In late morning trade the S&P/ASX 200 Index (ASX: XJO has followed the lead of U.S. markets and is charging higher. At the time of writing the benchmark index is up 0.5% to 6,096.2 points.

Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:

The Bubs Australia Ltd (ASX: BUB) share price has dropped 5.5% to 86.5 cents. Investors have been selling the infant formula company’s shares after it successfully completed its institutional placement. Bubs has raised $28.3 million (before costs) at a 12.5% discount of $0.80 per share. These funds are being used largely to support its growth plans in the China market. This includes buying an interest in a manufacturing facility in the country.

The Perseus Mining Limited (ASX: PRU) share price has tumbled 4.5% to $1.39. The catalyst for this decline appears to have been a pullback in the spot gold price overnight. The price of the precious metal dropped lower amid a strengthening U.S. dollar and optimism over the global economic recovery. At the time of writing, the S&P/ASX All Ordinaries Gold index is down 1.1%.

The WiseTech Global Ltd (ASX: WTC) share price has fallen 2% to $28.79. Investors have been selling the logistics solutions company’s shares after it revealed that its CEO and Founder, Richard White, was selling down his stake. Mr White has offloaded $10 million worth of shares in the last few days and plans to keep selling through to 31 December. He remains the company’s largest shareholders by some distance.

The Xero Limited (ASX: XRO) share price has dropped 3.5% lower to $99.25. This also appears to have been driven by insider selling. Although the business and accounting software company has yet to confirm it, there are reports that its founder, Rod Drury, has offloaded almost $200 million worth of shares. According to the AFR, the shares were believed to have been offered at a 3.9% discount of $99.00 per share.

More reading

• Why the Bubs share price crashed 10% lower today
• WiseTech Global share price lower after CEO sells $10m of shares and plans even more sales
• 5 things to watch on the ASX 200 on Thursday
• Some ASX winners and losers from a high Aussie dollar
• Xero share price higher after chairman buys $400k worth of shares

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 BUBS AUST FPO, WiseTech Global, and Xero. The Motley Fool Australia has recommended BUBS AUST 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 Why Bubs, Perseus, WiseTech, & Xero shares are dropping lower appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3bjLzRN

If you have $3,000 to invest into ASX growth shares, then I would suggest you consider putting these funds into the ones listed below.

Here’s why I think they could provide strong returns for investors over the next decade:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

If you would like to invest in a group of high quality growth shares in a single investment, then you might want to consider the BetaShares NASDAQ 100 ETF. This popular fund gives investors access to 100 shares trading on the legendary NASDAQ 100 index. Among its holdings you’ll find the likes of Amazon, Apple, Facebook, Microsoft, Netflix, and Google parent, Alphabet. I believe these companies have very bright futures ahead of them. This bodes well for the performance of Nasdaq 100 over the 2020s.

Nearmap Ltd (ASX: NEA)

Nearmap is a leading aerial imagery technology and location data company. It gives businesses instant access to high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools. This means that users of its software can undertake site visits from the comfort of their home or workplace, which can offer significant time and cost savings for users. Thanks to the quality of its offering, particularly its latest AI product, I believe it is well-placed to capture a growing slice of this fragmented market over the next decade.

NEXTDC Ltd (ASX: NXT)

Another top growth share to consider buying is NEXTDC. It is an innovative data centre operator which owns a collection of world class centres in key locations across Australia. NEXTDC has experienced very strong and growing demand for its services in recent years. This has underpinned solid earnings growth over the last few years. This was particularly the case in FY 2020 when NEXTDC delivered a 23% increase in EBITDA to $104.6 million. Pleasingly, with demand expected to continue growing at a rapid rate for some time to come due to the cloud computing boom, I expect more of the same from NEXTDC over the next decade.

More reading

• Why we’re on track for more record ASX share prices
• Why it makes sense to invest in ASX tech shares
• Top ASX Stock Picks for September 2020
• Leading brokers name 3 ASX shares to buy today
• Why Costa, Harvey Norman, NEXTDC, & Splitit shares are charging higher today

James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS and Nearmap Ltd. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS and Nearmap 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.

The post 3 ASX growth shares to buy with $3,000 appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2QPniJL

The Bubs Australia Ltd (ASX: BUB) share price has come under pressure today after returning from its trading halt.

In morning trade the infant formula and baby food company’s shares fell as much as 10% to 82 cents.

They have since recovered slightly and are down 6% to 86 cents at the time of writing.

Why was the Bubs share price in a trading halt?

Bubs requested a trading halt at the start of the week while it undertook another capital raising.

This morning it revealed that it has successfully completed its institutional placement, raising $28.3 million (before costs) at a 12.5% discount of $0.80 per share.

The company advised that the placement was strongly supported by existing institutional shareholders as well as several new institutional and sophisticated investors in Australia and in certain overseas jurisdictions.

Bubs will now push ahead with its share purchase plan, which aims to raise a further $10 million. Though, the company will consider increasing this to $11.7 million depending on shareholder interest.

Eligible shareholders will be able to apply for up to $30,000 of new Bubs shares at an offer price of $0.80 per new share, without incurring brokerage or other transaction costs.

Why is Bubs raising funds again?

The proceeds are to be used to support the company’s global growth initiatives.

This includes the acquisition of an ownership interest in a Beingmate manufacturing facility in China and the in-market SAMR application for Bubs Infant Formula products.

The funds will also be used to support its international market expansion, the launch of its Vita Bubs vitamin brand, new product innovation in emerging high value goat dairy segments, and the extension of its production capability to include a production line for single-serve sachets.

Bubs’ Founder and CEO, Kristy Carr, said: “Our first priority will be to progress our announced strategy to accelerate SAMR registration for China manufacture of Bubs Goat Infant Formula made from 100 percent Australian goat milk. This ‘Created by Bubs’ localisation strategy is capable of replication into other markets with similar barriers to entry.”

“We are now well positioned to maintain the operational momentum, strength and agility established during the year, to execute on strategy, and capture new opportunities while ensuring we continue to implement key marketing strategies that respond to the challenges of the current macro environment, including consequences of COVID-19,” concluded Mrs Carr.

More reading

• Why Bubs, Perseus, WiseTech, & Xero shares are dropping lower
• Some ASX winners and losers from a high Aussie dollar
• Bubs share price halted following FY 2020 results and capital raising plans
• 3 small cap ASX growth shares to buy right now
• Why Afterpay, Bubs, Fortescue, & Zip Co shares are charging higher

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 BUBS AUST FPO. The Motley Fool Australia has recommended BUBS AUST 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 Why the Bubs share price crashed 10% lower today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3hShdIo

The Eclipx Group Ltd (ASX: ECX) share price is pushing higher on Thursday after the release of a business update.

At the time of writing the salary packaging and fleet management company’s shares are up 1% to $1.52.

What did Eclipx announce?

This morning Eclipx released an update on its Simplification Plan ahead of its appearance at the Macquarie Group Ltd (ASX: MQG) Emerging Leaders forum.

According to the release, the company’s Simplification Plan has now largely been delivered on.

It has divested all non-core businesses, operating expenses have been reduced, gross corporate debt has been reduced, and it is now solely focused on developing its core fleet business and strategy.

In respect to its operating expenses, Eclipx was targeting an annualised $15 million reduction in its core fleet operating expense base from $99.5 million in FY 2019 to $84.5 million by the end of FY 2021. On a run-rate basis, its operating expense target has now been achieved.

As for its debt, the company was targeting a gross corporate debt reduction from $350 million to $175 million. As at 31 August 2020, gross corporate debt had dropped below its target and stood at $170 million.

Management also notes there is significant headroom under the revised corporate debt covenants, which were further improved in May 2020.

Total liquidity is currently ~$180 million, including ~$105 million in undrawn capacity under the corporate debt facility.

Trading update.

Eclipx also revealed that its business performance is improving again.

At the end of August, new business writings in corporate operating leasing was tracking at ~70% to 80% of average pre-COVID-19 levels (October 2019 to February 2020 average).

It notes that this reflects the desire of some clients to seek lease extensions as a substitute for renewals or new business writings. Similarly, novated monthly volumes are tracking above 80% of average pre-COVID-19 levels.

In addition, end of lease car sales have continued to show positive momentum since mid-April 2020. As a result, management expects end of lease income in the second half to be about 90% of first half end of lease income.

More reading

• Why Bubs, Perseus, WiseTech, & Xero shares are dropping lower
• 3 ASX growth shares to buy with $3,000
• Why the Bubs share price crashed 10% lower today
• 3 small cap ASX shares I’d buy with $1,000
• Forget gold and Bitcoin. I think dirt-cheap stocks can make you rich

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.

The post Eclipx share price pushes higher following positive business update appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2F2CSyV

Investors often turn to small cap ASX shares for hidden gems or significant growth opportunities. While navigating through smaller, more volatile companies can be challenging, here are 3 small cap ASX shares poised for a blockbuster FY21. 

1. SelfWealth Ltd (ASX: SWF) 

SelfWealth is Australia’s fastest-growing share trading platform for retail investors. It leads the market on price and simplicity, with $9.50 flat-fee ASX trading and no monthly account fees.

In its FY20 results, the company highlighted a 313% increase in revenue to $8.6m. Active traders were up 235% to 45,445, and $147,000 cash burn down from $3.4m. The company notes that ultra-low interest rates have turned wealth creation on its head as term deposits are no longer attractive. This is transforming a generation of savers into a generation of investors.

COVID-19 has further accelerated tailwinds for broker platforms, and SelfWealth is well-positioned to capture the uptick. Looking ahead, SelfWealth will launch US trading in the December quarter. The US market is the most popular international market with Australian investors. At a market capitalisation of just $155m and significant growth tailwinds at hand, SelfWealth is the small cap ASX share to watch in FY21. 

2. BetMakers Technology Group Ltd (ASX: BET) 

BetMakers is involved in data and analytic products for the wagering market and production of racing content. Its clients include racing bodies, racing rights holders and wagering operators such as Pointsbet Holdings Ltd (ASX: PBH), William Hill and Sportsbet. Its FY20 results highlighted a 34% increase in revenue to $9.2m, $31.6m in cash and zero debt.

Sports betting is undergoing a significant growth opportunity with its legalisation in the US. BetMakers sees racing as a key component of the US sports betting market. It believes operators will need a racing solution to fit alongside its sports offerings.

The company has already signed an exclusive 10-year deal to manage Fixed Odds betting on horse racing in New Jersey. It’s also working with other horsemen groups and regulatory bodies. ASX shares in the sports betting space have seen significant price gains in the last 12 months. I believe BetMakers is positioned to benefit. However its share price may need some time to cool off following its recent surge. 

3. 5G Networks Ltd (ASX: 5GN) 

5G Networks is a telecommunications carrier engaged in the supply of cloud-based solutions, managed services and network services. The company’s success has been underpinned by a number of strategic acquisitions. These include new data centre locations and data centre sales providers. Its FY20 performance was solid, with an earnings before interest, tax, depreciation and amortisation (EBITDA) growth of 96% on FY19.

One of the main takeaways from its FY20 report was its significant infrastructure capacity. Services including metro-fibre network, national/international data, data centres and managed services have a utilisation of less than 50%. There is a significant revenue opportunity given its capacity. 5G Networks sits in the same boat as BetMakers where investors should watch closely for a buying opportunity. 

More reading

• Top ASX Stock Picks for September 2020
• Betmakers share price on watch as revenues rocket 39%
• Analysts think 5G Networks shares could be a post-COVID-19 winner
• My top 5G ASX share to buy right now
• Selfwealth share price soaring after 313% increase in revenue

Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Pointsbet Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends 5G NETWORK FPO. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post 3 small cap ASX shares I’d buy with $1,000 appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3bnCGGO

Buying dirt-cheap stocks after the market crash could be a sound means of generating high returns in the long run. Undervalued shares have historically offered strong capital gains as the stock market recovers from its lows.

Although other assets such as Bitcoin and gold have risen sharply in price over recent months, the risk/reward opportunity from stocks could be more appealing. Over time, the stock market could help you to improve your financial situation.

Dirt-cheap stocks

Buying dirt-cheap stocks and holding them for the long term is a relatively simple investment strategy. However, it could prove to be highly effective in generating impressive returns.

The stock market has a long history of experiencing ups-and-downs that provides an opportunity for investors to buy stocks when they are undervalued, and sell them when they are overvalued. Clearly, executing that strategy is likely to be more difficult than it sounds in theory, since low points in the stock market’s performance generally coincide with higher risks.

As such, buying dirt-cheap stocks will not necessarily produce positive returns in the short run. It may even mean paper losses if the economy’s outlook deteriorates further. However, at the present time, valuations on offer across the stock market suggest that investors are pricing in difficult operating conditions for many businesses. This could mean that the margins of safety on offer are sufficiently wide to merit investment. Over the long run, this may translate into high profits for investors.

Value investing

Of course, buying dirt-cheap stocks does not mean that investors should overlook their attributes. In other words, it is far better to buy stocks that are not necessarily the cheapest around, but rather are those that offer the best value for money.

For example, paying more for a stronger business within an industry could a worthwhile move. It may be better placed to overcome short-term risks that are currently facing the economy. It could also become more dominant in the long run, and generate higher profits, if it can outlast weaker peers. This may translate into higher returns for investors – even though they may have initially paid a higher price compared to other stocks in the same sector.

A long-term hold

While dirt-cheap stocks may be outperformed by other assets such as gold and Bitcoin in the short run, over the long run they could produce more attractive returns. The track record of the stock market shows that a sustained bull market is likely following a market crash.

Therefore, by purchasing stocks while they are good value for money in many cases, you can potentially enjoy improving investor sentiment and rising profitability for many listed companies. Over time, this may lead to strong capital gains that improve your financial position.

More reading

• 3 small cap ASX shares I’d buy with $1,000
• WiseTech Global share price lower after CEO sells $10m of shares and plans even more sales
• Where I would invest my BHP dividends in September
• Is the Kogan.com share price a strong buy?
• Why Brainchip and these ASX shares just surged to new highs

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

The post Forget gold and Bitcoin. I think dirt-cheap stocks can make you rich appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2YY3lFi

The market may be pushing higher today but the same cannot be said for the WiseTech Global Ltd (ASX: WTC) share price.

At the time of writing the logistics solutions company’s shares are down 2% to $28.75.

Why is the WiseTech Global shares price dropping lower?

Investors have been selling WiseTech Global’s shares on Thursday after it revealed that its founder and co-founder have been selling down their holdings.

The company’s Founder and Chief Executive Officer, Richard White, has sold a total of 349,504 shares through a series of on-market trades between 27 August and 2 September 2020.

Mr White received an average of approximately ~$28.49 per share or a total consideration of $9,959,109.

Despite this sizeable sale, Mr White still has an interest of 139,699,669 WiseTech Global shares.

Also selling shares was the company’s Co-Founder and Executive Director, Maree Isaacs. She sold a total of 15,472 shares through a series of trades across the same days. Ms Isaacs received an average of $28.50 per share or a total consideration of ~$441,000.

This leaves the executive director with an interest of 11,408,693 shares.

Share sales to continue.

According to the release, these are the first in a series of planned share sales by the company’s CEO over the next four months.

The release explains that these share sales have been undertaken as part of a trading program which will continue until 31 December 2020, subject to no material, non-public information arising during this period.

Mr White intends to sell down a minor portion of his shareholding to facilitate liquidity in the company’s shares and enable some diversification of his assets.

He said: “I am excited about WiseTech’s future growth opportunities and continue to be as committed and driven as ever, on achieving our global growth ambitions. We are gaining momentum in driving revenue growth, with four new global customers signed up in the first seven months of calendar 2020 and a strong pipeline of further global deals.”

“As we continue to execute on our market penetration strategy, it is pleasing to see interest from new, long-term investors wanting to be part of our growth journey. This is why it is important to enhance the liquidity of our stock through an orderly process and in a way that will benefit all of our shareholders,” he concluded.

Also experiencing heavy insider selling today have been Bigtincan Holdings Ltd (ASX: BTH) and Xero Limited (ASX: XRO). Unsurprisingly, their respective shares are dropping lower along with WiseTech Global.

More reading

• My top 5 ASX shares to buy in 2020
• 2 top ASX tech shares to buy and hold beyond 2025
• What’s sent WiseTech’s share price up 36% so far in August
• Why the Xero share price can crack $100 per share in 2020
• These ASX shares were top performers last week

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 WiseTech Global and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends BIGTINCAN FPO. The Motley Fool Australia owns shares of and has recommended BIGTINCAN 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 WiseTech Global share price lower after CEO sells $10m of shares and plans even more sales appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3hOwjyF

This morning the BHP Group Ltd (ASX: BHP) share price is likely to trade lower when its shares go ex-dividend for its fully franked 55 U.S. cents per share final dividend.

This dividend will then be paid to eligible shareholders later this month on 22 September.

While some shareholders will be using this as income in this low interest environment, others may wish to reinvest the funds back into the share market.

For the latter group, here is where I would consider investing BHP’s dividends:

Cochlear Limited (ASX: COH)

If you’re looking to invest these funds into a quality growth share, then you could do a lot worse than Cochlear. I think the global leader in implantable hearing devices has the potential to generate strong returns for investors over the next decade. This is thanks to its exposure to the ageing populations tailwind, which looks set to underpin growing demand for hearing solutions products over the long term. And with the Cochlear share price down 25% from its 52-week high due to the pandemic, I think now could be an opportune time to invest.

Rural Funds Group (ASX: RFF)

If you want even more dividends then you might want to consider Rural Funds. It is a leading agriculture-focused property group with a diverse portfolio of assets which are spread across several industries and leased to some of the biggest players in the market. One big positive is the long term certainty that Rural Funds’ leases offer investors. With a weighted average lease expiry of almost 11 years and rental increases built in, Rural Funds appears perfectly positioned to deliver on its target of increasing its distribution by 4% per annum over the long term. Based on the current Rural Funds share price and its guidance for FY 2021, it offers investors a generous forward 5% distribution yield.

More reading

• Why a recession shouldn’t matter for the ASX share market
• 5 things to watch on the ASX 200 on Thursday
• Some ASX winners and losers from a high Aussie dollar
• 2 high quality and growing ASX dividend shares
• A strange thing is happening with index funds…

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 owns shares of and has recommended RURALFUNDS STAPLED. 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.

The post Where I would invest my BHP dividends in September appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/34XogvJ

Is the Kogan.com Ltd (ASX: KGN) share price a strong buy? It has been a great performer since the COVID-19 crash.

Indeed, over the past six months the Kogan.com share price has risen by 390%. The ecommerce business has done incredibly well at capturing retail market share. 

Whilst the situation with the global pandemic is tragic, Kogan.com has experienced an enormous rise in demand for its services. Customers have still wanted to buy phones, laptops and so on. 

The FY20 result was very impressive. Gross sales increased by 39.3% to $768.9 million and revenue went up by 13.5% to $497.9 million. Gross profit increased by 39.6% to $126.5 million. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 57.6% to $49.7 million and net profit after tax (NPAT) grew by 55.9% to $26.8 million.

The second half of the 2020 financial year, which included COVID-19, was particularly strong. Gross sales, gross profit and adjusted EBITDA grew by 62.5%, 68.3% and 74.1% respectively. Those are strong growth numbers. With growth like that, it’s no wonder the Kogan.com share price has gone up so much.

Kogan.com is not an early-stage growth business. It’s not an unprofitable buy now, pay later business. It’s making real profit and it’s even paying a dividend. Kogan.com declared a fully franked final dividend of 13.5 cents per share, up 64.6% on the prior year. Long-term shareholders are now getting a very good yield on their original purchase cost. 

The online business grew its active customer base by 35.7% to 2.18 million people. Kogan.com is the type of business that can really excel with network effects. It offers so many different services like mobile, insurance and superannuation. The company can work on selling a wider variety of services which should lead to higher margins.

Is the Kogan.com share price a strong buy today?

It can be a mistake to think that something is expensive just because it has gone up in price. A few years ago there was a buying frenzy for A2 Milk Company Ltd (ASX: A2M) infant formula. The A2 Milk share price has gone from $1.80 in September 2016 to $16.84 today. I’m not suggesting that the Kogan.com share price will be worth $200 in a few years, but it shows that a high-growth business can keep growing for longer than expected.

In July 2020 Kogan.com saw gross sales grow by more than 110%, gross profit increased by more than 160% and adjusted EBITDA was more than $10 million. Remember that FY20’s total adjusted EBITDA was $49.7 million. The growth seems to be accelerating.

At the current Kogan.com share price it’s trading at 50x FY21’s estimated earnings. That doesn’t look bad if the ASX share can continue a good growth rate for the medium-term.

But how long can this growth last? I have a feeling that some of the overall strong retail demand may slow down once the government stimulus starts to taper off. ASX retail shares weren’t demonstrating this kind of growth in 2019.

However, Kogan.com does benefit from the fact that it’s an online business. Some consumers may well permanently switch to online shopping rather than going to a physical store. Just look at how well Temple & Webster Group Ltd (ASX: TPW) is doing as an online retailer.

If you could travel back in time then obviously it would make sense to buy shares when the Kogan.com share price was under $5. But what about now? I don’t think Kogan.com is a ‘strong’ buy. However, I think that Kogan.com’s expanding product range and growing customer base will support growing earnings over the long-term.

I believe that it is worth a long-term buy today because the online shopping trend seems like a permanent shift and this should help Kogan.com’s earnings considerably. I’d be happy to accumulate during dips. As a bonus, Kogan.com offers a grossed-up dividend yield of 1.4%.

More reading

• Why a recession shouldn’t matter for the ASX share market
• Why it makes sense to invest in ASX tech shares
• What do you do after record share price gains?
• If you invested $10,000 in Kogan shares 5 months ago, here’s how much you’d have today
• How to invest in ASX shares in uncertain times?

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 Kogan.com ltd and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended Kogan.com ltd and Temple & Webster Group 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.

The post Is the Kogan.com share price a strong buy? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2YXYELm

The Australian share market was on form on Wednesday and stormed notably higher.

While the majority of shares on the market pushed higher with the market, a few shares climbed so much they hit 52-week highs or better.

Here’s why these ASX shares just scaled to new heights:

Bigtincan Holdings Ltd (ASX: BTH)

The Bigtincan share price was on form again on Wednesday and stormed to a record high of $1.30. Investors have been fighting to get hold of the AI-powered sales enablement automation platform provider’s shares since the release of its full year results last month. In FY 2020, Bigtincan reported revenue growth of 56% to $31 million and annualised recurring revenue (ARR) growth of 53% to $35.8 million. The good news is that more of the same is expected in FY 2021. Management provided ARR growth guidance of 36.9% to 48% year on year.

Brainchip Holdings Ltd (ASX: BRN)

The Brainchip share price rocketed an incredible 58% higher to a record high of 49 cents on Wednesday. Investors were buying the artificial intelligence technology company’s shares after it announced a collaboration with VORAGO Technologies. This collaboration is intended to support a Phase 1 NASA program for a neuromorphic processor that meets spaceflight requirements. Brainchip notes that its Akida neuromorphic processor is uniquely suited for spaceflight and aerospace applications. The device is a complete neural processor and does not require an external CPU, memory or Deep Learning Accelerator.

Costa Group Holdings Ltd (ASX: CGC)

The Costa share price continued its positive run and stormed to a 52-week high of $3.74. The catalyst for this was the release of its half year results on Friday of last week. For the six months ended 28 June 2020, the horticulture company posted revenue of $612.4 million. This was an increase of 6.8% on the prior corresponding period. And on the bottom line, Costa delivered a 12% in net profit after tax to $45.8 million. This was driven by a very strong performance from its international business. Investors appear to believe that Costa is finally over the worst of its issues now.

More reading

• Why Brainchip, De Grey Mining, Nufarm, & Pointsbet shares are storming higher
• Brainchip share price rockets 30% higher on NASA program collaboration
• 3 exciting ASX small caps to put on your watchlist
• Zip and Brainchip were among the most traded shares on the ASX last week
• Top ASX Stock Picks for September 2020

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends BIGTINCAN FPO. The Motley Fool Australia owns shares of and has recommended BIGTINCAN FPO and COSTA GRP 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 Why Brainchip and these ASX shares just surged to new highs appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2Z0yE2i