ASX biotech shares have been persistent outperformers in recent times. CSL Limited (ASX: CSL) is one of the largest ASX shares by market capitalisation with a $127.6 billion valuation based on the current CSL share price.

However, CSL shares aren’t your only option for biotech exposure in the Aussie share market.

What other ASX biotech shares are available?

Polynovo Ltd (ASX: PNV) has been another top performer in recent years.  Polynovo’s proprietary NovoSorb BTM product has proven to be a highly successful solution in the treatment of severe burns.

The Polynovo share price is now up 15.6% in 2020 and 1,854.6% in the last 5 years. That’s good news for investors who backed the ASX biotech share from an early stage.

Then there’s Mesoblast limited (ASX: MSB). Mesoblast is an Aussie regenerative medicine company that provides treatments for inflammatory ailments, cardiovascular disease and back pain.

The Mesoblast share price was hammered in yesterday’s trade after a United States Food and Drug Administration (FDA) report.

The ASX biotech share crashed 31.0% lower after the release of the FDA briefing document. The FDA noted concerns about the clinical performance of Mesoblast’s treatment for paediatric steroid-resistant acute graft versus host disease.

That’s disappointing news for shareholders but I think the long-term outlook for Mesoblast is still intact. The company still has some exciting products in Phase 3 trials which could be big money earners in the future.

Is today’s CSL share price the best biotech buy?

CSL is the obvious choice if you’re looking for safety. It has an extensive history of research and development (R&D) success and is a big fish in the industry.

That blue-chip status could help the ASX biotech share in the current volatile market. It could also provide some piece of mind for investors who don’t want to buy a speculative growth share.

However, I think there is also some potential upside for both Polynovo and Mesoblast. 

Polynovo is looking to extend the application of the NovoSorb BTM product into other, lucrative industries. That includes breast augmentation and hernia treatment markets.

For Mesoblast, I think a 31.0% share price drop could present a tasty buying opportunity. That’s a big mental hurdle to overcome for investors and you’d have to really believe in the company’s long-term success.

However, ASX biotech shares can rise and fall with critical decisions on their products. That means I wouldn’t be writing off the Mesoblast share price solely based on the FDA announcement.

More reading

• Top ASX dividend shares to buy in August 2020
• ASX 200 rises 0.5%, Mesoblast plunges
• 5 quality ASX shares to buy in August
• Mesoblast share price crashes 29% lower on FDA doubts
• ASX 200 up 1%: Challenger disappoints, Sydney Airport to raise $2bn, a2 Milk names new CEO

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. and POLYNOVO FPO. 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 Webjet Limited (ASX: WEB) share price jumped 5.6% yesterday and is now up 30% since last Monday. The Webjet share price has still been smashed in 2020 but is now seeing a strong recovery.

The big question for value investors is whether or not now is a good time to buy.

Why the Webjet share price is surging

This is a perplexing question. The Webjet share price is rocketing higher despite tight coronavirus restrictions across the country.

Prime Minister Scott Morrison was even quoted as saying internal borders may stay shut until Christmas.

That’s not good news for the travel industry but hasn’t stopped investors piling in to Webjet shares recently.

I believe some investors are thinking that part of the short-term danger has subsided.

It could be that large institutional backers are buying back in and betting that Webjet’s insolvency risk is subdued.

Whatever the reason, the Webjet share price has a lot of momentum behind it right now. So, is it a good time to buy?

Are other ASX travel shares in the buy zone?

I think Corporate Travel Management Ltd (ASX: CTD) has more to offer than the Webjet share price right now.

The Aussie travel share jumped 4.4% higher yesterday and is now up 121.5% since 19 March.

One reason I prefer Corporate Travel to Webjet is its significant earnings from the business and government sector.

This has proven to be more resilient compared to leisure bookings. But it’s not just Corporate Travel that I’d prefer to buy over Webjet right now.

Sydney Airport Holdings Pty Ltd (ASX: SYD) is another top travel share. 

Sydney Airport straddles the line between travel and infrastructure given its significant underlying assets.

Shares in the Aussie airport are down 37.5% this year as the company taps investors for a $2 billion capital raising.

The group’s half-year earnings report contained some soft numbers but that was largely to be expected in the current climate.

Foolish takeaway

I won’t be buying into ASX travel shares just yet. I certainly don’t like to invest in things I don’t understand and the Webjet share price is one of those things.

I will, however, be keeping an eye out for the Aussie travel agency’s full-year earnings report in August.

More reading

• ASX 200 rises 0.5%, Mesoblast plunges
• ASX 200 up 1%: Challenger disappoints, Sydney Airport to raise $2bn, a2 Milk names new CEO
• Why Bendigo and Adelaide Bank, CIMIC, James Hardie, & Webjet are storming higher
• Sydney Airport to raise $2 billion after COVID-19 profit collapse
• CBA and 2 more ASX 200 shares to watch this week

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and Webjet 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 Up 30% in a week, is the Webjet share price a strong buy? appeared first on Motley Fool Australia.

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If you have $12,000 to invest into ASX shares then you’re in luck. There are plenty of quality options to choose from.

The share market has rebounded strongly from the COVID-19 share market selloff a few months ago. There are plenty of ASX share ideas where prices may have reached almost as high as they can reach in the medium-term such as Coles Group Limited (ASX: COL) and Afterpay Ltd (ASX: APT).

I want to invest in ASX shares where there’s likely to be strong profit growth over the long-term but the valuation still seems reasonable.

If I had $12,000 to invest, this is where I’d put the money into these ASX shares:

Share 1: Pushpay Holdings Ltd (ASX: PPH) $4,000

Pushpay is one of the most exciting ASX growth shares in my opinion. It helps large and medium US churches to receive electronic donations. This is very useful during this COVID-19 era considering all of the social distancing and restrictions that is going on in the country. Pushpay also offers a livestreaming service to its church clients so it can still connect with its congregation.

I think Pushpay has a lot of growth potential. It was generating growth before COVID-19 came along but the unfortunate circumstances have really brought forward the adoption curve.

In FY20 it grew its revenue by a third to US$129.8 million and in FY21 it’s expecting to at least double its earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) to US$50 million..

I’m impressed that its gross margin is growing at a strong rate – in FY20 its gross margin improved from 60% to 65%. I also thought its recent acquisition of Church Community Builder was a really smart move. The combined business has a stronger offering. The two businesses can also sell to each other’s customer base.

Over the long-term the ASX share is aiming for US$1 billion of annual revenue which would make Pushpay a much bigger business if it achieves the goal.

At the current Pushpay share price it’s trading at 30x FY23’s estimated earnings.

Share 2: Bubs Australia Ltd (ASX: BUB) – $3,500

I think Bubs is a quality business with a lot of growth potential. Its management have proven they can grow the infant formula business effectively. I like how it used acquisitions to secure its supply chain with its own Chinese-approved manufacturing facility.

The ASX share has grown strongly over FY20 despite the issues relating to COVID-19.  FY20 revenue increased by 32% to $62 million. Its FY20 fourth quarter showed the international growth potential – Chinese direct sales increased 26% and other export market sales grew by 71%.

I’m not expecting Bubs to be as globally successful as one of its competitors, but I think it has a very long growth runway geographically. It can expand with new products like Vita Bubs and the organic grass-fed cow milk infant formula range.

Over the long-term I think this ASX share could grow substantially in size. The growing gross profit margin will help drive the bottom line higher.

Share 3: WAM Microcap Limited (ASX: WMI) – $4,500

WAM Microcap is a listed investment company (LIC) which targets ASX small caps with market caps under $300 million. It’s this hunting ground which can generate really strong long-term returns because not many investors are searching in this area.

The investment team at Wilson Asset Management (WAM) have proven to be very effective at delivering strong returns.

At 30 June 2020 its portfolio had made a gross return of 32.9% over the past three months and 15.9% per annum since inception in June 2017. I think the WAM team can continue to outperform over the long-term with the investment style and focus on ASX growth shares.

Another of the attractive things about the LIC is the good dividend payments. WAM Microcap is growing its ordinary dividend and it keeps paying special dividends.

At the current WAM Microcap share price it offers a grossed-up dividend yield of 5.75%.

Foolish takeaway

I think each of these ASX shares are capable of producing strong returns over the next five years. WAM Microcap offers great diversification, but I believe both Pushpay and Bubs can grow into much larger businesses over time.

More reading

• 5 quality ASX shares to buy in August
• 3 exciting ASX growth shares to buy with $3,000
• 3 ASX shares to buy and hold for the next decade
• A2 Milk and 1 other top ASX growth share to buy this month
• Can the Bubs share price go higher in 2020?

Tristan Harrison owns shares of WAM MICRO FPO. 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. The Motley Fool Australia owns shares of AFTERPAY T FPO and COLESGROUP DEF SET. 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 If you have $12,000, you should invest in these 3 ASX shares now appeared first on Motley Fool Australia.

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It could be a challenging day of trade for many of Australia’s leading gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) on Wednesday.

This follows a shocking night of trade for the spot gold price, which crashed materially lower following a return of risk appetite.

What happened to the gold price?

According to CNBC, the spot gold price has crashed 5.8% lower during overnight trade to US$1,921.8 an ounce. This is over US$150 lower than Friday’s record high of US$2,072.5 an ounce.

The silver price hasn’t fared well, either. The fellow safe haven asset is down a massive 15% to US$24.86 an ounce at the time of writing. This could be bad news for South32 Ltd (ASX: S32). Its shares have been rising on the back of the improving silver price in recent weeks.

Analysts believe the improving risk appetite is due to better than expected economic data and news of a potential Russian coronavirus vaccine.

Edward Moya, senior market analyst at broker OANDA, told CNBC: “This feels like a mini crash. We could not overcome the early morning headlines of a Russian potential vaccine, and there was just continued optimism flowing into stocks.”

This sentiment was echoed by Bart Melek at TD Securities. He told clients: “The precious metals complex was driven by a drop in rates, a steady increase in inflation expectations and a falling U.S. dollar. The rally is now giving up some of these gains as these drivers lose momentum.”

Mr Melek also notes that the trade became crowded, which is why the pullback has been particularly severe.

“Speculators and Commodity Trading Advisors (CTAs) are reducing their gold and silver exposure, as volatility trends higher and as they take profits out of a crowded trade,” he explained.

Given how strongly the shares of Evolution Mining Ltd (ASX: EVN), Saracen Mineral Holdings Limited (ASX: SAR), and other gold miners have rallied in recent months, it unfortunately looks set to be a very red day for their shares on Wednesday.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Has the ASX 200 finally taken off?
• ASX reporting season reveals some upside surprises
• 5 things to watch on the ASX 200 on Tuesday
• Gold price tops US$2,000: What’s driving it higher and how can you benefit?

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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