The Forbidden Foods Limited (ASX: FFF) share price has had a sensational first day on the ASX boards.

Earlier today the premium food, beverage, and ingredients company’s shares were trading as high as 40 cents.

When the Forbidden Foods share price hit this level, it meant they had doubled in value from their IPO price of 20 cents.

At the time of writing, the company’s shares are fetching 36 cents, up 80% on their listing price.

What is Forbidden Foods?

Forbidden Foods has a focus on the baby food, wellness, and organic markets, with diverse national and international sales channels.

It was established in 2010 with a vision to provide Australia with the very best health foods and to meet growing consumer demand for differentiated, plant-based, and health-oriented products.

The company’s products are stocked by the likes of Costco, Metcash Limited (ASX: MTS), and Woolworths Group Ltd (ASX: WOW).

It generated modest growth in FY 2019, with revenue coming in at $3.43 million, up from $3.37 million in FY 2018. Both years the company recorded losses: $192,500 in FY 2019 and $263,098 in FY 2018.

Positively, things were better for its top line during the first half of FY 2020, with Forbidden Foods recording revenue of $2.14 million. This was up almost 13% on the prior corresponding period. However, it continues to operate at a loss and posted a loss after tax of $0.54 million for the half.

What about the future?

According to its prospectus, management expects to grow its revenue to $4.1 million in FY 2020. This will be an increase of 19.5% year on year.

However, due to the pandemic, it isn’t able to provide forecasts further out from here.

Nevertheless, Forbidden Foods’ co-founder and CEO, Marcus Brown, remains positive on the future.

He said: “There is much to be excited about in the near future for Forbidden Foods. We aim to launch new innovative product lines, deepen our existing market penetration and broaden our international focus. We expect the demand for healthy ‘better for you’ and plant-based food products to only increase, and we believe Forbidden Foods is well placed to establish and grow market share in our targeted sectors of the food and beverage industry.”

The company notes that it operates at the nexus of two growth segments in food – Plant-Based Foods and Baby Foods.

These are currently worth US$20 billion and US$214 billion globally per annum, respectively, and are growing at a solid rate.

More reading

• DroneShield shares surge then flatten on new government orders
• Mali Lithium share price explodes 25% on acquisition news
• The Investors’ Creed
• Top fund manager says ASX share mania is at a turning point
• This ASX-listed company makes $5.7 million per employee

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 Forbidden Foods share price doubles after completing its IPO appeared first on Motley Fool Australia.

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

Shares in DroneShield Ltd (ASX: DRO) surged more than 14% in early trade following an announcement from the company.  

What did DroneShield announce?

Earlier today DroneShield announced that the company has received multiple, new European government orders worth about $750,000.

The first order is from an existing European government customer and follows a smaller order earlier in the year. The new order includes DroneShield’s multi-sensor detection system and DroneGun Tactical which is a portable counter drone solution.

A second order from the defence ministry of a different European country is for several of DroneShield’s portable solutions.

The company said the new orders would generate approximately $750,000 in sales. The company plans to build upon these initial sales to achieve follow-on orders. DroneShield expects to receive the amount due for the first order at the end of September. Half of the amount from the second order is expected in September, with the remainder due on shipment.

DroneShield’s management noted that the new orders showcased the diverse capability of the company’s products in the rapidly growing C-UAS market.

What does DroneShield do?

DroneShield is an Australian-based company that specialises in drone security technology. The company’s security solutions are designed to protect people and critical infrastructure from intrusions by drones. DroneShield built its hardware and software from the ground up and has an extensive pipeline of solutions.

The new European orders follows DroneShield’s most recent contract with the US Air Force. In addition, the company recently released a positive activated report for the fourth quarter of FY20.

The report was highlighted by positive cash flow for the quarter with DroneShield reporting cash inflows of $2.1 million. As a result, the company recorded its first ever quarter in which operating cashflows were approximately breakeven.

At the time of writing, the DroneShield share price is flat for the day, trading around 14 cents per share. The company’s share price has been sold down after hitting an intra-day high of 16 cents earlier. The DroneShield share price has struggled in 2020 and is trading more than 45% lower for the year.

More reading

• 4 ASX shares leading the way in drone technology

Motley Fool contributor Nikhil Gangaram 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 DroneShield shares surge then flatten on new government orders appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3jwM4um

The Mali Lithium Ltd (ASX: MLL) share price has surged 25% today after the company announced that it had entered an agreement to acquire the Morila Gold Mine in Mali.

What are the details of the acquisition?

Mali Lithium has entered into an agreement to acquire an 80% interest in the Morila Gold Mine in Mali, which it will purchase from Barrick and AngloGold for an estimated US$22 million–27 million.

According to the announcement, Morila is a world class asset that has produced in excess of 7.4 million ounces of gold over 20 years from a 4.5 million tonne per annum plant.

The final sale amount will be determined when the transaction closes. The reason for this is that the Morila asset has not received an audit for 3 years. Before the closing price can be decided, any tax credits need to be considered. Morila may also face tax liabilities before the acquisition is finalised. 

The acquisition is subject to Mali Lithium obtaining financing for the acquisition and subject to no objection from government.

The Morilla asset is currently in production and, according to Mali Lithium, it will provide cash flow from the time the acquisition is completed. Additionally, Mali Lithium have stated that the asset has immediate potential to increase production from 3 satellite pits.

Mali Lithium estimate that the inferred mineral resource adjacent to and beneath the Morilla pit contains 32 million tonnes at 1.26 grams per tonne of gold, with a total of 1.3 million ounces of gold.

A new mineral resource estimate update and a new mine plan are being prepared using current gold prices. According to Mali Lithium, little extension drilling has occurred at Morilla in the last decade to follow up hits which have included 56 metres at 4.97 grams per tonne of gold. Mali Lithium stated that the acquisition will consolidate 685 square kilometres of “highly prospective tenure” for exploration.

The parties are targeting completion of the agreement by the end of October 2020.

About Mali Lithium

Mali Lithium is a resources exploration and development company that is focused on lithium and gold in Mali, West Africa. It changed its name from Birimian Ltd in 2019.

Earlier this month, Mali Lithium released a business update that stated it intended to increase its exposure to gold. It also stated that the definitive feasibility study for its Goulamina lithium asset was in its final stages. The company announced that there had been political instability in Mali, however, it also stated that there were encouraging signs of a civilian government emerging with the support of a majority of Malians.

In July, Mali Lithium announced a significant increase to the mineral reserves at its Goulamina lithium asset.

Mali Lithium had $891,000 in cash on hand at 30 June 2020.

The Mali Lithium share price is up 175% since its 52-week low of 8 cents and has returned 175% since the beginning of the year. 

More reading

• Forbidden Foods share price doubles after completing its IPO
• DroneShield shares surge then flatten on new government orders
• The Investors’ Creed
• Top fund manager says ASX share mania is at a turning point
• This ASX-listed company makes $5.7 million per employee

Motley Fool contributor Chris Chitty 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 Mali Lithium share price explodes 25% on acquisition news appeared first on Motley Fool Australia.

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

“Akela, we’ll do our best…”

Those words, part of the ‘Grand Howl’ when I was in Cubs, are forever etched in my memory.

Akela, of course is the adult in charge. And is the ‘Old Wolf’ of the pack. The other adult leaders also took their names from Rudyard Kipling’s The Jungle Book, including, for a time, my old man, who was known as Kaa at the 1st Yarrawarrah Cubs.

Some years later, Kipling’s other best-known offering — his poem, If, is a constant companion for me, as an investor.

The poem, ostensibly a letter from a father to his son, is Kipling’s template on living a good life.

To try to describe it, piece by piece, would essentially just be to repeat it — so if you haven’t read it, either ever, or for a while, I’d highly recommend it.

But, in short, Kipling exhorts us to remain true to ourselves: to find our own way in life, being open to the ideas of others, but not to make others our masters.

There are other ways, and other templates to rely on, when it comes to developing character, but none better, in my humble opinion.

There is, of course, also a sense of how, well, bloody difficult it is, too.

I don’t know if Kipling is serious or humorous as he offers ‘everything’ in return for that good life, as he says the reward for all of the ‘Ifs’ is that: “Yours is the Earth and everything that’s in it”.

Maybe he’s offering such a grand prize, because it’s inherently unachievable. I like to think he’s suggesting that, if you can live your life that way, you’ll not want for anything, and that the life well lived, free of imposed constraints, is its own reward.
Whatever the intention, though, his poem could well be re-titled The Investor’s Creed.

And man, have we been tested recently!

Some stocks are absolutely flying. Yes, I’m looking at you, Afterpay Ltd (ASX: APT).

Others, like Flight Centre Travel Group Ltd (ASX: FLT), have taught shareholders a lot, but have cost them a lot in the process, too.

The market itself has experienced both the fastest bear market and the fastest recovery in history.

It has tested us all.

Mentally. Emotionally. And yes, financially.

Some of Kipling’s tests are easier than others. Turns out I’ve never been someone who ‘looked too good or talked too wise’

But two lines have been playing, over and over, in my head this week:

“If you can meet with Triumph and Disaster,
And treat those two impostors just the same”

It’s something I could write a book about. And I’d end up in the same place as Kipling.

Made some money from your portfolio recently?

Lost some?

My congratulations, and commiserations, respectively.

But that’s that.

They’re done.

I’m sorry to burst your bubble if you’re riding high on the euphoria of recent gains.

And I’m sorry to interrupt you if you’re in the middle of some self-indulgent misery from recent losses.

Actually, no. I’m not.

I don’t mean to sound rude, but you really need to move on.

Unless you’ve just sold your last ever winning (or losing) stock, and you’re going to be in cash until your last day on this mortal coil, you’ll have to cut short your victory laps and tales of woe.

Because the next race has started. And each new race starts from zero.

Your portfolio might be worth $10,000 today.

Whether that’s up from $5,000 or down from $15,000 is irrelevant.

The only thing that matters is what you do with your $10,000 from right now.

And I have to say, whether you’re enjoying Triumph or lamenting Disaster, you’re likely not as responsible for your present state as you think you are.

A lot of people got very, very lucky, making money on Enron, selling out before it was uncovered as a fraud. Unless their thesis was ‘I know this thing is a fraud, but I know with certainty that I can buy today and sell the day before it gets exposed’, then they owe their Triumph to luck, not skill.

Moreover, unless you can show a pattern of wins and losses, and clearly demonstrate how your process delivered those outcomes, you might just owe more to luck — good or bad — than you’re prepared to admit.

And even if you can… you’re still going to get lucky (or unlucky) from time to time.

Which is the point of recognising them as imposters in the first place.

Too often, their presence is fleeting, and caused by factors other than our own skill and hard work.

Trying to diagnose them as completely within our own control is about as self-indulgent as it gets.

Of course, such a view isn’t that common in my industry.

I haven’t read it, but I’m pretty sure the Financial Services Handbook suggests I should claim all of the winners as my own great ideas, and the losers as the result of unpredictable black swans.

Not me.

Now, to be fair, I’ve made around 100 ASX recommendations (one each and every month) since I started running Motley Fool Share Advisor back in April 2012.

And our average recommendation is up 48.1%, while the market’s average is up less than 30% in that same time.

I think — I’m never certain about anything — that owes more than a little to a process that has delivered strong results over time.

But it’s important to know I still make plenty of mistakes and am just as subject as anyone else to the slings and arrows of outrageous fortune.

In other words, it would be silly of me to put all of my winners down to my own excellence. It would be silly of me to take all of my losers to heart, and push me off my process.

And of course, whatever my past successes or failures (and thankfully more of the former than the latter, allowing us to beat the market thus far), it’s only the future that matters from here, when it comes to the results we hope to deliver for ourselves and our members.

Remember, not only is volatility a constant companion for the investor, but so are wins and losses. Being able to accept the good and the bad, and to stick to your process regardless, is likely the difference between success and failure.

As Kipling would say, if you can “…keep your head when all about you are losing theirs…” I can’t promise you the world and everything that’s in it, but I’m pretty sure your investment results will improve — and you’ll likely find it more enjoyable and less stressful, to boot.

Fool on!

More reading

• Forbidden Foods share price doubles after completing its IPO
• DroneShield shares surge then flatten on new government orders
• Mali Lithium share price explodes 25% on acquisition news
• Top fund manager says ASX share mania is at a turning point
• This ASX-listed company makes $5.7 million per employee

Motley Fool contributor Scott Phillips has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Flight Centre Travel Group 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.

The post The Investors’ Creed appeared first on Motley Fool Australia.

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

The rise of global share markets over the past 6 or so months has been incredible to watch, to say the least. After bottoming out on 23 March, the S&P/ASX 200 Index (ASX: XJO) has risen by more than 33%. Things have been even more excited over in the United States. The Nasdaq Index is up more than 70% over the same period and is now at record highs. The flagship S&P 500 Index isn’t quite as enthusiastic but is still up more than 43% since 23 March. But could this US and ASX share mania be at a turning point?

The dangers of ASX share mania

While many investors have been cheering these gains on, one ASX fund manager isn’t quite as excited and is starting to become worried.

Platinum Asset Management Ltd (ASX: PTM) chief executive Andrew Clifford is warning of “prices loaded with danger”, according to reporting in the Australian Financial Review (AFR).

Platinum is one of the ASX’s most respected value-orientated fund managers, despite a few recent years of struggling performance. Mr Clifford says global investors are walking a tightrope between “a late 1990s-style blow-off” and an “old-fashioned bear market”. He said:

I suspect very much that the extraordinary valuations we’re seeing in growth stocks are fundamentally a part of what is in every good bull market: there’s a great story, there’s too much money and our own human condition goes to work of over-extrapolating just how good these stories are.

While not ruling out owning growth shares himself at the right price, Clifford notes that the Nasdaq Index’s rise has been partly enabled by earnings multiples’ stretching from 19x earnings to 28x since 23 March – an increase of roughly 50%.

He sees this as a consequence from the massive injections of fiscal and monetary stimulus that central banks around the world have been engaging in, which Clifford notes will probably result in an inflationary environment at some point.

Is it time for ASX investors to be worried?

I do think Mr Clifford’s comments are worthy of consideration today. We are seeing some truly extraordinary moves, both on global markets and on the ASX. It is hard to fathom why the US markets are at all-time highs in the midst of one of the worst global recessions in living memory.

That doesn’t mean the end is nigh though. Mr Clifford rounded out his remarks by saying: “We may be weeks or months away from an end in this mania, it doesn’t mean that that doesn’t end 20 or 30 per cent higher”.

So what should ASX investors do next? Well, we all know that investing is a bumpy ride, replete with both periods of euphoric gains and of devastating crashes. I think imagining how you would feel and react to a market correction or crash is a very important consideration right now. If you’re fine with volatility, then carry on by all means. But if you feel like you couldn’t stomach a serious setback in your portfolio, the time to take money off the table is now, in my view.

More reading

• ASX 200 edges higher: Fortescue sinks, NAB sells MLC Wealth, Costa jumps
• Polynovo and 2 more ASX 200 shares to watch this week
• ASX 200 Weekly Wrap: Earnings drag ASX back to reality
• 5 things to watch on the ASX 200 on Monday
• Unlikely ASX stock winners from the change in the Fed’s inflation policy

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.

The post Top fund manager says ASX share mania is at a turning point appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/32GkDI0

Efficiency can be measured in many ways, but one very high-level indicator is how much revenue a company brings in per employee it hires.

Investment firm Clare Capital was kind enough to compile the ASX company numbers for The Motley Fool this week.

Because the 2020 financial year has not finished for many companies, the 2019 stats are our best guide.

Surprisingly, A2 Milk Company Ltd (ASX: A2M) has come out on top. It made a whopping $5.7 million per staff member.

It’s a shock result because sectors that produce highly scalable products and services, like technology, are usually expected to have high revenue-per-employee numbers.

Certainly over in the United States this holds true, with Netflix ruling the roost with $3.28 million of revenue per employee.

For an agricultural product company to come first in Australia is a testament to how well A2 Milk is going at the moment. 

Its shares have climbed from just above $14 at the start of the year to $17.29 at 12.25 pm AEST Monday.

The highest tech company is not one you’d think

Two finance companies then followed: Magellan Financial Group Ltd (ASX: MFG) and Challenger Ltd (ASX: CGF). They raked in $5.1 million and $5 million per employee, respectively.

AMP Limited (ASX: AMP), which has been rocked by both customer service and sexual harassment scandals in recent years, made $3.8 million per worker.

Company	2019 revenue	2019 headcount	Revenue per employee
A2 Milk Company Ltd (ASX: A2M)	$1.3 billion	228	$5.7 million
Magellan Financial Group Ltd (ASX: MFG)	$643 million	125	$5.14 million
Challenger Ltd (ASX: CGF)	$3.4 billion	687	$4.99 million
Beach Energy Ltd (ASX: BPT)	$2.2 billion	483	$3.86 million
AGL Energy Limited (ASX: AGL)	$13.8 billion	3586	$3.8 million
AMP Limited (ASX: AMP)	$24 billion	6500	$3.78 million
Dicker Data Ltd (ASX: DDR)	$1.8 billion	485	$3.49 million
Meridian Energy Ltd (ASX: MEZ)	$3.5 billion	1001	$3.36 million
Sydney Airport Holdings Pty Ltd (ASX: SYD)	$1.7 billion	508	$3.3 million
Australian Finance Group Ltd (ASX: AFG)	$671 million	203	$3.06 million
Source: Clare Capital, table produced by author

The highest-ranked technology company is not one of the famous WAAAX shares.

It’s little-known distributor Dicker Data, which came in 7th. The Sydney company made $3.49 million per staff member.

The Dicker Data share price has enjoyed a handsome ascent over the past 18 months. It was around $3 in February last year, but now sits at $7.55 – all while paying a dividend yield of 4.39%.

And for the 2019 financial year, it remains as the only tech company among the highest-ranked revenue-per-employee players.

TPG Telecom Ltd (ASX: TPG) is the next best tech company, sitting at 32nd place with $1.8 million per employee.

More reading

• AMP sexual harassment report never uses the words ‘sexual harassment’
• ASX 200 Weekly Wrap: Earnings drag ASX back to reality
• 5 things to watch on the ASX 200 on Monday
• Will the RBA keep the cash rate on hold for 3 more years?
• 5 things to watch on the ASX 200 next week

Motley Fool contributor Tony Yoo owns shares of A2 Milk, Dicker Data Limited, and Sydney Airport Holdings Limited. The Motley Fool Australia owns shares of and has recommended Challenger Limited and Dicker Data Limited. The Motley Fool Australia owns shares of A2 Milk. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post This ASX-listed company makes $5.7 million per employee appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3b9iLv0

I have built a portfolio of ASX shares to allow me to focus on three activities. The first activity builds wealth through investing in growth companies or undervalued companies. This is ongoing and active with a time horizon of 3 years or more.

The second part of my investing is to look for short-term market opportunities. Things like takeovers, occasional government bonds, or high yield dividend payments. This has a very near-term horizon, generally within months. Third, I use the proceeds from these two areas to buy undervalued companies that pay a solid, stable dividend. This is very long-term and I work to achieve a specific amount per year.

This week, I intend to invest in an undervalued ASX share that I believe will see good growth over the next 2–3 years at least. And if it goes well, I will let it run further. 

An undervalued ASX share

Jumbo Interactive Ltd (ASX: JIN) was one of the best performing ASX shares of the past decade, and I believe it is likely to be one of the great shares of this decade. In fact, the coronavirus lockdown proved the resilience of the company’s business model. Jumbo sells lottery tickets online under license from Tabcorp Holdings Limited (ASX: TAH). Despite fewer large jackpots, the company was able to increase top line revenue by 9% and earnings before interest, taxes, depreciation and amortisation (EDITDA) by 8%. This is because of higher online sales for a number of reasons. 

However, despite all of these big improvements, net profit after tax remained steady at $26.5 million. The reason for this was a ~$2 million increase in depreciation and amortisation. This is an accounting transaction and the money has not left the company.

Strong growth strategy

The company’s strategy continues to deliver results. During the lockdown, it renegotiated an extension to its deal with Tabcorp, from 2022 to 2030. This had held me back in the past, 2 years is not enough of a ramp for the company to create additional revenue streams. Additionally, this ASX share is in negotiations with Lotterywest in Western Australia, and has been able to grow its charity lottery business.

The charity business and its recent acquisition in the UK are very interesting to me. Charities in Australia and the UK are authorised to run lotteries for funding purposes. In Fy20, the company signed up four charities to its platform. Thus enabling them to sell tickets on the platform.  Furthermore, Jumbo purchased a company called Gatherwell in the UK. This is the largest external reseller of lottery tickets for schools and local councils. 

Foolish Takeaway

Within Australia, 28% of lottery sales are online, globally it is closer to 10%. Moreover, just the charity lottery sales alone are worth $26 billion. The combination of the size of the addressable market, company platform and the movement of consumers online, makes this a very interesting ASX share for me. 

I think it is undervalued based on its current share price. Moreover, it clearly has a lot of growth ahead of it and is diversifying revenue streams to target the full addressable market. Therefore, this share is a ‘buy’ for me right now. 

More reading

• 3 under the radar ASX growth shares to buy today
• 3 ASX shares to turn $10,000 into $100,000
• Why APA, Bravura, Jumbo, & Whitehaven shares are sinking lower
• Jumbo share price drops lower on flat FY 2020 profits
• Jumbo Interactive share price on watch after signing Tabcorp deal

Daryl Mather 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 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.

The post Why I’m buying this undervalued ASX share right now appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3lwld3F

In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a solid gain. At the time of writing the benchmark index is up 0.3% to 6,091.4 points.

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

The Fortescue Metals Group Limited (ASX: FMG) share price has dropped 8% to $17.33. This decline is largely attributable to the iron ore producer’s shares trading ex-dividend this morning. This means that its shares are now trading without the rights to its upcoming dividend. Eligible shareholders can look forward to being paid a final fully franked $1.00 per share dividend in October. Based on its last close price, this equates to a very generous 5.3% dividend yield.

The Openpay Group Ltd (ASX: OPY) share price is down 5.5% to $4.44 following the release of its full year results. This morning the buy now pay later provider reported record growth across leading indicators in FY 2020. Openpay’s active plans grew 229%, active customers jumped 141%, and active merchants rose 52%. This led to total transaction value (TTV) growing 98% to a record of $192.8 million.

The Pointsbet Holdings Ltd (ASX: PBH) share price has fallen 8% to $12.88. This appears to have been driven by profit taking after an incredible gain last week. The sports betting company’s shares rocketed 140% over the period thanks to the release of an impressive full year results and the announcement of a major deal with NBC Universal.

The Sezzle Inc (ASX: SZL) share price has dropped 7% to $10.52. This follows the release of the buy now pay later provider’s half year results this morning. Despite Sezzle delivering strong underlying merchant sales growth and a sharp reduction in transaction losses, some investors appear to have been expecting even more today.

More reading

• ASX 200 edges higher: Fortescue sinks, NAB sells MLC Wealth, Costa jumps
• Openpay share price drops after posting strong FY20 results
• Why the Fortescue share price is sinking over 7% lower today
• 3 under the radar ASX growth shares to buy today
• Sezzle share price on watch after explosive first half growth

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 Pointsbet Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia has recommended Pointsbet Holdings Ltd 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.

The post Why Fortescue, Openpay, Pointsbet, & Sezzle shares are dropping lower appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3b9hxA9

Looking for quality ASX dividend shares to add to your share portfolio? Wesfarmers Ltd (ASX: WES) and Telstra Corporation Ltd (ASX: TLS) are both in my buy zone right now. Here’s why.

Wesfarmers

I like Wesfarmers as an ASX dividend share because it is a highly diversified company. The group operations in retail segments including general merchandise and office supplies. In addition, Wesfarmers also has investments in industrial segments such as energy and industrial.

The group recently released its full year FY 2020 results, reporting a very solid 10.5% revenue growth from continuing operations to $30.85 billion. Wesfarmers recorded relatively high sales growth in both its Bunnings and Officeworks divisions. This was due to increased demand for products during the coronavirus pandemic. Items that are linked to working and learning at home such as laptops and PCs, as well as goods used for home projects, were in particularly high demand since March. Despite highly volatile COVID-19 trading conditions, with the temporary closure of some of its stores, the Kmart retail chain still managed to deliver a strong result.

Overall online sales growth for Wesfarmers during FY 2020 was impressive at 60%. Not only has the online channel proven to be highly popular during the pandemic, the growing trend of online shopping has accelerated significantly during the lockdown period.

Overall revenue growth may slow down a bit during FY 2021 for Wesfarmers. However I believe that the long-term growth prospects of Wesfarmers remain reasonably promising.

Wesfarmers currently pays an attractive 3.19% fully franked forward annual dividend yield.

Telstra

Another quality ASX dividend share that I recommend right now is Telstra. Telstra’s total income for FY 2020 decreased by 5.9 per cent to $26.2 billion. Meanwhile, NPAT for the telco provider decreased 14.4 per cent to $1.8 billion.

On the surface, this top-line result may look disappointing. However, when considered in context of Telstra’s transition into a leaner and slightly smaller telco provider under its T22 strategy, I believe this is a very solid result. Telstra’s T22 strategy is helping the company evolve into a more efficient telco outfit that can more effectively compete in the National Broadband Network (NBN) environment over the next decade.

Telstra continues to be the market leader in the race to rollout nationwide 5G services. At the end of June, the telco provider’s 5G network reached one third of the Australia’s population.

Telstra currently pay a handy 3.45% fully franked forward annual dividend yield. Grossed up that amounts to a return of 4.9%.

Foolish Takeaway

Both Wesfarmers and Telstra are in my view, top notch ASX dividend shares that are well-placed to continue to pay strong dividends over the next few years.

More reading

• Telstra and 1 more hot ASX dividend share to buy
• ASX 200 Weekly Wrap: Earnings drag ASX back to reality
• Why I would buy these strong ASX dividend shares next week
• 5 top ASX dividend shares you should never sell
• ASX giants say cutting staff hours will save jobs

Motley Fool contributor Phil Harpur owns shares of Telstra Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of Wesfarmers 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.

The post Why I’d buy Wesfarmers and 1 other quality ASX dividend right now appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/31Fn9Pq

Are you looking to add some ASX growth shares to your portfolio next month? Well, you’re in luck! The Australian share market has a large number of quality growth shares to consider buying.

Four that I think would be great long term options are listed below. Here’s why I would buy them:

Altium Limited (ASX: ALU)

Altium is an electronic design software provider which has been growing at an exceptionally strong rate over the last few years. I expect this positive form to continue long into the future thanks to its exposure to the growing Internet of Things and Artificial Intelligence markets. These markets are underpinning the proliferation of electronic devices and driving increasingly strong demand for its Altium Designer software.

Aristocrat Leisure Limited (ASX: ALL)

Another ASX growth share to look at is this gaming technology company. Thanks to its industry-leading pokie machines and the huge potential of its digital and social gaming business, I think Aristocrat Leisure is a great share to buy. And while it is facing notable headwinds right now due to the closure of casinos because of the pandemic, I expect its growth to accelerate once trading conditions return to normal.

ELMO Software Ltd (ASX: ELO)

ELMO is a cloud-based human resources and payroll software company. It provides businesses with a unified platform to streamline processes such as employee administration, recruitment, and payroll. ELMO has been a strong performer in recent years, even during the pandemic, and looks well-placed to continue this trend over the next decade. It also has the option of putting its hefty cash balance to work with earnings accretive acquisitions. I think this makes it an ASX growth share to buy.

ResMed Inc. (ASX: RMD)

ResMed is a medical device company which has a focus on sleep treatment solutions. It is one of my favourite growth shares due to the quality of its products and its large market opportunity. Management estimates that there are 936 million people with sleep apnoea globally and 380 million people who suffer from chronic obstructive pulmonary disease (COPD). The vast majority of these people are undiagnosed. I believe this gives it a long runway for growth over the next decade and beyond.

More reading

• 3 stellar ASX growth shares to buy right now
• How to become rich by investing $1,000 into ASX shares
• Buy and hold these fantastic ASX healthcare shares until at least 2030
• Where to invest $5,000 into ASX shares immediately
• Is the Altium share price in the buy zone?

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 Altium and Elmo Software. The Motley Fool Australia has recommended Elmo Software and ResMed 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.

The post 4 fantastic ASX growth shares to buy in September appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/31Hweat