain. The benchmark index edged 0.1% higher to 5,942.6 points.

Will the market be able to build on this on Monday? Here are five things to watch

ASX 200 set to fall heavily.

The ASX 200 looks set to fall heavily on Monday after a mixed finish to the week in the United States. According to the latest SPI futures, the benchmark index is expected to open the week 78 points or 1.3% lower this morning. On Wall Street on Friday the Dow Jones fell 0.8%, the S&P 500 dropped 0.55%, and the Nasdaq index traded flat.

Oil prices higher.

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could be on the rise today after a strong end to the week for oil prices. According to Bloomberg, the WTI crude oil price jumped 2.3% to US$39.75 a barrel and the Brent crude oil price rose 1.65% to US$42.19 a barrel. Oil prices have now posted seven weekly gains out of eight.

Gold price jumps.

Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a positive day after the gold price jumped higher on Friday. According to CNBC, the spot gold price stormed 1.3% higher to US$1,753.00 an ounce. Coronavirus concerns sent traders to the safe haven asset on Friday.

Metcash results.

The Metcash Limited (ASX: MTS) share price will be on watch when it releases its full year results this morning. According to a note out of Goldman Sachs, it expects the wholesale distributor to post revenue of $13 billion and earnings before interest and tax of $326 million. This will be a 3% and 4.6% increase, respectively, on FY 2019’s result.

Jumbo Interactive to return.

The Jumbo Interactive Ltd (ASX: JIN) share price is scheduled to finally return from its trading halt this morning. The online lottery ticket seller requested the halt on Monday of last week while it prepared an announcement relating to the Western Australia lottery market. Last year the state government suggested it might privatise its wagering.

More reading

• Chance of oil surging to US$190 is higher now than before COVID-19: JPMorgan
• 3 long-term ASX 200 shares I’d buy right now
• Top brokers name 3 ASX 200 shares to sell next week
• Top brokers name 3 ASX 200 shares to buy next week
• Why the ultra-rich are hoarding gold

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Jumbo Interactive Limited. The Motley Fool Australia owns shares of and has recommended Jumbo Interactive 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 5 things to watch on the ASX 200 on Monday appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/37NZ7Df