In 2020 the majority of companies on the Australian share market have been disrupted by the pandemic in some form.

But not all shares have. In fact, some have proven unstoppable this year and continue to deliver explosive growth.

The good news is that this strong form looks likely to continue post-crisis as well, which could make these unstoppable ASX shares great options for investors.

Here’s why I would invest $2,000 into them:

a2 Milk Company Ltd (ASX: A2M)

The first unstoppable ASX share to consider buying is a2 Milk Company. In FY 2020 this fresh milk and infant nutrition company delivered a 32.8% increase in revenue to NZ$1,730 million and a 34.1% lift in net profit after tax to NZ$385.8 million. This was driven largely by the strong demand for its infant formula in the China market. And while there are concerns over its high level of inventory and a possible short term sales slowdown due to the pulling forward of sales during the height of the pandemic, its long term outlook looks very positive. Especially given its modest market share in China. Management revealed that the company had just a 2% value share of the mother and baby store market in the country at the end of June.

Kogan.com Ltd (ASX: KGN)

Another unstoppable ASX share is Kogan. The ecommerce company has been an impressive performer this year and recently revealed a very strong full year result. In FY 2020, Kogan reported a 39.3% increase in gross sales to $768.9 million and a 57.6% increase in adjusted EBITDA to $49.7 million. This was driven by the accelerating shift to online shopping during the pandemic, which underpinned a 35.7% increase in active customers to 2,183,000. And with management confident that a retail revolution is taking place, I suspect there could be more of the same in the coming years. 

Pushpay Holdings Ltd (ASX: PPH)

A final unstoppable ASX share to buy is Pushpay. As with the others, the donor management system provider was in sensational form in FY 2020. It posted a ~1,500% increase in EBITDAF in FY 2020 thanks to strong demand for its platform, particularly during the the pandemic. The good news is that this strong form is expected to continue in FY 2021, with management providing guidance for EBITDAF of between US$48 million and US$52 million. This represents a 91.2% to 107% increase, respectively, year on year. Pleasingly, this is still only scratching at the surface of its sizeable market opportunity. Management is aiming to win a 50% share of the medium to large church market. This represents a massive US$1 billion revenue opportunity.

More reading

• Top ASX growth shares to buy in September 2020
• Invest like Warren Buffett and buy and hold these ASX shares
• These 2 ASX 200 shares could be the best value ideas
• Broker picks best ASX small cap stocks to buy from the reporting season
• New to investing? More ASX growth shares to buy now

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 Kogan.com ltd and PUSHPAY FPO NZX. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended Kogan.com ltd and PUSHPAY FPO NZX. 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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It’s been a wild ride for the Telstra Corporation Ltd (ASX: TLS) share price in recent years.

While the company’s value has fluctuated, one thing that hasn’t changed is Telstra as a top ASX dividend share.

Times are tough right now and the August earnings season brought some interesting results. Amongst the chaos and the coronavirus pandemic weighing on profits, Telstra maintained its dividend.

However, investors weren’t impressed, with the Telstra share price falling 15% in the last month.

So, is it the Aussie telco a good buy for income or should you look elsewhere for yield in 2020?

Why the Telstra share price could be a good buy

It’s important to note that it wasn’t all good news from Telstra’s August earnings result.

Telstra reported a 9.7% decline in underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to $7.4 billion. That saw the company’s net profit fall 14.4% to $1.8 billion in a tough year for shareholders.

The $3.4 billion free cash flow figure was at the low end of guidance, which allowed Telstra to maintain its full-year dividend at 16 cents per share.

The NBN headwind is expected to continue in FY21 resulting in a forecast $700 million hit to underlying EBITDA. Income investors will be focused on whether or not Telstra can continue its impressing dividend-paying streak.

I think there are some big challenges but also exciting prospects for the future. That includes the fact that Telstra is shaping up as a real leader in the 5G network space.

Capitalising on 5G technologies could be the key to stabilising earnings and growing earnings into the future. Any further changes in work from home arrangements could also boost demand for network capabilities in regional areas and unlock future growth.

The Telstra share price climbed 1.4% higher yesterday and closed the day at $2.88 per share. That means the Aussie telco has a 3.5% dividend yield right now which is quite good in the current climate.

Foolish takeaway

I think income-seeking investors could do much worse than Telstra as a large-cap ASX share with solid earnings potential.

More reading

• 3 ASX shares for growth, income, and value investors to buy right now
• ASX 200 Weekly Wrap: Friday crash pulls ASX back below 6,000 points
• Why I would buy Telstra and this high yield ASX dividend share
• 2 ASX dividend shares with yields over 5% today
• 2 fantastic ASX 50 shares I would buy today

Motley Fool contributor Ken Hall 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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Luckily in this low interest rate environment, there are a good number of dividend shares on the ASX offering generous yields.

Two which I think are among the best options on the Australian share market right now are listed below. Here’s why I would buy them:

BWP Trust (ASX: BWP)

The first ASX dividend share to consider buying is BWP Trust. It is the largest owner of Bunnings properties in the Australian market with a total of 68 warehouses leased to the home improvement giant. Given the quality of Bunnings and its positive long term outlook, I think it is a great tenant to have. Particularly during the pandemic when many retailers are struggling but Bunnings continues to thrive.

It was thanks to Bunnings’ positive performance during the pandemic that BWP’s property valuations actually rose this year. In its FY 2020 full year results the company revealed a 24.4% increase in profit to $210.6 million including gains on investment properties. In light of this and its strong collections, BWP was able to increase its distribution in FY 2020. Looking ahead, the company expects pay shareholders a distribution in the region of 18.29 cents per unit in FY 2021. Based on the current BWP share price, this works out to be an attractive 4.6% yield.

Rural Funds Group (ASX: RFF)

Another ASX dividend share I would buy is this agriculture-focused property group. Rural Funds is the owner of 61 properties across five agricultural sectors. These include almonds, cattle, cropping, vineyards, and macadamias properties. At the end of FY 2020, the company’s weighted average lease expiry (WALE) stood at a lengthy 10.9 years. Positively, these leases have a high weighting to blue chip customers. Approximately 78% of its revenue comes from corporate or listed tenants such as wine giant Treasury Wine Estates Ltd (ASX: TWE).

As with BWP, Rural Funds has been able to continue its growth during the pandemic. It reported an 8% increase in property revenue to $72 million in FY 2020. Looking ahead, management reaffirmed its plan to grow its distribution by 4% in FY 2021 and intends to pay shareholders 11.28 cents per share. Based on the current Rural Funds share price, this works out to be a 5% yield.

More reading

• Bubs share price trading at a 5-month low. Is this a buying opportunity?
• New to investing? Here are 5 ASX dividend shares to buy now
• Forget Westpac’s term deposits and buy these ASX dividend shares
• 3 ASX shares every retiree should own
• How to earn a passive income of $50,000 with ASX dividend shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and Treasury Wine Estates 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 Mesoblast Limited (ASX: MSB) share price slumped 5.45% lower yesterday, but is the ASX biotech share a bargain buy?

Why the Mesoblast share price is under pressure

Mesoblast led the S&P/ASX 200 Index (ASX: XJO) losers on Monday as the Aussie biotech slumped to $4.68 per share.

That came as the company reported a sale from a key investor, M&G Investment Funds. M&G and its subsidiaries sold 5.1 million shares and reduced their voting power from 8.94% to 8.07%.

Investors were spooked by the sale and fears of potential profit-taking while the Mesoblast share price is elevated.

It’s been a string of good news for the Aussie biotech in recent weeks. The company posted a solid full-year result and received a key recommendation from the US Oncologic Drugs Advisory Committee.

The company rounded out last week with some more good news related to coronavirus treatments. The group received ethics approval for Phase 3 COVID-19 trials using its remestemcel-L treatment.

The Mesoblast share price actually edged lower despite the independent Data Safety Monitoring Board (DSMB) recommending the continuation of phase 3 COVID-19 trials after the first interim analysis.

Is Mesoblast cheap enough to buy?

The Mesoblast share price is now down 11.2% in the last 5 days, which has caught my eye.

I fully expect the ASX biotech share to continue showing a lot of volatility. That’s just the nature of global share markets at the moment with investors unsure how to value future growth in the current environment.

However, I think those willing to take some risks could bank some upside with Mesoblast. A strong pipeline and promising phase 3 trials provide enough comfort that the Aussie company is still on the right track.

I still think it’s a speculative buy given that much of its $2.7 billion market capitalisation reflects future earnings. However, ASX dividend shares are also under pressure and I think the Mesoblast narrative is good for the long-term.

With a significant addressable market and some continuing volatility, I think Mesoblast could be worth a look.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 rises 0.3%, CSL reveals COVID-19 vaccine manufacturing deals
• Broker picks best ASX small cap stocks to buy from the reporting season
• Stay invested in 2020? This wealth manager says yes
• Why the Ramelius share price is leading the gold sector higher 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) ended its losing streak and pushed higher on Monday. The benchmark index rose 0.3% to 5,944.8 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 futures pointing higher.

The ASX 200 index looks set to push higher again on Tuesday. According to the latest SPI futures, the benchmark index is expected rise 38 points or 0.65% at the open. This follows a very positive start to the week on European markets. The DAX rose 2% and the FTSE jumped 2.4% during overnight trade. Wall Street was closed for the Labor Day holiday.

Oil prices drop lower again.

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could come under pressure on Tuesday after oil prices dropped lower again. According to Bloomberg, the WTI crude oil price has fallen 1.8% to US$39.07 a barrel and the Brent crude oil price has dropped 1.4% to US$42.05 a barrel. Oil prices dropped lower after Saudi Arabia made its deepest monthly price cuts for supply to Asia in five months.

Platinum update.

The Platinum Asset Management Ltd (ASX: PTM) share price will be on watch on Tuesday after the release of its funds under management update. According to the release, Platinum experienced net outflows of approximately $202 million during the month of August. This left the fund manager with a total of $21.7 billion of funds under management.

Gold price rises.

The shares of Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price rose slightly. According to CNBC, the spot gold price climbed slightly to US$1,934.60 an ounce. A stronger U.S. dollar has been weighing on the precious metal in recent days and holding it back.

More shares going ex-dividend.

Another group of shares are going ex-dividend this morning and could trade lower. This includes shipbuilder Austal Limited (ASX: ASB), steel producer BlueScope Steel Limited (ASX: BSL), lottery ticket seller Jumbo Interactive Ltd (ASX: JIN), and energy company Origin Energy Ltd (ASX: ORG).

More reading

• 2 stellar mid cap ASX shares to buy in September
• ASX 200 rises 0.3%, CSL reveals COVID-19 vaccine manufacturing deals
• Broker picks best ASX small cap stocks to buy from the reporting season
• Leading brokers name 3 ASX shares to buy today
• Stay invested in 2020? This wealth manager says yes

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 Jumbo Interactive Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Austal Limited. The Motley Fool Australia 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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Along with our Top ASX Stock Picks for September, we also asked our Foolish writers to pick their favourite ASX growth shares to buy this month.

Here is what the team have come up with…

Daniel Ewing: WISR Ltd (ASX: WZR)

Wisr offers an alternative to the traditional forms of personal lending provided by the major banks and was Australia’s first neo-lender. This alternative approach is reaping rewards as the company reported phenomenal 136% revenue growth and increased loan originations in its FY 2020 result.

Furthermore, the company recently announced its second major competitive product, vehicle financing, which will help to grow its market share. The Wisr share price has seen amazing growth since its lows during the pandemic, however, it has fallen sharply since releasing its FY 2020 results. I believe this represents the perfect buying opportunity.

Motley Fool contributor Daniel Ewing does not own shares in WISR Ltd.

Tristan Harrison: Citadel Group Ltd (ASX: CGL) 

Citadel is a relatively small ASX tech share. It has global growth aspirations and largely provides software for defensive industries like healthcare, defence and education. It recently acquired a United Kingdom-based healthcare software provider called Wellbeing, which increases its overall level of recurring revenue and the earnings before interest, tax, depreciation and amortisation (EBITDA) margin.  

Citadel has plans to cross-sell its existing healthcare software to Wellbeing clients in the UK. It can also sell Wellbeing’s software to Citadel’s existing clients. It can take the combined offering to new markets. The Citadel share price is trading at just 14x FY22’s estimated earnings.  

Motley Fool contributor Tristan Harrison does not own shares in Citadel Group Ltd. 

Chris Chitty: JB Hi-Fi Limited (ASX: JBH)

My growth share for September is JB Hi-Fi. This company has experienced uninterrupted earnings per share (EPS) growth since 2012 and with online sales booming, this trend looks set to continue. Online sales grew by 48.8% in the 2020 financial year with underlying net profit after tax growing 33.2%. This came as consumers spent more on home appliances and entertainment products. The JB Hi-Fi share price has reflected its long-term earnings growth with the retailer’s share price increasing more than 5 fold over the last decade. JB Hi-Fi has stated that it has a focus on sales growth across all channels and, in my opinion, this company looks set to continue its long-term growth.

Motley Fool contributor Chris Chitty does not own shares in JB Hi-Fi Limited.

Lloyd Prout: Megaport Ltd (ASX: MP1)

Megaport is a ‘network-as-a-service’ provider that helps businesses adjust their fixed broadband bandwidth in line with their requirements.

The company produced a great set of quarterly results recently. Annualised recurring revenues were up 57% year on year, and Megaport had $166.9 million in cash and equivalents as at 30 June. The company is still running at a loss, as it continues to invest in itself. However, management believes it can become EBITDA break even on an exit run rate basis in FY21.

The Aussie tech share is operating in a growth area, however the Megaport share price is likely to be volatile on the road upwards. 

Motley Fool contributor Lloyd Prout does not own shares in Megaport Ltd and expresses his own opinions.

Brendon Lau: Fortescue Metals Group Limited (ASX: FMG)

It’s hard not to think about the iron ore miners for growth in FY21 and Fortescue’s profit results show it’s well placed to continue delivering for shareholders. The iron ore price remains stubbornly high and brokers have been playing catch-up in upgrading their price forecasts for the sector. Fortescue is more leveraged to the stronger-for-longer iron ore price than its larger peers. What’s more, it’s set to pay big dividends. As such, I believe it’s a win-win stock for both growth and income investors.

Motley Fool contributor Brendon Lau does not own shares in Fortescue Metals Group Limited.

Bernd Struben: Castillo Copper Ltd (ASX: CCZ)

All growth shares carry greater risk. Castillo Copper, with its market capitalisation of just $50 million, is no exception. The Castillo share price has traded from lows of 1 cent to as high as 5 cents per share in 2020.

Year to date, Castillo’s share price is up 150%, but I think it could gain far more. Copper prices are at their highest level since mid-2018. And soaring demand from China as inventories shrink should see copper head even higher.

Castillo’s prime asset is the Cangai Copper Mine in New South Wales, amongst Australia’s highest grading historic copper mines. It also has a project in Queensland and prospects in Zambia.

Motley Fool contributor Bernd Struben does not own shares in Castillo Copper Ltd.

James Mickleboro: ELMO Software Ltd (ASX: ELO)

I think ELMO Software could be a top ASX growth share to buy in September. It provides a unified software platform which allows businesses to streamline a range of human resources and payroll processes. It recently provided guidance for organic annual recurring revenue (ARR) of $65 million to $70 million in FY 2021, which represents annual growth of 18% to 27%. This is still only a fraction of its total addressable market, which management estimates to be $9.2 billion across the Australia/New Zealand and United Kingdom markets. ELMO also has a cash balance of ~$140 million available for value accretive acquisitions in the near future.

Motley Fool contributor James Mickleboro does not own shares in ELMO Software Ltd.

Daryl Mather: Whispir Ltd (ASX: WSP)

Whispir is a software-as-a-service (SaaS) company that provides a function rich platform for mass communications by companies and state departments. Typical users would include utility companies, emergency services, or entertainment companies.

Whispir’s FY20 report saw revenues increase by 25.5% and established a gross profit margin of 62.5%, with 95.6% of revenues being annual recurring revenues (ARR). Aside from the company’s growth in Australia, it has started to expand into the United States and Asia, with Manila in the Philippines now its second largest centre of operations.

I think this is a great growth opportunity given the growing demand for mass communications globally.

Motley Fool contributor Daryl Mather does not own shares in Whispir Ltd.

Nikhil Gangaram: Nearmap Ltd (ASX: NEA)

The Nearmap share price has been flying under the radar. Since its low in late March, shares in the aerial mapping company have surged nearly 240%. I still think shares in Nearmap could go higher in September.

Despite the harsh trading environment induced by the pandemic, Nearmap reported a solid FY20. The company saw a lift in annualised contract value (ACV) and also reported a 25% increase in statutory revenue for the full year. Given that Nearmap’s services are classified as essential, I think that the company can deliver strong growth in September and beyond.

Motley Fool contributor Nikhil Gangaram does not own shares in Nearmap Ltd.

Glenn Leese: Pointsbet Holdings Ltd (ASX: PBH)

Pointsbet Holdings is one of the most exciting shares on the market right now. Founded in 2015 in Victoria, the sports betting provider has enjoyed huge success through the rapid growth in market share of its cloud-based technology platform.

After rising nearly 180% in 2020, the Pointsbet share price is taking a brief pause in trade while it issues a $303 million capital raise. The raise is to support efforts of becoming the official sports betting partner of NBC Sports in the US, capturing the attention of its 184 million viewers. Currently, the share price is sitting at $13.69, at the time of writing, and the cap raise offer is set at $6.50. I have little doubt that we may see a pullback in the Pointsbet share price short term ready for another bull run.

Motley Fool Contributor Glenn Leese does not own shares in Pointsbet Holdings Ltd.

Sebastian Bowen: A2 Milk Company Ltd (ASX: A2M)

My growth share for this month is the a2 Milk Company. a2 Milk has been an ASX growth star for years now. But what I really like about this company is it just keeps on winning with its powerful brand and marvellous expansion strategy. In its FY2020 earnings report that was released last month, the company reported an eye-watering revenue growth rate of 32.8%. And that was to NZ$1.73 billion as well. Since winners usually keep winning, I’d be more than happy to look into a2 Milk this September for a long-term investment.

Motley Fool contributor Sebastian Bowen does not own shares in A2 Milk Company Ltd.

More reading

• These 2 ASX 200 shares could be the best value ideas
• Broker picks best ASX small cap stocks to buy from the reporting season
• Leading brokers name 3 ASX shares to buy today
• Why PointsBet launched a $353 million capital raising
• Why Biotron, Fortescue, Ramelius, & Temple & Webster are storming higher

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends MEGAPORT FPO and Whispir Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. and Pointsbet Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Elmo Software. The Motley Fool Australia owns shares of and has recommended Elmo Software. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended Citadel Group Ltd, MEGAPORT FPO, Nearmap Ltd., Pointsbet Holdings Ltd, and Whispir 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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If small cap ASX shares are out of your comfort zone but you’re looking for strong potential returns, then you might want to consider mid cap shares.

At this side of the market I believe there are a number of well-established companies that can grow materially in the future.

Two that I would buy are listed below. Here’s why I like them:

Collins Foods Ltd (ASX: CKF)

I think this quick service restaurant operator would be a great option in the mid cap space. It is one of the largest operators of KFC stores in the world with a growing footprint in Australia and Europe. At present, it operates 240 KFC restaurants in Australia and 41 in Europe. It also has 12 Taco Bell restaurants in Australia.

While its immediate growth is likely to come from the Australian market, I believe long term the European market will be the key driver of growth. Especially given the under-penetration of the KFC brand in Germany and the Netherlands. In addition to this, management has suggested that it will consider acquisitions in the market if opportunities arise.

Jumbo Interactive (ASX: JIN)

Another mid cap ASX share to consider buying is Jumbo Interactive. It is an online lottery ticket seller and best known as the operator of the Oz Lotteries website. While this website is the company’s cash cow at present, I believe its Powered by Jumbo SaaS business will soon take the mantle. This business provides lotteries with the ability to sell tickets online through its platform.

It has a massive opportunity thanks to the shift to online lottery playing. Management notes that it has a US$303 billion global total addressable market, with just 7% of this market online at the moment. And thanks to the quality of its SaaS business, I believe it has the potential to win a meaningful slice of this market over the next decade.

More reading

• New to investing? Here are 5 ASX dividend shares to buy now
• How to earn a passive income of $50,000 with ASX dividend shares
• Why these mid cap ASX shares could be long term market beaters
• Top ASX Stock Picks for September 2020
• Why I’m buying this undervalued ASX share right now

James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Jumbo Interactive Limited. The Motley Fool Australia has recommended Collins Foods Limited and 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 S&P/ASX 200 Index (ASX: XJO) went up by 0.33% today to 5,945 points.

There was one particular announcement that could be important for the whole country:

CSL Limited (ASX: CSL)

Australia’s biggest healthcare company, CSL, announced a heads of agreement has been signed with Astrazeneca. The deal is for the expected manufacture of approximately 30 million doses of the Oxford University vaccine candidate AZD1222, for the supply to Australia with the first doses scheduled for release in early 2021. This will be done after successful clinical trials.

The ASX 200 business also said that a heads of agreement has been signed between CSL and the Australian government to supply 51 million doses of the University of Queensland vaccine to Australia. The first doses are scheduled for released from the middle of 2021. This will also be done after clinical trials have been successfully completed.

CSL said that results from the pre-clinical and early clinical studies for UQ-CSL V451 are promising, however CSL said it’s impossible to predict the level of success the candidate will have in late stage clinical trials. Should the phase 1 study prove to be successful towards the end of this year, CSL will take full responsibility for the subsequent phase 2b/3 clinical trial, which is expected to commence in late 2020.

The Australian government will provide funding to support CSL’s readiness to manufacture the AZD1222 vaccine candidate and provide an additional COVID-19 vaccine option for Australians.

CSL CEO and managing director Paul Perreault said: “The social and economic impact of the COVID-19 pandemic has brought a high level of urgency to the task of developing a vaccine against the SARS-CoV-2 virus, and to manufacture a successful vaccine at a high quality and in sufficient quantities.

“CSL has been working at pace to respond to the pandemic and has invested significant resources in the rapid development and large-scale manufacture of UQ-CSL V451, along with a number of other therapeutic programs. Together with partners including the University of Queensland and Coalition for Epidemic Preparedness (CEPI), our development and manufacturing teams have been working extremely hard to advance this program to ensure the availability of a safe and effective vaccine should clinical studies prove successful.”

The CSL share price went up 1.1% today.

Magellan Financial Group Ltd (ASX: MFG)

Fund manager Magellan announced its funds under management (FUM) at 31 August 2020.

It said that its FUM has grown by more than $3 billion to $100.87 billion. Most of this increase helped the global equities segment grow FUM to $77.1 billion.

In August, Magellan experienced net inflows of $566 million, which included net retail inflows of $208 million and net institutional inflows of $358 million.

The ASX 200 share was down for most of morning trading. The Magellan share price finished down 0.05% today.

Bailador Technology Investments Ltd (ASX: BTI)

Technology investment fund Bailador Technology Investments said that the value of its investment in portfolio company Instaclustr has increased 42.2% which is equivalent to a 6.5 cent increase of the company’s net tangible asset (NTA) per share on a pre-tax basis.

The 42.2% increase in the value of Bailador’s investment in Instaclustr to $27.1 million follows the “strong” operating performance of the business over the 12 months to 31 August 2020.

The revaluation was done as at 31 August 2020 and was in accordance with Bailador’s valuation policies.

Bailador’s other investments include businesses like SiteMinder, DocsCorp, Straker Translations, Brosa, Rezdy and Standard Media Index.

The business said that its pre-tax NTA was $1.30 at the end of August 2020. The post-tax NTA was $1.19 at the end of last month.

More reading

• Broker picks best ASX small cap stocks to buy from the reporting season
• Stay invested in 2020? This wealth manager says yes
• 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
• 4 of the best ASX shares to buy before 2021

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. 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 chief executive officer of Commonwealth Bank of Australia (ASX: CBA) thinks that Afterpay Ltd’s (ASX: APT) merchant fee margins will come under pressure in the future. The Afterpay share price dropped 2% today.

Matt Comyn, the CEO of CBA, was talking to the House of Representatives economics committee on Friday, according to reporting by the Australian Financial Review.

He had a number of interesting things to say about Afterpay and the industry. Mr Comyn said: “Even though it is not referred to as credit, it certainly looks a lot like credit to me.”

Mr Comyn spoke about future regulation being more likely: “Generally what happens, as industries or products become much larger and popular and usage expands, is there will be more scrutiny on the consequences and vulnerabilities customers may have.

“I will leave it to the regulators ultimately to make those decisions. But I have no doubt that given the size of the industry now, it must be being reviewed quite closely.”

When asked about whether Afterpay’s margins are sustainable in the long-term he said, according to the AFR: “No, I don’t. When you think about credit cards, understandably the central bank and government have been very focused on making sure payments are low cost. What the buy now, pay later sector has done well and successfully is convince [merchant] customers … they are getting more than just the payment, that they are providing an acquisition channel for new customers, they are helping to increase basket size … Businesses are effectively funding the buy now, pay later opportunity for customers.”

The CBA CEO may not have many positive things to say about Afterpay, but it does have an investment in Swedish company Klarna. Afterpay was changing the payment landscape so much that CBA decided it had to invest into a competitor.

My thoughts

CBA is one of the biggest businesses in the country. Though Afterpay is rapidly catching up.

I don’t think you can argue against much of Mr Comyn said. It’s the job of regulators to make sure they stay on top of financial businesses. Regulation is important for banks. If the buy now, pay later sector becomes an even bigger part of the economy then it’s important to make sure that the buy now, pay later (BNPL) sector is doing the right thing by consumers.

There is a question of whether customers who don’t use BNPL services should be effectively penalised if BNPL customers get a better payment deal. There is logic to the suggestion that merchants be allowed to charge (some or all of) the Afterpay fees to consumers.

The Afterpay share price has dropped materially back from above the $90 level that it saw in August 2020. The existing share price still has a lot of expectation built into it.

Under the current operating conditions, Afterpay may be able to justify the expectations. But what if the new PayPal ‘Pay in 4’ offering is popular and goes global? What if regulation causes Afterpay’s margins to be cut?

I think it’s important to acknowledge with a business like Afterpay that there are a few large risks that could derail the earnings growth outlook. There is also a growing number of competitors. Klarna is one. But there are also other names like Zip Co Ltd (ASX: Z1P), Splitit Ltd (ASX: SPT), Sezzle Inc (ASX: SZL) and so on. Competition could organically lower margins. 

Afterpay has done a great job at growing into a global BNPL business. It would be a big business at a share price of $40 or $90. But, investors have to understand that there are potential downsides, which is why I wouldn’t feel comfortable about buying shares today. There are other growth ideas I’d rather buy first.

More reading

• Afterpay, Zip founders team up for ‘Aussie Robinhood’ app
• 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
• Share price opportunities to buy this week
• ASX 200 Weekly Wrap: Friday crash pulls ASX back below 6,000 points

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

The post CBA CEO thinks Afterpay’s merchant fees will come under pressure appeared first on Motley Fool Australia.

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The Laybuy Group Holdings Limited (ASX: LBY) share price has stormed higher on its first day of trading on the ASX.

The Laybuy share price finished the day on $2.08, 47% above the IPO listing price of $1.41

The buy now, pay later (BNPL) company went as high as $2.30 in early morning trade, before settling back.

What does Laybuy do?

Launched in 2017, Laybuy has been growing rapidly in Australia, New Zealand and the UK. The fintech company has partnered with over 6,000 retail merchants to offer consumers a BNPL service. The integrated payment platform allows customers to make a purchase and pay it off over 6 weekly instalments without incurring interest.

What did management say?

Co-founder and managing director Gary Rohloff was upbeat about the company’s achievements.

He commented:

Laybuy was established to help consumers avoid the trap of high interest credit cards and to help families better manage their budgets by allowing them to stagger their purchase payments. We are all very proud of what we have achieved to date.

With this support from our new shareholders, the board, management and the entire Laybuy team are committed to growing the value of Laybuy as we continue to focus on achieving our goal of creating a ubiquitous global brand.

Financial snapshot

For the full-year ending on 30 June, Laybuy had 5,672 active merchants and 473,000 customers. The company processed over NZ$116 million gross merchandise value (GMV) of sales for the June quarter. Laybuy anticipates around NZ$460 million for the full-year.

The company has secured a NZ$20 million debt facility to fund its New Zealand and Australian operations and a £80 million debt facility to fund growth in the UK.

Outlook

Since the start of FY21, Laybuy has recorded NZ$86.7 million GMV of sales across July and August. This represents a growth of 161% compared to the prior corresponding period. Active merchants at the end of August totalled 6,180 and active customers totalled 542,000.

The company has continued to develop its pipeline, bringing more retailers onboard, and aims to continue capturing highly recognised retail brands and small-to-medium enterprise merchants.

The fintech is hoping to achieve a growth GMV of NZ$4 billion (more than 8 times the annualised GMV for Laybuy) in the future.

More reading

• CBA CEO thinks Afterpay’s merchant fees will come under pressure
• Invest like Warren Buffett and buy and hold these ASX shares
• Viva share price firm despite worrying trade update
• 3 ASX shares for growth, income, and value investors to buy right now
• 2 ASX dividend shares to buy instead of CBA

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.

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