One of the easiest ways to invest in ASX shares is just to regularly invest. 

Market timing can be very difficult, and it may not make that much difference over the long-term. You don’t know when/if shares are going to drop back to a valuation that looks too good to miss. Even when there is a large fall – like March this year – it may be hard to commit to investing when things look shaky.

Unless you’re going to commit a lot of time to investing in shares, the best strategy could be to try to make the timing of your investing as automated as possible.

But there aren’t that many shares that you can easily commit to investing in every month because valuations can change so much. I like the idea of going for diversified options so that the risk from any particular business is lower.

Here are two ASX shares that could be worth buying with $1,000 every single month:

Share 1: Betashares Global Sustainability Leaders ETF (ASX: ETHI)

This is an exchange-traded fund (ETF) which aims to give investors exposure to businesses which rank well on ethical considerations.

There are a number of eligibility screens that companies have to pass to make it into this ETF’s holdings.

It removes companies which have any direct involvement in the fossil fuel industry as well as ones with material direct exposure and those with a particularly high use of fossil fuels. Businesses have to rank well when it comes to climate factors.

It also excludes a number of other activities that aren’t deemed to be responsible such as gambling companies, tobacco, armaments, alcohol, junk foods and pornography.

This ETF is invested in 200 global shares, they aren’t ASX shares. Its top 10 holdings are full of businesses that are quality names like: Apple, Nvidia, Mastercard, Home Depot, Visa, Adobe, Paypal, Tesla, Toyota and Netflix. Thankfully, a large portion of the ETF – more than a third – is invested in tech shares. I think that’s good because technology is where the most earnings growth is coming from these days.

The ASX share has performed strongly since inception in January 2017, with net returns per annum of 20.3%. These shares have recovered strongly since the COVID-19 crash. 

I think this ETF offers a lot of attractive attributes. I’d be willing to regularly buy this ETF because of how many shares it’s invested in. It offers good diversification, and its businesses are seemingly high quality.

Share 2: MFF Capital Investments Ltd (ASX: MFF)

MFF Capital is a listed investment company (LIC). It’s operated by Magellan Financial Group Ltd (ASX: MFG) co-founder Chris Mackay. I think he has proven to be one of the best investors in Australia.

Over the past decade MFF Capital has delivered average total shareholder returns per annum of 17.8% per annum. Past performance isn’t a guarantee of future performance, but I think it shows the level of returns that MFF Capital can produce.

The ASX share has been invested in high-quality businesses like Visa and Mastercard for years. They continue to be great investments and represent around a third of the MFF Capital portfolio. It currently has a large cash position which can be used for protection against a near-term market downturn and more importantly the cash can be used to purchase good value shares.

MFF Capital regularly trades at a discount to its net tangible assets (NTA) per share. The fact that it always trades at a discount means that we can always buy it at a decent price. On 14 August 2020 it had an NTA per share of $2.82. That means it’s trading at a 7% discount to the last known NTA.

The ASX share’s board has recently announced it intends to keep increasing the dividend – which means shareholders will steadily get bigger payments over time.

Foolish takeaway

I really like both of these ASX shares. The ETF has a lot of great investments with good diversification. I think MFF Capital is one of the best LICs. I believe they’re both worth investing in regularly.

More reading

• The smartest 7 ASX shares to buy if you have $2,000
• My ASX share of the week
• Got $3,000? Buy these 3 top ASX shares right now
• 3 quality ETFs I’d buy for my portfolio
• Got $1,500? Here are 3 ASX shares I’d buy

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

The post 2 ASX shares I’d invest $1,000 into EVERY month appeared first on Motley Fool Australia.

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

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Shares of Tesla (NASDAQ: TSLA) soared on Thursday, rising more than 7% as of 3:00 p.m. EDT.

The stock’s gain builds on recent momentum since the announcement of an upcoming five-for-one stock split. This momentum and an overall bullish day for growth stocks (like Tesla) are likely behind the stock’s rise on Thursday.

So what

Shares of Tesla have been on a tear recently. The stock is now up nearly 800% over the past 12 months and 24% in the past five trading days alone. Investors — and even some analysts — have cheered the company’s upcoming stock split, betting it will solicit more demand for the stock at a time when many retail investors are turning to individual stocks. This pre-stock split momentum seems to be continuing today.

Though the imminent split is probably not one of the main reasons Tesla stock is trading higher on Thursday, one headline that could have a slightly positive impact on price action today comes from the Asian news website Nikkei. The news website reports that Panasonic plans to invest more than $100 million next year in battery-production capacity at Tesla’s factory in Nevada. In addition to boosting production capacity at the factory, the company is upgrading the storage capacity of the batteries it is making by 5% in September, according to Nikkei.

Now what

Tesla’s business recovered quickly from factory shutdowns earlier this year. The company recently reinitiated its pre-COVID guidance for 500,000 vehicle deliveries this year, up from about 368,000 deliveries in 2019.

Tesla shares will begin trading on a five-for-one split-adjusted basis on Aug. 31.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Tesla Gigafactory 1 to boost battery production capacity 10% after new $100 million panasonic investment
• Sorry, cheap stocks aren’t the best stocks. Here’s why
• Here are the top 5 US shares ASX investors have been buying
• These soaring tech shares are making savvy investors rich
• Stock split watch: Could Amazon be next?

Daniel Sparks 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 Tesla. 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 Tesla Stock Soared Past $2,000 on Thursday appeared first on Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from Motley Fool Australia https://ift.tt/3l2s6JG

The a2 Milk Company Ltd (ASX: A2M) share price will be on watch on Friday after a major announcement.

What did a2 Milk Company announce?

Earlier this week when a2 Milk Company released its full year results, it revealed that it finished the period with a cash balance of NZ$854.2 million.

It also advised that it would assess complementary merger and acquisition opportunities to drive further growth within its core markets.

Well, it certainly didn’t take long for the company to put these funds to work. This morning a2 Milk Company has announced that it is in discussions to make a major acquisition.

What is a2 Milk acquiring?

According to the release, the company is engaged in discussions with Mataura Valley Milk (MVM), a New Zealand dairy nutrition business, to explore options for it to participate in manufacturing at MVM’s facility in Southland, New Zealand.

As part of these discussions, the company has made a non-binding indicative offer to acquire a 75.1% interest in MVM for a total consideration of approximately NZ$270 million. This is based on an enterprise value of ~ NZ$385 million.

Management advised that MVM has agreed to provide the company with a period of exclusivity to conduct confirmatory due diligence and negotiate definitive transaction documentation.

This exclusivity arrangement is supported by MVM’s current majority shareholder, China Animal Husbandry Group (CAHG), which would retain a 24.9% interest in MVM alongside a2 Milk Company.

CAHG is a wholly owned subsidiary of China National Agriculture Development Group, which is also the parent company of a2 Milk Company’s strategic partner in China, China State Farm.

An acquisition aligned with its strategic objectives.

The company’s current Chief Executive Officer, Geoff Babidge, believes the potential acquisition would align with its strategic objectives.

He said: “As previously announced, due to the increasing scale of our infant nutrition business, we have been assessing participation in manufacturing capacity and capability. The potential investment in Mataura Valley Milk’s recently commissioned facility, alongside China Animal Husbandry Group, aligns with this strategic objective as we look to complement and build upon our current strategic relationships with Synlait Milk and Fonterra Co-operative Group, which remain in place.”

“Our intention would be to invest further to establish blending and canning capacity at Mataura’s facility to support the establishment of a fully integrated manufacturing plant for infant nutrition,” he added.

Though, the company warned that discussions with MVM are ongoing and remain incomplete. In addition, any potential transaction is subject to further due diligence, negotiation of definitive agreements, and requisite regulatory and third-party approvals. If a deal is made, it isn’t likely to complete until the end of FY 2021.

More reading

• Where to invest $10,000 into ASX shares immediately
• Top brokers name 3 ASX shares to sell today
• I think the A2 Milk share price is a buy
• Why a2 Milk, Kogan, Nearmap, & Resolute shares are dropping lower today
• ASX 200 up 0.8%: ANZ to pay dividend, a2 Milk tumbles, CSL impresses

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 a2 Milk share price on watch after announcing Mataura Valley Milk acquisition plans appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2QdJ3Tb

Have you seen the interest rates on savings accounts these days? Many of the big banks are offering base rates of just 0.05% per annum.

This means that if you had $10,000 in one of these savings accounts, you would earn interest of just $50 a year.

I’m very confident that far greater returns can be found in the share market. As a result, I would be investing these funds into ASX shares if you have no immediate use for them.

But which ASX shares should you buy? Here are two I would snap up:

a2 Milk Company Ltd (ASX: A2M)

I think a2 Milk Company would be a good option for these funds. The infant formula and fresh milk company was a strong performer once again in FY 2020. It delivered a 32.8% increase in revenue to NZ$1,730 million and a 34.1% lift in net profit after tax to NZ$385.8 million thanks largely to strong demand for its infant nutrition products in China.

The good news is the company still only has a 2% value share of the mother and baby store market in the country. I believe this gives it a significant runway for growth over the next decade. It is also worth noting that a2 Milk Company ended the period with a cash balance of NZ$854.2 million. I expect these funds to be deployed on earnings accretive acquisitions over the coming years that could accelerate its growth.

Pushpay Holdings Group Ltd (ASX: PPH)

Another place to consider investing $10,000 is Pushpay. It is an exciting technology company which provides churches and not-for-profits with donor management and engagement solutions. The company has been growing its sales at a rapid rate over the last few years. Pleasingly, this growth has been particularly strong during the pandemic, with the crisis accelerating the adoption of its solutions with churches eager to engage with their congregation and adapt to the rise of the cashless society.

In fact, after delivering stellar growth in FY 2020, management expects an even stronger performance in FY 2021. It recently revealed that it expects to double its operating earnings this year. The good news is that I don’t expect this growth to stop there. Pushpay still has a very long runway for growth over the next decade.

More reading

• a2 Milk share price on watch after announcing Mataura Valley Milk acquisition plans
• Top brokers name 3 ASX shares to sell today
• The smartest 7 ASX shares to buy if you have $2,000
• I think the A2 Milk share price is a buy
• Why a2 Milk, Kogan, Nearmap, & Resolute shares are dropping lower today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. 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 Where to invest $10,000 into ASX shares immediately appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2CJ1Mmu

On Thursday the S&P/ASX 200 Index (ASX: XJO) ended its winning streak with a disappointing decline. The benchmark index fell 0.7% to 6,120 points.

Will the market be able to bounce back from this on Friday? Here are five things to watch:

ASX 200 expected to push higher.

It looks set to be a positive end to the week for the benchmark ASX 200. According to the latest SPI futures, the benchmark index is poised to open the day 12 points or 0.20% higher this morning. This follows a strong night of trade on Wall Street which saw the Dow Jones rise 0.3%, the S&P 500 climb 0.3%, and the Nasdaq storm 1.1% higher.

TPG half year results.

The TPG Telecom Ltd (ASX: TPG) share price will be on watch today when it hands in its half year results. According to a note out of Goldman Sachs, it is forecasting first half EBITDA to decline -7% to $897 million. This is largely due to weakness in the consumer business. The broker is also looking out for commentary on COVID-19 impacts and mobile pricing.

Oil prices tumble.

It could be a difficult day for energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) after oversupply concerns weighed on oil prices. According to Bloomberg, the WTI crude oil price is down 0.7% to US$42.62 a barrel and the Brent crude oil price is down 1% to US$44.90 a barrel.

Suncorp FY 2020 results.

The Suncorp Group Ltd (ASX: SUN) share price will be in focus today when the insurance and banking giant releases its full year results. According to CommSec, the market is expecting Suncorp to deliver a full year net profit after tax of $696.75 million. Investors may also want to keep an eye out for commentary around COVID-19 impacts on loans and insurance claims.

Gold price steadies.

Gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) will be on watch after a mixed night of trade for the gold price. According to CNBC, the spot gold price is fetching US$1,955.20 an ounce. This is up slightly from 24 hours ago, but down sharply over the last few days.

More reading

• ASX 200 down 0.8%, IDP Education soars
• The latest ASX 200 stocks hit by broker downgrades
• Is now a good time to buy Fortescue shares?
• COVID-19 panic: SMSFs fled shares, then missed market rally
• Why CSL, Iress, Santos, & Webjet shares are dropping lower

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 5 things to watch on the ASX 200 on Friday appeared first on Motley Fool Australia.

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

If you’re keen to boost your income portfolio with some dividend shares, then I would suggest you look at the ones listed below.

I believe both companies are well-positioned to pay generous dividends in FY 2021 and beyond. Here’s why I would buy them:

Aventus Group (ASX: AVN)

I think Aventus would be well worth considering. Although the pandemic has hit retail property companies hard, I’m optimistic that Aventus will be a lot less impacted than others. This is due to its focus on large format retail parks and the high weighting of its tenancies towards everyday needs.

Aventus counts the likes of ALDI, Bunnings, Officeworks, and The Good Guys as tenants, to name just a few. Given how these companies have continued to thrive during the pandemic, I expect its rental collections to remain solid. In light of this and based on the current Aventus share price, I estimate that it provides investors with an FY 2021 dividend yield of over 6%.

Dicker Data Ltd (ASX: DDR)

A second dividend share I would buy is Dicker Data. I think the wholesale distributor of computer hardware and software across the ANZ region is one of the best and underappreciated dividend shares on the local market. It has been growing its earnings and dividends at a solid rate consistently over the last five years. Pleasingly, this strong form has continued in FY 2020 with Dicker Data reporting record sales and profits in the first half.

This has positioned the company to deliver on its plan to increase its dividend by 31% to 35.5 cents per share this year. Based on the current Dicker Data share price, this represents a generous fully franked 4.5% dividend yield. Another positive is that Dicker Data pays its dividends in quarterly instalments. This could make it a good option for those looking for more regular income.

More reading

• Buy these generous ASX dividend shares for income in 2021
• 2 top ASX tech shares to buy and hold beyond 2026
• 3 ASX dividend shares offering generous yields
• Rates on hold until 2023? Buy these ASX dividend shares
• These high yield ASX dividend shares will help you smash low interest rates

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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 high yield ASX dividend shares to buy today appeared first on Motley Fool Australia.

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

I think having a few blue chip ASX shares in your portfolio can be a good thing.

This is because they tend to be more stable than average, pay dividends, and have strong market positions. All in all, I feel these are the qualities you want for core holdings in a portfolio.

Three blue chip shares which I think also offer solid growth potential are listed below. Here’s why I think this makes them top options for investors right now:

Coles Group Ltd (ASX: COL)

The first blue chip share to buy is Coles. I think it is one of the best blue chips on the Australian share market due to its defensive qualities and solid long term growth potential. The latter is thanks to its strong market position, online growth, expansion opportunities, and cost cutting plans. Another positive with the supermarket giant is that it offers investors a reasonably attractive dividend yield. Based on the current Coles share price, I estimate that it will provide a 3.1% fully franked dividend yield in FY 2021.

CSL Limited (ASX: CSL)

Another blue chip to consider buying is this biotherapeutics giant. I think CSL is the highest quality company on the Australian share market and well-positioned to generate solid returns for investors over the next decade. This is thanks to its lucrative and in-demand therapies that are treating conditions which have no real alternative treatments. In addition to this, the company has an extremely promising pipeline of therapies under development. These have the potential to generates billions of dollars in sales in the future if all goes to plan.

Goodman Group (ASX: GMG)

A final blue chip share to consider buying is this commercial and industrial property company. I believe Goodman Group is well-positioned for long term growth due to the strength of its portfolio and future property developments. Especially given its focus on high-quality properties in key locations that it believes will deliver sustainable returns for investors. These include logistics and warehouse facilities which have exposure to the rapidly growing ecommerce market.

More reading

• Is the CSL share price a buy?
• Where to hunt for ASX dividend share income in 2020
• Why CSL, Iress, Santos, & Webjet shares are dropping lower
• After the stellar COVID-19 rebound, can ASX share prices keep rising?
• Sonic share price surges to record high as its profit results defy sceptics

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 CSL Ltd. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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 Buy CSL and these quality ASX blue chip shares today appeared first on Motley Fool Australia.

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

I continue to believe that one of the best ways for investors to grow their wealth is to make long term investments in quality shares with strong business models and positive outlooks.

Three shares that tick a lot of boxes for me are listed below. Here’s why I think they could provide outsized returns for their shareholders over the next decade:

Altium Limited (ASX: ALU)

The first growth share that I would buy is electronic design software company Altium. Due to its key Altium Designer product and its exposure to the rapidly growing Internet of Things and artificial intelligence markets, I believe it is well-positioned to grow its revenue and earnings at solid rate over the coming years. Management certainly believes this will be the case. It remains confident the company will achieve its target of US$500 million in revenue, 100,000 subscriptions, and market domination. And while this appears likely to be a touch later than its original target of FY 2025 because of the pandemic, I’m very confident it will get there. Especially given the early success of its Altium 365 cloud-based offering and its other growing businesses such as NEXUS and Octopart.

Appen Ltd (ASX: APX)

Another growth share to consider buying is Appen. It is the global leader in the development of high-quality, human-annotated training data for machine learning and artificial intelligence. Appen has a massive team of 1 million+ crowd-sourced workers across the globe helping to improve the artificial intelligence models of many of the biggest tech companies in the world. Given the growing importance of artificial intelligence and machine learning and Appen’s leadership position in its field, I feel it is well-placed to continue growing its earnings at a strong rate in the 2020s.

ResMed Inc. (ASX: RMD)

A final growth share to consider buying is ResMed. I think the sleep treatment-focused medical device company is well-positioned for growth in the coming years thanks to its industry-leading products, growing ecosystem of connected devices, and its sizeable market opportunity. Management estimates that there are 936 million people with sleep apnoea globally and 380 million people suffering from chronic obstructive pulmonary disease (COPD). This gives it a significant runway for growth.

More reading

• Top brokers name 3 ASX 200 shares to buy today
• Is the Altium share price a buy?
• The Appen share price just soared to an all-time high. Is it a buy?
• Nextdc and 2 other thriving ASX tech shares to buy
• ASX 200 drops 0.8%, JB Hi-Fi jumps 4.5%

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. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended 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 3 stellar ASX growth shares to buy in FY 2021 appeared first on Motley Fool Australia.

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

The Pure Foods Tasmania Ltd (ASX: PFT) share price has rocketed 144% higher so far in August. That gain represents the lion’s share of Pure Foods’ 154% share price gain since listing on the ASX on 30 April.

By comparison, the All Ordinaries (INDEXASX: XAO) has gained 3.5% in August and 12% since April 30.

Pure Food’s remarkable August share price surge comes despite Thursday’s 12% fall, likely driven by some profit taking.

At the current share price of 64 cents per share, the company has a market cap of $36 million.

What does Pure Foods do?

Pure Foods Tasmania was formed in 2015 and began trading on the ASX in April 2020.

The company’s business strategy is to acquire and develop premium Tasmanian food businesses. Today Pure Foods has acquired two businesses, held through separate wholly owned subsidiaries. Tasmanian Pate, which supplies numerous big brand chains such as Aldi, Woolworths and Costco. And Woodbridge, which produces premium Tasmanian smoked salmon and trout.

Why has the Pure Foods share price leaped 144% in August

Pure Foods shares began trending strongly higher on the first trading day of August. That followed on the release of its quarterly performance report for the quarter ending June 30, released to the market on 30 July.

The report noted that Pure Foods was on track to deliver annual revenue growth of 22% compared to the 2019 financial year. The company also noted that export sales remained firm, despite disruptions from COVID-19 and trade frictions with China. The company also announced the pending launch of its online store.

The Pure Foods share price really took off following an ASX announcement released on 6 August. That stated that Pure Foods was going to launch a new range of 3 Tasmanian Pates into 850 Woolworths stores across Australia. Those will be available from mid-October. Pure Foods estimated the addition of these 3 products would increase its sales by 35%.

Managing Director, Michael Cooper said:

This is a great credit to the team at PFT working with Woolworths to develop a first for the pate category. We believe these new products are unique and aligns with our strategy to produce great tasting premium food using 100% Tasmanian ingredients where possible.

Pure Foods’ share price has gained 72% since the announcement on 6 August.

More reading

• 3 stellar ASX growth shares to buy in FY 2021
• Medical Developments International share price tumbles on FY 2020 profit decline
• ASX 200 down 0.8%, IDP Education soars
• Charter Hall share price jumps 6% on FY20 results
• Audinate share price drops 7% as coronavirus hits FY20 earnings

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

The post Why has the Pure Foods share price soared 144% in August? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3aSwIh3

The Medical Developments International Ltd (ASX: MVP) share price was out of form on Thursday.

The healthcare company’s shares tumbled 9% lower to $6.04 following the release of its preliminary full year results.

How did Medical Developments International perform in FY 2020?

For the 12 months ended 30 June 2020, Medical Developments International reported a 10.6% increase in revenue to $23.64 million.

This was driven by respiratory sales, which grew 61% in FY 2020 to an all-time high due to COVID-19 related purchasing, new product launches, and new pharmacy channel success in multiple markets. Respiratory sales in Australia grew 43% and sales in North America grew by 88%.

This offset a decline in Penthrox sales, which were down 8% for the full year. This compares with 6% growth in the first half. Management advised that decreased sporting and outdoor activity, as well as reduced population movements, led to softening demand in the fourth quarter within the Emergency Services market.

Nevertheless, management remains very confident on its opportunities in the Emergency Services market. It commented: “Despite the immediate headwinds experienced by Penthrox during the COVID-19 pandemic the convenience, utility and safety of the product within Emergency Services has been recognised whilst operating under difficult circumstances and we expect to emerge in a stronger position within these services.”

On the bottom line things weren’t quite as positive. The company reported a profit after tax of $0.379 million. This was down 63.5% on the prior corresponding period. Management advised that this was partly due to a higher weighting of generally lower margin medical devices sales. Also weighing on its profits was a 15% increase in operating expenses. This was a combination of increased pharmacovigilance costs and marketing expenses.

Outlook.

Management expects FY 2021 to be a very busy one for the company. Over the next 12 months it expects to complete the handback of the Penthrox EU distribution rights and aggressively pursue targeted country reimbursements, launches, and expansion activity via a direct in-market presence in the EU.

It also expects to complete the roll out of Penthrox into Mexico, Iran, Jordan and Thailand, and consolidate its record year for respiratory and further grow its device sales in Australia, the USA, Europe and elsewhere.

Looking further ahead, management appears confident on its growth outlook.

It commented: “Over the next few years our global market approvals and ‘indication extensions’ for Penthrox are expected to deliver strong growth, as will our respiratory device business. We are also making good progress with our continuous flow technology. This opportunity is significant and we are optimistic we will commercialise products from the technology.”

More reading

• Why the Medical Developments International share price jumped 14% higher today
• 3 junior ASX healthcare shares with explosive growth potential
• Why Opthea shares could offer big growth potential
• Why this underperforming ASX healthcare company could still light up the market in 2020 and beyond

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 Medical Developments International Limited. The Motley Fool Australia has recommended Medical Developments International 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 Medical Developments International share price tumbles on FY 2020 profit decline appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/32809HQ