Do you have $1,000 to invest into ASX shares? I think there are still several investment opportunities on the ASX, we just have to be more picky than a few months ago when the COVID-19 selloff caused there to be lots of good value opportunities.

But I still think there are some wonderful investment ASX share ideas if you have $1,000 to invest today:

Exchange-traded fund (ETF)

BetaShares Global Quality Leaders ETF (ASX: QLTY)

I think it’s worthwhile investing in quality companies during this difficult COVID-19 period. This ETF only invests in businesses which rank highly on return on equity (ROE), debt to capital, cash flow generation ability and earnings stability metrics.

This ETF costs a bit more than the cheapest ETFs out there, but its annual fee is still only 0.35%. It has performed very strongly since inception in November 2018, returning an average 19.76% per annum after fees.

Past performance is not a guarantee of future performance, but quality usually does well over time. Its current top holdings are shares like Nvidia, Apple, Adobe, Accenture, Alphabet and L’Oreal.

Growth shares 

Pushpay Holdings Ltd (ASX: PPH)

I think Pushpay is a great ASX growth share. It’s one of the businesses that is seeing accelerated growth due to the unfortunate circumstances. Its an electronic donation business that helps facilitate digital giving. At the moment most of its current earnings and potential growth is from the large and medium church sector in the US.

Pushpay now expects that earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) will at least double in FY21. That would be impressive after the strong FY20 result.

It’s the rising profit margins and long-term growth runway that make me particularly excited about the company. The Pushpay share price has dropped back over the past couple of weeks to be better value.

Bubs Australia Ltd (ASX: BUB)

Bubs is another exciting ASX growth share in my opinion. It’s riding the infant formula wave of demand from Asia. It specialises in goat milk products, which is seeing rapidly rising demand from countries like Vietnam and China.

As long as there aren’t any more trade disputes between Australia and China, I think Bubs has a good chance of delivering a lot of revenue growth and an improving gross profit margin over the next five years.

Bubs was cashflow positive in the quarter ending 31 March 2020. This bodes well for profitability in FY21.

I’d be very happy to buy Bubs shares at the current price. 

An eternal investment house

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts has been listed in Australia since 1903. There are very few ASX shares in Australia that can point to that type of long-term history.

An investment conglomerate has a major advantage to most other businesses because it can alter its investment holdings over time. Being able to shift towards new growth opportunities – and divest old ones – is much better than being stuck as something in a low growth environment like a bank or telco.

I like to invest in ASX shares that I can see myself holding for many years. I want to minimise capital gains tax events and transaction costs as much as possible. Soul Patts definitely counts as a long-term idea. 

The current Soul Patts share price is still down more than 10% compared to its February 2020 high. I think it’s a good time to buy shares for the long-term.

Listed investment companies and trusts

Magellan High Conviction Trust (ASX: MHH)

This listed investment trust (LIT) is run by Hamish Douglass and his well-respected investment team. The trust only invests in businesses that it has a high conviction in, hence the name. There are quality shares on the ASX, but many of the world’s best blue chips are listed overseas.

Names like Alibaba, Alphabet, Microsoft, Tencent and Facebook feature in they trust’s holdings. Those names have extremely strong economic moats. I’m not sure you could displace those businesses even if you were given $50 billion to try to do it.

At the current Magellan High Conviction Trust share price it’s trading at a 5.6% discount to the net tangible assets (NTA) per share.

WCM Global Growth Ltd (ASX: WQG)

This ASX share is a listed investment company (LIC) that aims to invest in businesses with strengthening economic moats. One of the main measures of this is improvement is a rising return on invested capital. For investment manager WCM, the direction of the ‘moat’ is more important than the size of the moat.

The LIC has performed strongly, its investment portfolio has returned an average of around 20% per annum, after fees, over the past three years.

At the end of June 2020 some of its largest positions included internet and ecommerce related shares like Shopify, Tencent and MercadoLibre.

WCM Global Growth’s share price is trading at a 13% discount to the pre-tax net tangible assets (NTA) at 17 July 2020.

Foolish takeaway

I really like each of the above shares. If I had $6,000 then I’d love to invest $1,000 into all six of them. At the current prices I think WCM Global Growth, Bubs and Pushpay are the three most likely to deliver the best returns over the next five years, so they would be the ones I’d go for first.

More reading

• 3 of the best mid cap ASX shares you can buy right now
• Here are two ASX shares I’ve recently bought
• 3 Warren Buffett dividend shares you can buy today
• The smartest ASX shares to buy if you have $2,000
• My top 5 ASX growth shares to buy in FY 2021

Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited and WCM Global Growth Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended BUBS AUST FPO and Washington H. Soul Pattinson and Company 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.

The post Got $1,000? You should buy 1 of these 6 ASX shares appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2Bq5jpm

The Tinybeans Group Ltd (ASX: TNY) share price has been one to watch following its June quarterly report release. The ASX tech share reached 96 cents by the close, an increase of 6.1% for the day.

What is Tinybeans?

Tinybeans is a free social media platform developed in Australia and targeted to parents globally who want to share photos and videos of their children within a secure community. The company’s platform is designed to boost online safety by creating a contained, invite-only environment. This allows parents to upload photos and videos of their kids and securely share the content within an approved network.

How did Tinybeans perform in the fourth quarter?

Tinybeans performed very well in the fourth quarter despite the negative impacts of COVID-19. This was seen as users increased by 39%, compared to the prior corresponding period, to reach 4.65 million. Monthly active users also grew to over 3.7 million, an increase of over 160,000 new active users.

Strong performance across the board saw revenues for Q4 reach a record high of $2.36 million, an increase of 93% on the prior year. This record result, however, was adversely affected by reduced advertising spend and the deferment of key campaigns. Also, Tinybeans has $4.3 million in forward booked contracts which, by comparison, is 300% higher than 12 months earlier. This was significantly aided by the successful integration of the Red Tricycle operations.

Another highlight for the company was new advertising wins with great brands including Amazon, Apple, Penguin Random House, General Mills and YouTube Kids. Tinybeans recorded cash receipts of $1.93 million for the quarter with cash burn of $582,000, not including loans from the United States. Tinybeans’ cash balance sits at $5.22 million.

Tinybeans CEO, Eddie Geller, spoke of the results saying: “I’m pleased to report that we delivered strong growth for the quarter despite COVID disruptions to our operations and our brand partners. Despite market conditions, the platform saw an increase in new member sign ups and engagements as ‘stay at home orders’ across the US encouraged more interaction across the platforms.”

What’s next for this ASX share?

This quarterly report is much needed good news for the ASX micro cap. Its share price has been plummeting in 2020, down 57% for the year. However, while advertisers in the US have begun to resume spending, there is still some uncertainty in relation to the pace at which spending will recover. Tinybeans investors will be hoping for a faster than expected recovery to the pandemic to get this spending back on track.

More reading

• How you can take advantage of the surging Australian dollar
• 3 of the best mid cap ASX shares you can buy right now
• Why I would buy these fully franked ASX dividend shares
• Top brokers list the latest ASX small cap stocks to buy today
• Is the BHP share price in the buy zone?

Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Tinybeans Group Ltd. The Motley Fool Australia has recommended Tinybeans 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.

The post This ASX tech share pushes up 6% on quarterly report appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2OHBJ1A

One of the more surprising pieces of news this week has been the advance of our proud national currency – the Australian dollar. The Aussie dollar has been on rather a wild rollercoaster in 2020 so far. It started the year off trading for around 70 US cents. Between January and late February, it slid slightly, going down to around 66 US cents. But then, the March coronavirus market crash came, and our dollar was obliterated, first falling below 60 US cents and bottoming out at 55.1 US cents on 19 March. It was the first time since 2002 that our dollar had sunk to these levels.

We won’t go into too much detail as to why this happened. But in a nutshell, the Australian dollar is regarded as a ‘risky’ currency on global markets due to our economy’s dependence on mineral exports and ties with China. When a market panic occurs (as it did in March), traders tend to rush out of risky currencies like the Aussie and into ‘safe’ currencies like the US dollar.

However, since March, the Australian dollar has recovered very convincingly. By the end of March, it was back above 60 US cents and above 65 by the end of April. Fast forward to this week and the Aussie dollar has reached its highest level since April 2019 – trading as high as 71.41 US cents earlier in the week. It was going for 71.33 US cents at the time of writing.

It’s not just the US dollar that the Aussie has been gaining on either. The Australian dollar is also at its highest level in almost a year against the United Kingdom’s Pound Sterling. At the time of writing, 1 Australian dollar is buying 56 British pence, a level not seen since September last year.

What a high dollar means for ASX shares

Understanding how exchange rates affect the economy is key to benefitting from a high currency. When a currency appreciates, it raises the cost of exporting goods from an economy, whilst simultaneously lowering the cost of imports.

By this logic, companies that are in the exporting game are the losers from this situation. Miners like BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) come to mind, as do A2 Milk Company Ltd (ASX: A2M) and Treasury Wine Estates Ltd (ASX: TWE). It’s also bad news for any company that brings its earnings home in US dollars. I’m thinking of CSL Limited (ASX: CSL) and Altium Limited (ASX: ALU) here.

But conversely, a strong Aussie dollar is good news for any companies that import their goods, services or materials into Australia. ASX retailers like JB Hi-Fi Ltd (ASX: JBH), Premier Investments Limited (ASX: PMV), Accent Group Ltd (ASX: AX1) and Harvey Norman Holdings Limited (ASX: HVN) will likely see a shot of oxygen.

How can investors take advantage of a high Australian dollar?

So, how can we invest to take advantage of the strong Aussie dollar, which may not last forever in the current economic climate? Well, checking out the companies named above is a good start. But it might also be worth considering investing in internationally-based exchange-traded funds (ETFs).

It is now relatively cheaper (on a currency basis) to buy these investments than it was when our dollar was fetching 60 or 55 US cents. The iShares S&P 500 ETF (ASX: IVV) tracks most of the largest companies over in the US like Apple, Microsoft and Amazon.com. With a management fee of just 0.04%, it could be a perfect investment for this trend. You can also check out the BetaShares FTSE 100 ETF (ASX: F100), which tracks the 100 largest UK-listed companies like BP, GlaxoSmithKline, HSBC Bank and British American Tobacco. 

Foolish takeaway

Currency shouldn’t be a major contributor to choosing ASX shares for your portfolio. But with the dollar at these highs, it still might be advantageous to have a second look at any of the shares and investments listed above.

More reading

• Is the BHP share price in the buy zone?
• Top brokers name 3 ASX 200 shares to buy today
• BHP’s share price tumbles with this other ASX miner after being hit by broker downgrades
• Why Afterpay, BHP, Cann, & Mesoblast shares are tumbling lower
• Are you ready to invest in ASX shares?

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited and Treasury Wine Estates Limited. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended Accent Group. 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 How you can take advantage of the surging Australian dollar appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/30xz9AE

In the mid cap space I believe there are a good number of shares that have the potential to grow strongly over the next decade, potentially generating market-beating returns for shareholders.

Three which I think would be great options for long-term focused investors are listed below:

Bravura Solutions Ltd (ASX: BVS)

Bravura is a $1,1 billion provider of software solutions for the wealth management, life insurance, and funds administration industries. I think it is one of the best options in the mid cap space right now. This is due its positive long term growth outlook thanks to the quality and potential of its popular Sonata wealth management platform. In addition to this, the company has bolstered its offering over the last 12 months with the acquisitions of Midwinter and FinoComp. These businesses are expected to open the company up to new and lucrative markets.

Bubs Australia Ltd (ASX: BUB)

Bubs is a $550 million goat’s milk-focused infant formula and baby food company. I think it is well-positioned for growth over the next decade thanks to its growing presence online in China and in supermarkets and pharmacies across Australia. The latter has been boosted materially in recent months with increasing shelf space in Coles Group Ltd (ASX: COL) stores for both its goat’s milk and new cow’s milk infant formula ranges. Another big positive is that Bubs finally appears to have reached a scale which will make its operations more and more profitable over the coming years. All in all, I think the Bubs share price has the potential to smash the market over the 2020s.

Collins Foods Ltd (ASX: CKF)

A final option to consider is $1.1 billion quick service restaurant operator Collins Foods. It is one of the largest operators in the ANZ region with 240 KFC stores in Australia, 40 KFC stores in Europe, 12 Taco Bell across Queensland and Victoria, and 75 franchised Sizzler restaurants around Asia. I believe the company’s Australian and European operations still have a long runway for growth and expect their expansions to underpin solid earnings growth over the next decade.

More reading

• The smartest ASX shares to buy if you have $2,000
• 2 top ASX tech shares to buy right now
• 4 ASX shares I’d buy with $4,000
• Want to beat the market? Try these 3 ASX growth shares
• 4 ASX shares I’d buy to protect against a recession

Motley Fool contributor James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd and BUBS AUST FPO. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool Australia has recommended Collins Foods 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 3 of the best mid cap ASX shares you can buy right now appeared first on Motley Fool Australia.

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

If you’re on the lookout for quality fully franked dividends then you’re in luck. Despite the many suspensions and deferrals, there are still a good number of fully franked options for investors to choose from.

Two ASX dividend shares that offer generous fully franked dividends are listed below. Here’s why I like them:

Dicker Data Ltd (ASX: DDR)

The first fully franked ASX dividend share to buy is Dicker Data. It is a leading wholesale distributor of computer hardware and software in the ANZ region. Dicker Data has been growing at a very strong rate in recent years thanks to a combination of strong demand, new vendor agreements, and favourable industry tailwinds.

The good news is that it is showing no signs of slowing and is on course to deliver another record result in FY 2020. So much so, the Dicker Data board revealed that it intends to increase its dividend by 31% to 35.5 cents per share this year. Based on the current Dicker Data share price, this represents a very generous 5% fully franked dividend yield.

Wesfarmers Ltd (ASX: WES)

I think this conglomerate could be a dividend share to buy. I expect Wesfarmers shares to be strong performers over the coming years thanks to the positive outlook of many of its businesses and potential earnings accretive acquisitions. Among its quality brands you’ll find Bunnings, Kmart, and Target, as well as ecommerce company Catch Group. Given how rapidly online shopping is growing right now, the acquisition of the Catch business last year looks like a masterstroke.

Looking ahead, I estimate that the company will be in a position to pay a dividend of $1.46 per share in FY 2021. Based on the current Wesfarmers share price, this equates to a fully franked 3.2% dividend yield. While this is not the biggest yield on the ASX, it still smashes those on offer with term deposits and savings accounts.

More reading

• How mandatory masks could impact these ASX shares
• These ASX 200 consumer discretionary shares are bucking the economic cycle
• You probably shop at these 7 ASX retailers. Should you buy shares in them too?
• ASX 200 Weekly Wrap: Blue chip shares pull ASX 200 back over 6,000 points
• Cash rate on hold until 2022? Buy these ASX dividend shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data 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.

The post Why I would buy these fully franked ASX dividend shares appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/39k3Sp2

ASX small cap stocks are holding up better than their larger counterparts during the Wednesday sell-off with top brokers picking their latest buy ideas for the sector.

The S&P/ASX SMALL ORDINARIES (Index: ^AXSO) slipped 0.8% into the red ahead of the market close when the S&P/ASX 200 Index (Index:^AXJO) tumbled 1.5%.

Well furnished

One small cap that’s helping hold up the Small Ordinaries is the Nick Scali Limited (ASX: NCK) share price.

Shares in the furniture retailer jumped 2.4% to $6.73 in late afternoon trade after Citigroup named it as one of its top picks in the small cap retail sector.

The broker believes it will outperform its peers this calendar year given that the scaled back JobKeeper isn’t expected to make much of a dent on sales.  Most of Nick Scali’s customers are upper to middle income households who are unlikely to qualify for the wage supplement.

Further, demand for furniture could be buoyed by the federal government’s homebuilder grant and  COVID-19 social restrictions.

Citi rates the stock a “buy” with a price target of $8.20 a share.

Fund times ahead

Another small cap that’s bucking the downtrend is the Mainstream Group Holdings Ltd (ASX: MAI) share price.

The stock rallied 1.6% to $0.62 after Morgans reiterated its “add” recommendation on the funds management services business following the release its quarterly update.

“FUA [funds under advice] for the quarter (A$197bn) was up 5% sequentially and 14% on the pcp (A$173bn),” said the broker.

“The quarterly lift in FUA (A$10bn) was broadly evenly split between net inflows and market movements (A$4bn-A$5bn each).”

The broker’s 12-month price target on the stock is $0.74 a share.

Good for tougher times

Meanwhile, the Credit Corp Group Limited (ASX: CCP) share price became the latest buy idea from JP Morgan.

The broker moved the debt collector to “overweight” (meaning “buy”) recommendation as it believes Credit Corp is well placed to benefit from increasing arrears.

“While CCP’s near-term outlook has some uncertainties, particularly with regards to capital allocation, we remain confident in management’s ability to allocate capital to maximize shareholder returns,” said JP Morgan.

“Australian PDL [purchase debt ledger] business never having been in a better strategic position than right now.”

The broker’s 12-month price target is $20 a share.

More reading

• The ASX sector that’s heading for a V-shape recovery
• QBE share price rises despite expected half year loss
• Are ASX tech shares in a bubble?
• Top brokers name 3 ASX 200 shares to buy today
• BHP’s share price tumbles with this other ASX miner after being hit by broker downgrades

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

The post Top brokers list the latest ASX small cap stocks to buy today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2E8f3pa