At lunch on Wednesday the S&P/ASX 200 Index (ASX: XJO) has followed the lead of U.S. markets and is dropping lower. At the time of writing, the benchmark index is down a disappointing 1.1% to 5,884.9 points.

Here’s what has been happening on the market today:

Corporate Travel Management charges higher.

The Corporate Travel Management Ltd (ASX: CTD) share price has returned from its trading halt and is charging higher. This morning the corporate travel company completed the institutional component of its entitlement offer. These funds will be used to acquire Travel & Transport for $274.5 million. Management is forecasting the acquisition to be approximately 30% earnings per share accretive post-synergies.

Gold miners push higher

One area of the market which is performing positively today is the gold sector. The likes of Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) have all pushed higher after another rise in the spot gold price. This was driven by the further softening of the U.S. dollar and stimulus optimism. The S&P/ASX All Ordinaries Gold index is up 0.4% at the time of writing.

Santos given approval.

The Santos Ltd (ASX: STO) share price is dropping lower today despite news of a positive development. This morning the New South Wales Independent Planning Commission gave the green light to the Narrabri Gas Project with conditions. Santos has accepted the conditions proposed and will now work with the Federal Department of Agriculture, Water and Environment as it considers its recommendation to the Minister on EPBC Act approval.

Best and worst ASX 200 shares.

The best performer on the ASX 200 on Wednesday has been the Corporate Travel Management share price with an 11% gain following the completion of its institutional placement. The worst performer has been the Pendal Group Ltd (ASX: PDL) share price with a decline of over 5%. This may be due to concerns over a sharp rise in COVID cases in the UK.

More reading

• Why Corp Travel Management, EOS, Evolution, & Recce shares are charging higher
• Santos (ASX:STO) share price on watch after Narrabri Gas Project approval
• Why the Jumbo (ASX:JIN) share price is moving higher today
• Why the Afterpay (ASX:APT) share price has further to run
• 3 ASX 200 passive investing shares to buy today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management 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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The Santos Ltd (ASX: STO) share price is in a trading halt after gaining a key approval for a major gas project.

What’s the latest update?

The New South Wales Independent Planning Commission (IPC) has given Santos the green light for its controversial Narrabri Gas Project.

While activists have indicated further appeals may be on the way, Santos said it “accepts the conditions proposed by the IPC”.

The Aussie energy group will now work with the Federal Government to gain Environmental Protection and Biodiversity Conservation (EPBC) Act approval.

Santos estimates the project has the potential to meet up to half of NSW’s natural gas demand.

The approval is good news for the Santos share price which remains in a trading halt following the news.

Where is the Santos share price headed?

The Aussie energy share is one to watch when it returns to the boards given the good news of the approval but bad news for oil prices.

ASX oil stocks have been smashed this morning as oil prices continue to plummet. Increasing coronavirus cases in Europe and around the globe have prompted fears of further shutdowns.

That’s bad news for industries like manufacturing and travel, which are traditionally high energy consumers.

The Woodside Petroleum Limited (ASX: WPL) share price has fallen 2.5% lower this morning while Oil Search Limited (ASX: OSH) shares are down 2.3%. That means the Santos share price could be tracking them lower when it returns to the boards this week.

The Narrabri approval does represent a big stride forward for Santos. The company is now well-positioned to take a significant stake in the NSW gas market.

Foolish takeaway

The Santos share price will be one to watch when it recommences trading on the ASX.

Investors will be weighing up the importance of the Narrabri Gas Project approval against the broader weakness in ASX oil shares.

More reading

• ASX 200 down 1.1%: Corp Travel Management surges higher, gold miners rise, Santos given approval
• Why a2 Milk, BrainChip, Oil Search, & Starpharma shares are dropping lower
• Why the Jumbo (ASX:JIN) share price is moving higher today
• Why the Afterpay (ASX:APT) share price has further to run
• 3 ASX 200 passive investing shares to buy today

Motley Fool contributor Ken Hall 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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The S&P/ASX 200 Index (ASX: XJO) has come under pressure on Wednesday and is on course to record a sizeable decline. The benchmark index is down 1.15% to 5,883.1 points in late morning trade.

Four shares that have fallen more than most today are listed below. Here’s why they are dropping lower:

The A2 Milk Company Ltd (ASX: A2M) share price has dropped lower again and is down 2% to $14.28. Investors have been selling the infant formula and fresh milk company’s shares since its disappointing update earlier this week. One broker that wasn’t impressed is Citi. It has retained its sell rating and cut its price target to $14.20 amid concerns that daigou weakness could persist for longer.

The BrainChip Holdings Ltd (ASX: BRN) share price is down 8% to 34 cents. This latest decline means the artificial intelligence technology company’s shares are now down 65% over the last three weeks. Investors appear to now recognise that BrainChip’s shares were vastly overvalued after an incredible share price gain in 2020. At one stage BrainChip’s market capitalisation was well over $1 billion.

The Oil Search Limited (ASX: OSH) share price has fallen 3% to $2.71. Investors have been selling this energy producer’s shares after oil prices sank lower overnight. The catalyst for the pullback in oil prices was concerns over rising coronavirus cases and the impact this could have on demand.  

The Starpharma Holdings Limited (ASX: SPL) share price has fallen 6.5% to $1.50. This morning the dendrimer products developer’s shares returned from a trading halt after successfully completing a $45 million institutional placement. These funds were raised at $1.50 per new share and will be used primarily to support the development of a COVID-19 nasal spray. The remainder will be used to support the development of multiple, high-value DEP clinical assets, and DEP pipeline expansion.

More reading

• Santos (ASX:STO) share price on watch after Narrabri Gas Project approval
• Could the Bubs (ASX:BUB) share price be an A2 Milk (ASX:A2M) contender? 
• The BrainChip (ASX:BRN) share price is down 65% in just three weeks
• Why ASX oil stock prices are set to slide this morning
• These are the ASX blue chip shares I’d buy today

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 Starpharma Holdings Limited. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended Starpharma 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.

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The A2 Milk Company Ltd (ASX: A2M) share price slumped 10% on Monday following an earnings downgrade. Could this be an opportunity for investors to jump on board the Bubs Australia Ltd (ASX: BUB) share price? 

Bubs share price performance 

Even after this week’s selloff, the a2 Milk share price is a little higher than breakeven for the year. By comparison, the Bubs share price is down nearly 23% in 2020. Bubs is likely weighed down by its $40 million capital raising that took place earlier this month. The capital raising offered a placement of up to $28.3 million at 80 cents per share and share purchase plan of up to $10 million at the same price. The significant discount combined with the broader market sell off is likely to have pushed the Bubs share price lower in September. 

FY20 performance 

Bubs delivered a fair FY20 performance with a 24% increase in revenue to $54.6 million and a normalised earnings before interest, tax, depreciation and amortisation (EBITDA) loss of $9.1 million. The company’s growth was fuelled by strong infant formula growth with sales up 58%. The contribution share of infant formula earnings now represents 55% of the company’s earnings, up from 30% two years ago. 

Moving forward, China remains a key focus as the company’s primary export market with the highest growth potential for goat’s milk infant formula. Furthermore, it plans to diversify its China dependency risk with new market launches including Vietnam and Hong Kong in FY20 and Malaysia and the Middle East in Q2 FY21. 

Key risks 

The Bubs FY20 results highlighted similar challenges that a2 Milk faced with regards to pantry stocking. Its report cited that significant pantry stocking “brought forward demand” with “Australian domestic consumption from local consumers now returning to pre-COVID levels”. In light of such concerns, it did mention that increasing demand was evident in China and that cross border e-commerce (CBEC) China sales were growing. 

It further highlighted the barriers to entry for businesses in China, especially for infant formula. Tightening regulations and long lead times for regulatory approvals all impose risks for Bubs’ success in China. Furthermore, consumers increasingly want to see a brand’s local relevance, increasing the need for Bubs to invest in marketing and sponsorship in China. 

Foolish takeaway

Following its capital raising, I believe Bubs is in a solid position to capitalise on its growth initiatives and kickstart China-related operations. However, the business faces similar challenges as a2 Milk with regards to pantry destocking and additional risks with doing business in China. I believe the Bubs share price has underperformed a2 Milk for a reason. Being a smaller business with a niche product, it could face greater earnings risks and regulatory set backs. As such, more time might be needed for the Bubs share price to find a bottom before considering it as a buying opportunity.   

More reading

• These are the ASX blue chip shares I’d buy today
• ASX 200 ends the day flat, BOQ (ASX:BOQ) shares drop on impairments
• 3 small cap ASX shares I’d buy with $3,000 right now
• Leading brokers name 3 ASX shares to sell today
• The latest 3 ASX stocks that brokers just upgraded to “buy”

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BUBS AUST FPO. The Motley Fool Australia owns shares of A2 Milk. 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 volume of approved home loans in July had jumped back to pre-COVID-19 levels, in a major boost for banks.

In a trend counter-intuitive to the recession, Finder analysis of ABS data showed 28,322 mortgages were approved in July. 

As a comparison, 26,687 mortgages got the green light in March, before the pandemic really started to strangle the economy.

The numbers are encouraging for the fortunes of ASX-listed banks like Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB) and Australia and New Zealand Banking GrpLtd (ASX: ANZ).

Month	Total value	Number of loan approvals
January 2020	$12.1 billion	24,109
February	$11 billion	23,090
March	$13.2 billion	26,687
April	$12.1 billion	23,638
May	$11.5 billion	22,941
June	$12.5 billion	25,713
July	$13.7 billion	28,322
Source: Finder analysis of ABS data, table created by author

The mortgage industry also got a huge boost this week when the government turned off responsible lending rules to inject more credit into the economy.

The revival shows this recession is indeed very different to the usual downturn.

Despite high unemployment, government support has meant Australians on average have more income. And this money has been saved, rather than spent.

“There are hundreds of Aussies with a deposit saved, watching properties and the housing market and ready to strike,” said Finder insights manager Graham Cooke.

“The full economic impact of COVID-19 has yet to be realised, but Aussies are unshakable in their love of housing.”

Australians say now is a good time to buy 

It’s not just investors and veterans getting in. More than 11,000 first home buyers entered the market in July, which is 20% up from May.

Finder’s consumer sentiment index also showed 59% of Australians think now is an ideal time to buy real estate. This is way up on 54% in February and 52% in March.

“Judging by the surge in activity, plenty of Aussies are fired up about property again,” Cooke said.

“The housing market is also benefiting from the pent-up demand released with the restarting of auctions and inspections in several places.”

Lending to owner-occupiers would grow even further when states relax border restrictions, according to Cooke.

“Think of all the interstate relocations that normally happen before a new school year starts that have been stifled.”

More reading

• Is the Westpac (ASX:WBC) share price in the buy zone?
• Where to invest your CBA dividends
• The ASX big bank stock that’s most at risk of a dividend cut
• BrainChip (ASX:BRN) and Novonix (NVX) were among the most traded shares on the ASX last week
• 3 ASX dividend shares to buy for income today

Motley Fool contributor Tony Yoo 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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The Jumbo Interactive Ltd (ASX: JIN) share price is higher today following an announcement last night.

The Jumbo share price surged to $13.09, up 3.23% in morning trade before dropping back to $12.83 at the time of writing. In comparison, the S&P/ASX 200 Index (ASX: XJO) is down 1.4% to 5,867 points.

New agreement

Jumbo subsidiary, TMS Global Services signed a binding term sheet with Lotterywest, a Western Australia state government-owned lottery operator. The deal will see Jumbo provide its online software platform and services to Lotterywest for up to the next 10 years.

The ‘Powered by Jumbo’ software platform will be integrated with the Lotterywest ‘White Labelled’ program and branding. This will allow current Jumbo Western Australia members to continue playing online on a platform they are accustomed to. The total transaction value (TTV) for FY20 was $33 million.

The key terms for the binding term sheet stipulate that Jumbo will receive a service fee for every customer transaction through the White Label platform. The service fee will cover Jumbo’s software operation, technical and customer support, and development services and costs.

The agreement is to be a three-year initial term, with the option for a further three and four years. The extension options are to be decided by Lotterywest.

In addition, Lotterywest will oversee the marketing strategy for players, which Jumbo will manage customer support on the White Label platform.

The binding term sheet is pending legislative amendments, regulatory approvals, and performance and financial guarantees by Jumbo.

Both companies are expected to complete the software integration by 21 December 2020.

Jumbo share price summary

The online lottery company reached new peaks in 2019, as it set ambitious targets of $1 billion in ticket sales by 2022. As TTV hit $320 million from its FY19 report, investors appeared not confident of Jumbo achieving the milestone. Thus, the Jumbo share price was heavily sold from September 2019, falling more than 50% to today’s price.

In March, Jumbo was impacted with its share price tumbling to as low as $6.99, but has now returned to pre-COVID-19 levels.

I think that if Jumbo picks up momentum in ticket sales and delivers on its targets, then its share price will follow.

More reading

• Why the Afterpay (ASX:APT) share price has further to run
• 3 ASX 200 passive investing shares to buy today
• Why ASX oil stock prices are set to slide this morning
• Is the Westpac (ASX:WBC) share price in the buy zone?
• Will the Fortescue (ASX:FMG) share price outperform in 2021?

Aaron Teboneras owns shares of Jumbo Interactive Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Jumbo Interactive Limited. The Motley Fool Australia owns shares of and has recommended Jumbo Interactive 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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The Afterpay Ltd (ASX: APT) share price has been on a tearing run in recent times.

Shares in the group have edged 1.5% lower in this morning’s trade as the S&P/ASX 200 Index (ASX: XJO) got off to a weak start.

Despite concerns of being overvalued at the start of the year, however, Afterpay’s value has rocketed 167.0% higher in 2020.

That has been music to the ears the buy now, pay later leader’s shareholders. But some have started to question whether or not the Afterpay share price is still good value.

Here are a few reasons why I think Afterpay’s stock can continue to rise in 2021.

Why the Afterpay share price can climb higher

For one thing, the company has shown an ability to maintain a low bad debts expense while growing.

There were concerns that Afterpay’s growth would see a similar rise in write downs and bad debtors. That hasn’t proved to be the case so far with strong technology systems keeping losses low.

I think the addressable market for Afterpay is also still significant. The group now has global operations including in the United States and United Kingdom.

More and more market entrants are trying to carve out a piece of the market. However, Afterpay is a true industry leader with a strong network and significant financial backing.

I think the global market remains a lucrative prospect for Afterpay. Tencent taking a 5 per cent stake in the business will only boost its profile in Asia.

The regulatory environment is starting to look more settled. We’ve seen numerous inquiries that have not restricted Afterpay’s growth in recent years.

If we see a strong economic bounceback from the coronavirus pandemic then I could see the Afterpay share price hitting $100 per share in early 2021.

Foolish takeaway

I think a combination of market opportunity and strong management is the key.

If Afterpay can carve out even a small piece of major international markets then it can be worth more than its current $23 billion.

More reading

• Why the Jumbo (ASX:JIN) share price is moving higher today
• 3 ASX 200 passive investing shares to buy today
• Why ASX oil stock prices are set to slide this morning
• Is the Westpac (ASX:WBC) share price in the buy zone?
• Will the Fortescue (ASX:FMG) share price outperform in 2021?

Motley Fool contributor Ken Hall 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 BrainChip Holdings Ltd (ASX: BRN) share price has continued its disappointing run and is sinking lower again on Wednesday.

At the time of writing the artificial intelligence technology company’s shares are down 8% to 34 cents.

This means the BrainChip share price is now down a whopping 65% since peaking at a record high of 97 cents just three weeks ago.

Why is the BrainChip share price crashing lower?

This decline appears to be a bit of a reality check for investors after a period of irrational exuberance took its market capitalisation well above $1 billion.

Investors were fighting to get hold of the company’s shares after it announced a collaboration with VORAGO Technologies at the start of September.

This collaboration is intended to support a Phase I NASA program for a neuromorphic processor that meets spaceflight requirements.

Management believes its Akida neuromorphic processor is uniquely suited for spaceflight and aerospace applications due to the device being a complete neural processor and not requiring an external CPU, memory, or Deep Learning Accelerator.

While this collaboration sounds impressive on paper, it is a long way off from getting a thumbs up from the space agency.

As I have mentioned previously, the Phase I program is open to anyone. NASA has invited companies to provide “concept of operations of the research topic, simulations and preliminary results. Early development and delivery of prototype hardware/software is encouraged.”

It is Phase 2 where things would get a little more interesting and a working prototype would be required.

NASA explained: “Phase II deliverables include a working prototype of the proposed product and/or software, along with documentation and tools necessary for NASA to use the product and/or modify and use the software. Hardware products should include both layout and simulation.”

Even then, there’s no guarantee that BrainChip’s product would be selected if it moved onto the second phase. There are other companies with vastly larger budgets attempting to create similar products.

What now?

I would suggest investors stay clear of BrainChip and wait to see how its products develop in the future.

In the meantime, I would recommend investors get exposure to artificial intelligence through an established tech company like Appen Ltd (ASX: APX).  

More reading

• Forget day trading and buy and hold these fantastic ASX shares
• BrainChip (ASX:BRN) and Novonix (NVX) were among the most traded shares on the ASX last week
• Has the BrainChip (ASX:BRN) share price weakness created a buying opportunity?
• Forget BrainChip (ASX:BRN) and buy and hold these outstanding ASX shares
• BrainChip (ASX:BRN) and Afterpay (ASX:APT) were among the most traded shares on the ASX last week

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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For many investors, the idea of active investing is hard to get their minds around. Not only that, but for many it can be a financially dangerous idea. It takes a high level of research and knowledge to consistently pick good S&P/ASX 200 Index (ASX: XJO) shares to invest in. However, there are passive options for investing. In other words, companies that do the investing for you.

These 3 options are among some of Australia’s best investment managers. They all have long track records of achievement and manage a number of the leading funds, ETFs and listed investment companies in the ASX 200 today.

Magellan Financial Group Ltd (ASX: MFG)

Magellan is one of my favourite investment managers and runs some very profitable listed and unlisted equities funds. The company has grown its share price an average of 52.7% every year and has recently announced a 40% stake in a new Australian investment bank, Barrenjoey Capital Partners. Magellan is truly a funds management powerhouse with a bright future and an impressive past. 

This ASX 200 fund manager has a current price to earnings ratio (P/E) of 26.59, and a current trailing 12 month dividend yield of 3.7%. If the company continues to grow at the rate it has done over the past decade it will double any initial investment within 2 years. 

Charter Hall Group (ASX: CHC)

Charter Hall is an ASX 200 company specialising in the real estate sector. It manages a number of real estate investment trusts (REITs) that are very defensive. However, it also delivers high distributions to unit holders. For example, the company owns the Charter Hall Retail REIT (ASX: CQR), specialising in convenience retail in regional or sub regional markets. Another interesting REIT is the Charter Hall Long WALE REIT (ASX: CLW). 

This company also has impressive historical performance. Nevertheless, it is the FY20 performance that captured my attention. It managed to increase its funds under management by 33% during the coronavirus pandemic, which demonstrates good management acumen. 

WAM Capital Limited (ASX: WAM)

Unlike the first two, WAM Capital is an ASX 200 listed investment company (LIC) managed by Wilson Asset Management Pty Ltd. However, it has had a very good track record and is worth including in anything relating to passive investing. 

Since inception in August, 1999 the WAM Capital LIC has beaten its benchmark, the All Ordinaries Total Return Index (ASX: XAOA), by 7.8%. The fund sold down illiquid small caps in February, and took advantage of the March selloff. This included participating in 27 capital raisings with an average gain of 26%.

More reading

• Why ASX oil stock prices are set to slide this morning
• Is the Westpac (ASX:WBC) share price in the buy zone?
• Will the Fortescue (ASX:FMG) share price outperform in 2021?
• Is the WAM Capital (ASX:WAM) 10% dividend yield sustainable?
• 3 reasons to buy Magellan (ASX:MFG) today

Motley Fool contributor Daryl Mather 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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