The Opthea Limited (ASX: OPT) share price surged more than 20% during trade today, following the company’s recent announcement about its data being presented at an upcoming industry conference. 

What did Opthea announce?

Earlier today, Opthea announced that clinical trial results from Phase 1b/2a studies of its OPT-302 therapy will be presented at the upcoming American Society of Retina Specialists (ASRS) virtual annual meeting. According to the company, ASRS is the largest vitro-retinal specialty society in the world with more than 3,000 members from 63 countries.

Opthea’s clinical data in treating diabetic macular edema (DME) will be presented by Dr David Boyer, an internationally recognised vitreo-retinal specialist ophthalmologist. The presentation will include clinical data and results from Opthea’s OPT-302 Phase 1b/2a trial, which involved 300 injections induced in over 150 patients with persistent DME.

Commenting on the news, Opthea CEO and managing director Megan Baldwin stated: “The acceptance of the oral presentation demonstrates the depth of our science and high level of interest and we look forward to Dr Boyer sharing the data for the first time with the retina specialist community during ASRS.”

What does Opthea do?

Opthea is a clinical stage biopharmaceutical company that is developing a novel therapy to treat highly prevalent and progressive retinal diseases. The company’s flagship and lead product candidate OPT-302 is focused on treating wet age-related macular degeneration and diabetic macular edema, with Opthea holding worldwide rights to the product. OPT-302 is designed to block the activity of 2 proteins that cause blood vessels to grow and leak.

Earlier this year Opthea was added to the S&P/ASX 300 Index during the June rebalance. The company released a statement acknowledging the inclusion and highlighted the company’s strong performance. According to the company, Opthea’s inclusion into the Index could help further diversify the shareholder base as its OPT-302 advances through clinical stages.

Diabetic macular edema is a leading cause of vision loss in adults, with the disease having limited treatment options. As a result there is significant, unmet demand for an efficient and durable therapy for the disease. In early June, Opthea reported positive Phase 2a trial results for OPT-302, in which 52.8% of patients achieved better visual acuity.

Foolish takeaway

Opthea shares have continued to surge throughout the day. At the time of writing, the Opthea share price is trading 17.83% higher at $2.71, after hitting an intraday high of $2.83.

More reading

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Motley Fool contributor Nikhil Gangaram 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 government announced this week that the jobkeeper program will be extended until 28 March 2021. Obviously this has potential ramifications for ASX shares.

At the moment eligible employees and sole traders are getting $1,500 a fortnight. There was a concern that the country faced a financial cliff at the end of September 2020 when support was scheduled to end.

The government said it will pay $1,200 per fortnight from 28 September 2020 to 2 January 2021 and then $1,000 per fortnight from 4 January 2021 to 28 March 2021. However, employees that work(ed) less than 20 hours a week on average will get $750 per fortnight for the first period and $650 per fortnight for the second period.

But which ASX shares are worth buying in response to this?

Well, first you should consider whether the trends in March and April will continue over the rest of the year and into the first quarter of 2021.

There have been plenty of ASX retailers that have seen large growth in the past few months. I’ll give you some examples:

Shares to think about

JB Hi-Fi Limited (ASX: JBH) said that JB Hi-Fi Australia and The Good Guys has seen sales growth of 20% and 23.5% in the second half of FY20. It’s expecting net profit growth of 20% to 22% in FY20. Perhaps JB Hi-Fi will continue to see high demand for its products.

Adairs Ltd (ASX: ADH) revealed that its like for like sales growth in the second half of FY20 was more than 27% with online sales growth of 92.6%. Maybe people will continue to spend on their home furnishings.

Nick Scali Limited (ASX: NCK) said that its written sales order growth was 20.4% in the fourth quarter of FY20. The second half profit is expected to be up 15% to 20% compared to the prior corresponding period. It’s possible that households will continue to spend on higher end furniture.

There are numerous other names like Wesfarmers Ltd (ASX: WES), Beacon Lighting Group Ltd (ASX: BLX) and Temple & Webster Group Ltd (ASX: TPW) which have seen impressive growth over the last few months.

I think the announcement of jobkeeper’s extension is good news for the ASX shares I’ve named. Though some of them like JB Hi-Fi are probably priced with strong performance in mind.

What about banks?

A more interesting question will be for businesses like construction and banks. More jobkeeper money is an indirect benefit for shares like Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB) and Australia and New Zealand Banking Group (ASX: ANZ). However, the spread of the virus and new lockdowns is obviously a bad thing for the Victorian economy. Indeed, it’s bad for the whole country. 

There’s a reason why the OECD warned that the Australian economy would shrink 6.3% in 2020 if there was a return of widespread contagion and a return of lockdowns – only Victoria is being materially affected at the moment.

One of my favourite share ideas on the ASX

Brickworks Limited (ASX: BKW) is one of my favourite ideas to invest for the recovery of the economy.

Firstly, it owns a growing industrial property trust along with Goodman Group (ASX: GMG). The trust is pivoting towards the growth of ecommerce with the construction of two large distribution centres in Sydney for Amazon and Coles Group Limited (ASX: COL). Whether COVID-19 stays or (hopefully) goes away, the trust should see growing rent and a rising valuation over the next couple of years.

Brickworks also owns a large amount of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares. The investment conglomerate offers defensive earnings with ASX share holdings like TPG Telecom Ltd (ASX: TPG) and Clover Corporation Limited (ASX: CLV).

I think Brickworks is positioned defensively if things get worse. If the economy improves then hopefully its building product divisions start to see more activity as well. Construction is a somewhat cyclical sector. I strongly believe the best time to buy shares of construction businesses is when sentiment is low.

I believe Brickworks, at the current share price, could be the best ASX share to ride through the next 12 months. Whether things get better or worse.

More reading

• 4 trends to invest in before August earnings season
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• How mandatory masks could impact these ASX shares

Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Clover Limited and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Wesfarmers Limited. The Motley Fool Australia has recommended Temple & Webster Group 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 Kogan.com Ltd (ASX: KGN) share price has been on a tear in recent months, rising by more than 363% since mid-March.

This strong rally was linked to a series of very positive sales updates. A surge in online shopping during the coronavirus pandemic appears to be one of the main catalysts for Kogan’s boost in sales.

With such a strong recent rise in the Kogan share price, is it still in the buy zone?

Rollercoaster ride for Kogan share price

It’s been a wild ride for the Kogan share price over the past three years. It soared from $1.67 in mid 2017 to reach $9.85 in March 2018. It then trended downward for most of 2018. The Kogan share price then took off again throughout 2019, however it only reached $7.80, still well below where it was in early 2018. The coronavirus pandemic then saw it fall back to $3.79 in mid-March. However, a remarkable rally since then sees the Kogan share price now sitting at $17.56.

Strong recent sales update

Kogan has seen a surge in online sales due to COVID-19 lockdown restrictions. In particular, there has been a much higher than normal demand for home office equipment and accessories such as PCs and laptops. In contrast, retailers with a physical store presence have suffered from a heavy decline in foot traffic. 

Kogan’s soaring growth in onlines sales is clearly evident in its most recent market update.

Gross sales grew by more than 95% during the fourth quarter of 2020, compared to the prior corresponding period. Meanwhile, gross profit grew by an incredible 115% during the same period and adjusted EBITDA grew by more than 149%. Full year FY 2020 adjusted EBITDA has grown  by more than 57%.

Is it too late to buy Kogan shares?

With a 363% rise in the Kogan share price since March, it’s now definitely looking expensive based on conventional financial metrics. Kogan’s price-to-earnings (P/E) ratio, for example, has now climbed to 92. This is well above the S&P/ASX 200 Index (INDEXASX: XJO) average of 19.76.

Despite this, the Kogan share price still remains in my buy zone. I don’t believe this high P/E ratio is too much of a concern, taking into consideration Kogan’s long-term growth prospects. I believe that Kogan is in an ideal position to leverage the rising demand for online shopping over the next decade.

Whilst the current surge in online shopping is unlikely to continue to the same extent, I feel the overall trend towards the online channel for shopping is generally set to continue. Kogan has now entrenched its market position as one of the leading local online providers. It is therefore better placed than most of its competitors to tap into this growing trend in my mind.

More reading

• Why the Digital Wine Ventures share price is surging today
• 3 ASX growth shares that could be long term market beaters
• Are ASX 200 shares about to take off on another bull run?
• What to do if your ASX shares hit a record high
• 4 trends to invest in before August earnings season

Phil Harpur owns shares of Kogan.com ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com 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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This year, ASX bank shares like Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) have found themselves in the spotlight. And not in a good way (as is usually the case).

The coronavirus pandemic and associated economic shutdowns have reminded us all of the banks’ vital role in the economy. Credit and credit growth are both functions of economic growth and work in a self-reinforcing pattern. If people have more money (or at least feel like they do), they are more inclined to borrow from credit providers like the banks. And the more money that is borrowed, the more people feel wealthy — and on and on the cycle goes.

A horrible year for ASX bank shares

But of course, this works in reverse too. And that’s what we’ve been seeing over the course of the year as the pandemic has forced the economy to essentially grind to a halt. As such, it hasn’t been a good year to hold ASX bank shares.

Westpac shares are down more than 25% from where they started the year. National Australia Bank Ltd (ASX: NAB) and Australia and New Zealand Banking Group (ASX: ANZ) haven’t fared much better. CommBank shares are something of a saving grace, only down around 8% since the start of 2020.

Perhaps this has something to do with the fact that CommBank is the only one of the big four banks not to have delivered a dividend cut in 2020 so far. CommBank was lucky enough to have to record its interim dividend back in February, just before the pandemic struck. Its interim dividend came in at $2 a share, which was in line with its 2019 payout.

In contrast, NAB, ANZ and Westpac were all due to record their dividends in April and May — which ended up seeing Westpac and ANZ ‘defer’ their payments. NAB payed out a 30 cent per share dividend, which was a substantial cut from the previous year’s 83 cents per share interim payout.

But now the chickens are coming home to roost for CBA, and the company is set to soon announce its first post-COVID-19 dividend.

Will CommBank pay a dividend?

According to reporting in the Australian Financial Review (AFR), one investment bank is predicting that Commonwealth Bank will be following the leads of ANZ and Westpac and won’t be paying a dividend at all. The AFR reports that Citi Group is preparing for the bank to defer its final 2020 dividend, citing the fact that it will likely have to bump up its cash reserves as it paid such a hefty dividend back in February.

All of the ASX banks are under pressure from the Australian Prudential Regulation Authority (APRA) to keep dividend payouts relatively low, in order to shore up the financial strength of the banking system in the face of the pandemic.

Further, Citi analyst Brendan Sproules reckons the banks won’t be returning to their previous payout ratios of around 75% until at least 2022.

Other analysts aren’t quite so bearish. The AFR reports that Goldman Sachs is expecting a final dividend from CommBank for $1 per share.

But one thing is for sure — it’s not a great year to hold ASX bank shares.

More reading

• ASX 200 up 0.4%: Banks lower, Newcrest impresses, Coca-Cola Amatil jumps
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• ASX 200 drops 1.1%: Big four banks fall, Resolute rockets, Afterpay tumbles
• Are you ready to invest in ASX shares?
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Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank 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 Digital Wine Ventures Ltd (ASX: DW8) share price jumped to a more than five-year high after management released a bullish trading update.

Shares in the small cap tech stock surged 5.4% to 3.9 cents in the last hour of trade when the All Ordinaries (Index:^AORD) (ASX:XAO) and the S&P/ASX 200 Index (Index:^AXJO) eked out a 0.3% gain each.

Management said earlier in the day that its online wine platform WINEDEPOT won another 16 customers in the month of June.

New customer wins

This takes the total number of new sign-ons to 39 in the quarter representing a 111% growth over the previous quarter.

But it’s still early days. The total number of customers on WINEDEPOT stands at 74, although management is putting a positive spin on this by saying it has lots of space to grow.

Only 2.7% of the 2,500 plus wineries are on the platform, while distributors and craft spirits producers in Australia barely register as a blip.

Some of the new customers in the latest quarter include Stoney Hill Vineyard, Brokenwood Wines and Cirillo Estate Wines.

Opening international markets

It’s also interesting to see Chateau Picoron from the famous French region of Bordeaux signing up to the WINEDEPOT service. Chateau Picoron is the first customer from France to use WINEDEPOT.

“The addressable market has also been widened to include tens of thousands of international wineries,” said the company in its ASX statement.

“Included in the expanded market opportunity are approximately 500 New Zealand wineries, which can fairly easily take advantage of the same benefits offered to Australian wineries by using the platform to service direct-to-consumer orders received from Australian consumers.”

Riding the online boom

Online sales of alcohol (and just about everything else) is booming during the COVID-19 pandemic. Stuck-at-home consumers and those wishing to minimise the chances of catching coronavirus are opting to shop online instead.

Alcohol is also seen by many as a way to cope with the fallout from the virus and WINEDEPOT is trying to position itself as a service facilitator.

It’s probably better to be a technology enabler than a wine producer at the moment too. Treasury Wine Estates Ltd’s (ASX: TWE) problems with its US and China operations are well documented.

Revenue model

The cloud-based platform serves as an order management system and logistics solution.

Digital Wines generates revenue from three sources. It collects a trading fee, which is a percentage of the overall transaction.

It also gets paid a fulfillment fee for storing, picking, packing and shipping the order; and a subscription fee that’s based on the number of users and products.

More reading

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• Are ASX 200 shares about to take off on another bull run?
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• Why the Santos share price is back on my radar
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Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates 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 Qantas Airways Limited (ASX: QAN) share price has been a positive performer on Thursday.

In afternoon trade the airline operator’s shares are up 1.5% to $3.72.

Is the Qantas share price in the buy zone?

While I do see value in Qantas shares at the current level, the recent spike in coronavirus cases in Victoria has increased uncertainty materially.

In light of this, I would class its shares as a hold at this point and suggest investors wait for trading conditions to improve before investing.

One broker that is also sitting on the fence is Goldman Sachs. This morning the broker retained its neutral rating and lifted its price target to $3.82.

What did Goldman Sachs say about Qantas?

Goldman Sachs is confident that Qantas will remain the dominant airline on the other side of the pandemic and expects its profitability to eventually return to previous levels.

Its analysts commented: “We can have a reasonable degree of confidence the airline and its profitability will return to pre-Covid levels at some point in the future when the market has settled; however we have very limited certainty that this can and will be achieved over a medium-term (2-3 year) time horizon.”

It also notes that the near term is full of uncertainty. Goldman commented: “The near-term market size is highly uncertain, with long-haul international markets likely to remain effectively closed and the trans-Tasman and domestic aviation markets constrained by quarantine restrictions.”

The broker acknowledges that a recovery in domestic activity could underpin a substantial earnings recovery. It estimates that Qantas’ domestic services (both Qantas and Jetstar) represented ~55% of calendar year 2019 earnings before interest and tax.

However, it has concerns over the recent spike in inspections. Noting that a coronavirus spike “on the east coast golden triangle routes mean that a fluid resumption of air travel is unlikely in the near term.”

In light of this uncertainty, it holds firm with its neutral rating.

One travel and tourism share that it does like is Sydney Airport Holdings Pty Ltd (ASX: SYD). This morning it retained its buy rating and put a $6.73 price target on the airport operator’s shares.

More reading

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• Market close: ASX 200 falls 0.5%

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

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The DroneShield Ltd (ASX: DRO) share price has surged 25% today after the company announced a contract with the United States Air Force.

DroneShield awarded US Air Force contract

Earlier today, DroneShield released an announcement informing the market the company has been awarded a contract with the United States Air Force worth approximately US$200,000. Under the contract, DroneShield will supply multiple units of its ‘DroneSentry’ integrated detect-and-defeat systems to the Grand Forks Air Force base in North Dakota, US. According to the company, its DroneSentry technology was chosen because of its artificial intelligence software and tracking/defeat automation.

The contract marks DroneShield’s first US Air Force deployment and allows for additional units to be ordered after the original contract is fulfilled. DroneShield’s management expressed the strategic significance of the contract that will provide the company with the opportunity to expand its solutions in the key market.

How has the DroneShield share price performed?

DroneShield is an Australian based company that specialises in drone security technology. The company’s security solutions are designed to protect people and critical infrastructure from intrusions by drones. DroneShield built its hardware and software from the ground up and has an extensive pipeline of solutions. The announcement of DroneShield’s contract with the US Air Force follows the company’s quarterly report which was released yesterday.

DroneShield provided an update on its activities for the fourth quarter of FY20. This was highlighted by the company finishing the quarter cashflow-positive, with cash inflows of $2.1 million. As a result, the company recorded its first ever quarter in which operating cashflows were approximately breakeven.

DroneShield highlighted a substantial increase in US government business, with the company also working towards a formal contract in the Middle-East. DroneShield also noted the impact of COVID-19 on its operations, with the pandemic interrupting the company’s operations and logistics. 

At the time of writing, investors have driven the DroneShield share price 25% higher for the day, with the company’s shares currently trading at 15 cents.

More reading

• 3 ASX growth shares that could be long term market beaters
• Buy and hold Cochlear and these ASX shares for strong long term returns
• Are ASX 200 shares about to take off on another bull run?
• Why the Cogstate share price soared 78% higher today
• What to do if your ASX shares hit a record high

Motley Fool contributor Nikhil Gangaram 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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Are you looking to add a few growth shares to your portfolio? Then you might want to consider buying the three ASX shares listed below.

I believe all three have the potential to grow very strongly over the next decade and could provide strong returns for investors.

Here’s why I would buy these ASX growth shares:

a2 Milk Company Ltd (ASX: A2M)

The first ASX growth share to consider buying is a2 Milk Company. I continue to believe that the infant formula and fresh milk company can grow materially in the future and drive strong returns for investors. This is due to the increasing demand for its infant formula in China and its relatively modest market share in the lucrative market. This should be supported by the expansion of its fresh milk footprint and potential earnings accretive acquisitions.

Kogan.com Ltd (ASX: KGN)

Another ASX growth share to consider buying is Kogan. Although this ecommerce company’s shares have been on fire over the last few months thanks to a spike in sales and customer numbers during the pandemic, I don’t believe it is too late to invest. I believe Kogan is well-placed to continue its strong growth over the next decade thanks to the growing popularity of its website, more spending online, and its acquisition plans.

Pushpay Holdings Group Ltd (ASX: PPH)

A final ASX growth share to look at buying is Pushpay. It is a fast-growing donor management platform provider for the faith and not-for-profit sectors. After smashing expectations in FY 2020, Pushpay has provided guidance for more strong growth in FY 2021. Pleasingly, its strong growth looks unlikely to end there. Management is targeting a 50% share of the medium to large church market in the future. This represents a US$1 billion opportunity and is many multiples of its current revenue.

More reading

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• How you can take advantage of the surging Australian dollar

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