The Recce Pharmaceuticals Ltd (ASX: RCE) share price has returned from its trading halt on Tuesday and is shooting higher.

In afternoon trade the biotechnology company’s shares rocketed as much as 27% higher to a record high of $1.87 at one stage.

They have since dropped back a touch but are still up 10.5% to $1.63 at the time of writing.

Why is the Recce share price rocketing higher?

Investors have been buying Recce’s shares after it provided an update on the international SARS-CoV-2 (COVID-19) in vitro studies undertaken by Path BioAnalytics and the University of Tennessee’s Health Science Centre.

According to the release, Recce 327 (R327) and Recce 529 (R529) compounds have shown concentration-dependent reductions in the COVID-19 virus in an in-vitro study using organoids made from human airway epithelial cells.

Management also advised that the concentrations of R327 and R529 further indicated an excellent toxicity profile (<0.25%) on Vero (monkey) cells, in a separate but related study.

In light of these results, the researchers have recommended that the company should advance research of both R327 and R529. To do so, it has secured testing of the compounds in a gold-standard in-vivo COVID-19 infection study in ferrets. This US ferret study is expected to begin this month and be completed prior to the end of 2020.

Non-Executive Chairman Dr John Prendergast said: “We are very pleased with the anti-viral activity against SARS-CoV-2 demonstrated by our two compounds, RECCE 327 and RECCE 529 in vitro, and look forward to further success in the forthcoming ferret model studies. As COVID-19 infections and mortalities continue to rise, an effective treatment is critical. Recce’s anti-infective technology is striving to address the global health problem of emerging viral pathogens.”

Though, the company warned investors not get too excited just yet.  It explained: “Whilst Recce is delighted by the results, further testing must be completed before either (or both) compounds may be deemed safe or effective as a treatment of SARS-CoV-2.”

In other news.

Recce isn’t the only junior biotech company that is hoping to develop compounds to fight COVID-19.

On Monday, the Biotron Limited (ASX: BIT) share price rocketed higher after providing an update on the screening of select compounds against COVID-19.

According to the release, Biotron has concluded the first stage of its screenings and found that several compounds have been shown in laboratory cell-culture studies to have antiviral activity against COVID-19.

More reading

• The Castillo Copper (ASX:CCZ) share price is up 140% in 2020. Here’s why.
• 3 ASX 200 shares to buy with $3,000 this week
• 3 ASX shares I’d buy to quickly add diversification
• Leading brokers name 3 ASX shares to sell today
• Electro Optic (ASX:EOS) share price shoots higher on new product release

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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On Monday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below.

Here’s why these brokers are bearish on these ASX shares:

ASX Ltd (ASX: ASX)

According to a note out of Morgans, its analysts have retained their reduce rating and cut the price target on this stock exchange operator’s shares to $74.82. This follows the release of its activity statement for August. Morgans felt that its update was weak, particularly in respect to futures. As a result, the broker has lowered its earnings estimates and its price target accordingly. The ASX share price is changing hands for $83.47 this afternoon.

Cochlear Limited (ASX: COH)

Analysts at Goldman Sachs have retained their sell rating and $190.04 price target on this hearing solutions company’s shares. The broker has been looking into the medical technology industry this week. It notes that trading conditions are difficult in the hearing aid market due to the pandemic. This is because its target market (the over 65s) are most at risk from the current pandemic and likely to be holding off elective surgeries for implantable devices. This is expected to weigh on demand until the crisis passes. The Cochlear share price is trading at $191.75 on Tuesday.

Perseus Mining Limited (ASX: PRU)

A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating but lifted the price target on this gold miner’s shares to $1.40. It increased its price target after Perseus suggested its first gold could be poured at Yaoure in December. However, it hasn’t made a change to its underperform rating just yet on valuation grounds. This follows a very strong share price gain in 2020. The Perseus share price is now trading below this price target at $1.32.

More reading

• Why Afterpay, ASX, Mesoblast, & Sydney Airport shares are dropping lower
• 5 things to watch on the ASX 200 on Monday
• Brokers name 3 ASX shares to buy right now
• Why Bubs, Perseus, WiseTech, & Xero shares are dropping lower
• Where I would invest my BHP dividends in September

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 Cochlear Ltd. The Motley Fool Australia has recommended Cochlear 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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Electro Optic System Holdings Limited (ASX: EOS) shares have shot higher in mid-afternoon trade following the company’s announcement of its new, world-first, full-spectrum system for defence against attacks from unattended aerial system (UAS) or drones. This morning, the Electro Optic share price fell as low as $5.04 but, following the announcement at 12.30pm (AEST), the company’s shares shot as high as $5.63. At the time of writing, the Electro Optic share price is trading at $5.31 representing a 2.9% gain for the day so far.

Product release

The new counter drone product (CUAS), named Mopoke, after the native Australia bird of prey, is used entirely for defensive systems. The ground-breaking product is focused on denial of attack capabilities presented in today’s drones.

Mopoke, unlike other counter drones, consists of a wide range of capabilities that include radar sensors, drone interference technology, electronic and electro-optic sensors, command and control (C2) systems, and kinetic and laser weapons to destroy incoming threats.

CUAS market opportunity

Electro Optic is the only aerospace provider of a CUAS that can be deployed in both large-scale formations with all capabilities, and smaller-scale environments. The global defence contractor said that no competitor can match its CUAS in terms of offering more than four capabilities from a single source.

Industry market surveys and forecasts estimate the total addressable market for CUAS products to be US$48 billion by 2030. Electro Optic estimates that the CUAS market from its own customers is around US$21 billion.

Electro Optic has already been selected as a preferred provider for a major CUAS requirement. Contract negotiations with the mystery international customer have already commenced. The company expects its first phase of the contract to be completed over the next six months.

In addition, Electro Optic has initiated discussion with four other customers regarding its CUAS defence technology.

Management comments

Electro Optic CEO, Grant Sanderson, was upbeat about his company’s newest product to fulfil a global market need. He said:

EOS customers suffered over US$20 billion in losses of critical infrastructure due to drone attacks in 2019. Globally this figure would be higher and the inestimable cost of drone attacks in human lives adds to these high economic costs.

EOS has applied its capability to manage complex systems to fast-track to production the most capable and coherent suite of counter-drone technologies in the world. The Mopoke suite offers several unique elements including the world’s first proven directed energy (laser) kill system for drones, and the first overlapping capabilities in kinetic defence.

The EOS suite of capabilities is already being recognised in key markets where scalable performance is required to meet sophisticated asymmetric threats.

Is the Electro Optic share price a buy?

I think this the new product release presents a huge opportunity for Electro Optic to tap into this market. As the world advances forward with the use of drone technology, the need for counter drones is becoming increasingly apparent.

The company has been making strides this year with a raft of contracts. I believe the current Electro Optic share price does not reflect its robust growth profile for the near term. As such, I rate today’s Electro Optic share price as a strong buy.

More reading

• 3 defence ASX shares set for explosive growth
• Electro Optic share price drops after half-year results
• Why the Electro Optic share price rose 5% today
• New to investing? Here’s how I would make my first $100,000
• 3 ASX shares to buy and hold through COVID-19

Motley Fool contributor Aaron Teboneras owns shares of Electro Optic Systems Holdings Limited. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems 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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Australia’s leading investment platform provider CommSec has just released data on the five most traded ASX shares on its platform from last week.

Once again, there were a number of familiar names in the list this week, most notably from the buy now pay later (BNPL) industry.

Here’s the data:

Zip Co Ltd (ASX: Z1P)

For yet another week, this BNPL provider was extremely popular with ASX investors. Zip shares accounted for a massive 7.6% of total trades made on the CommSec platform last week, with a sizeable 74% of these trades coming from buyers. Despite this buying, it wasn’t enough to stop the Zip share price from crashing 24% lower over the five days. Concerns over PayPal’s entry into the BNPL market spooked investors.

Afterpay Ltd (ASX: APT)

Also popular with CommSec investors last week was Afterpay. The payments company’s shares accounted for 3.3% of trades on the platform over the period. And although approximately 61% of these trades came from buyers, the Afterpay share price fell 12% last week. A combination of the PayPal news and a selloff on the tech-heavy Nasdaq index weighed heavily on its shares.

Brainchip Holdings Ltd (ASX: BRN)

For a second week in a row, this provider of ultra-low power high performance artificial intelligence technology was among the most traded shares on the CommSec platform. Brainchip shares accounted for 3.2% of trades on the platform last week, with buyers behind 66% of these trades. It certainly paid off for those investors. Brainchip’s shares recorded a 57% gain last week. Brainchip announced a potential program collaboration with NASA on the Monday.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

It’s not often that an exchange traded fund (ETF) makes the list, but that’s what happened last week. The BetaShares NASDAQ 100 ETF accounted for 1.8% of trades on the CommSec platform over the five days. And with 89% of these trades coming from buyers, it appears as though investors saw the aforementioned Nasdaq selloff as a buying opportunity.

Sezzle Inc (ASX: SZL)

Finally, Sezzle is back among the most traded shares. The BNPL provider accounted for 1.7% of trades on the CommSec platform. Once again, the high level of trading appears to have stemmed from news that PayPal is entering the fast-growing BNPL market with its Pay in 4 product. The payments giant intends to launch in the United States during the final quarter of 2020. The Sezzle share price lost a third of its value last week.

More reading

• CBA CEO thinks Afterpay’s merchant fees will come under pressure
• Afterpay, Zip founders team up for ‘Aussie Robinhood’ app
• Why the Ramelius share price is leading the gold sector higher today
• ASX 200 up 0.5%: CSL signs COVID-19 vaccine agreements, big four banks charge higher
• Why Afterpay, ASX, Mesoblast, & Sydney Airport shares are dropping lower

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 BETANASDAQ ETF UNITS and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS 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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Brokers have just picked their latest ASX buy ideas and investors who aren’t perturbed by the market volatility might want to pay attention.

While the S&P/ASX 200 Index (Index:^AXJO) is hanging on to early gains, it’s come off its high and is struggling to retake the psychologically important 6,000 level.

But who can blame investors for lacking conviction? The uncertain road to recovery from the COVID-19 mayhem and the upcoming November US presidential election is forcing many to sit on their hands.

ASX stock upgraded to “buy”

For the rest who are still hunting for attractive ASX stocks to buy, the Magellan Financial Group Ltd (ASX: MFG) share price might be worth a look after Credit Suisse upgraded the stock to “outperform” from “neutral”.

The broker turned bullish on the listed fund manager after the stock fell around 10% since its reported its FY20 results.

“We consider some of the recent concerns and opportunities and are now even more confident in the outlook for flows,” said the broker.

“We upgrade our earnings 1-2% for higher net flow forecasts which now include A$12bn of inflows (previously A$10bn) over the next three years.”

Credit Suisse also lifted its price target on the stock to $65 from $60 a share.

Right road to recovery

Meanwhile, the Transurban Group (ASX: TCL) is shaping up to be a favourite among brokers. The extended harsh lockdown in Victoria is weighing on the toll road operator, but this could be an opportunity for long-term investors.

JPMorgan is one that feels that way as it reiterated its “overweight” recommendation on the stock.

“It has the largest portfolio of toll roads in Australia, and its traffic growth is relatively predictable and has historically materially outpaced GDP growth,” said the broker.

“We expect TCL’s earnings to stabilize at 20% above pre-COVID-19 levels in FY23 and then grow at a relatively strong 7-9% p.a.”

The broker’s 12-month price target on Transurban is $16 a share.

Underperformance can’t be justified

There’s too much bad news priced into the listed property sector, according to Macquarie Group Ltd (ASX: MQG). This spells opportunity for the brave.

“We are positively disposed to the sector with value remaining evident on both a top down and bottom up basis,” said Macquarie.

“The sector has underperformed the broader market by ~760bps in 2020 YTD [year-to-date].”

Further, the reporting season didn’t turn out to be half bad for the sector. While earnings are likely to remain pressured for retail and office properties due to the ongoing impact from coronavirus, the bad news is in the price.

One of the stocks that Macquarie thinks is undervalued is the Lendlease Group (ASX: LLC) share price. The broker rates the stock as “outperform”.

More reading

• ASX 200 up 0.95%: Big four banks rise, Scentre collections improve, Nufarm jumps
• Air New Zealand share price flat on market update
• Here’s why I avoid these terrible ASX shares at all costs
• Why Magellan, Nufarm, Opticomm, & Scentre shares are storming higher
• Magellan share price up after reporting increased FUM for August

Motley Fool contributor Brendon Lau owns shares of Macquarie Group Limited. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia owns shares of Transurban Group. 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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Elders Ltd (ASX: ELD) shares have spent the past month bouncing around the $10 per share range. The Elders share price, currently trading at $10.18 per share, is down 0.59% over the last month.

Year to date, however, Elders shareholders have enjoyed a fantastic run. The company almost shrugged off the COVID-19 induced market selloff earlier this year, with the Elders share price only falling around 10% from 24 February through to 23 March. From the start of 2020 to the time of writing, the Elders share price is up nearly 58%. And no, this isn’t some upstart tech company.

Elders is part of the S&P/ASX 200 Index (ASX: XJO). By comparison the ASX 200 is down 10.6% so far in 2020.

What does Elders do?

Elders Ltd provides a range of services to customers working in the agricultural industry. These services include finance, banking and home loans, real estate, insurance and rural services.

Founded in 1839, Elders has grown to become the country’s largest listed agribusiness and provider of rural services. Elders shares have been listed on the ASX since 1981. After running into some trouble in 2008, the company has rebounded in recent years. It has a current market capitalisation of $1.6 billion.

Why could the Elders share price run higher from here?

As a company that caters to agricultural businesses, the Elders share price is linked to the fortunes of Australia’s farms. And according to the September 2020 Australian crop report — released earlier today by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) — the outlook for much of Australia’s agricultural output looks exceptionally strong.

The report notes that, “Favourable climatic conditions during spring are expected to support the ongoing development of winter crops and provide a good foundation for summer crops.”

Regarding the winter crops,  the report stated that “Winter crop production in Australia is forecast to increase by 64% in 2020–21 to 47.9 million tonnes, 20% above the 10-year average to 2019–20 of 40 million tonnes.”

As far as the major winter crops are concerned, the report forecasts wheat production will increase by 91% to 28.9 million tonnes. That’s 22% more than the 10-year average. Barley production is forecast to ramp up as well, up 23% from its 10-year average.

And the good news is forecast to continue for the summer crops. Though the area planted for summer crops is expected to be 11% below the 10-year average ABARES expects a 194% increase over last year.

With all this forecast year-on-year growth in Aussie agriculture, the Elders share price could be in for some more big gains in the months ahead.

More reading

• This ASX dividend share offers a 9% fully franked yield

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Elders 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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Picking the top or the bottom of a share market has always been a dangerous game. Those who manage it (even once) are lauded as ‘share market gurus’ and are seemingly given license to predict future share market events forevermore. Yet, fuelled by our insatiable appetite for trying to predict the future, investors persist at these attempts. 

Still, there’s a difference between purely trying to call the top or bottom of a market and highlighting risk factors that one might see in today’s investing environment.

According to reporting in the Australian Financial Review (AFR), that’s exactly what one leading fund manager is attempting to do. The AFR reports on Peter Morgan, a leading fund manager that managed to grow Perpetual from managing $70 million to $7 billion during the 1990s.

Mr Morgan does indeed see some danger signs across global markets right now, saying, “No one rings a bell at the top but I think we are getting closer to midnight in terms of where the US market is”.

Morgan says that the volatility seen in global markets during March and April was unlike anything he has seen and very different to the 1987 share market crash, the dot.com bubble in the early 2000s and the global financial crisis in 2008. He warns that, “a lot of the market seems to be trading on news and not fundamentals. Which is a dangerous sign”.

What does this mean for ASX investors?

The observation that shares are trading on ‘news and not fundamentals’ is a concerning one in my view. As legendary investor Benjamin Graham once said, “a stock market is a voting machine in the short term and a weighing machine in the long term”. In other words, it always comes back to fundamentals.

In terms of danger signs ahead for the ASX, Morgan has this to say: “The biggest concerns that I’ve got with regard to markets is you’ve still got a lot of stimulus to unwind, not only in Australia… I am still of the view that it’s still early days.”

Here’s what I think investors should take from this. Have a look at the companies in your portfolio and how their fundamentals are looking in 2020 so far. That’s revenue, expenses, earnings, and profits.

How have they performed? Is there a good chance that the company will be ‘back to normal’ next year or the year after? How will your companies respond to a wind down of government stimulus? These are all questions that I think need to be asked this year.

Morgan is right, in my view. There will come a time when the ‘clock strikes midnight’ and markets return to fundamentals. To quote Bruce Springsteen, “It’s just winners and losers and don’t get caught on the wrong side of that line”.

More reading

• Electro Optic (ASX:EOS) share price shoots higher on new product release
• Afterpay and Brainchip were among the most traded shares on the ASX last week
• Latest ASX stocks top brokers are urging you to buy today
• Why the Elders (ASX:ELD) share price could leap higher
• The biggest global stock winners from the lockdown revealed

Motley Fool contributor Sebastian Bowen 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 coronavirus pandemic and associated lockdowns have defined global share markets over the course of 2020. Apart from the nasty share market crash that March brought, 2020 has mostly been about a ‘decoupling game’ – finding the stock winners of this new paradigm as well as ditching the losers. It’s true that crises like the one we’re going through tend to accelerate change. Things had been moving towards cashless payments, online shopping and video streaming for years now. But 2020 has seen these trends become ever more pronounced. And investors are reacting accordingly.

So where to look for the stock winners of 2020? Well, the Australian Financial Review (AFR) has done some reporting on the biggest global winners and losers from the lockdowns, and it makes for some interesting reading.

Global stock winners from the lockdowns

In its report, the AFR names the following shares as winners from the global pandemic and associated lockdowns:

• Amazon.com Inc. (NASDAQ: AMZN)
• Netflix Inc (NASDAQ: NFLX)
• Snap Inc (NYSE: SNAP)
• Facebook Inc. (NASDAQ: FB)
• YouTube, a subsidiary of Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL)
• Pinterest Inc (NYSE: PINS)
• Dow Jones & Company, a subsidiary of News Corporation (ASX: NWS)

The AFR also names the shares that it views as being the biggest losers of the pandemic:

• HBO, a subsidiary of AT&T Inc. (NYSE: T)
• News Corporation and other media publishers
• Alphabet’s Google services
• Spotify Technology SA (NYSE: SPOT)
• Twitter Inc (NYSE: TWTR)
• Verizon Communications Inc. (NYSE: VZ)
• iHeartMedia Inc (NASDAQ: IHRT)

As is evident, this is a pretty mixed bag of winners and losers, sometimes overlapping. So what can ASX investors take form this? Well, I think one of the most striking themes is that a rising tide isn’t lifting all boats. Many social media companies are doing well in these tough times (e.g. Snap and Facebook), while others (Twitter), not so much.

The AFR reports that revenue from Alphabet’s YouTube division is growing revenues at a rate of 6% year on year, while revenue from its larger Google search division was down 10% over the same period.

We also see the fortunes of Netflix and Spotify diverging. Both offer subscription services for entertainment that you would think would be in high demand during a lockdown. Yet Netflix’s revenue is reportedly up 25% year on year, while Spotify saw a 21% drop in advertising revenue.

Foolish takeaway

I think these observations prove nicely that it takes more than a presence in a ‘growing industry’ to be a real winner in the Brave New World we are all living and investing in today.

More reading

• ASX 200 Weekly Wrap: Friday crash pulls ASX back below 6,000 points
• After the crash, is it time to buy this Nasdaq ETF?
• NASDAQ plunges 5%. What next?
• Microsoft, Apple, and Alphabet led the stock market lower on Thursday
• Facebook threatens to block news on its platform

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares) and Facebook. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Facebook, Netflix, and Twitter and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Facebook, and Netflix. 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 OptiComm Ltd (ASX: OPC) share price has been among the best performers on the Australian share market on Tuesday.

The telecommunications company’s shares jumped as much as 12% higher this morning to $5.73.

And although it has dropped back a touch in afternoon trade, the OptiComm share price is still up a solid 9% to $5.59 at the time of writing.

Why is the OptiComm share price surging higher?

Investors have been buying OptiComm’s shares today after superannuation fund First State Super made a last-minute takeover approach.

This has been a major blow to Uniti Group Ltd (ASX: UWL), which was just days away from potentially sealing its $532 million acquisition of Opticomm.

If that acquisition doesn’t complete, Uniti will be left both red-faced and with a lot of surplus cash. It recently completed a $270 million equity raising and executed a $150 million debt facility agreement with Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) to fund the acquisition.

Unsurprisingly, this news has hit the Uniti share price hard and it is down over 8% in afternoon trade.

What offer has been made?

This morning OptiComm revealed that it has received a non-binding and conditional competing proposal from First State Super of $5.85 per share in cash.

This is a 12.5% premium to the all-cash consideration offered under the Uniti scheme of $5.20 per share. It is also a 16.77% premium to the implied value of the all-scrip consideration offered under the Uniti scheme.

Given the premium on offer, the OptiComm board believes it is appropriate to engage in further discussions with First State Super. Though, due to the conditionality of the offer, at this stage it does not currently consider it to be a superior proposal to the Uniti scheme.

Nevertheless, OptiComm has granted First State Super with limited due diligence access until 18 September. At which point, it has requested a binding proposal be made.

In light of this, Uniti has postponed its scheme meeting which was due to take place on Thursday and vote on the acquisition.

More reading

• Why Jumbo, St Barbara, Sydney Airport, & Uniti shares are dropping lower
• Why Magellan, Nufarm, Opticomm, & Scentre shares are storming higher
• Why G8 Education, Monash IVF, NIB, & Uniti shares are dropping lower
• Uniti share price drops lower despite quadrupling its FY 2020 sales

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. 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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If you take a look at the past month’s chart of the All Ordinaries Index (ASX: XAO) you may see the resemblance to a shark’s jagged maw. That’s because volatility has ramped up, buffeting share prices on the ASX, and most global indices, with some big daily swings.

Last week, for example, the All Ords leapt 2.6% higher in Wednesday and Thursday’s trade. Then it gave all those gains back, and more, losing 3.1% on Friday.

This week got off to a positive start, with the All Ords gaining 0.3% yesterday.

The Clean TeQ Holdings Limited (ASX: CLQ) share price led the charge, finishing the day up a stellar 27%. The Melbourne-based metals recovery and industrial wastewater treatment company has enjoyed a great month. Clean TeQ’s share price, up 8.2% in intraday trading today, is up 71.1% since August 10.

The All Ords is marching higher today as well, up 1.0% in late morning trade, although it’s still down about 0.8% for the month.

With this kind of volatility back in the markets, it can be tempting to hunker down and wait for things to settle before investing in any more shares. But, depending on your circumstances, that’s probably a mistake.

Take a long-term view

Mark Haefele is the chief investment officer of global wealth management at Swiss multinational investment giant UBS. In a Friday note, he indicated last week’s share market selloff was to be expected. After the strong run higher, particularly in US shares, investors were taking some profits off the table.

But Haefele added (as quoted by Business Insider), “Stocks are still well-supported by a combination of Fed liquidity, attractive equity risk premiums, and an ongoing recovery as economies reopen from the lockdowns.”

Haefele, like us Fools, doesn’t recommend taking a short-term perspective on investing. He writes, “Rather than trying to time the market and potentially miss out on gains, we recommend an averaging-in approach by establishing a set schedule to commit capital to stocks within a 12-month timeframe.”

If you’re not familiar with it, he’s talking about dollar-cost averaging (DCA). This is a tried and true method to help reduce the impact of volatility in your share portfolio by investing a certain amount in your favourite shares each month (or period of your choice) over time, rather than investing the full sum all at once.

In a nutshell, it’s a system to help you grow your wealth over time without anxiously analysing the daily price swings of your shares.

Diversify your share holdings

Haefele also highlighted the importance of something you’ll find we stress here at Motley Fool as well. Namely the value of diversification, particularly during these days of COVID-19.

In his Friday note, he wrote:

The mega-cap IT complex has driven an outsize portion of the year-to-date gains in the US equity market. But while we don’t think tech is in a bubble, we do recommend that investors with excess exposure to the biggest US stocks consider rebalancing into areas accelerated by COVID-19, such as companies exposed to the 5G rollout, and sustainability-aligned companies set to profit from a ‘green recovery’…

COVID-19 has brought unprecedented uncertainty for investors, and further volatility cannot be ruled out. Diversification across asset classes and regions is the best way to manage the risks in one’s portfolio.

It’s worth reading that last sentence again. While there are many great shares on the ASX, simply diversifying across asset shares that are all listed on the ASX won’t provide you with the diversity you need to protect your portfolio.

As the Motley Fool’s Scott Phillips writes:

By investing part of your funds internationally you not only increase the opportunity to find the big winners of tomorrow, but you also reduce the risks that are specific to Australia. Risks that could seriously damage your portfolio.

Ignore the index

Prime Value portfolio manager Richard Ivers also sounds off on the benefits of taking a long-term view in share investing (as quoted by the Australian Financial Review):

If you look at the wealthiest people around Australia they’ve done it over a long period of time by compounding. So you fill up your portfolio with stocks that can do 10-15 per cent with relatively low risk…

We invest to generate an investment return, not to beat an index. So you just throw out the index. You don’t really care what’s the biggest weighted stock in the index. You’re worried about making money.

In case you’re wondering, Ivers’ Prime Value Emerging Opportunities Fund returned 18.1% after fees for the year ending June 30. That compares to a -5.7% return of the Small Ordinaries Accumulation Index.

And if you want to uncover the powers of compounding on share prices, you can find out more here.

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Motley Fool contributor Bernd Struben 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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