It’s been a bumpy ride for the S&P/ASX 200 Index (ASX: XJO) and the broader markets over the past two months, that’s for sure. The ASX 200 has recovered more than 20% over that time since the lows we saw in March – more than twice the ASX 200’s average annual return.

But some ASX shares have done even better than this astonishing result. Here are 5 ASX shares that have (at least) tripled in value since the market bottomed two months ago.

Afterpay Ltd (ASX: APT)

Afterpay remains one of my biggest regrets from the March crash. Shares of the buy-now, pay-later giant plunged to under $9 two months ago, only to rebound to above $44 where they sit today.

It’s clear that the market severely misjudged Afterpay’s recession resilience, with the company reporting just today that its US sales continue to surge. If you had picked up Afterpay shares on 23 March 2020, you would be sitting on an approximate 450% gain today.

Sezzle Inc (ASX: SZL)

Sezzle only floated on the ASX in August last year and it’s been a bumpy ride since, to say the least. Sezzle shares have fluctuated between $2.86 and 35 cents since that time, with the latter price plumbed around late March. But the turn in market sentiment has also been kind to this payments minnow.

Sezzle shares have rocketed ~497% over the past two months, helped by a stellar sales report for the first quarter of 2020. Hindsight is 20/20 and it would have paid to make a big bet on this company just two months ago.

New Century Resources Ltd (ASX: NCZ)

This little-known zinc miner was a dark horse over the past two months, rising from just 5 cents a share in late March to today’s share price of 25 cents – making this one a 400% winner.

New Century is another company with an extremely volatile past. It only floated on the ASX back in July 2017 but has gone from 35 cents a share to $1.50 a share and back down to 5 cents a share since. Talk about a rollercoaster!

Pointsbet Holdings Ltd (ASX: PBH)

Yet another extraordinary winner is this new-age sports betting provider. Pointsbet shares bottomed out at $1.10 in late March, but today are trading for $5.03 – making this an easy ‘5-bagger’ in just two months.

Many investors likely assumed that the ban on sports around the world due to the coronavirus would decimate this company. But Pointsbet has been lifted by several US states relaxing gambling laws, as well as several sporting codes locking in resumption dates. Investors who bet big on this one would be very happy campers today!

AMA Group Ltd (ASX: AMA)

AMA is an auto-parts supplier and was abandoned by investors when the coronavirus pandemic became apparent. It appears investors initially assumed that people wouldn’t be fixing up their cars if they didn’t need to drive. Now traffic volumes are returning to more normalised levels, the sentiment has again turned with AMA.

AMA shares cliff dived to just 15 cents in late March, but today are asking 66 cents. That’s a healthy 340% gain for any investor who was willing to take AMA out for a spin just two months ago.

More reading

• A global tech giant wants to challenge Afterpay
• Is the Pointsbet share price poised for future growth?
• The latest ASX stocks hit by broker downgrades today
• These ASX payments shares could be long term market beaters
• Top brokers name 3 ASX 200 shares to sell today

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 Pointsbet Holdings Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Pointsbet Holdings Ltd and Sezzle Inc. 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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There are at least 3 shares I’d buy if the coronavirus selloff gets worse again.

The best time to buy shares is when they’re trading at a much cheaper price than before. During March 2020 we saw plenty of share prices trading a lot cheaper compared to early February 2020. A lot of those shares have now recovered strongly so I’m not jumping to buy them today.

Here are three shares I’d buy if the coronavirus selloff gets worse again:

Altium Limited (ASX: ALU)

Altium is one of my favourite long-term tech ideas. It has generated excellent growth over the past five years and I think there’s a lot more to come in the 2020s. Altium is aiming for market leadership by 2025 with 100,000 Altium Designer subscribers and US$500 million revenue.

Every new vehicle, device or other item needs electronic PCB software to help design it. Altium is an essential part of creating the future’s technology. I like that it has no debt, growing profit margins and a good cash balance.

At a share price above $35 I don’t think Altium is the most obvious buy right now. I’d rather buy it under $30 considering Altium is warning of tougher conditions due to the coronavirus.

Pro Medicus Limited (ASX: PME)

Pro Medicus is another top-quality growth share with no debt and a growing cash balance. It’s a leading global provider of radiology IT systems.

One of the most attractive thing about Pro Medicus – apart from its long-term growth prospects – is its high profit margins. In the FY20 half-year result it reported a 50.2% earnings before interest and tax (EBIT) margin. That’s a very strong operating margin for an ASX share.

However, the share price has grown from under $16 to above $28. I’d be very interested in looking at Pro Medicus under $20 considering how low interest rates are. Growth shares are worth more because of lower interest rates.

A2 Milk Company Ltd (ASX: A2M)

A2 Milk has been one of the best performing shares on the ASX over the past five years. It has no debt and it has been building its impressive cash balance for years.

The coronavirus situation is boosting demand for A2 Milk’s products. The company is also being careful with its spending, which has led the company to expect the earnings before interest, tax, depreciation and amortisation (EBITDA) margin to be higher than previously expected.

I like that the company is still aiming for a 30% EBITDA margin because that balances growth and short-term profit. The great thing about A2 Milk is that there are still so many more regions to grow into. It’s just only just getting started in the east of the US and Canada is the next target.

At around $18 it’s definitely not cheap. I’d start to be interested again if it were to drop under $17 under the current conditions. A Chinese issue could easily be much more damaging.

Foolish takeaway

I think each of these shares are among the best on the ASX. Altium is my favourite of the three, but they could all be strong performers. But I’d prefer all of them to be more than 10% cheaper before thinking about buying. At today’s price I’d probably pick A2 because it’s still growing strongly whereas Altium has warned of impacts.

More reading

• How to become a millionaire with a $5,000 investment in ASX 200 shares each year
• 3 five-star ASX 200 shares to buy right now
• 5 things to watch on the ASX 200 on Thursday
• $3,000 invested in these 3 ASX industries could make you a fortune in the future
• The Bubs share price is up 20% in May, will it catch up to the A2 Milk share price?

Tristan Harrison owns shares of Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. The Motley Fool Australia owns shares of A2 Milk 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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I like to keep a close eye on which shares have experienced meaningful insider buying.

This is because insider buying is often regarded as a bullish indicator, as few people know a company and its intrinsic value better than its own directors.

A number of shares have reported meaningful insider buying this week. Here are a couple which have caught my eye:

Adairs Ltd (ASX: ADH)

According to a change of director’s interest notice, one of this homewares retailer’s independent non-executive directors has been buying shares this month. The notice reveals that Independent Non-Executive Director Kiera Grant picked up 106,000 shares through an on-market trade on 15 May. The director paid a total of $150,339.80 for the shares, which equates to an average of $1.42 per share. This purchase lifted Grant’s holding to a total of 142,572 shares.

Earlier this month, Adairs revealed that its online sales grew a massive 221% while its stores were closed because of the pandemic. Judging by the investment, it appears as though this director is confident its strong form can continue.

Medibank Private Ltd (ASX: MPL)

A change of director’s interest notice reveals that one of this private health insurer’s independent non-executive directors has made a sizeable purchase of shares in May. According to the notice, Tracey Batten picked up 15,715 shares through an on-market trade on 14 May. Batten paid an average of $2.85 per share, which is slightly higher than today’s price. This works out to be a total consideration of just under $45,000 and lifts the director’s holding to a total of 50,000 shares.

This purchase price represents a 22.5% discount to Medibank’s 52-week high. Which appears to be a level this director thinks is good value. One broker that might agree is Credit Suisse. Earlier this month it put an outperform rating and $3.00 price target on the company’s shares.

More reading

• 3 ASX retail shares to own for the next 20 years
• 3 industries that may never recover from COVID-19
• ASX small-cap sector rallies strongly during April
• Revealed: 5 dividend shares for reliable income
• 3 ASX healthcare shares to buy now for the long term

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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ASX telecommunications company MNF Group Ltd (ASX: MNF) develops the software that facilitates many of the services we’re all using a lot more of these days. The company specialises in Voice over Internet Protocol (VoIP) technology, which is a way to convert analogue audio into digital data that can be transmitted over the internet. This tech is used to support services like teleconferencing, online business meetings and digital data transfers.

With large swathes of the global workforce now advised to work from home as much as possible, demand for these services is rapidly increasing. And while the future is incredibly uncertain right now, there is the possibility that the coronavirus pandemic could permanently change the way many industries think about how they deploy their workforce.

Despite falling to a new 52-week low of $2.77 back in March, the MNF share price has now recovered just about all of its coronavirus losses. As at the time of writing, MNF shares are valued at $5.14, within touching distance of the 52-week high of $5.48 it reached in September 2019.

The swift turnaround came as a result of the company reaffirming its FY20 earnings guidance, even in the midst of the panic selling that swept through global markets in March. It forecast FY20 EBITDA in the range of $36 million to $39 million, which would represent an uplift of at least 32% over FY19.

In a further trading update released to the market towards the end of April, MNF stated that it was experiencing higher demand across most of its business segments as many companies and schools continued stay-at-home arrangements.

Why I would invest

There are a few niche companies that have experienced rapid increases in demand during the coronavirus pandemic. Meal kit delivery service Marley Spoon AG (ASX: MMM) has seen its share price skyrocket, as have online retailer Kogan.com Ltd (ASX:KGN) and data centre operator NextDC Ltd (ASX: NXT).

But the important thing to consider is whether the current rise in demand that these companies are all experiencing will be permanent or not. Companies like Marley Spoon have seen increased market penetration during this time as people are unable to eat out at restaurants and limit trips to the supermarket. Similarly, Kogan has seen a rapid surge in people ordering items online due to the temporary closure of many retailers.

But will these patterns of consumer behaviour outlast the pandemic? For example, as restaurants open up again and people are no longer confined as stringently to their homes, demand for Marley Spoon may drop off.

However, I believe the coronavirus crisis could have lasting impacts on the way many people choose to work. The path back to full capacity in many office buildings will be a long, slow journey, and I think that many people may choose to continue to work remotely. Similarly, large corporations may realise they can save on property costs by continuing to have large percentages of their workforce telecommuting.

I believe companies like MNF Group and NextDC may be the ones most likely to see a permanent uplift in demand in a post-coronavirus economy.

More reading

• 3 ASX retail shares to own for the next 20 years
• Why I’d invest $1,000 in this ASX tech share today
• $2,500 invested in these 3 ASX shares could make you a fortune in 10 years
• Where I would invest $5,000 into ASX shares immediately
• These ASX tech shares could be destined for big things thanks to cloud computing

Rhys Brock owns shares of Kogan.com ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of MNF Group Limited. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended MNF Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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As I mentioned here yesterday, the Australian share market has generated an average total return of 9.2% per annum over the last three decades.

Although we have had a poor start to the current decade, I still feel confident that the market will generate a similarly strong return over the next 30 years.

In light of this, I think investors should look to invest what they can in the share market consistently over the long term to take advantage of compounding.

For example, if you were to invest $5,000 every year into the share market for 30 years and earned a 9.2% return per annum, your investments would grow to be worth almost $775,000 at the end of the period.

And if you can maintain this for just another 5 years, you’ll see the value of your investments rise to over $1.2 million.

To help you on your way with the first $5,000 investment, I have picked out three top shares that I think would be great long term options. They are as follows:

Altium Limited (ASX: ALU)

The first share to consider investing $5,000 into is Altium. It is an electronic design software platform provider which is leveraged to the rapidly growing Internet of Things (IoT) market. Given its leadership position and the explosive growth expected from the market, I believe it is well placed to deliver strong earnings growth over the next decade.

Cochlear Limited (ASX: COH)

Another great long term option could be this hearing solutions company. While Cochlear is facing a few headwinds at the moment from the pandemic, I expect it to bounce back once the crisis passes. After all, hearing doesn’t generally fix itself. So, the sales it is missing out on now are not likely to be lost completely. In addition to this, with populations ageing around the world, I believe demand for its products will grow over the next decade or two.

SEEK Limited (ASX: SEK)

A final option to consider is SEEK. As with Cochlear, it is facing headwinds from the pandemic. But I’m confident things will improve when the crisis passes and for its growth to resume. Management has set itself an aspirational revenue target of $5 billion by FY 2025. While I suspect this may need to be pushed back a touch, I expect it will achieve it this decade. This will be a big lift on FY 2019’s revenue of $1,537.3 million.

More reading

• 5 things to watch on the ASX 200 on Thursday
• $3,000 invested in these 3 ASX industries could make you a fortune in the future
• Do the Altium and Xero share prices still represent good long-term buys?
• 3 fantastic ASX shares to buy now to get rich later
• Should you throw $3,000 into Altium shares today?

James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia owns shares of Altium. The Motley Fool Australia has recommended Cochlear Ltd. and SEEK 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 How to become a millionaire with a $5,000 investment in ASX 200 shares each year appeared first on Motley Fool Australia.

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Afterpay Ltd (ASX:APT) shareholders watch out, a global tech giant is launching a challenge.

Shopify is a Canadian based eCommerce giant which has one million merchants that uses its platform. 

Shopify held a conference today. Aside from a number of other Shopify-specific announcements, there was one key thing that Afterpay needs to watch closely. 

What did Shopify announce?

The eCommerce global giant is launching ‘Shop Pay Installments’. Sounds like Afterpay’s instalments right? This could be challenging even though Afterpay is growing strongly. 

As part of the announcement, Shopify said:

“It’s not just merchants who are struggling with cash flow right now; their buyers are feeling the pinch, too. To help, we’re announcing the launch of Shop Pay Installments, coming to merchants and buyers in the U.S. later this year.

Shop Pay Installments allow buyers to pay for purchases in four equal payments over time, with no interest or fees. Merchants will receive the full purchase amount upfront, and Shopify will collect the remaining installment payments, meaning there’s no risk to merchants. This flexible payment option will allow buyers to stretch out their payments, making purchases more convenient. This, in turn, will help merchants increase cart sizes and overall sales.

Installments will be fully integrated into the Shop Pay accelerated checkout, meaning merchants can continue to offer buyers a seamless checkout experience.”

I think a key part of that is that it seems Shopify will be giving merchants “the full purchase amount upfront”. There was no mention of a high merchant fee like the one Afterpay charges.

Why this could hurt the Afterpay share price

The US is a huge growth target for Afterpay. If you were a US merchant are you more likely to want a customer to use Shopify’s service (which has a lower merchant fee per transaction) or Afterpay’s service?

It could mean Afterpay will have to make a difficult choice in the future between market share and margin. It’s this type of announcement which would make me nervous about holding Afterpay shares for the long-term. At a share price of $44, Afterpay doesn’t appeal to me at all. I’d actually be thinking about taking profit off the table.

More reading

• These ASX payments shares could be long term market beaters
• ASX 200 down 0.2%: Afterpay hits a record high, Aristocrat Leisure update disappoints
• Why Afterpay, AMA, NRW, & Santos shares are racing higher
• Why I’d invest $1,000 in this ASX tech share today
• Afterpay share price on watch after hitting 5 million active US customers

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

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The AFL season will officially resume on 11 June following an unprecedented suspension of play. This could spell good news for the Pointsbet Holdings Ltd (ASX: PBH) share price and peers such as Tabcorp Holdings Limited (ASX: TAH). 

Furthermore, as highlighted in a recent article published on the ESPN website, the US now has 18 states with regulated sports betting markets. This means just over 30% of the US population has access to legalised sports betting. The article goes on to say that more than half of all US states will offer legal sports betting within the coming years.

Also, earlier this month, 2 sports betting bills passed a vote in the Senate in Louisiana. These bills will now move to the House of Representatives. If both bills pass through the House, it’s possible sports betting will be legal in that state by the year’s end.

What does this mean for the Pointsbet share price? 

The more sports betting markets that open up, the more turnover will result for bookmakers like Pointsbet. In the company’s Q3 update for its Australian business, Pointsbet saw clients transferring to higher margin products such as thoroughbred, harness and greyhound racing. This was as a result of the suspension of AFL and NRL and the the timing could not have been better for the company. After all, it had just executed a Tier 1, Australian horse racing partnership with Channel 7.

Pointsbet’s turnover in Australia increased 58.3% in Q3 FY20 vs. Q3 FY19. Despite this being 3.5% down on Q2 FY20, this is still a strong result, particularly given the impact of coronavirus. 

With coronavirus restrictions beginning to ease, the UFC is running 3 events this month, the AFL has locked in a start date and many sports leagues around the world are planning their returns. This can only mean good news for Pointsbet’s revenue, growth and share price. 

Pointsbet in the US 

Pointsbet currently derives most of its US revenues from the state of New Jersey. It also has access in Iowa, Indiana, Kansas and Colorado. The company’s US turnover tells a similar tale to its performance in Australia. Turnover soared 285.4% between Q3 FY20 vs. Q3 FY19, but fell 19.4% on Q2 FY20 results. 

Pointsbet’s response to COVID-19 includes scaling down its major expenses including employee, sales and marketing costs. Its business costs are highly correlated with betting turnover, revenue and deposit/withdrawal volumes. As such, these costs will likely reduce proportionally with the expected fall in these metrics. Its marketing expenses are also variable in nature, and the company is preparing to significantly reduce this expense for the quarter to 30 June 2020.

Foolish takeaway 

I think the favourable regulatory conditions in the US will create a great springboard for Pointsbet’s growth as things return to ‘normal’. The company has an unbelievably strong cash position of $149.4 million, relative to its market capitalisation. It also has no borrowings. Pointsbet is cashed up and, I believe, poised for future share price growth. 

More reading

• ASX 200 market close: Share market up 1.8%
• ASX gambling shares on watch as sporting codes make plans to resume
• 3 ASX shares I should have bought last month
• Are ASX shares about to surge higher in 2020?
• Why I’m holding onto my Pointsbet shares

Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings 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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