The S&P/ASX 200 Index (INDEXASX: XJO) was hammered 2.5% lower on Thursday as ASX travel and oil shares were hit hard.

The big share market move came as the International Monetary Fund (IMF) warned of a bleak economic outlook and fears of a “second wave” spooked investors.

No one knows if this will be just another day of volatility or if we’re headed for another bear market.

If it’s going to be the latter, should you be buying ASX shares or cash and gold right now?

Why buying and holding ASX shares is a good strategy

As with all investing, each investment decision is obviously up to the individual and will change with circumstances.

That being said, buying and holding ASX shares has proven to be a good strategy over a number of decades.

If you’re a little worried about market losses, just remember that they’re only paper losses until you sell. If you’re still holding shares, you haven’t actually lost anything until you pull the trigger.

In the February–March bear market, we saw some irrational investing by a lot of first-timers. People panicked as ASX shares fell across nearly all sectors before buying back their shares in April or May.

This is just a form of market timing. Yesterday, I wrote a little bit about why you don’t have to time the market to get rich. Given the sharp losses across the ASX 200 yesterday led by Flight Centre Travel Group Ltd (ASX: FLT), I think it’s worth reiterating.

If you have a long-term investment horizon (i.e. retirement) then what happens today or tomorrow shouldn’t matter. Day-to-day ASX share price movements are just noise – the key is to invest in high-quality companies with long-term potential.

So… what about cash and gold?

I think both cash and gold can have a place in a well-rounded investment strategy. Both have different characteristics including safety (both), liquidity (cash) and inflation hedging properties (gold).

However, I don’t think changing your investment strategy in the midst of a pandemic is necessarily a wise move.

I won’t be loading up on cash and gold even if the share market falls further. If anything, I’ll be trying to deploy what cash I do have into cheap ASX shares.

More reading

• ASX 200 drops 2.5%, ASX travel shares dumped
• The BHP share price has jumped 40% higher in the last 3 months
• Top brokers recommending you buy these ASX shares in this market sell-off
• Transurban Group and 1 other ASX share I’d buy in another share market crash
• ASX retailers beware! Amazon.com is gearing up for its next major attack

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. 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 In today’s market, should you buy ASX shares, buy gold, or hold cash? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/383uN7U

The Openpay Group Ltd (ASX: OPY) share price is having one of those ‘ordinary’ days today. Openpay shares are down more than 9% today to $2.25. This is despite no major news out of the company.

But that’s not why we’re talking about Openpay today.

Instead, let’s talk about the company’s recent performance. Openpay started the year going for $1.24 a share. Its pre-COVID-19 high of $1.40 came on 13 February (just in time for Valentine’s Day). Then the March market crash happened and Openpay was smashed. Its shares dropping all the way down to 32 cents on 23 March (a loss of 77%).

But since 23 March things have really got juicy. On today’s prices, anyone who bought into Openpay on 23 March would be sitting on a tidy 600% gain right now. That’s the highest return to date for any ASX company over a $50 million market capitalisation that I know of (even beating fellow payments company Afterpay Ltd (ASX: APT) ). 

It gets even better. On 4 June, the company’s shares popped all the way up to $4 a share on a surge of buying activity. Anyone purchasing Openpay at 32 cents in March and selling them at $4 in June would have enjoyed a return of 1,150%. Of course, its shares didn’t last long at $4. After another week, the shares were back to around the levels we see today. But hey, it’s always fun dreaming of what could have been!

Still time to buy Openpay shares?

Well, that depends on your view of the future of the buy now, pay later sector. Unlike its rivals Afterpay and Zip Co Ltd (ASX: Z1P), Openpay focuses on more ‘expensive’ purchased — think cars, healthcare and home improvement.

I think this niche is a great area for Openpay to be focusing on, but it remains to be seen whether it can fend off other BNPL providers and really cement its dominance. This company only floated on the ASX in December of last year, but early signs are very promising. In May, for instance, Openpay reported that it’s customer numbers had increased by more than 130% year on year in the month of May. With its current market capitalisation of ~$244 million, there is definitely room for growth here.

Foolish takeaway

Whilst I did get some FOMO (fear of missing out) looking at Openpay’s recent performance, I don’t think I’ll be jumping on this share in the near future.

It’s still very early days for this company, and I think it will need to pull off a herculean task in carving out a successful presence in the buy now, pay later space. A space which seems to be getting more crowded every week. As such, I’ll be sitting on the sidelines on this one.

More reading

• Could one of these ASX shares be ‘the next Afterpay’?
• Why Xero and these ASX tech shares just hit record highs
• 3 high quality ASX shares I would buy if there were another market crash
• ASX 200 finishes higher, Afterpay hits new record
• 3 ASX payments shares that could double your money

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. 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 Purchasing Openpay shares in March in would have pocketed you this return appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3fRj6DG

The S&P/ASX 200 Index (ASX: XJO) dropped 2.5% today to 5,818 points.

Investors are becoming more fearful about the spread of COVID-19 again. The S&P 500 (INX) fell by 2.6% overnight and the ASX generally follows what international share markets do in the short-term.

ASX travel shares and banks sell off

Some of the ASX 200 shares that are most at risk of another COVID-19 uncontrolled outbreak were the ones that fell the most today.

The share price of Flight Centre Travel Group Ltd (ASX: FLT) fell by 11%.

Webjet Limited (ASX: WEB) suffered a share price decline of 8.6%.

The Corporate Travel Management Ltd (ASX: CTD) share price dropped 8%.

It wasn’t just ASX 200 travel shares that declined today.

The Commonwealth Bank of Australia (ASX: CBA) share price fell 2.3%, the Westpac Banking Corp (ASX: WBC) share price dropped 3.5%, the Australia and New Zealand Banking Group (ASX: ANZ) share price declined 3.1% and the National Australia Bank Ltd (ASX: NAB) share price dropped 3.5%.

CSL Limited’s (ASX: CSL) deal

Healthcare leader CSL announced it is going to acquire the exclusive global license rights to commercialise an adeno-associated virus (AAV) gene therapy program called AMT-061 for the treatment of haemophilia B. The AMT-061 program, currently in phase 3 clinical trials, could be one of the first gene therapies to provide potential long-term benefits to patients with haemophilia B.

If AMT-061 is successful, appropriate candidate haemophilia B patients would be able to have a one-time treatment to restore factor IX plasma level activity to functional levels capable of eliminating the need for frequent and ongoing replacement therapies.

The ASX 200 business will start with an upfront US$450 million payment to uniQure followed by regulatory and commercial sales milestone payments and royalties.

Qantas Airways Limited (ASX: QAN) turnaround plan

Qantas has announced a $1.9 billion capital raising to help the business remain financially strong during the next three years.

It is looking to raise approximately $1.4 billion in a fully underwritten institutional placement and up to $500 million in a non-underwritten share purchase plan. The placement price is $3.65 per share, which is a 12.9% discount to the last traded price. The new shares represent a 25% increase to the total shares on issue.

Qantas unveiled a plan that is targeting $15 billion of lower costs over three years in line with reduced flying activity including fuel consumption savings. It hopes to achieve $1 billion per annum of ongoing cost savings from FY23 with productivity improvements.

The ASX 200 airline is going to cut 6,000 jobs across all parts of the business. It will continue to stand down 15,000 employees, particularly those associated with international operations. It will also ground up to 100 of its aircraft for up to 12 months (or more). Some leased aircraft may be returned as they fall due.

The cost of implementing this plan is expected to cost $1 billion with most of it realised during FY21.

Bapcor Ltd (ASX: BAP) reports large growth

Bapcor announced it has seen a large amount of sales growth for two of its main divisions.

The ASX 200 auto parts business said its retail segment experienced strong demand in May and June with Autobarn same store sales increasing over 45% from the prior year. On a full year basis to the end of June 2020, it is estimated that Autobarn same store sales will increase by approximately 8%.

Burson Trade has also experienced strong demand in May and June with same store sales growth to be up approximately 10%. On a full year basis, Bruson same store sales growth is expected to be around 5%.

Bapcor’s segments that suffered most heavily due to COVID-19 were New Zealand, specialist wholesale and Thailand. These segments are also recovering.

Management is now experiencing net profit after tax (before significant items) for FY20 to be in the range of $84 million to $88 million.

More reading

• In today’s market, should you buy ASX shares, buy gold, or hold cash?
• The BHP share price has jumped 40% higher in the last 3 months
• Top brokers recommending you buy these ASX shares in this market sell-off
• 3 quality ASX shares offering shareholders generous dividends
• Transurban Group and 1 other ASX share I’d buy in another share market crash

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 owns shares of and has recommended Bapcor, Corporate Travel Management Limited, and Webjet Ltd. 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 ASX 200 drops 2.5%, ASX travel shares dumped appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2Nvg386

So, you have some spare cash to invest in shares right now? Maybe this is your first time investing in ASX shares, or maybe you are looking to top up your ASX share portfolio.

Either way, with the S&P/ASX 200 Index (ASX: XJO) still well down on its pre-coronavirus highs and market confidence continuing to gradually improve, now could be a good time to invest.

Here we take a close look at 2 of my top ASX share picks right now: BetaShares NASDAQ 100 ETF (ASX: NDQ) and Wesfarmers Ltd (ASX: WES).

BetaShares NASDAQ 100

My first ASX share investment recommendation is an exchange-traded fund (ETF). The advantage of ETFs over regular listed shares is that you get instant diversification to a wide range of listed companies.

The BetaShares NASDAQ 100 ETF invests in a basket of shares on the US NASDAQ exchange. It is comprised of the 100 largest, non-financial businesses on this exchange and is home to some of the world’s most successful businesses, with a high proportion of tech companies. These include tech giants such as Amazon, Google, Facebook, Microsoft, Netflix and Apple. Many are world-leading brands, and many also have strong and dominant positions in their individual market niches.

Given Australia’s tech sector is very small compared to the US market, purchasing this ETF gives you instant access to a much larger tech market not normally available via the ASX.

It’s also an easier (and cheaper) way to get exposure to the US tech market than by investing directly in US-listed tech companies. Buying individual US shares requires a separate trading account, and the transactions fees are also higher than they are for regular ASX shares.

Wesfarmers

Although Wesfarmers is a single listed company, one attribute that it has in common with an ETF like BetaShares NASDAQ 100 ETF is its strong sector diversification. Purchasing this ASX share gives you instant access to Wesfarmers’ expansive portfolio of high-quality companies.

Wesfarmers is a highly diversified business with operations in general retail segments including home improvement and outdoor living, apparel and general merchandise and office supplies. It also has exposure to industrial segments with operations in chemicals, energy and fertilisers, and industrial and safety products. This diversification provides a buffer to various parts of the economic cycle.

Wesfarmers also has a strong balance sheet, positioning it well to ride out the current crisis. It also has witnessed strong demand from its online retail offerings during the coronavirus pandemic.

Foolish takeaway

While both are very different investments, I believe that the BetaShares NASDAQ 100 ETF and Wesfarmers are worthy of consideration for adding to your ASX share portfolio. Both provide strong market diversification in 2 very different markets, and could be well placed to outperform the ASX 200 over the next 5 years, in my view.

More reading

• ASX retailers beware! Amazon.com is gearing up for its next major attack
• 3 robust ASX dividend shares you need to own
• Coronavirus second wave potential could drive investment portfolio changes
• 3 quality ASX dividend shares you can buy today
• Here are 3 Australian share market trends to watch this week

Phil Harpur has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS. 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 spend $2000 on ASX shares right now appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3dyMX2r

If you’re looking to add some tech shares to your portfolio in July, then I think the three listed below could be the ones to consider buying.

Here’s why I think these ASX tech shares could be destined for big things:

Altium Limited (ASX: ALU)

Altium is the printed circuit board (PCB) design software provider behind the popular Altium Designer platform. This award-winning platform is used by almost 50,000 users to effortlessly connect with every facet of the PCB design process. PCBs are found inside almost all electronic devices and are vital to connectivity. Given how 5G internet is supporting the rise of connected devices globally, demand for its software looks set to grow strongly over the next decade. I expect this to drive strong earnings growth once the pandemic passes.

Nearmap Ltd (ASX: NEA)

Another tech share that I would consider buying is Nearmap. It is a leading aerial imagery technology and location data company. Its software allows users to move location analysis out of the field and into the office. This gives businesses the tools to scale quickly and efficiently. I think Nearmap could have a bright future ahead of it due to its lucrative opportunity in a highly fragmented market. And thanks to recent product launches, I’m confident the company will grow its market share in the ANZ and North America markets in the coming years and drive strong sales growth.

NEXTDC Ltd (ASX: NXT)

A final tech share to consider buying is NEXTDC. I believe the innovative data centre operator is perfectly positioned to capitalise on the ever-increasing amount of data being generated by consumers and businesses. This consumption is likely to increase strongly in the future as more software moves to the cloud and 5G internet adoption grows. As a result, I expect demand for capacity at its world class centres will be strong for many years to come. This should drive above-average earnings growth as it scales.

More reading

• Here are 3 top ASX tech shares to buy with $5,000 today
• Top brokers name 3 ASX 200 shares to buy today
• How to get rich by investing in ASX shares
• How ASX 200 shares like Xero could help you retire early
• Best growth shares to buy with $4,000

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 Altium and Nearmap Ltd. The Motley Fool Australia has recommended 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 stellar ASX tech shares to buy in July appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2Z6SnMH

Investing in exchange-traded funds (ETFs) can be a good way to create good returns through easy investing.

ETFs are attractive because they allow you to invest in a large number of shares through a single investment. Some ETFs are invested in a few dozen shares and others own thousands of shares. It just depends which one you go for.

But diversification is only helpful to a certain level. I think the best type of diversification is when you decrease your risks without decreasing your returns.

Imagine that a lot of your portfolio is invested in Afterpay Ltd (ASX: APT), Splitit Ltd (ASX: SPT), Sezzle Inc (ASX: SZL) and Zip Co Ltd (ASX: Z1P). Your portfolio would have created great returns recently, but it’s largely exposed to the same risks. If you also had shares like Xero Limited (ASX: XRO), CSL Limited (ASX: CSL), City Chic Collective Ltd (ASX: CCX) and others in your portfolio then your ‘industry risk’ is lowered but the returns would still be strong.

That’s why I think certain ETFs can provide you with good diversification and good returns. They can add to your portfolio’s strength.

Here are two of those ideas:

BetaShares Global Sustainability Leaders ETF (ASX: ETHI)

Ethical investing may sound like it’s expensive, or perhaps you’re worried about missing out on better returns if you included ‘unethical’ shares in your portfolio.

But this option is actually a really good pick in my opinion. Its annual operating costs are just 0.59% per annum. That’s a lot cheaper than most Australian fund managers. The ETF screens out a number of categories which are deemed unethical.

And the returns? Well they’re strong too. Since inception in January 2017 to May 2020 it has generated net returns of 21.2% per annum. Over the 12 months to 31 May 2020 it generated net returns of 33%. Don’t forget those time periods include the COVID-19 selloff.

I think it shows that ethical businesses may actually perform better than just the ‘average’ business.

What shares does this ETF own which are ethical and perform so well? Its largest 10 exposures at 31 May 2020 were: Apple, Mastercard, Visa, Home Depot, NVIDIA, Adobe, PayPal, Toyota, Netflix and ASML. In total it owns around 200 shares. 

I think that looks like a high quality group to me. 

Betashares Global Cybersecurity ETF (ASX: HACK)

This ETF is made up of many of the world’s leading cybersecurity businesses.

You may have seen the news that Australia was recently subject to a widespread cyber attack. That’s just the latest example of businesses and governments around the world that have faced cyber problems.

More and more government services with integral data are being offered online. Citizen information needs protecting. Lots of businesses are now moving their computer infrastructure online. Valuable intellectual property needs protecting. Customer data needs to be kept out of the hands of hackers.

Betashares Global Cybersecurity ETF’s top holdings include: Crowdstrike, Broadcom, Splunk, Okta, Cisco, Cloudflare, Zscaler, VMware, BAE Systems and Booz Allen Hamilton. I

Around half of the ETF’s sector allocation is to systems software. Other sectors include communications equipment and internet services and infrastructure.

The returns of this ETF are also very strong. Since inception in August 2016, the fund has returned around 20% per annum after fees. Over the past year it has made a 27.8% return.

If you were with an investment manager you’d probably expect to be paying high fees for these types of returns. The annual management fee cost is just 0.67% per annum. I don’t think that’s super cheap compared to some of the other international ETFs, but it’s cheaper than most fund managers in Australia.

Foolish takeaway

I really like both of these ETFs. They’re both different to what you’d normally see from an ASX ETF and a typical global cheap global ETF, yet the returns are just as good, if not better. 

More reading

• Building a $100,000 portfolio with Afterpay shares and 3 other ASX companies

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., Xero, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO and BETA CYBER ETF UNITS. The Motley Fool Australia has recommended 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 2 ETFs for easy investing and good returns appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/31dr2uX

The BHP Group Ltd (ASX: BHP) share price has had a very nice 3 months. BHP shares were pushing over the $40 mark back in February on the back of a strong economy, rising demand for high-yielding ASX dividend shares and rising commodity prices. But, like with most ASX shares, BHP shares were smashed in the March market crash that was sparked by the spread of the coronavirus pandemic. Between 22 January and 16 March, the BHP share price lost more than 38% of its value.

But since mid-March, BHP has staged a remarkable recovery. After hitting a low of $24.05 on 16 March, BHP shares have climbed almost 40% — going off of today’s share price (at the time of writing) of $35.02. Over the same period, the S&P/ASX 200 Index (INDEXASX: XJO) has regained around 18.6% or close to 29% from its own low point on 23 March.

BHP is a diversified mining giant that would easily be the largest company on the ASX if it wasn’t for the company’s London, Tokyo and New York cross-listings. The company has 4 core commodity operations: coal, copper, oil and iron ore.

So, what’s behind this dramatic revaluation of the ‘Big Australian’?

BHP shares on the rise

To understand the renewed sentiment behind the company’s share price, we only need to look at how the prices of the commodities BHP extracts and processes have been holding up. Over the course of the year, coal, oil and copper prices took a huge hit on the back of the coronavirus crisis. The copper price has recovered somewhat from lows reached in March and April. As has oil to a lesser extent, although WTI crude fell to below 0 at one point during April, so the base for recovery was very low.

But iron ore prices (which is BHP’s biggest earner) have had a remarkable year. The iron ore price is today sitting above US$100 per tonne, which is close to its highest level in almost a year. Even in the depths of the coronavirus crash, iron prices didn’t drop below US$78 a tonne. This was surprising for many investors, as iron ore is a volatile commodity that has fairly direct links with global economic growth. But a supply squeeze in the Brazilian iron ore industry has resulted in dramatic falls in output from Brazil’s Vale (a rival iron miner), which in turn has kept iron ore prices above US$90 a tonne since mid-May and over $100 a tonne since the start of June.

As a result of this, investors are expecting strong earnings from BHP shares this year, which will likely lead to strong dividend payments for shareholders in a year where many ASX companies are struggling to pay dividends at all. It’s these factors that have lead to such a robust recovery in BHP shares since March.

More reading

• Top brokers recommending you buy these ASX shares in this market sell-off
• 3 quality ASX shares offering shareholders generous dividends
• Transurban Group and 1 other ASX share I’d buy in another share market crash
• ASX retailers beware! Amazon.com is gearing up for its next major attack
• Can 5G help push the Telstra share price higher by 2021?

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 The BHP share price has jumped 40% higher in the last 3 months appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2Z0aO5C

The ASX is suffering a big sell-off but this is the time investors should be hunting for buying opportunities.

The S&P/ASX 200 Index (Index:^AXJO) is likely to close near or at its intraday low with the benchmark tumbling over 2% to 5,844 in late afternoon trade.

The rising risk of a second COVID-19 wave in the US and Victoria roiled investors and is prompting many to ask if this is the start of a painful market correction.

Don’t let this pullback go to waste. I do not believe we will retest the bear market lows in March and even stocks that are not directly in the path of a second wave are getting tossed out with the bathwater.

Coincidently, leading brokers have reiterated their buy recommendation on some of these ASX shares.

Defensive buy

One of these is the Sonic Healthcare Limited (ASX: SHL) share price as Goldman Sachs restated its “buy” recommendation and described it as the “preferred name in the sector”.

The medical testing services group issued a better than expected trading update yesterday, which will likely see a 7% to 9% increase in its FY20 consensus earnings forecasts.

“Overall, new guidance is only 4-5% below pre-Covid-19 targets, which, if achieved, would be viewed as a significant achievement in such a challenging period,” said the broker.

Riding on a second wave

What’s even more exciting is management’s belief that its business in most of the regions it operates will start FY21 at around pre-coronavirus levels.

Sonic also undertakes COVID-19 testing and a second wave isn’t necessarily bad news for the group.

Goldman Sachs’ 12-month price target on Sonic is $34.50 a share.

Double-digit profit growth

Another stock with relatively safe earnings and that’s recommended by Macquarie Group Ltd (ASX: MQG) is AUB Group Ltd (ASX: AUB).

The insurance broker withdrew its earnings guidance at the peak of the pandemic but just recently issued a fresh update.

The new forecast is for adjusted net profit to range between $52 million and $53 million for the current financial year.

Earnings upgrade despite the coronavirus

That’s a 12% to 14% improvement over last year and is ahead of its previously withdrawn guidance for 9% to 11% increase!

“At a sector level, competitors have also recently noted increased rates, stable operating trends, cost out and M&A potential,” said Macquarie.

The broker’s 12-month price target on AUB is $15.11 a share.

More reading

• The BHP share price has jumped 40% higher in the last 3 months
• Transurban Group and 1 other ASX share I’d buy in another share market crash
• Top brokers name 3 ASX shares to sell right now
• ASX retailers beware! Amazon.com is gearing up for its next major attack
• Can 5G help push the Telstra share price higher by 2021?

Motley Fool contributor Brendon Lau owns shares of Macquarie Group Limited. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended Sonic Healthcare 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 Top brokers recommending you buy these ASX shares in this market sell-off appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/37XLvW2

The Ardea Resources Ltd (ASX: ARL) share price surged as much as 15.69% higher today as the company reported “significant” gold exploration results from a new target at its flagship project.

Ardea is a multi-commodity explorer and developer that controls more than 5,100 square kilometres of tenure in Western Australia.

It is focused on advancing its flagship wholly-owned Goongarrie Nickel Cobalt Project (GNCP), which is part of the largest nickel-cobalt resource in the developed world. 

Goongarrie is located 80 kilometres north of Kalgoorlie and offers multi-commodity exposure, including nickel, cobalt, aluminium and gold.

Why did the Ardea share price jump today?

The catalyst for today’s move appears to be an announcement from the company this morning. In the release, Ardea revealed that first pass regional aircore drilling over a new gold target at GNCP has intercepted significant gold anomalism. 

The target is currently unnamed and covers around 2.4 kilometres of strike. It is located 3 kilometres east of the nearest nickel-cobalt deposits that constitute the GNCP.

Significant intercepts announced today include:

• 4 metres at 0.53 grams per tonne (g/t) gold from 36 metres;
• 6 metres at 1.83g/t gold from 118 metres;
• 5 metres at 3.91g/t gold from 42 metres;
• 6 metres at 0.50g/t gold from 44 metres; and
• 6 metres at 0.54g/t gold from 66 metres.

The drilling, which consisted of 46 aircore holes for 3,787 metres, was completed at the end of May 2020. A total of 680 samples were collected for assay.

The company is currently awaiting assay results from a resampling program to confirm gold mineralisation thickness and grade.

Once Ardea has received these results, it will complete a more detailed interpretation of the logged geology and assay data.

Ardea noted that deeper drilling is required to confirm the geometry and extensions of gold mineralisation into fresh rock.

“Though at a very early stage, these results from the newly identified Goongarrie South target area suggest strong gold anomalism over an extensive area that has never been systematically explored before this program,” said managing director Andrew Penkethman. 

After racing to an impressive gain in early morning trade, the Ardea share price pulled back throughout the day to eventually close 5.88% higher at 27 cents. With this rise, the company’s market capitalisation currently stands at just over $30 million.

More reading

• Where I would spend $2000 on ASX shares right now
• 3 stellar ASX tech shares to buy in July
• 2 ETFs for easy investing and good returns
• The BHP share price has jumped 40% higher in the last 3 months
• Top brokers recommending you buy these ASX shares in this market sell-off

Motley Fool contributor Cathryn Goh 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 Why the Ardea Resources share price charged 15% higher today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2YxJ6OA