• Are telco shares winners now that everyone’s staying home?

    Telstra

    COVID-19 has changed the way we work and play like very few of us would have imagined at the start of the year.

    Both adults and children are spending so much more time at home. This means more spending per household on utilities like electricity, water and gas.

    A uniquely 21st century utility is internet connectivity.

    Households are now, more than ever, reliant on internet access through either mobile or fixed line for their work, study and leisure.

    The wholesaler, National Broadband Network (NBN), even handed out extra capacity for no cost during the depths of the first national lockdown.

    So telecommunications retailers should be cashing in, right?

    The share prices of the two big players on the ASX, Telstra Corporation Ltd (ASX: TLS) and TPG Telecom Ltd (ASX: TPG), would suggest they’re struggling.

    Telstra was as high as $3.90 in January but now languishes at $2.88. TPG started at $8.90 at the end of June when it merged with Vodafone, but is now stumbling at $7.33.

    That begs the question: Are they bargains about to shoot up, or is the telecommunications market too commoditised and too saturated?

    Betashares senior investment specialist Cameron Gleeson is pessimistic.

    “Changes to the way we work and study may not necessarily be a strong tailwind for Australian telcos,” he told The Motley Fool.

    “With the full roll-out of the NBN and the reduction in monopolist revenue from fixed line services, Telstra faces increased price competition in reselling NBN plans and in mobile.”

    An alternative to telecommunications

    Gleeson told The Motley Fool that investors instead should look at a different, and often-overlooked, sector.

    “Another sector perhaps better-placed to benefit from behavioural changes brought on by the global pandemic is the global cybersecurity industry.”

    Hackers are exploiting the increased time we have online due to the pandemic, according to Gleeson.

    “Increasing awareness of the cyber threat across business and government, coupled with the structural shift towards an online economy could prove to be the catalyst for expansion in an already rapidly-growing industry.”

    These 3 stocks could be the next big movers in 2020

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

    *Returns as of 6/8/2020

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    Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra 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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  • Why the Tesla (NASDAQ:TSLA) share price zoomed 12.5% higher

    Tesla vehicles parked in front of Tesla building

    The Tesla Inc (NASDAQ: TSLA) share price was an exceptionally strong performer on Wall Street on Monday night.

    The electric vehicles company’s shares snapped their losing streak and zoomed a sizeable 12.5% higher to US$419.62.

    Why did the Tesla share price storm higher?

    There were a couple of catalysts for Tesla’s strong share price gain on Monday night.

    The first was a solid recovery in the Nasdaq index. After a couple of weeks of declines driven by profit taking, the tech-heavy index rebounded with an impressive 1.9% gain overnight.

    And although Tesla isn’t a technology share in the same vein as Amazon or Apple, many investors class it as one. As a result, it has a tendency to move with the Nasdaq index.

    Strong demand in China.

    The second catalyst for yesterday’s strong gain appears to have been comments out of Goldman Sachs.

    According to CNBC, the broker’s research indicates that downloads of its app have been increasing at a solid rate. It feels this is thanks largely to the China market.

    Goldman said: “Tesla global weekly app downloads have recently been tracking up on a year-over-year basis, with the most recent full week of global data up about 20% yoy.”

    Though, the broker does note that Tesla traditionally performs strongest in the final month of the quarter.

    It explained: “Tesla’s deliveries tend to be back-end weighted in part because in a given quarter the company typically starts building cars that have to be delivered the farthest away first, and this results in a lot of deliveries occurring in the final month of a quarter.”

    Nevertheless, the trends are positive for Tesla app downloads, which appears to be an indication that its car sales and deliveries have been strong.

    Following this gain, the Tesla share price is now up 388% since the start of the year.

    These stocks could rocket in a Post-COVID world (FREE STOCK REPORT)

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    In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

    *Returns as of 6/8/2020

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    James Mickleboro 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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  • I’d follow Warren Buffett and buy cheap stocks after the market crash to make a million

    pair of men's business shoes

    Although some stocks have rebounded from the 2020 market crash, there are still a number of cheap shares available to buy. They may experience short-term uncertainty, but have the potential to produce impressive returns in the long run as the economy recovers.

    Warren Buffett has previously purchased cheap stocks to benefit from their capital return potential. Through following his lead, you could improve your chances of making a million in the coming years.

    Buying cheap stocks after a market crash

    Many investors may naturally be cautious about the prospect of buying cheap stocks after a market crash. After all, the uncertain global economic outlook means there is a very real threat that their prices will move lower in the coming months.

    However, undervalued stocks have historically been a sound investment. They enable investors to buy companies at prices that are, in many cases, significantly lower than their intrinsic values. As the economy’s outlook gradually improves, and investor sentiment does likewise, bargain shares are likely to have greater scope to register large capital gains than fairly valued businesses.

    Therefore, the market crash has created numerous buying opportunities for investors. Previous bear markets have always been followed by bull markets, which is likely to be the case following the stock market’s recent decline.

    Risk management

    Of course, not every cheap stock will recover after the market crash. Some industries and businesses may struggle to compete in what could prove to be a very different post-coronavirus economy. For example, retailers that lack an online presence may struggle to compete with e-commerce rivals, while energy companies may need to reinvest more heavily in greener alternatives to fossil fuels.

    As such, it could be a shrewd move to build a diverse portfolio of undervalued stocks. Through having exposure to a variety of sectors and geographies, you can reduce your reliance on one particular industry or region. Given the uncertain economic environment facing many companies, this could prove to be a logical step for all investors to take.

    Making a million

    Even though buying cheap stocks after a market crash could improve your chances of making a million, it is unlikely to be a quick process. Even Warren Buffett took many years to build his wealth through adopting a similar strategy.

    However, by giving your holdings the time they require to implement revised strategies and for investor sentiment to improve, it is possible to make a million. For example, the stock market has produced annualised total returns of around 8% over recent decades. By investing $500 per month over a 35-year time period, you could generate a seven-figure portfolio through earning the market return.

    By investing in cheap stocks after the market crash, you may be able to obtain an even higher rate of return, thereby making a seven-figure portfolio a more realistic aim over the long run. 

    These 3 stocks could be the next big movers in 2020

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

    *Returns as of 6/8/2020

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    Motley Fool contributor Peter Stephens 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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  • Why the Clinuvel (ASX:CUV) share price is storming higher today

    The CLINUVEL Pharmaceuticals Limited (ASX: CUV) share price is pushing higher on Tuesday following the release of an announcement.

    At the time of writing the biopharmaceutical company’s shares are up 3% to $21.96.

    What did CLINUVEL announce?

    This morning the company provided an update on its plans to expand the use of its SCENESSE drug (afamelanotide 16mg) to treat xeroderma pigmentosum (XP).

    XP is a disease characterised by an inborn insufficiency to repair DNA damaged by sun exposure. Patients develop frequent skin cancers from an early age, with most experiencing their first malignancy before adolescence, and must avoid all forms of UV exposure.

    The disease has a high mortality rate, with a median life expectancy of 30 years. At present, XP treatment is limited to management of symptoms, in particular regular surgery to remove cancerous lesions. An estimated 1 in 450,000 individuals in Europe suffer from XP.

    CLINUVEL has high hopes for SCENESSE, noting that it belongs to a group of hormones which have been shown to reduce UV-induced damage to DNA and assist in DNA regeneration.

    It took a step closer towards finding out whether SCENESSE is a viable treatment for XP this morning when it announced that the first patient diagnosed with XP has been administered the drug under a Special Access Program.

    Initially, the patient’s safety will be evaluated over six weeks of treatment. Following confirmation of the safety of the drug product in this patient, CLINUVEL will conduct two further studies as part of the DNA Repair Program. Both studies will evaluate the impact of treatment with SCENESSE on DNA damage and restoration.

    CLINUVEL’s Clinical Operations Manager, Dr Pilar Bilbao, commented: “We seek to provide meaningful benefit to XP patients, and these results will serve a wider population of fair-skinned individuals at risk of developing skin cancers. The next 12 months will be exciting for many patients, their families, the clinical experts and our own teams.”

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    In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

    *Returns as of 6/8/2020

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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.

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  • Catapult (ASX:CAT) share price charges higher on French Rugby deal

    Catapult share price

    The Catapult Group International Ltd (ASX: CAT) share price is pushing higher in morning trade on Tuesday.

    At the time of writing the sports analytics and wearables company’s shares are up over 2% to $1.94.

    Why is the Catapult share price charging higher?

    Investors have been buying Catapult’s shares after it announced another potentially lucrative deal.

    According to the release, the French Ligue Nationale de Rugby (LNR) has appointed Catapult as the preferred supplier of technology to all teams that compete in France’s Top 14 and Pro D2 professional rugby competitions for the next four years.

    The company revealed that it was awarded the contract following an extensive due diligence and competitive tender process.

    As part of the award, Catapult will support data exchange between any contracted club teams and the France national rugby union team in a seamless two-way data sharing process.

    Management notes that Catapult’s proficiency in large-scale, high-security data aggregation and distribution stood out during the tender process. It was also supported by its experienced local support staff, rugby-specific performance metrics (scrum analytics, kick analysis, contact involvement, amongst others), and the company’s rich history with scientific validation.

    The LNR commented: “The Ligue Nationale de Rugby and the Fédération Française de Rugby (FFR) are delighted with the choice of Catapult to optimise the monitoring of rugby players with a view to the 2023 World Cup. This choice follows a tender process that began in October 2019.”

    Strong presence in rugby.

    The company notes that this is the latest federation-wide rugby deal that Capapult has signed following similar deals in Australia, Scotland, and Wales.

    Catapult’s Chief Commercial Officer, Matt Bairos, believes its technology and customer obsession are playing a key role in these awards.

    He said: “After a lengthy tender process where our technology and people were reviewed comprehensively, it is motivating to know our level of customer obsession was a deciding factor in this award from such a world-class association. We look forward to delivering French rugby constant innovation and assisting them in their long-term strategy for player health and continued global success.”

    The Catapult share price is now up 24% year to date.

    These stocks could rocket in a Post-COVID world (FREE STOCK REPORT)

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    In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

    *Returns as of 6/8/2020

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    James Mickleboro 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 Catapult Group International Ltd. The Motley Fool Australia has recommended Catapult Group International 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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  • AstraZeneca resumes UK clinical trials of its coronavirus vaccine after a safety pause

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

    Less than a week after investors learned that AstraZeneca (NYSE: AZN) had paused the clinical trials testing its coronavirus vaccine, AZD1222, the UK’s Medicines Health Regulatory Authority (MHRA) determined it was safe for the company to restart the studies.

    The pause was triggered by an adverse event – clinical-trial speak for a potential side effect – in one participant in the clinical trial. Pauses, which are fairly common in large clinical trials, give companies time to determine if the adverse event was caused by the vaccine. An independent committee for the UK studies reviewed the data and recommended to the MHRA that the clinical trials were safe to resume.

    About 18,000 people have been vaccinated with AZD1222, which is also being tested in phase 3 clinical trials in Brazil, South Africa, and the US AstraZeneca didn’t say when the clinical trials outside of the UK would be restarted.

    AstraZeneca also didn’t disclose publicly what the illness was, but multiple sources have reported that the company’s CEO Pascal Soriot said on a call organised by the investment bank J.P. Morgan that the patient experienced serious neurological symptoms that were consistent with transverse myelitis, a spinal inflammatory disorder.

    Shares of AstraZeneca were up just 0.7% in late-afternoon trading on the news, but the drugmaker had already regained most of the decline its shares suffered after the clinical-trial pause was disclosed.

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

    These 3 stocks could be the next big movers in 2020

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

    *Returns as of 6/8/2020

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    Brian Orelli, PhD and The Motley Fool have 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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  • Pfizer says it could know if its COVID-19 vaccine candidate works in October

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

    Pfizer Inc (NYSE: PFE) is conducting one of the most advanced trials of a vaccine for COVID-19, and CEO Albert Bourla told an interviewer on Sunday that the drugmaker could know if its candidate is effective by the end of October.

    The healthcare company is researching a slate of possible vaccines in partnership with BioNTech (NASDAQ: BNTX), and a phase 2/3 study evaluating its most advanced coronavirus vaccine candidate, BNT162b2, began in July. That trial is structured to include a total of 30,000 participants who will be given two doses of the vaccine, 21 days apart.

    The assertion that the trial will have garnered enough data by the end of next month for the company to determine whether it’s ready to seek emergency use authorisation from the Food and Drug Administration comes as the healthcare companies have requested permission to increase enrollment in it to as many as 44,000 people. That would allow them to include volunteers as young as 16 years old, as well as people with pre-existing viral infections such as HIV and hepatitis B and C.

    If BNT162b2 proves sufficiently effective to earn a thumb’s up from the FDA, Pfizer and BioNTech believe they’ll be able to provide up to 100 million doses of it by the end of 2020, and up to 1.3 billion doses by the end of 2021. Previously, the companies signed agreements to supply up to 600 million doses to the United States and up to 200 million doses to the European Union beginning later this year. Also, a deal with Japan would see up to 120 million doses sent to that country in the first half of 2021.

    Although Bourla’s statement about the clinical trial timeline is encouraging, there are no guarantees that the timing won’t shift, or that the vaccine will prove effective enough. Last week, the phase 3 study of AstraZeneca‘s rival COVID-19 vaccine candidate was placed on a temporary hold so that researchers could evaluate an isolated safety signal –a good reminder of the uncertainty associated with all such human trials.

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

    These stocks could rocket in a Post-COVID world (FREE STOCK REPORT)

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

    *Returns as of 6/8/2020

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    Todd Campbell owns shares of Pfizer. His clients may have positions in the companies 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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  • 3 major investing mistakes to avoid at all costs

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

    man sitting in front of lap top with head in hands representing investing mistakes

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

    Investing your money is a great way to grow wealth and set yourself up for a secure future. But if you’re going to invest, the last thing you’ll want to do is fall victim to these blunders that could leave you broke and miserable.

    1. Panic selling

    When the stock market crashes (which happens more often than we’d like), it’s easy to immediately panic and start selling off investments before their value tumbles even more. But if you go that route, you’re likely to lock in losses that could’ve otherwise been avoidable.

    Remember, you only lose money in stocks when you sell investments when they’re down. But some market downturns are only temporary, and if you sit back and ride them out, your portfolio can recover. Just look at what happened earlier this year. In March, stocks plunged into bear market territory, and many investors were convinced we’d be in for a prolonged down market. Instead, those losses were erased by August.

    As a general rule, you should only keep money invested that you won’t need for at least seven years so that you’ll be in a good position to leave your portfolio intact when the market goes south. Stick to that system, and you shouldn’t feel compelled to unload stocks the moment things take a turn for the worse.

    2. Trying to time the market

    Seasoned investors who have been following the stock market for years often struggle to time it, and the same thing is likely to happen to you. Predicting exactly when the broad market will rise or fall is extremely difficult, and it’s a strategy that could cause you to lose out on money for no good reason. Rather than attempt to time the market, pledge to invest consistently.

    A strategy called dollar-cost averaging can help you in this regard. In short, dollar-cost averaging involves investing a certain amount of money at predetermined intervals. For example, you might decide to invest $100 a week in a specific stock or set of stocks, rather than attempt to buy $400 worth of stock at one low point during the month. This way, you’re more likely to end up with a lower average purchase price.

    3. Holding losing stocks for too long

    Not every stock you buy is guaranteed to be a winner, and frustrating as it may be to have an underperforming stock on your hands, you need to know when to cut your losses. If there’s a stock that’s been dropping in value since you bought it while the rest of your portfolio is thriving, you shouldn’t hesitate to cut the cord. Holding onto that stock for longer could mean watching its value sink even further.

    For many people, investing is a work in progress. You might start out with a certain strategy only to have it evolve over time as your budget and appetite for risk change. But whether you’re first starting out as an investor or have been doing it for years, be sure to steer clear of the above mistakes. Doing so will help ensure that your portfolio serves you well, both in the near term as well as the long term.

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

    These stocks could rocket in a Post-COVID world (FREE STOCK REPORT)

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

    *Returns as of 6/8/2020

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  • Is the NEXTDC share price heading even higher from here?

    nextdc share price

    The NEXTDC Ltd (ASX: NXT) share price has been a very strong performer in 2020.

    Since the start of the year the data centre operator’s shares have stormed 70% higher.

    Is it too late to buy NEXTDC shares?

    I don’t believe it is too late to buy NEXTDC’s shares. In fact, even after their strong gain this year, I feel they are good value for a long term investment.

    This is due to the quality of its data centres and the increasing demand for its services thanks to the accelerating shift to the cloud.

    One broker that agrees that NEXTDC is in the buy zone still is Goldman Sachs. This week the broker reaffirmed its buy rating and $13.20 price target on the company’s shares.

    This price target implies potential upside of almost 19% for its shares over the next 12 months.

    Why is Goldman positive on NEXTDC?

    Goldman Sachs believes that there is still plenty of upside ahead for the NEXTDC share price despite its 70% gain in 2020.

    It commented: “given the significant share price appreciation across 2020 YTD, many investors query the current trading multiples for NextDC (i.e., 22X FY21 EV/Sales vs. peer avg. of 12X) and question whether there is further upside from here.”

    “We argue that given the significant contracted, but not yet billing MW [megawatts], along with material capacity options, a near term multiple based comparison is not necessarily reflective of the true value within this business, and note that should we incorporate the full revenue run-rate of its contracted, but not yet billing MW, along with its options, NextDC would be trading on an FY21 EV/Sales of 10X,” it explained.

    Can the NEXTDC share price go even higher?

    The broker has suggested that the NEXTDC share price could even go beyond its price target and all the way to $20.00.

    Its analysts commented: “Our scenario analysis suggests that a value of $20 per share is possible for NextDC, based on assumptions that are high, but in our view not unrealistic considering the current acceleration in demand that is evident across the business.”

    All in all, I think Goldman Sachs is spot on and NEXTDC would be a great addition to a balanced portfolio.

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

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  • 3 ASX shares with high-flying dividend yields

    share price higher

    It’s been a struggle to find ASX shares that haven’t slashed their dividends due to difficult trading conditions. COVID-19 has certainly cast an unpredictable environment where once-considered ASX defensive shares have plummeted and retail shares soared.

    While past performance is no guarantee for future results, I believe that any investor seeking high-flying dividend yields should look into these ASX shares. After all, it makes sense to get more bang for your buck.

    Fortescue Metals Group Limited (ASX: FMG)

    The Fortescue share price has stormed 60% higher since the new year. This has been underpinned by the company achieving record revenue in exports on the back of the rising spot price of iron ore.

    I think that strong cash flows will continue for this mining outfit as it boasts the world’s lowest cost margins. Fortescue has heavily invested in its expansion and development plans.

    The $1.7 billion Eliwana Mine and Rail project is expected to be completed by this December. It is estimated that the company will have a production run of 170 million tonnes per year for a 20-year life span. Fortescue shipped 178.2 million tonnes for the year ending 30 June 2020.

    In addition, Fortescue declared a fully-franked dividend of $1.00 per share last month. Total dividends paid for the financial year stood at $1.76 representing a generous yield of 9.9%.

    Harvey Norman Holdings Limited (ASX: HVN)

    The multi-national retailer has had a bumper year thanks to the surge of a sales uptick during COVID-19. Despite temporary overseas store closures, Harvey Norman reported a record result for its full-year earnings in late August.

    I believe the strong shift in consumer behaviour will have a continued impact going into 2021. Harvey Norman has already noted that sales in July and August have increased from the prior corresponding period. Furthermore, overseas sales have improved following the decision to loosen restrictions to the public.

    Shareholders were rewarded with a fully franked dividend of 18 cents, a 50% increase on the 12 cents declared for 1H FY20 results. For the year based on the Harvey Norman share price, total dividend yield stands at 7%.

    JB Hi-Fi Limited (ASX: JBH)

    JB Hi-Fi has been another standout performer in 2020. The speciality discount retailer saw a 33.2% growth in profits which was underpinned by strong sales. Another contributor was the company’s low-cost operating model that was driven by productive floor space with high sales per square metre.

    In JB Hi-Fi’s outlook, total sales in Australia had grown a massive 42.1% for the month of July and sales at the Good Guys were up 40.4%. While growth is anticipated to slow down due to the forced closure of its Melbourne stores, online sales growth has continued to accelerate.

    The company flowed its profits through to a dividend pay-out of 90 cents. This was reflected a massive 76.5% increase on the prior year and brought the total dividends for the financial year to $1.89. A total dividend yield of 4.2% on top of the rising JB Hi-Fi share price.

    Foolish takeaway

    I think that all three of these ASX shares present a buying opportunity. Each of the companies have seen solid growth over the year and passed their profits onto shareholders. Should their fortunes continue, investors will be seeing new share price highs in the near future.

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    Motley Fool contributor Aaron Teboneras 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 3 ASX shares with high-flying dividend yields appeared first on Motley Fool Australia.

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