ASX 200 shares have had a wild ride in 2020 with the S&P/ASX 200 Index (ASX: XJO) slumping 13.47% lower.

However, it hasn’t been all bad news with some companies surging in value. While I think the ship has sailed on some ASX growth shares like Afterpay Ltd (ASX: APT), there are still some Aussie companies I’d like to buy.

Here are a few at the top of my watchlist as we head into June 2020.

3 ASX 200 shares I’d like to buy today

I don’t mind a bit of a speculative play in a diversified portfolio and that’s where Woodside Petroleum Limited (ASX: WPL) comes in.

I think the geopolitics and ongoing oil price war will make the Woodside Petroleum share price volatile in 2020. The Aussie oil producer’s shares are down 33.8% this year but where there is risk there is potential reward.

OPEC+ has slashed production in recent months and the global economy is starting to hum back to life. That’s good news for Woodside with higher demand for oil and energy expected over the coming months.

For a less speculative play, I think Westpac Banking Corp (ASX: WBC) is worth a look. The ASX 200 bank share has fallen 27.86% lower this year but could be in the buy zone.

We know Westpac has had its fair share of issues over the last 12 to 18 months and I think a share price correction is justified given the uncertainty created by the coronavirus pandemic. We could also see real estate come under pressure and further writedowns.

Having said that, the share market is inherently forward-looking. Also, Westpac is still churning out billion-dollar profits. I think it will continue to be a strong ASX 200 dividend share if I’m investing for the next decade.

Finally, Domain Holdings Australia Ltd (ASX: DHG) is definitely on my list of cheap shares I’d buy today.

Many Aussies are hoping to see a property correction in 2020 before buying into the market. However, I’m not so sure this will happen. There is a lot of support for owner-occupiers and property investors right now. While we might see the market adjust slightly in September, I still think listings will recover which will be good news for this ASX 200 media share.

Foolish takeaway

These are just a few themes that I think are going to impact ASX 200 shares in 2020. That being said, it’s important to be strategic with your investments and make sure you’re looking at the next 10 years rather than the next 10 weeks.

More reading

• Ready to invest your first $1,000? Try these 2 ASX shares
• Should you worry about geopolitical events in investing?
• ASX 200 down 1.2%: Westpac tumbles, Appen reaffirms guidance, Costa CEO to retire
• Why Costa, Freedom Foods, Sonic, & Westpac shares are tumbling lower
• Will the Wesfarmers share price climb higher in 2020?

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. 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.

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The RTG Mining Inc. (ASX: RTG) share price skyrocketed this morning to be up by as much as 124.64% in early trade. At the time of writing, the small-cap ASX mining share is sitting 81.16% higher for the day at 12.5 cents per share. 

RTG Mining is a mining and exploration company dual-listed on both the ASX and Toronto Stock Exchange. The company has built 7 gold mines in 5 countries on 3 continents and is currently focused on progressing its 8th development project, Mabilo, a high-grade copper-gold mine in the Philippines.

The Mabilo Project is currently in the final stages of permitting and near-term production is anticipated.

Why the RTG Mining share price has gone through the roof

This morning, RTG Mining announced that Mt Labo Exploration and Development Corporation, which holds the Mabilo Project, has been granted a mining license. 

The Mines and Geosciences Bureau (MGB) has approved the expansion of the current Mineral Production Sharing Agreement for the Nalesbitan Project (another RTG project with “excellent” copper porphyry potential) to include the Mabilo Project.

As a result, the Mabilo Project has been granted a Declared Mine Feasibility Study and Environmental Clearance Certificate.

“Mt. Labo has been working closely over an extended period with the MGB to secure this important milestone for the project and is deeply appreciative of the considerable effort and support provided by the MGB,” the announcement read.

Recent capital raising

Today’s update comes on the back of a capital raising that was announced last week. RTG Mining received commitments to raise approximately US$6 million (~A$9.2 million) in a private placement to Australian and international institutional and sophisticated investors – priced at 5.7 cents per share.

The proceeds of the placement will be used to continue to support the advancement of the Mabilo Project towards start-up, and also pursue new potential business development opportunities. Additionally, RTG Mining will use the funds to partially repay its corporate loan facility.

More reading

• Ready to invest your first $1,000? Try these 2 ASX shares
• Should you worry about geopolitical events in investing?
• 3 cheap ASX 200 shares I’d buy today
• ASX 200 down 1.2%: Westpac tumbles, Appen reaffirms guidance, Costa CEO to retire
• The best performing ASX 200 stock today may have more room to climb

Motley Fool contributor Cathryn Goh 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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At lunch on Friday the S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a day in the red. The benchmark index is down 1.2% to 5,779.5 points.

Here’s what has been happening on the market today:

Big four banks tumble.

After a series of exceptionally strong gains, the big four banks have run out of steam on Friday. All four banks are trading lower and acting as a major drag on the ASX 200’s performance today. The worst performer in the group is the Westpac Banking Corp (ASX: WBC) share price with a 5% decline. However, its shares are still up over 16% since the start of the week.

Appen annual general meeting update.

The Appen Ltd (ASX: APX) share price is trading flat after releasing its annual general meeting presentation. The artificial intelligence company advised that it has orders in hand of $350 million year to date. This compares to its revenue of $536 million in FY 2019. As a result, it has reaffirmed its guidance in FY 2020. It expects to grow its operating earnings to between $125 million and $130 million.  

Costa CEO to retire.

The Costa Group Holdings Ltd (ASX: CGC) share price has come under pressure today after the horticulture company dropped a bombshell at its annual general meeting. Costa revealed in its annual general meeting update that its long-serving CEO intends to retire within the next nine months after over 10 years leading the company. Costa also advised that the majority of its produce was in demand and receiving favourable prices. Though, it did warn on increasing operating costs relating to the pandemic.

Best and worst ASX 200 performers.

The Austal Limited (ASX: ASB) share price is the best performer on the ASX 200 on Friday with a 9% gain. This morning the ship builder increased its profit guidance for FY 2020. The worst performer has been the Virgin Money UK PLC (ASX: VUK) share price with a 9% decline. Profit taking in the banking sector is weighing on the UK bank’s shares.

More reading

• Ready to invest your first $1,000? Try these 2 ASX shares
• 3 cheap ASX 200 shares I’d buy today
• The best performing ASX 200 stock today may have more room to climb
• Appen share price falls after positive update fails to impress
• Why Costa, Freedom Foods, Sonic, & Westpac shares are tumbling lower

James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Austal Limited. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. The Motley Fool Australia owns shares of Appen Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Austal Limited (ASX: ASB) share price surged higher this morning after the shipbuilder surprised the market with a profit upgrade.

The Austal share price rallied 10.6% to $3.35 at the time of writing – making it the best performer on the S&P/ASX 200 Index (Index:^AXJO).

The Mayne Pharma Group Ltd (ASX: MYX) share price and Northern Star Resources Ltd (ASX: NST) share price were in distant second and third spots with gains of around 6%-7% each.

Rare profit upgrade despite COVID-19

Just meeting guidance is already a cause for celebration, just look at the ALS Ltd (ASX: ALS) share price when it reported its profit results this week.

Austal did one better. The group said that its FY20 revenue will hit around $2 billion while its earnings before interest and tax (EBIT) will be “no less than $125 million”.

This contrasts with its previous forecast of revenue of at least $1.9 billion and EBIT of no less than $110 million.

What’s lifting Austal’s share price

There are a few factors floating Austal’s boat. Management pointed to continued strong performance across its business and the COVID-19 fallout having less of an impact on its operations than it originally feared.

The recent contract win to build new patrol vessels for the Australian government is also helping, along with confirmation that it will be receiving research and development tax credits in the US.

The fifth factor behind the upgrade is the exchange rate. The stronger for longer US dollar means its Australian dollar denominated results will get an extra lift.

Defensive growth

“Austal’s continued strong performance across our shipyards in the USA, Australia, Philippines and Vietnam during the COVID-19 pandemic has provided confidence to increase the Company’s FY2020 earnings guidance at this time,” said its chief executive David Singleton.

It doesn’t mean the coronavirus crisis won’t drag on the group in the future periods, but at least Austal seems to have weathered the global shutdown well.

This is a much-needed shot in the arm for Austal’s shareholders. The stock sank at the start of the month when the group said it failed to win a tender to build the Guided-Missile Frigates FFG(X) for the US Navy.

Should you buy Austal’s shares?

While Austal’s pipeline of work is still looking pretty full, winning that lucrative contract would have secured its earnings for many years to come.

However, the stock is still good value in my view even without FFG(X). The fact is, most brokers weren’t expecting Austal to be successful anyhow, so not getting that contract doesn’t mean a downgrade.

Austal remains one of my key industrial picks for 2020.

More reading

• ASX 200 down 1.2%: Westpac tumbles, Appen reaffirms guidance, Costa CEO to retire
• 5 things to watch on the ASX 200 on Friday
• Top brokers pick the latest ASX shares to buy today
• 5 things to watch on the ASX 200 on Thursday
• The ASX 200 stock hit by the Brazilian COVID-19 wave

Brendon Lau owns shares of Austal Limited. Connect with me on Twitter @brenlau.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Austal 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.

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The Appen Ltd (ASX: APX) share price has edged lower so far today, down by 2.12% at the time of writing. This downward slide is despite the company providing a very positive update on its financial and operational performance.

Minimal coronavirus impact on business operations

In its AGM CEO’s presentation released to the market this morning, Appen revealed its earnings base remains resilient in the face of the coronavirus pandemic. Use of its products and services remains high among its major customers.

Despite a global slowdown in digital ad spending, Appen reported this has had minimal impact on its major customers to date. The tech company did acknowledge that the continued global economic downturn may have some impact on its smaller customer base moving forward.

Appen confirmed most of its staff continue to work efficiently and successfully in remote locations, supported by its at-home ‘crowd’ base of employees spread across the globe.

Strong balance sheet and healthy cash flow in place

In Appen’s market update in April, the company reported it had a strong balance sheet with cash in excess of $100 million. Today it confirmed its cash balance continues to be in this range. It also has an undrawn working capital facility available. Appen also confirmed that it is in a healthy cash flow position, which is underpinned by low overall capital requirements.

Outlook for FY 2020

Appen emphasised that despite current market challenges, it is continuing to strengthen its market position though continued investments in technology in the appropriate areas in order to achieve its long-term growth trajectory.

Based on Appen’s currently available market information, it expects negligible overall impact on its business performance due to the coronavirus pandemic in the months ahead.

It noted, however, that its current investment pipeline is likely to soften margins for 1H FY2020 to the mid teens, although margins for the full year to December 2020 are likely to be in the high teens.

Appen revealed that year-to-date revenue as at May 2020, including any orders in hand for delivery to customers, amounted to around $350 million. This compares favourably with overall revenues of $536 million for the 12 months to December 2019, and previous guidance.

Appen reaffirmed its full year earnings before interest, tax, depreciation and amortisation guidance of $125–$130 million.

More reading

• 10 quality ASX shares to buy in June
• Forget day trading: Get rich with these top ASX shares
• Why Appen and these ASX shares just hit record highs
• 5 ASX 200 10-bagger shares of the decade
• If you invested $10,000 in the Appen IPO, this is how much you’d have now

Motley Fool contributor Phil Harpur owns shares of Appen Ltd. The Motley Fool Australia owns shares of Appen Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In late morning trade the S&P/ASX 200 Index (ASX: XJO) looks set to end a very positive week on a disappointing note. At the time of writing the benchmark index is down just over 1.2% to 5,778.8 points.

Four shares that have fallen more than most today are listed below. Here’s why they are tumbling lower:

The Costa Group Holdings Ltd (ASX: CGC) share price is down 4% to $3.16. This follows the release of the horticulture company’s annual general meeting update this morning. That update revealed that Costa’s long-serving CEO intends to retire within the next nine months. In addition to this, the company revealed that the majority of its produce is in demand and receiving favourable prices. However, it did warn on increasing operating costs relating to the pandemic.

The Freedom Foods Group Ltd (ASX: FNP) share price has crashed 13% lower to $3.80. Investors have been selling the diversified food company’s shares after the release of trading update. According to the release, a number of Freedom Foods’ channels have been materially impacted by the pandemic. And given the importance of the second half for its overall result, this looks likely to lead to a significantly weaker than expected full year result in FY 2020.

The Sonic Healthcare Limited (ASX: SHL) share price is down 3% to $28.34. This decline may be in relation to a broker note out of UBS this week. According to the note, the broker has a sell rating and $25.10 price target on the company’s shares. It appears concerned that Sonic may not benefit as greatly from pandemic testing as the market expects.

The Westpac Banking Corp (ASX: WBC) share price has fallen over 4% to $17.60. This sizeable decline appears to be the result of profit taking after some sensational gains this week. Prior to today, the Westpac share price was up over 22% week to date. The rest of the big four are tumbling lower with Westpac today, which is weighing heavily on the performance of the ASX 200.

More reading

• Why the Freedom Foods share price crashed 19% lower today
• Why the Costa share price is sinking lower today
• 5 things to watch on the ASX 200 on Friday
• ASX 200 rises again, ASX banks push higher
• Are ASX bank shares finally back in the buy zone?

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. The Motley Fool Australia has recommended Freedom Foods Group Limited and Sonic Healthcare Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Wesfarmers Ltd  (ASX: WES) share price has been up and down in 2020. Shares in the Aussie conglomerate are down 2.46% this year whilst still outperforming the S&P/ASX 200 Index (ASX: XJO) but this doesn’t tell the whole story.

The group’s shares hit a new 52-week high of $47.42 per share in mid-February. That was just prior to the bear market which sent the Wesfarmers share price tumbling to a 52-week low of $29.75 on 23 March.

So, despite the volatility, is the Wesfarmers share price set to climb in 2020?

Is the Wesfarmers share price headed higher this year?

I think Wesfarmers is actually in a strong position right now. The Aussie conglomerate is sitting on a pile of cash after having sold another part of its stake in Coles Group Ltd  (ASX: COL) for $1.1 billion at the end of March.

Wesfarmers is diversified across a number of sectors which is good for stability. However, one of those happens to be the Aussie retail sector which is struggling right now.

Even before the coronavirus pandemic, retailers were doing it tough. Late this month Wesfarmers made the call to restructure its Kmart Group arm. This includes the closure of up to 75 Target stores across Australia as well as the rebranding of further Target stores to Kmart.

It’s true that cash is king right now. Ordinarily, having excess cash could be bad for the Wesfarmers share price. This is because the cash is not being put towards earning a strong return. However, the current economic environment is quite uncertain.

This means that strong cash positions have a couple of advantages. One is balance sheet strength and the ability to operate confidently. The other is being primed to acquire more companies and expand operations in 2020.

Many companies are trading cheaply now because of lost earnings and lower growth forecasts. This means Wesfarmers could swoop in and buy undervalued shares to diversify and broaden its portfolio.

Foolish takeaway

I think the Wesfarmers share price could climb higher in 2020. The Aussie conglomerate is looking to restructure and improve its efficiency right now.

Combined with a strong cash position and undervalued companies in the market, Wesfarmers definitely has the potential to climb in value over the next 7 months.

More reading

• 2 ASX 200 tech shares I’d like to buy today
• Why I think the CSL share price is a strong buy today
• 5 things to watch on the ASX 200 on Friday
• ASX 200 rises again, ASX banks push higher
• Are ASX bank shares finally back in the buy zone?

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET and 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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The Freedom Foods Group Ltd (ASX: FNP) share price is on course to end the week on a very disappointing note.

At the time of writing the diversified food company’s shares are down 15% to $3.68.

At one stage today they dropped 19% to a multi-year low of $3.53.

Why is the Freedom Foods share price crashing lower?

Investors have been selling Freedom Foods’ shares following the release of a trading update this morning.

That update revealed various impacts from the pandemic, both positive and negative, across its business.

During March and April, the company’s Australian retail grocery channel experienced stronger than expected demand. This was driven by consumer spending shifting to this channel during lockdown. Sales in the channel have now normalised.

Also performing positively was its dairy nutritionals business. Demand for lactoferrin remains strong and its performance is in line with expectations. Pleasingly, 80% of FY 2021 output is already contracted.

Things were not so positive for the out of home channel in Australia. Sales in this high margin channel were just 25% of its pre-pandemic expectations in April. This was due to distributors destocking because of reduced demand from widespread outlet closures and restricted trading. The channel is recovering slowly and in May its sales have recovered to 50% of pre-pandemic expectations.

It has been a similar story in the industrial channel. This channel produces cream products which are used in food service and hospitality industries. Sales in April were approximately 55% of pre-pandemic expectations and are forecast to be 45% in May.

Finally, its export channel has underperformed during the pandemic. Sales to China are down 35% compared to expectations. However, management notes that the channel has started to recover now.

What does this add up to?

The sum of the above is a much weaker second half result. And given the importance of its second half to its overall result, its full year result looks set to fall well short of expectations.

Management explained: “Typically, the second half of the financial year is a significant sales and margin contributor to the overall result: normally the second half contributes over 60% of full year operating EBDITA. For FY2020, the combination of the level of sales, changed sales mix from March to June, the impact of doubtful debts and an unrecovered higher seasonal milk pricing will materially impact the second half operating EBDITA relative to pre COVID 19 plans.”

More reading

• Why Costa, Freedom Foods, Sonic, & Westpac shares are tumbling lower
• Why Fortescue, Freedom Foods, Pushpay, & QBE shares are dropping lower
• Where to invest $10,000 into ASX shares immediately
• Where I would invest $5,000 into ASX shares immediately
• 3 top ASX shares to buy now and hold for 10 years

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

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The Acrux Limited (ASX: ACR) share price has taken off this morning, bolting out of the gates to be up by as much as 62.96% in early trade. At the time of writing, Acrux shares are still sitting 40.74% higher at 19 cents per share, taking its current market capitalisation to around $32 million.

Acrux is an ASX pharmaceutical share dedicated to developing and commercialising topical pharmaceuticals. The company currently has 3 pharmaceutical products approved and marketed, along with a portfolio of generic topical products in development. It was established in 1998 and its operations extend to the US and Europe.

Why is the Acrux share price shooting higher?

This morning, Acrux revealed it has entered into an exclusive sales, marketing and distribution agreement with US-based private company TruPharma. 

According to TruPharma’s website, “TruPharma has a proven track record of building niche product portfolios and getting difficult products FDA-approved and into the market”.

Subject to approval by the US Food and Drug Administration (FDA), TruPharma will be responsible for the commercialisation of 6 existing products from the Acrux pipeline. This includes the sponsorship and management of each FDA application, management of commercial manufacturing, marketing and distribution of each product.

The 6 products are at various stages of development and have not been lodged with the FDA.

In turn, Acrux and TruPharma will share the gross profits generated from the sales of the products. Unless otherwise agreed, the agreement for each product will have a 10-year term from launch.

Commenting on today’s update, CEO and managing director, Michael Kotsanis, said:

“We are excited to enter into this agreement with TruPharma and we look forward to developing a long-lasting relationship between the two companies. The agreement marks a significant step forward in achieving Acrux’s transition into the generics market.”

More reading

• Appen share price falls after positive update fails to impress
• Why Costa, Freedom Foods, Sonic, & Westpac shares are tumbling lower
• Will the Wesfarmers share price climb higher in 2020?
• Why the Freedom Foods share price crashed 19% lower today
• Build wealth for life with these 2 ASX 200 shares

Motley Fool contributor Cathryn Goh 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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