The S&P/ASX 200 Index (ASX: XJO) rose by 0.74% today to 6,051 points. The overseas share markets rallied after the US Federal Reserve indicated that it would continue to support the economy through these COVID-19 times and keep interest rates low for some time.

Victoria reported 723 new confirmed COVID-19 cases whilst both Queensland and NSW reported a few more cases.

Fortescue Metals Group Limited (ASX: FMG) share price rises 4%

Fortescue is now bigger than both Australia and New Zealand Banking Group (ASX: ANZ) and Wesfarmers Ltd (ASX: WES). It has been an incredible 12 months for the ASX 200 miner.

The iron ore miner announced its June 2020 production update today.

It saw a record 178.2 million tonnes (mt) of iron ore shipments in FY20. Iron ore shipments were 47.3mt for the quarter. This beat the top end of Fortescue’s FY20 guidance of 177mt. FY20 shipments were 6% higher than FY19.

Fortescue said that its average revenue was US$81 per dry metric tonne (dmt) in the fourth quarter. This brought the average revenue for FY20 to US$79 per dmt.

C1 costs for the fourth quarter were around US$13 per wet metric tonne (wmt). C1 costs for FY20 were just under US$13 per wmt including US$0.22 per wmt of COVID-19 related costs.

The ASX 200 miner has cash on hand of US$4.9 billion at 30 June 2020 and net debt of US$0.3 billion.

In FY20 it had capital expenditure of US$2 billion in FY20 and in FY21 it expects capital expenditure of between US$3 billion and US$3.4 billion including investment in growth projects and energy infrastructure.

In FY21 guidance for shipments is between 175mt to 180mt and C1 costs of US$13 per wmt to US$13.50 per wmt.

Macquarie Group Ltd (ASX: MQG) FY21 first quarter

Macquarie announced its FY21 first quarter to investors today as it held its annual general meeting (AGM) today.

The ASX 200 investment bank said that its operating groups have been impacted by mixed trading conditions. Operating net profit was down slightly compared to the first quarter of FY20.

In terms of the regulatory minimum requirements, the group capital surplus was $8.1 billion at 30 June 2020. The bank CET1 ratio was 13.2%.

Macquarie CEO Shemara Wikramanayake said: “Macquarie’s annuity-style businesses were up on 1Q20 with Macquarie Asset Management (MAM) up primarily due to the sale of its rail operating lease business, partially offset by lower income in banking and financial services which included higher provisions. Macquarie’s market-facing businesses were down on 1Q20 primarily due to significantly lower investment-related income in Macquarie Capital, partially offset by stronger contributions from certain divisions in commodities and global markets.”

The Macquarie share price went up 0.8%. 

Splitit Ltd (ASX: SPT) rises on FY20 second quarter

Splitit announced record quarter growth of merchant sales volume to US$65.4 million. This was up 260% year on year.

Quarterly gross revenue was US$2.4 million, up 460% year on year – this was higher than the entire revenue from FY19.

Splitit said that it has seen continued strong demand from merchants in key verticals, with new brands accepting Splitit including Puffy, Waves, Braun, OCM and Ecosa.

Management said it is well funded. It had US$18.3 million of net cash and US$32 million of unused borrowing capacity to fund further growth.

Splitit CEO Brad Paterson said: “Accelerating merchant demand, strong foundations and a great shopper experience have set Splitit on a rapid growth trajectory, with record MSV and revenue during the quarter. We are seeing the benefits of tightening our product-market fit, attracting world class talent, partnering with Stripe, Visa and Mastercard and supporting our scalable solution with the right merchant funding model. This is an exciting time and we are only just getting started. We expect this growth to continue as we focus on delivering significant benefit and value to our customers.”

The Splitit share price rose almost 3% today. 

More reading

• 3 underperforming ASX 200 stocks that could beat earnings expectations
• A dirt-cheap ASX dividend share to add to your portfolio today
• Why the Sandfire share price is the worst performer on the ASX 200 today
• 3 latest ASX 200 stocks to be downgraded by top brokers today
• ASX 200 jumps 0.7%: Fortescue impresses, Macquarie’s tough Q1, big four banks rise

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

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Getting through this reporting season is akin to tiptoeing through a field of landmines. Perhaps one good way to get through the reporting season is to back ASX stocks that are underperforming the market.

This is because expectations are set pretty low for these S&P/ASX 200 Index (Index:^AXJO) laggards when the same can’t be said for the market in general.

Some experts are warning of a painful correction as profit results are unlikely to sustain the rapid recovery in the ASX 200 since it hit a COVID-19 low back in March.

Seeds of a turnaround recovery

One stock that’s weighed down by bad news is the Nufarm Limited (ASX: NUF) share price. Shares in the crop protection and seed distributor fell nearly 30% since the start of calendar 2020.

A series of disappointing profit updates robbed confidence from the stock, but it may be at a point where sentiment is worse than reality.

UBS believes it’s Nufarm’s troublesome European business that’s dragging on stock and that the worst is likely behind the group when it upgraded Nufarm to “buy” recently.

I also believe that the market is pricing in very little upside for its newly launched omega-3 infused canola seeds.

Management said today that Canadian authorities have granted the group permission to sell the seeds in that country.

Further, easing drought conditions in Australia should mean that we will start seeing better results in Nufarm’s local business.

The company is expected to report its full year results in late September.

Down but not out

Another dog that might be worth betting on is the Downer EDI Limited (ASX: DOW) share price. Shares in the engineering and industrial services group nearly halved since January.

Fears that it will need to raise capital and the earnings hit from fallout from COVID-19 on its hospitality business prompted investors to shun the stock.

It turned out that the market was right about the capital raise with management tapping investors on the shoulder for $400 million.

There’s also slightly more confidence about the outlook for the economy in the post COVID-19 world.

This could be the right time to get back into this heavily discounted stock, particularly after Goldman Sachs upgraded Downer to “buy” yesterday.

“All-in we view DOW as an attractive defensive complement to our more resource-focused E&C coverage, with the company among the most recession-resilient in the case of an uneven macro/commodity recovery coming out of COVID,” said Goldman.

“We believe the stock’s valuation fails to reflect this defensive profile.”

Looking cheap with a strong balance sheet

Finally, I think the CSR Limited (ASX: CSR) share price is also looking interesting after its 23% fall in 2020.

Worries about housing construction falling off a cliff during the coronavirus turmoil looks overblown to me when federal and state governments are pumping stimulus into the sector.

Management also impressed me when it handed in their full year earnings report card in May, which was ahead of market expectations.

CSR also has a strong balance sheet with around $95 million in cash to buffer it from the uncertain industry outlook.

The building materials company will report its half year numbers in November.

More reading

• ASX 200 rises 0.75%, Fortescue impresses and Macquarie remains robust
• A dirt-cheap ASX dividend share to add to your portfolio today
• Why the Sandfire share price is the worst performer on the ASX 200 today
• 3 latest ASX 200 stocks to be downgraded by top brokers today
• ASX 200 jumps 0.7%: Fortescue impresses, Macquarie’s tough Q1, big four banks rise

Motley Fool contributor Brendon Lau owns shares of Nufarm Limited. Connect with me on Twitter @brenlau.

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 Elsight Ltd (ASX: ELS) share price has soared a massive 65% today, after the company announced it had received a material order from the United States (US) market as a result of a strategic partnership.

Elsight develops advanced communication technologies for real-time data, video and audio transmission over cellular networks in mission-critical environments.  

What did the company announce?

Elsight and the US-based Kinetx Prime reached an in principle distribution agreement for an initial order commitment of US$1.6 million (A$2.3 million). The partnership is a result of Elsight securing US Federal Communications Commission (FCC) certification, as announced earlier this month.

Its strategic partnership with Kinetx Prime will enable direct-to-consumer telehealth services in the US with Elsight’s flagship Halo product. 

The coronavirus pandemic and the resulting demand for telehealth services has created a substantial market opportunity for Elsight. This is as a result of patients with existing chronic or new conditions being scared or unable to get the normal healthcare they need.

Kinetx Prime focuses on the application of technology solutions using private and public cellular networks to enhance the connectivity of rural and urban communities. The goal is to improve remote healthcare, which is the only alternative for people without access to a hospital or clinic. 

This deal represents the first time Halo will be mass distributed in the business-to-consumer market in North America. 

The company has advised it is also exploring further opportunities in various industry segments with prospective technology company partners. 

Management commentary

Commenting on the partnership agreement, Nir Gabay, founder and CEO of Elsight said, “We are delighted to have partnered with a company that shares our vision and to be able to bring about positive change during a time of crisis and pain…”

Founder and CEO Joe Page of Kintetx added:

Kinetx Prime will drive growth of Elsight Halo product into U.S markets to provide much needed wireless connectivity service to underserved communities…Using the Halo product, Kinetx conducted a successful Telehealth trial with a regional university school of medicine to allow them to connect beyond their traditional network reach.

About the Elsight share price

The Elsight share price has soared 63.33% today following the strategic partnership announcement. As a result, the Elsight share price is currently trading at 49 cents per share, which is 38.03% up on this time last year.

More reading

• FirstWave share price jumps 28% as tech heavyweight joins the team
• These could be outstanding buy and hold options for ASX investors
• Ava Risk Group share price rockets 45% on quarterly report
• ASX 200 rises 0.75%, Fortescue impresses and Macquarie remains robust
• 3 underperforming ASX 200 stocks that could beat earnings expectations

Motley Fool contributor Matthew Donald 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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I believe the ASX is home to a good number of mid cap shares that have the potential to generate market beating returns for investors over the next five years.

But which mid cap shares should you buy? Two that I would buy are listed below. Here’s why I rate them highly:

Jumbo Interactive (ASX: JIN)

The first mid cap share to consider buying is Jumbo. It is an online lottery ticket seller and the operator of the Oz Lotteries website. From this website the company resells tickets on behalf of Tabcorp Holdings Limited (ASX: TAH). Pleasingly, the two companies have recently agreed a long term reseller agreement. While this agreement is on less favourable terms compared to previous agreements, it provides a lot of stability and allows management to focus on the international expansion of its Powered by Jumbo SaaS business.

I believe this business will play a key role in the company achieving its target of $1 billion in ticket sales through its platform by FY 2022. This will be triple what it achieved in FY 2019. Looking even further ahead, management notes that it has a US$303 billion global total addressable market. And only 7% of this market is online at the moment, but likely to make the shift in the future.

Pushpay Holdings Group Ltd (ASX: PPH)

Pushpay would have to be my favourite mid cap share. It is a fast-growing donor management platform provider with a focus on the church, not-for-profit, and education sectors. Its increasingly popular and high quality platform has been growing its share of the U.S. church market at a rapid rate in recent years. This has led to Pushpay’s recurring revenues increasing very strongly over the period.

Pleasingly, this strong growth looks unlikely to end any time soon. In FY 2021 management is confident that another strong result is coming and revealed that it expects its operating earnings to double. Looking further afield, Pushpay is aiming to win a 50% share of the medium to large church market in the future. This represents a sizeable US$1 billion opportunity, which is many multiples what it achieved in FY 2020. Given the quality of its offering and leadership position in the industry, I believe it will deliver on this target.

More reading

• Invest $5,000 into these ASX shares immediately
• Is now the time to buy the Jumbo Interactive share price?
• 2 hidden ASX shares to benefit from coronavirus
• 3 of the best ASX tech shares to buy and hold until 2030
• 3 unstoppable ASX shares to buy right now

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 PUSHPAY FPO NZX. 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. 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.

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Something very interesting is happening right now in the United States (US).

The CEOs of some of the largest US tech companies are testifying before an antitrust hearing in the US House of Representatives.

Yes, Facebook’s Mark Zuckerberg, Alphabet’s Sundar Pichai, Jeff Bezos of Amazon.com and Apple’s Tim Cook are fronting a congressional committee examining whether these companies should be broken up using US antitrust laws. It’s quite the show.

What are antitrust laws?

‘Antitrust’ is an American term that we would translate into ‘anti-monopoly’. The US has had antitrust laws for more than a century, and they have been wielded once in a way that impacted the world.

More than a century ago, the Standard Oil empire of John D. Rockefeller was determined a monopoly and forced to break up into several smaller companies.

Incidentally, these companies now form most of the major oil companies in the world today. It’s also worth pointing out that the antitrust process massively increased Rockefeller’s wealth.

Will this mean a big tech breakup?

Well, it can’t be ruled out yet. The tech company CEOs have been peppered with tough questions.

The US congressional committee noted that Facebook purchased Instagram back in 2012 because it saw the then-fledgling company as a potential rival.

It noted that Apple charged a substantial fee for third-party transactions on its App Store platform.

It criticised Alphabet for curating a “walled garden” of the internet and “weaponising” its Google search function.

And the committee accused Amazon of being misleading when Bezos denied the company used data from third-party sellers to boost sales of its own products.

The accusations all point to the misuse of market position and power. And that is technically grounds for antitrust action (potential tech breakups).

All in all, it has been an episode of high drama.

But I don’t think too much will come of these hearings.

Even if it does, and Facebook was split into Facebook, Instagram and Whatsapp, or Alphabet into Google and YouTube, what happened with Standard Oil shows this could lead to even more wealth for the company owners.

However, if even one of these big tech companies is broken up, it will be a momentous day. Watch this space!

More reading

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• ASX investors have been buying Tesla and these international shares
• Kanye West – ASX shares for his US presidential campaign
• Apple Plans to Be 100% Carbon Neutral by 2030
• ASX investors were buying these 5 international shares last week

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares) and Facebook. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Amazon, Apple, and Facebook and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Alphabet (A shares), Amazon, Apple, and Facebook. 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 Aroa Biosurgery Ltd (ASX: ARX) share price has closed 7.69% higher today after announcing it has secured United States Food and Drug Administration (FDA) clearance for one of its products, ‘Symphony’. In addition, the company received European approval for its product, ‘Myriad’, and released an investor presentation today.

The New Zealand-based Aroa is a soft tissue regeneration company focused on improving the rate and quality of healing in complex wounds and soft tissue reconstruction. 

Symphony FDA clearance

Symphony is designed to reduce complex wound healing time in the proliferative phase where normal healing is impaired due to disease.

Its pending commercial launch in 2021 presents a major expansion in Aroa’s product portfolio in the US. Pleasingly, the launch will take the company’s addressable market to more than $2.5 billion, up from $1.5 billion previously.

Aroa CEO Brian Ward said “Symphony will give clinicians a new option to treat some of their most hard to heal patients, in what we estimate is a US market size of US$1.15 billion for the product”.

European approval for Myriad

Aroa’s product, Myriad, has received the ‘CE mark’ to allow commercialisation in the European Union. Myriad supports rapid tissue growth for dermal tissue reconstruction. The company expects the launch of the product to occur in 2021. 

The FDA clearance in June 2017 led to first sales earlier this year. Additionally, it is estimated the total addressable market size for the product globally is US$350 million.

July investor presentation

According to its investor presentation, all Aroa’s products are based on its proprietary Endoform platform technology which is a unique Extracullular Matrix (ECM) derived from sheep forestomach.

Additionally, the company says its technology offers superior regenerative performance at a significantly lower cost than other biologics enabling more patients to have access to the benefits of regenerative healing.

The company’s products have competitor protection due to the patents it owns. This includes 10 patents and 25 pending patent applications across 6 patent families. Aroa has 5 patented products selling across the US alone.

Pleasingly, the company’s revenue has grown from $8.43 million in FY18 to $21.92 million in FY20. Furthermore, its product gross margin of 71% in FY20 has expanded compared to 36% in FY18. It is earnings before tax, depreciation and amortisation (EBITDA) positive in FY20 on a proforma basis.

Aroa Biosurgery share price performance

The Aroa Biosurgery share price closed today’s trade at $1.54 which represents a 14.07% increase since it listed on the ASX just last Friday.

More reading

• Aroa Biosurgery surges 80% on ASX IPO. Is it still good value?

Motley Fool contributor Matthew Donald 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 Pilbara Minerals Ltd (ASX: PLS) share price is up by 8.7% to 38 cents per share at the time of writing, after the company announced it has secured a new US$110 million (A$153 million) low-cost debt facility.

What’s moving Pilbrara Minerals share price today?

According to today’s announcement, international bank BNP Paribas and Australian clean energy investors Clean Energy Finance Corporation (CEFC) are providing the new financing. Both are long term Pilbara supporters.

The new debt facility will largely go towards the early redemption of Pilbara’s existing US$100 million Nordic Bond, which was used to support the financing of Stage 1 of the Pilgangoora Lithium-Tantalum Project in 2017.

According to the announcement, the average all-in interest rate for the new facility currently comes in at approximately 5%, which represents a substantial cost saving when compared to the Nordic Bond.

The company expects the new financing to increase cash flows and decrease its funding costs.

What does Pilbara Minerals do?

Pilbara is an Australian lithium-tantalum producer. It owns 100% of the Pilgangoora Project in Western Australia. The region is believed to contain some of the largest deposits of hard-rock lithium-tantalum deposits in the world.

With lithium helping power electric vehicles and the wider transition away from carbon-based fuels, Pilbara Minerals aims to become one of the biggest producers in the world.

A word from Pilbara’s CEO

In announcing the refinancing of its existing debt facilities to support its long-term growth plans for its Pilgangoora Project, managing director and CEO, Ken Brinsden noted:

This landmark refinancing of our long-term debt facilities … reflects the quality and scale of the Pilgangoora Project, as well as our success in building, commissioning and ramping-up the Pilgangoora Project to secure our position as a sustainable and reliable long-term supplier of lithium raw materials to some of the key players in the global lithium battery supply chain. Both BNP Paribas and the CEFC have been key contributors and partners in the development journey of the Pilgangoora Project.

Investors appear pleased with the news, with the Pilbara share price up 8.7% in late-afternoon trading.

Pilbara is an S&P/ASX 300 (INDEXASX: XKO) listed company, with a market capitalisation of $834.28 million at current prices. 

More reading

• Up 38% in July! Is the Orocobre share price a buy?

Motley Fool contributor Bernd Struben 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 in search of a source of income in retirement, then I think the share market is a great place to look.

Especially given how the interest rates on offer with income-generating assets like term deposits are yielding just 1% right now.

Two dividend shares that I think would be great options for retirees are listed below. Here’s why I like them:

BWP Trust (ASX: BWP)

The first option for retirees to consider ahead of term deposits is BWP Trust. It is the largest owner of Bunnings Warehouse sites in Australia with a portfolio of 68 stores leased to the hardware giant. BWP withdrew its distribution guidance in March at the height of the pandemic, but soon brought it back after being able to collect rents as normal despite the economic downturn. I believe this is a testament to the quality of its tenant, which has continued to thrive during the crisis.

Last month management revealed that it currently expects to pay a second half distribution of 9.27 cents per unit, bringing the full year distribution to 18.29 cents per unit. This represents a 1% increase on the prior financial year and is in line with its previous guidance. The good news is that due to the strength of the Bunnings business, I believe this growth can continue over the coming years. As a result, based on the current BWP share price, I estimate that it offers a generous 4.7% FY 2021 distribution yield.

Rural Funds Group (ASX: RFF)

Another option for retirees to consider buying is this agriculture-focused property group. I like Rural Funds due to the quality of its portfolio of assets and its positive long-term distribution outlook. The latter is a big positive for income investors and is thanks to its long-term tenancy agreements and periodic rent increases. In respect to the former, at the last count Rural Funds had a weighted average lease expiry profile of 11.5 years.

I believe this combination means that Rural Funds is well-positioned to grow its distribution at a solid rate long into the future. This certainly will be the case in FY 2021. Management recently revealed that it intends to lift its distribution by 4% to 11.28 cents per share. Based on the latest Rural Funds share price, this equates to a yield of 5.5%. An added bonus is that it pays its distribution in quarterly instalments, which provides investors with a regular source of income. 

More reading

• 3 ASX dividend shares with yields over 5%
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. 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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