Stock Pick

  • If you invested $10,000 in the Appen IPO, this is how much you’d have now

    dollar sign growth concept

    This month I have been looking at what would have happened if you had invested $10,000 into the IPOs of some of the most popular ASX shares.

    The last one I wrote about, which can be found here, was the Kogan.com Ltd (ASX: KGN) IPO.

    Spoiler alert. The ecommerce company’s shares have been very strong performers since their IPO in June 2016.

    Today I thought I would turn my attention to the Appen Ltd (ASX: APX) IPO.

    The Appen IPO.

    Appen is a leading provider of language technology data and services. It provides or improves data that is then used for the development of machine learning and artificial intelligence products

    Its shares landed on the ASX boards just over five years ago in January 2015. The company raised $15 million at an offer price of 50 cents per share, which gave it a market capitalisation of approximately $47.3 million. This means that a $10,000 investment would have got you $20,000 shares at its IPO.

    Management told investors that the funds raised would help it “take advantage of, and grow with, the recent acceleration of devices and technology that interact with humans on human terms and advances in mobile communications and social media that are driving unified communication in any language and across languages.”

    Stellar growth.

    Well, management certainly delivered on its prospectus promises and more.

    Since its IPO Appen has gone from strength to strength, culminating in the company delivering revenue of $536 million and earnings before interest, tax, depreciation, and amortisation (EBITDA) of $101 million in FY 2019.

    But it isn’t stopping there. Last month Appen released a market update which revealed that it remains on course to achieve its FY 2020 guidance despite the pandemic. It expects underlying EBITDA in the range $125 million to $130 million, which represents a year on year increase of 23.8% to 28.7%.

    The high end of its EBITDA guidance is a massive 175% greater than its market capitalisation at listing. I believe this demonstrates just how quickly the company has grown.

    Unsurprisingly, this has led to its shares rising very strongly since its IPO. At the time of writing they are changing hands for $30.59, which is within sight of their all-time high of $32.00. This gives it a market capitalisation of almost $3.75 billion.

    Which means that the 20,000 shares you would have picked up at Appen’s IPO now have a market value of approximately $612,000.

    Overall, I believe this demonstrates how rewarding it can be to invest in shares with quality business models, strong growth potential, and talented management teams.

    Missed out on these gains? Then don’t miss out on these dirt cheap shares before they rebound…

    NEW! 5 Cheap Stocks With Massive Upside Potential

    Our experts at The Motley Fool have just released a FREE report detailing 5 shares you can buy now to take advantage of the much cheaper share prices on offer.

    One is a diversified conglomerate trading 40% off it’s all-time high, all while offering a fully franked dividend yield of over 3%…

    Another is a former stock market darling that is one of Australia’s most popular and iconic businesses. Trading at a significant discount to its 52-week high, not only does this stock offer massive upside potential, but it also trades on an attractive fully franked dividend yield of almost 4%.

    Plus, this free report highlights 3 more cheap bets that could position you to profit in 2020 and beyond.

    Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares.

    But you will have to hurry because the cheap share prices on offer today might not last for long.

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

    The post If you invested $10,000 in the Appen IPO, this is how much you’d have now appeared first on Motley Fool Australia.

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  • Why Leigh Creek, Lynas, Monadelphous, & TechnologyOne are dropping lower

    The S&P/ASX 200 Index (ASX: XJO) has started the week very strongly. In late morning trade the benchmark index is up 1.6% to 5,583.9 points.

    Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:

    The Leigh Creek Energy Ltd (ASX: LCK) share price is down 5.5% to 8.3 cents. On Thursday the gas producer put its shares in a trading halt pending a material announcement in relation to a proposed capital raising. This morning the company launched an underwritten share purchase plan to raise just $1 million. It is raising the funds at a 20% discount to the five-day volume weighted average price on June 15.

    The Lynas Corporation Ltd (ASX: LYC) share price is down 2% to $2.07. Investors have been selling the rare earths producer’s shares after it revealed doubts over its U.S. activities. Last month the U.S. Department of Defense revealed that it plans to award a Phase I contract for a U.S. based Heavy Rare Earth separation facility to Lynas. Since then there have been objections to its construction. So much so, Lynas understands that plans are now on hold while political issues are addressed.

    The Monadelphous Group Limited (ASX: MND) share price has fallen 3.5% to $10.35. This decline appears to have been driven by a broker note out of Ord Minnett. This morning the broker retained its lighten rating on the engineering company’s shares and slashed the price target on them to $10.00. It has concerns over the impact of the pandemic on its operations.

    The TechnologyOne Ltd (ASX: TNE) share price has continued its slide and is down a further 4% to $9.53. The enterprise software company’s shares have come under pressure since the release of its half year update. Investors appear underwhelmed by its 6% lift in sales and profits during the six months ending March 31. Especially given the significant premium that its shares trade at.

    Need a lift after these declines? Then you won’t want to miss out on the five recommendations below…

    5 cheap stocks that could be the biggest winners of the stock market crash

    Investing expert Scott Phillips has just named what he believes are the 5 cheapest and best stocks to buy right now.

    Courtesy of the crashing stock market, these 5 companies are suddenly trading at significant discounts to their recent highs… creating what could be incredible opportunities for bargain-hungry investors.

    Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares to buy now… before the next stock market rally.

    See the 5 stocks

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    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.

    The post Why Leigh Creek, Lynas, Monadelphous, & TechnologyOne are dropping lower appeared first on Motley Fool Australia.

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  • Should you invest $1,000 in Altium shares today?

    Circuit board, Altium shares

    Altium Limited (ASX: ALU) shares have edged 5.41% higher this year, but is the Aussie tech company in the buy zone?

    What’s happened to Altium shares in 2020?

    The Aussie tech share started the year in typically strong fashion. In fact, Altium hit a new 52-week high of $42.76 as recently as February 17. There’s been quite a bit of downhill from there with Altium shares bottoming at a 52-week low of $23.11 on March 23.

    Unsurprisingly, Altium was not the only WAAAX share to fall lower in March. Even Afterpay Ltd (ASX: APT) shares fell to $8.90 but have since bounced back to over $46 per share. 

    The Aussie-American software business focuses on electronic design systems for 3D printed circuit boards (PCBs). However, many of the company’s small and medium enterprise (SME) business customers have been short on cash amid the pandemic.

    Altium shares have made a recovery since their March lows, and are trading at $36.60 per share right now. That’s despite the recent business update announcing some headwinds for the tech group.

    Altium has launched ‘attractive pricing’ and extended payment terms to drive volume. This means that while volume should increase, the price component is likely to drive down revenue and cash flow in the short-term.

    However, it’s not all doom and gloom for the software company. Altium’s push for more volume could drive market share and position it as a clear market leader in the medium to long-term.

    With a strong cash balance and clear strategic goals, Altium shares could be on the move again in 2020.

    There’s also something to be said for a strong US presence. The nature of the pandemic has forced many countries to look internally for business growth.

    Altium could be well-placed to drive further change in both Australia and the United States thanks to its unique market positioning.

    Foolish takeaway

    No one knows where Altium shares are headed in 2020, but I feel the company’s long-term outlook still looks good. I think it could be a good value ASX tech share to buy if you want to boost your portfolio growth potential.

    If Altium isn’t in your buy zone, check out this top growth share with an all-in buy alert today!

    One “All In” ASX Buy Alert, that could be one of our greatest discoveries

    Investing expert Scott Phillips has just named what he believes is the #1 Top “Buy Alert” after stumbling upon a little-owned opportunity he believes could be one of the greatest discoveries of his 25 years as a professional investor.

    This under-the-radar ASX recommendation is virtually unknown among individual investors, and no wonder.

    What it offers is an utterly unique strategy to position yourself to potentially profit alongside some of the world’s biggest and most powerful tech companies.

    Potential returns of 1X, 2X and even 3X are all in play. Best of all, you could hold onto this little-known equity for DECADES to come.

    Simply click here to see how you can find out the name of this ‘all in’ buy alert… before the next stock market rally.

    Find out the name of Scott’s ‘All in’ Buy Alert

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    Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO and Altium. 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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  • Europe’s Debt Reckoning May Mean Tough Choices on Who to Tax

    Europe’s Debt Reckoning May Mean Tough Choices on Who to Tax(Bloomberg) — Europe’s leaders may be united on the need to throw money at economies during the coronavirus crisis, but they have yet to confront how to pay for it all.That reckoning could force governments across the region into tough choices about where to lay the burden among voters already disillusioned with political establishments — a decade after the global financial crisis presented them with previous bills to settle.Europe’s austerity experiments since then, from Greece to the U.K., provide cautionary tales of either the economic damage or electoral fatigue that spending cuts can cause. With those bitter experiences in mind, politicians are already fielding questions about tax hikes on either wealth or income — even if they too might threaten to hurt growth.Alternatives include tolerating higher debts such as Japan does, or perhaps trying to inflict a dose of inflation to erode them away — itself a tax of sorts. With sovereign borrowing costs historically low, such approaches may look tempting as the bills rack up fast. Debt ratios in the euro area and U.K. may top the 100% milestone this year.“There are very few easy or politically attractive ways to deal with this,” said James Athey, a money manager at Aberdeen Standard Investments. “The ideal way to pay for this is to generate growth that’s higher than your cost of funding. Unfortunately, I think that’s going to be very difficult.”As European governments rapidly ramp up borrowing to aid economies, the region’s experience of austerity is framing the debate on how to tackle debt. Applying such medicine too forcefully in Greece in 2010 led the International Monetary Fund to conclude that it had caused more harm than good to public finances and growth.In the U.K., whose 2010 deficit also ballooned to a Greek-like level, austerity under former Prime Minister David Cameron coincided with years of negligible growth. Whether or not that followed from spending cuts, it did fuel discontent that contributed to his political demise when the country voted to leave the European Union.“European governments got worried about the large increase in debt and shifted to fiscal austerity, probably excessively slowing the recovery,” said former IMF Chief Economist Olivier Blanchard.One discussion in Europe is whether taxes should rise when the recovery takes hold. Switzerland’s Social Democrats want higher income taxes, and the U.K. media is also awash with speculation about potential tax increases.A further argument is focused on wealth taxes. The minority partner in Spain’s coalition is mulling such a proposal, while in France, where the government recently reduced wealth tax, economist Thomas Piketty says history shows such measures are the best way of bringing down huge public debt. Camille Landais, a professor of economics at the London School of Economics, even suggests a time-limited, Europe-wide wealth tax.“If there needs to be some form of mild rebalancing of public finances it must be in a way that is fair, and essentially targets individuals that are most able to weather this,” said Landais.German Chancellor Angela Merkel has already been forced to deny any plans for higher taxes for now, while French Finance Minister Bruno Le Maire said he doesn’t want to reapply the country’s levy on wealth. Athey says such reactions are understandable.“The notion of raising taxes that don’t retard growth is very difficult,” he said.The crisis may also reignite calls to change the mindset in the euro zone at least, where German-stipulated limits on deficits and debt were cemented into its monetary union. In Japan and the U.S., higher outright debt loads are accepted for longer while governments stabilize spending and curb borrowings through economic growth, conveniently shifting some of the burden to future generations of politicians too.Helping governments to keep debt costs under control are the actions of central banks. Their hoovering up of bonds has largely removed concerns over spiralling borrowing costs which dominated the early 2010s, and provide a foundation for public finances to start fixing themselves.“The only sensible way out of over-indebtedness or high debts is more economic dynamism,” Marcel Fratzscher, President of DIW German Institute for Economic Research, said this month. “That’s the lesson after the global financial crisis.”Central banks may also face pressure from governments to keep monetary policy loose for longer, tolerating inflation that erodes the value of government debts — a tactic that helped the U.K. to bring its borrowings under control in the era after World War II.Inflation, while long craved by monetary authorities since the financial crisis, would also hurt savings and evoke painful memories for some countries, from Germany in the 1930s to the U.K. in the 1970s. Fratzscher says that as a policy to reduce debt, it’s “damaging.”But what if debt just can’t be brought under control? William White, a senior fellow at the C.D. Howe Institute in Toronto and a former chief economist at the Bank for International Settlements, says that outcome is a real possibility.“We’re on a bad path here of debt accumulation,” he said. “Thinking much more seriously about debt restructuring in an orderly way is required.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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  • 3 commodity trends to watch this week

    ASX share

    In a country like ours it pays to be aware of the underlying commodity trends. This is more true today than at any other time as the world awakes from the coronavirus pandemic to a world fraught with tension. I have found that if you pay attention, and understand the way things are moving there is always a chance to profit. 

    Gold miners

    The gold price is the king of all commodity trends. It remains at an all time high in Australian dollars. Recent falls have been more influenced by the exchange rate with the US dollar than giant swings in the gold price. The easy analysis is to say gold is a hedge against uncertainty. An asset that rises when equities fall. However, there is more to it than that. 

    Record low interest rates, even negative interest rates, around the world have combined with immense levels of quantitative easing. This means more available cash. Where there is a high demand, like investment assets, we see inflationary pressures. 

    Within this space there are still S&P/ASX 200 (INDEXASX: XJO) shares selling at reasonable prices. The Regis Resources Limited (ASX: RRL) share price fell by 5.5% last week for no discernible reason. The company has maintained a 9-year compound annual growth rate for sales at 22%. An 8-year earnings per share CAGR at 17.2% and a share price CAGR at 22.9%.

    Battery Metals

    Rumours this week that Tesla Inc (NYSE: TSLA) had developed a million mile battery caused a lot of speculation.  Including a claim from General Motors Company (NYSE: GMC) that they too had almost completed a million mile battery. This means a renewed upward commodity trend for future facing metals such as nickel, silver, and copper in particular. Companies like BHP Group Ltd (ASX: BHP) and Sandfire Resources Ltd (ASX: SFR) are ASX 200 shares that may benefit from any rise in the copper price, with BHP also heavily involved in global nickel production.

    South32 Ltd (ASX: S32) is a large scale player in the nickel industry. It is also a high volume producer of silver from the Cannington mine in Queensland. Both of these are used on battery manufacture as well as across the board in the renewables sector. 

    Grain industry

    The upward commodity trend in grain has continued despite the Chinese 80% tariffs. The share price of Australian producer Graincorp Ltd (ASX: GNC) has continued its upward momentum. GrainCorp is not very exposed to the tariffs imposed thus far.

    Food security is quietly becoming a very important issue. Over the past three months we have seen the worst locust plagues for a generation across Africa, The Middle East and South Asia. Ukraine, the food bowl of Europe, is also expecting a markedly lower harvest in 20/21 after a record crop in 19/20. Moreover, the UN has raised the spectre of starvation at “biblical” levels.

    Download our expert report on 5 shares likely to be big winners after Covid-19.

    5 cheap stocks that could be the biggest winners of the stock market crash

    Investing expert Scott Phillips has just named what he believes are the 5 cheapest and best stocks to buy right now.

    Courtesy of the crashing stock market, these 5 companies are suddenly trading at significant discounts to their recent highs… creating what could be incredible opportunities for bargain-hungry investors.

    Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares to buy now… before the next stock market rally.

    See the 5 stocks

    More reading

    Daryl Mather 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 Tesla. 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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  • Spotify, Amazon, Apple, and Barstool Sports are all betting big on podcasts

    Spotify, Amazon, Apple, and Barstool Sports are all betting big on podcastsDigital media companies have understood podcasts for years. Now tech giants are getting in late, but bringing big dollars to buy instant footholds.

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  • Why Afterpay, Flight Centre, TPG Telecom, & Western Areas are charging higher

    Upward Trending Data Image

    In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to start the week on a positive note. At the time of writing the benchmark index is up a sizeable 1.6% to 5,583.4 points.

    Four shares that are climbing more than most today are listed below. Here’s why they are charging higher:

    The Afterpay Ltd (ASX: APT) share price has jumped 6% higher to $47.24. This morning the payments company announced that Elana Rubin will become its permanent Chair with immediate effect. Rubin intends to retire from the ME Bank board following its June 2020 meeting, but will remain as a Non-Executive Director on the boards of Telstra Corporation Ltd (ASX: TLS) and Slater & Gordon Limited (ASX: SGH).

    The Flight Centre Travel Group Ltd (ASX: FLT) share price has climbed 5.5% higher to $11.92. The prospect of New Zealand opening up its borders to Australian tourists could be behind this gain. It isn’t just Flight Centre on the rise. A number of travel shares have started the week in a very positive fashion.

    The TPG Telecom Ltd (ASX: TPM) share price is up 3% to $8.04. The catalyst for this gain appears to have been a broker note out of Morgans this morning. According to the note, the broker has upgraded TPG Telecom’s shares to an add rating with an improved price target of $9.14. It sees a lot of positives in its merger with Vodafone Australia.

    The Western Areas Ltd (ASX: WSA) share price has pushed 2.5% higher to $2.28. This morning the nickel producer announced that it has entered into a subscription agreement with Panoramic Resources Limited (ASX: PAN) to acquire up to 19.9% of its rival. Western Areas will pay cash of $28.6 million for the stake in the junior nickel producer. This investment provides Western Areas with exposure to the future restart of the promising Savannah Project.

    Missed out on these gains? Then don’t miss out on these dirt cheap shares before they rebound…

    5 cheap stocks that could be the biggest winners of the stock market crash

    Investing expert Scott Phillips has just named what he believes are the 5 cheapest and best stocks to buy right now.

    Courtesy of the crashing stock market, these 5 companies are suddenly trading at significant discounts to their recent highs… creating what could be incredible opportunities for bargain-hungry investors.

    Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares to buy now… before the next stock market rally.

    See the 5 stocks

    More reading

    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Flight Centre Travel 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.

    The post Why Afterpay, Flight Centre, TPG Telecom, & Western Areas are charging higher appeared first on Motley Fool Australia.

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  • Asian shares tick up, eyes on China-U.S. trade relations

    Asian shares tick up, eyes on China-U.S. trade relationsAsian shares started cautiously on Monday as central bank largesse globally boosted sentiment but rising trade tensions between the world’s two biggest economies dulled risk appetite. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.1% with South Korea, Australia and New Zealand all starting higher. Japan’s Nikkei jumped 1.5% after the Nikkei newspaper reported the country was considering a fresh stimulus package worth over $929 billion that will consist mostly of financial aid programmes for companies hit by the coronavirus pandemic.

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  • ASX 200 Weekly Wrap: ASX rallies on mining highs

    Wooden block letters spelling out 'recap', ASX 200

    The S&P/ASX 200 Index (ASX: XJO) has made a 4th week of gains to keep the extraordinary new share market bull run alive.

    Despite 2 days of red ink on Thursday and Friday offsetting the strong gains we saw earlier in the week, the ASX 200 still managed to power ahead and finish the week with a 1.71% gain.

    It was the big miners that underpinned much of the ASX ‘s positive momentum. Production slowdowns in the iron-heavy Brazilian mining industry prompted an explosion in the iron ore price last week. This pushed the shares of the big ASX iron miners to new highs. Fortescue Metals Group Limited (ASX: FMG) even reached a new all-time high of $14 at market open on Thursday.

    Fellow mining giants BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) didn’t make new highs but still joined the party with 8.37% and 6.99% gains for the week, respectively.

    ASX responds to good news

    In other news, the ongoing lifting of coronavirus-related restrictions throughout the economy is continuing to flow through to investor sentiment. As were persistent rumors of a potentially successful candidate for a COVID-19 vaccine.

    Last week, it was announced the ski season will be going ahead in Victoria. New South Wales is also preparing to allow the reopening of gyms and beauty facilities after pubs were allowed to open their doors again recently. This steady drip-feed of good economic news is also likely playing a part in the wall of confidence ASX investors are building.

    All of this ‘good news’ was enough to offset an eruption of tensions between Australia and China last week. After Australia called for an international inquiry into the origins of the coronavirus, China responded by denouncing Australia’s foreign policy and slapping an 80% tariff on Australian exports of barley (although China claims this is ‘unrelated’). Barley is not the only valuable commodity Australia sends China’s way, and these tensions (combined with some healthy speculation) were behind the more subdued market activity on Thursday and Friday last week.

    How did the markets end the week?

    As already mentioned, the ASX 200 had a relatively strong week overall. Commencing on Monday at 5,404.8 points, it concluded the week 1.71% higher on Friday at 5,497 points.

    Monday and Tuesday were by far the week’s strongest trading days, with the ASX 200 chalking up gains of 1% and 1.81% respectively (the latter being the best day for the ASX 200 in May so far). Wednesday also brought a day in the green – albeit one far milder. Then Thursday and Friday saw shares backtrack significantly. Thursday saw the ASX 200 lose 0.4%, whilst Friday saw a heavier loss of 1% overall. It still wasn’t enough to nullify the earlier gains of the week or snap the ASX 200’s ‘4 out of 4’ streak of weeks in the green.

    Meanwhile, the All Ordinaries (ASX: XAO) also had a strong week. It rose 2.1% from 5,492.8 points on Monday to 5,608.8 points on Friday.

    Which ASX shares were the biggest winners and losers?

    Let’s get into the Foolish ‘gossip pages’ and see which ASX shares were the week’s biggest winners and losers. As always, let’s start with the losers!

    Worst ASX losers

     % loss for the week
    Southern Cross Media Group Ltd (ASX: SXL)

    12.5%
    Austal Limited (ASX: ASB)

    8.3%
    Unibail-Rodamco-Westfield (ASX: URW)

    7.9%
    NIB Holdings Limited (ASX: NHF)

    6.5%

    As you can see, Southern Cross Media once again gets the wooden spoon this week. This advertising company has been hit extremely hard during the coronavirus crisis as advertising dollars dry up or head to cheaper alternatives. Closing at just 14 cents per share on Friday, Southern Cross Media shares are now down around 78% since mid-February.

    The pain also continues for shipbuilder Austal, which investors apparently still haven’t forgiven for being passed over for a major multi-billion-dollar U.S. Navy defense contract. Austal shares still aren’t quite at the lows we saw in March, but that 52-week high is slipping further and further away nonetheless.

    Unibail-Rodamco-Westfield had another shocker as well and closed on Friday at $3.49 per share. This represents a post-merger all-time low for the European retailing giant.

    With the losers out of the way, let’s have a look at last week’s winners!

    Best ASX gainers

     % gain for the week
    NRW Holdings Limited (ASX: NWH)

    30.2%
    Nearmap Ltd (ASX: NEA)

    22%
    Lynas Corporation Ltd (ASX: LYC)

    21.8%
    Orocobre Limited (ASX: ORE)

    21.7%

    Leading the winning pack last week was infrastructure company NRW Holdings, which surged over 30%, despite falling more than 9% before close on Friday. The catalyst for this move was an earnings update, which mightily impressed investors with record revenue numbers. Despite this move, the NRW share price is still down more than 35% from its pre-March highs.

    Also joining the party this week was aerial mapping software provider Nearmap, which saw its shares surge last week despite there being no tangible reason for celebration. Nearmap shares have more than doubled since hitting multi-year lows in March, so perhaps more investors are simply trying to jump on the bandwagon with this one.

    Lithium miner Lynas was also a beneficiary of investors’ affections this week, along with Orocobre and the other ASX lithium stocks. Lithium miners have had a hard couple of years, so investors might be seeing some value in the rock-bottom prices this sector has been throwing up of late.

    What is this week looking like for the ASX 200?

    With 4 weeks of gains now in the bag for the ASX 200, investors will no doubt be wondering if it’s going to be ‘5 for 5’ this week. If all goes well regarding coronavirus and the continuation of restrictions being eased, it might well continue to support bullish sentiment for the share market.

    Australia’s relationship with China is one area worth watching this week, in my opinion. Putting aside political opinions, the economic impacts of any further retaliatory moves by China on Australian exports shouldn’t be underestimated. As such, any developments in this area could have market-moving potential.

    Over the past 2 weeks, it has been ASX resource shares that have powered much of the market’s gains. The week before last, we had ASX gold miners raising the roof, followed of course by iron miners last week. Thus, the prices of these metals as well as other commodities (oil for instance) also merit a watchful eye.

    So before we go, here’s how the ASX’s movers and shakers, a.k.a. blue chips, are looking as we start another week in paradise.

    ASX company

    Trailing P/E ratio

    Last share price

    52-week high

    52-week low
    CSL Limited (ASX: CSL)

    43.00

    $290.93

    $342.75

    $200.37
    Commonwealth Bank of Australia (ASX: CBA)

    10.65

    $58.70

    $91.05

    $53.44
    Westpac Banking Corp (ASX: WBC)

    11.27

    $15.01

    $30.05

    $13.47
    National Australia Bank Ltd. (ASX: NAB)

    13.77

    $15.34

    $30.00

    $13.20
    Australia and New Zealand Banking Group Ltd (ASX: ANZ)

    10.37

    $15.23

    $28.95

    $14.10
    Woolworths Group Ltd (ASX: WOW)

    17.00

    $34.16

    $43.96

    $31.02
    Wesfarmers Ltd (ASX: WES)

    20.15

    $38.86

    $47.42

    $29.75
    BHP Group Ltd (ASX: BHP)

    12.08

    $34.32

    $42.33

    $24.05
    Rio Tinto Limited (ASX: RIO)

    12.24

    $91.33

    $107.99

    $72.77
    Coles Group Ltd (ASX: COL)

    16.93

    $15.05

    $18.09

    $12.32
    Telstra Corporation Ltd (ASX: TLS)

    17.65

    $3.06

    $4.01

    $2.87
    Transurban Group (ASX: TCL)

    167.47

    $14.16

    $16.44

    $9.10
    Sydney Airport Holdings Pty Ltd (ASX: SYD)

    31.86

    $5.70

    $9.30

    $4.37
    Newcrest Mining Limited (ASX: NCM)

    28.33

    $31.45

    $38.87

    $20.70
    Woodside Petroleum Limited (ASX: WPL)

    39.50

    $22.15

    $37.50

    $14.93
    Macquarie Group Ltd (ASX: MQG)

    12.07

    $102.62

    $152.35

    $70.45

    And finally, here is the lay of the land for some leading market indicators:

    •     S&P/ASX 200 (XJO) at 5,497 points
    •     ALL ORDINARIES (XAO) at 5,608.8 points
    •     Dow Jones Industrial Average at 24,465.16 points
    •     Gold (Spot) swapping hands for US$1,734.68 per troy ounce
    •     Iron ore asking US$97.65 per tonne
    •     Crude oil (Brent) trading at US$35.13 per barrel
    •     Crude oil (WTI) going for US$33.25 per barrel
    •     Australian dollar buying 65.35 US cents
    •     10-year Australian Government bonds yielding 0.86% per annum

    Foolish takeaway

    Yet another week has passed us by on the markets, and the ‘slow-but-steady’ recovery the ASX has been experiencing since March continues. Although the markets feel calm (perhaps eerily so), it’s worth remembering that the circumstances of the coronavirus pandemic remain fluid and the economy fragile. Investing with this in mind is prudent, at least in this writer’s view. Still, it’s great news to read about our economy opening up and life slowly returning to some semblance of normality.

    As always, stay safe, stay rational, and stay Foolish!

    Make sure you start the week right by checking out the free report below as well!

    NEW! 5 Cheap Stocks With Massive Upside Potential

    Our experts at The Motley Fool have just released a FREE report detailing 5 shares you can buy now to take advantage of the much cheaper share prices on offer.

    One is a diversified conglomerate trading 40% off it’s all-time high, all while offering a fully franked dividend yield of over 3%…

    Another is a former stock market darling that is one of Australia’s most popular and iconic businesses. Trading at a significant discount to its 52-week high, not only does this stock offer massive upside potential, but it also trades on an attractive fully franked dividend yield of almost 4%.

    Plus, this free report highlights 3 more cheap bets that could position you to profit in 2020 and beyond.

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    Sebastian Bowen owns shares of National Australia Bank Limited, Newcrest Mining Limited, and Telstra Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Austal Limited and CSL Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited, Nearmap Ltd., and Telstra Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET, Transurban Group, Wesfarmers Limited, and Woolworths Limited. The Motley Fool Australia has recommended NIB Holdings 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 ASX 200 Weekly Wrap: ASX rallies on mining highs appeared first on Motley Fool Australia.

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  • ASX 200 shares to buy for growth and income

    rising arrow on staircase symbolising business growth

    S&P/ASX 200 Index (ASX: XJO) shares offering both growth and income could be solid ideas in this current operating environment.

    There are plenty of ASX 200 shares that face short-term and/or long-term impacts because of the coronavirus. But there are some shares that are still growing and could be solid ideas today:

    Amcor Plc (ASX: AMC)

    Amcor is now one of the biggest global packaging businesses in the world with its flexible and rigid offerings. After the Bemis merger it’s now a powerhouse. The combination of the two companies has already generated $55 million of synergy benefits.

    Adjusted free cash flow is still solid and the company increased its adjusted earnings per share (EPS) growth to 11% to 12%. Not many businesses are increasing their guidance at the moment.

    The ASX 200 share currently offers a dividend yield of 4.9% with more growth likely in FY21.

    Ansell Limited (ASX: ANN)

    Ansell is one of the ASX 200 shares involved in fighting the spread of the coronavirus. It makes a number of products like gloves, masks and protective suits.

    It’s another business that is still expecting to generate solid profit despite the global pandemic that’s currently going on.

    I believe that Ansell is a defensive option now. Its products are useful for fighting against the coronavirus and if life goes back to normal it was expecting growth anyway.

    It currently offers a trailing dividend yield of 2.1%.

    Service Stream Limited (ASX: SSM)

    Service Stream is an ASX 200 share that helps design, build, maintain and operate essential network infrastructures. The company has been steadily increasing its operating earnings and its dividend over the last few years.

    The company recently said that its earnings before interest, tax, depreciation and amortisation (EBITDA) from operations will be approximately $108 million which would be a record operating result.

    As part of the update the Service Stream board said it has the confidence with the company’s ability to maintain its commitment to dividends.

    Service Stream has a trailing grossed-up dividend yield of 6.7%.

    Foolish takeaway

    Each of these businesses offer compelling long-term growth with a good immediate yield. In today’s environment the ASX 200 share I’d pick is Amcor because it has stated its earnings expectations are higher and it has the highest yield too.

    But there are other great ASX shares out there to buy. I’d have a close look at these picks:

    NEW! 5 Cheap Stocks With Massive Upside Potential

    Our experts at The Motley Fool have just released a FREE report detailing 5 shares you can buy now to take advantage of the much cheaper share prices on offer.

    One is a diversified conglomerate trading 40% off it’s all-time high, all while offering a fully franked dividend yield of over 3%…

    Another is a former stock market darling that is one of Australia’s most popular and iconic businesses. Trading at a significant discount to its 52-week high, not only does this stock offer massive upside potential, but it also trades on an attractive fully franked dividend yield of almost 4%.

    Plus, this free report highlights 3 more cheap bets that could position you to profit in 2020 and beyond.

    Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares.

    But you will have to hurry because the cheap share prices on offer today might not last for long.

    YES! SEND ME THE FREE REPORT!

    More reading

    Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Amcor Limited. The Motley Fool Australia has recommended Ansell Ltd. and Service Stream 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 ASX 200 shares to buy for growth and income appeared first on Motley Fool Australia.

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