Traditional investment wisdom says the greater the risks you take, the higher the potential returns (and losses).

And in the share market, large and small capitalisation companies roughly equate to the lesser and greater risk investments, respectively.

Larger companies are more established players in their sector and are likely to have more reliable and steady revenue streams.

Smaller players may have more volatile revenue streams but are at a stage when their fortunes can skyrocket (or fall off a cliff).

But recent research has revealed the old risk-reward relationship might just be a myth, at least on the ASX.

Large caps beat small caps, every time

Sydney research firm Foresight Analytics has revealed that over the last 2 decades, large cap companies have outperformed smaller rivals.

And this is seen both over the short-term (last 3 years) and over the entire 20-year timeframe.

Timeframe (to 30 June 2020)	Large cap return (% pa)	Small cap return (% pa)
1 year	(5.1)	(3.71)
3 years	7.89	5.27
5 years	8.43	6.55
10 years	8.88	5.09
20 years	8.74	6.37
Source: Foresight Analytics, table created by author

Foresight Analytics managing director Jay Kumar told The Motley Fool that in Australia a few very large companies hog most of the investor capital.

“If you look at the weighting structure… it’s heavily concentrated in the top 10, top 15 names. And also heavily concentrated in two sectors — financials and resources.”

This means the smaller players are starved of available capital. And less demand means lower returns for the small caps.

Another theory is that compulsory superannuation in Australia contributes towards more conservative investment in the local stock market.

Large caps recover better after market crashes

Another surprise against conventional wisdom is that large cap companies recover their share price faster after a market crisis.

According to Kumar, investors look for companies with very specific attributes after a traumatic event.

“After a stress in the market, generally investors tend to favour liquid and large companies,” he said.

“Over the four stress periods we analysed, small companies have significantly underperformed compared to large caps, including in the first 30 to 40 days after a crisis.”

High quality companies always outperform, as opposed to picking out mediocre companies that might be priced attractively.

“Exposure to quality companies provides a good hedge against market distress,” Kumar said.

More reading

• What do you do after record share price gains?
• Here’s why the Telstra share price fell 15% in August
• Why the Fortescue share price went backward in August
• These ASX stocks at earnings risks as the Aussie is forecast to hit US80 cents
• ASX 200 down 1.7%: Afterpay sinks on PayPal news, QBE sacks its CEO, bank shares lower

Motley Fool contributor Tony Yoo 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 Revealed: Risk-reward myth shattered appeared first on Motley Fool Australia.

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Do you remember what you were doing 34 years ago?

I know that’s a long time to think back. That is if you were even born then.

For me, though, August 1986 was a particularly memorable period. The end of the month saw me start my first year at the University of Michigan. It was an exciting time that ushered in new friends, new knowledge, and eventually new career paths.

Clearly there was a lot going on in my life that month. And as a 17-year-old uni student, I didn’t have an extra dollar to my name to even contemplate investing in the share market. So I would have had no clue that the S&P 500 Index (INDEXSP: .INX) had just posted a stellar month of share price gains.

1986, in fact, was such a good August for the top 500 listed US shares that it took 34 years for another August to roll around which beat the S&P 500’s performance that year.

Yes, I’m talking about last month, which saw the index gain 7.0%.

And it’s not just tech sharess handing investors big share price gains. Indeed, the best performer on the S&P 500 in August was Royal Caribbean Cruises Ltd (NYSE: RCL), whose share price soared more than 41% for the month. Though even after that tremendous rally, Royal Caribbean’s much-battered share price is still down almost 49% in 2020.

But you should still own tech shares

With that said, technology shares are still leading the charge in the blistering share market rebounds, both in the US and here in Australia.

The tech-heavy NASDAQ-100 Index (NASDAQ: NDX), for example, gained 11% in August. And it’s up almost 73% from the March 23 low.

One of the better gauges for tech share price performance in Australia is the S&P ASX All Technology Index (ASX: XTX). The index tracks 50 of Australia’s leading and emerging technology companies.

If you’re not familiar with it, it only launched recently, on February 24.

No surprise then that the basket of 50 shares tanked over the following month. But in testament to the strength of the nascent Aussie tech sector, the All Technology index is up a whopping 107% from its March 23 low. And it gained 13% in August, compared to the 2.2% gain posted by the S&P/ASX 200 Index (ASX: XJO).

But these strong gains don’t mean shares in general, and ASX tech shares in particular, can’t run much higher.

Gareth James, an equity research strategist at Morningstar, points to low interest rates, which are likely to remain low for quite some time, as driving the momentum behind the tech share rally.

James says (as quoted by the Australian Financial Review):

Tech stocks have strong economic moats and won’t be impacted by the downturn and some could even have an uptick in earnings outlook, but this isn’t really about the earnings, it’s about the multiples. Momentum is a strong, established phenomenon in stock markets and when a stock gets moving investors keep them moving in the same direction for a while.

What do you do after huge share price gains?

One of the biggest questions keeping investors up at night isn’t whether to sell shares that have lost them money. It’s whether to sell shares that have reaped huge gains.

Take e-commerce company Kogan.com Ltd (ASX: KGN). Kogan’s share price leapt almost 25% in August. Year-to-date the share price is up 178%. Enough to turn a $10,000 investment in $27,800.

If you’d invested at the beginning of the year, do you take some profits? Maybe sell half just in case the share price pulls back from here?

Not according to the Motley Fool’s own Andrew Legget, an analyst with Scott Phillip’s investment service, Share Advisor. And Scott and Andrew were atop Kogan’s potential fully 3 years ago.

Here’s an excerpt from Andrew’s update to Share Advisor members:

We first recommended this company (Kogan) in September 2017 at a price of $3.60. It was undoubtedly a long-term investment thesis focussed on the trend towards e-commerce. Six months later in March 2018 the price was just under $10 – a phenomenal return. If you got out here you would be up 172%. We continued to recommend members invest at this price. However, I’d be willing to bet that some looked at this price as an opportunity to get out. If they did sell, they soon probably would have felt justified as in November of that year, following a series of partial sell downs by the founder Ruslan Kogan, the share price was sitting as low as $2.65.

But Scott and Andrew didn’t recommend selling Kogan shares. In fact, they’ve never downgraded Kogan since they first recommended it.

And at Kogan’s current price of $20.93 per share, members who followed their advice will have nothing to complain about. Unless they’re unhappy with a gain of 457%!

The lesson, Andrew writes:

[W]e never got carried away at its previous highs nor did we panic when the price soon collapsed. We simply asked ourselves a simple question; has there been anything that has changed our view on the future prospects of this business? The answer we came to was “no”, so we did the only thing that made sense… nothing. Then we let time do its thing.

On a day where many ASX share prices are heading lower, we’ll leave you with that. Don’t get carried away when share prices go up and don’t panic when they go down.

Let time do its thing.

More reading

• Revealed: Risk-reward myth shattered
• Here’s why the Telstra share price fell 15% in August
• Why the Fortescue share price went backward in August
• These ASX stocks at earnings risks as the Aussie is forecast to hit US80 cents
• ASX 200 down 1.7%: Afterpay sinks on PayPal news, QBE sacks its CEO, bank shares lower

Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com 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 What do you do after record share price gains? appeared first on Motley Fool Australia.

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The Pointsbet Holdings Ltd (ASX: PBH) share price is up an eye-popping 170% since 2 January. And it owes much of that surge to last month. In August alone, the Pointsbet share price rocketed 118%.

The online bookmaker wasn’t immune to the wider stock market ravages during the early COVID-19 lockdowns. Far from it. Pointsbet’s share price crashed 80% from 13 February through to 23 March. Since that low, the share price is up an astounding 995%.

These are the kinds of gains normally reserved for long shot gambles. But it was enough to see Pointsbet’s share price gain 170% year to date.

By comparison the S&P/ASX 200 Index (ASX: XJO) is down 11% in 2020.

What does Pointsbet do?

Pointsbet is an Australian online bookmaker. The company provides gamblers with traditional fixed odds markets in sports and racing, as well as spread betting. Pointsbet advertises that it offers more markets on NBA, AFL and NRL than any other bookmaker in the world.

Pointsbet shares began trading on the ASX in June 2019.

Why the Pointsbet share price is soaring and could keep running higher

While the Pointsbet share price was already performing well in late August — up 53% year to date on 27 August — it really took off the following day.

That came on the back of its full-year 2020 financial results and its announcement of a potentially highly lucrative deal with United States network NBC, which is owned by cable giant Comcast.

On the financial end, Pointsbet posted a 194% increase in total revenue. Turnover was also up 103% from the previous year, with a 191% increase in its net win results. Earnings before interest, tax, depreciation and amortisation (EBITDA) came in at $6.9 million. And this was with numerous major sporting events being postponed or cancelled over the past 6 months.

As for the deal with NBC, Pointsbet agreed to spend some half a billion dollars in marketing with the network over the coming 5 years. In return, it gains access to NBC’s 184 million viewers, reaching 81% of the US sports betting market.

This may be a gamble, but the Motley Fool’s own Anirban Mahanti is maintaining his buy rating on the Pointsbet share price.

Anirban recommended Pointsbet in his investment service, Extreme Opportunities, back in October 2019. Members who followed his advice are today sitting on gains of 367%.

Here’s what he wrote to his readers following Friday’s share price surge:

While we are excited about this deal and its capacity to turbocharge Pointsbet’s growth ambitions, we are also cautious because the future outcomes are by no means certain.

Today’s ~$6.80 increase in the PointsBet share price is a one day ~242% increase on our cost basis of $2.80 for Pointsbet. No doubt this doesn’t happen every day. There will be tough days ahead too and as ever, it is the long term that counts.

Indeed, it is the long term that counts.

As for the short term, Pointsbet’s share price is up 0.8% in afternoon trading.

More reading

• Why Fortescue, Openpay, Pointsbet, & Sezzle shares are dropping lower
• Is it too late to buy the Pointsbet share price?
• How to invest in ASX shares in uncertain times?
• ASX 200 drops 0.9%, Costa reveals healthy result
• ASX Stock of the Day: Pointsbet share price surges 77% on NBC deal

Bernd Struben 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 has recommended Pointsbet Holdings Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post The Pointsbet share price rocketed 118% in August and our in-house pro says it’s still a long-term buy appeared first on Motley Fool Australia.

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The Telstra Corporation Ltd (ASX: TLS) share price fell 15% in August, dropping from $3.40 at the start of the month to yesterday’s closing price of $2.89.

It hasn’t been a great year for Telstra in 2020 so far either. Telstra shares are down around 20%, year to date, which isn’t a great look when the S&P/ASX 200 Index (ASX: XJO) is only down around 9.4% over the same period. So what’s going on with the ASX’s largest telco?

Telstra’s not so good, very bad month

Telstra’s disappointing month can be put down to just one thing: its earnings report for the 2020 financial year (FY20). In this report, Telstra hit its guidance and reported the continuation of the 16 cents per share dividend that the company has been paying for a few years now. But investors weren’t too stoked on the company reporting a 9.7% fall in earnings and a 14.4% drop in net profits.

Even though Telstra will be paying out 16 cents per share in dividends for FY20, I think investors are getting the wobbles about the sustainability of this payout. Telstra currently has a ‘payout ratio’ policy of paying out between 70–90% of its earnings as dividends. On Telstra’s current guidance, it will be unable to continue to pay 16 cents per share in dividends in FY21 under this framework. Thus, it’s my opinion that investors are starting to panic and are pricing in a Telstra dividend cut for FY21.

Is the Telstra share price a buy at these levels?

I think this substantial August dip is a good buying opportunity for Telstra shares. Yes, its earnings are continuing to be battered by the NBN rollout and a sluggish economy. But I happen to think Telstra’s 16 cents per share dividend is safe for FY21.

My Fool colleague James Mickleboro pointed out last month that if Telstra moved to a free cash flow model for its dividend payments, its 16 cents per share payout could be sustained going forward, a view shared by both investment bank Goldman Sachs and myself. What’s more, I think Telstra’s heavy investment in its 5G rollout will pay dividends in the future (literally).

5G is the next generation of mobile network technology and could unlock some significant future earnings streams if Telstra can capture the lion’s share of a 5G market (which is likely, in my view). Yes, Telstra is facing some challenges. But at the end of the day, I think it’s a reliable dividend payer with a defensive earnings base and some future 5G growth potential. I’d be happy to pay under $3 for Telstra shares today as a result.

More reading

• Revealed: Risk-reward myth shattered
• What do you do after record share price gains?
• Zip and Brainchip were among the most traded shares on the ASX last week
• Why the Fortescue share price went backward in August
• These ASX stocks at earnings risks as the Aussie is forecast to hit US80 cents

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

The post Here’s why the Telstra share price fell 15% in August appeared first on Motley Fool Australia.

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Australia’s leading investment platform provider CommSec has just released data on the five most traded ASX shares on its platform from last week.

Once again, there were a number of familiar names in the list this week, which were joined by a surprise addition.

Here’s the data:

Zip Co Ltd (ASX: Z1P)

This buy now pay later provider was incredibly popular with ASX investors last week. Zip shares accounted for a staggering 9.9% of total trades made on the CommSec platform, with approximately two-thirds of these trades coming from buyers. Investor were buying the company’s shares following a series of positive announcements. These include a big improvement in the performance of its QuadPay business, a partnership with eBay, and the release of its full year results. These buyers certainly did well. The Zip share price hurtled 35% higher over the period.

Afterpay Ltd (ASX: APT)

Afterpay shares were popular with investors once again last week. The payments company’s shares accounted for 2.7% of trades on the CommSec platform. And like rival Zip, the majority of these trades came from buyers. Approximately 68% of trades were from the buy side, which helped drive the Afterpay share price 12% higher over the period. The announcement of its European expansion was the key catalyst for this gain.

Brainchip Holdings Ltd (ASX: BRN)

The surprise entry to this week’s list is Brainchip. The provider of ultra-low power high performance artificial intelligence technology accounted for 1.6% of trades on the platform last week. This was driven predominantly by buyers, who contributed 72% of these trades. Over the week the Brainchip share price added almost 17%, bringing its year to date gain to a massive 580%. Excitement around its Akida technology is behind this strong form.

Telstra Corporation Ltd (ASX: TLS)

This telco giant accounted for 1.5% of trades on the CommSec platform last week. With 85% of these trades coming from buyers, it appears as though investors believe recent share price weakness is a buying opportunity. However, despite the support from the buy side, it wasn’t enough to stop the Telstra share price from falling 5% over the period.

Openpay Group Ltd (ASX: OPY)

This junior buy now pay later provider is back in the top five. Last week Openpay shares accounted for 1.4% of trades on the CommSec platform. This appears to have been driven by increased investor interest in the industry and optimism ahead of its results release on Monday. And although the buying and selling was relatively even, this didn’t stop the Openpay share price rising 25%.

More reading

• These ASX stocks at earnings risks as the Aussie is forecast to hit US80 cents
• ASX 200 down 1.7%: Afterpay sinks on PayPal news, QBE sacks its CEO, bank shares lower
• Why Afterpay, Flight Centre, Helloworld, & QBE shares are tumbling lower
• Zip share price drops lower despite completing QuadPay acquisition
• Afterpay and Zip shares sink lower after PayPal announces Pay in 4 BNPL product

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 ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Telstra Limited. 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 Zip and Brainchip were among the most traded shares on the ASX last week appeared first on Motley Fool Australia.

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The Fortescue Metals Group Limited (ASX: FMG) share price has built a reputation as one of the few solid blue chip performers on the S&P/ASX 200 Index (ASX: XJO) in 2020 so far. Despite its gains over the past few months, the ASX 200 is still down around 11% year to date. The Fortescue share price contrasts nicely with this and is up more than 60% over the same period.

But August wasn’t a good month for Fortescue. While the ASX 200 was up 2.3% for the month, the Fortescue share price went backwards and was almost a mirror image of the ASX 200, falling by 2.52% over the same period.

So what happened for Fortescue?

Fortescue’s average month… or not?

On the surface, it looks as though Fortescue just had a pretty average kind of month. But there is more going on under the surface. Consider this, Between 3 August and 28 August, the Fortescue share price was up 8%. It was only a big fall at the end of the month that pulled Fortescue under. You might think this catalyst was the FY2020 earnings report that Fortescue delivered last week. But the market barely blinked at the company’s surging revenues and profits.

No, we can explain the end-of-month Fortescue share price slump with just one word: dividends. In its earnings report, Fortescue announced the payment of a final dividend of $1 per share. That payout went ex-dividend just yesterday, which happened to be the last day of the month. Based on the Fortescue share price on Friday, that fully franked dividend of $1 per share equates to a yield of 5.3%. Normally, a 5.3% dividend would be at the upper end of what a typical ASX blue chip would offer as an annualised yield, but that’s just for 6 months in Fortescue’s case. Fortescue actually paid out $1.76 in dividends for FY20, which equates to a 9.33% yield on Friday’s price and a 10.07% yield on today’s share price. That’s a monster yield in anyone’s books.

And that’s why Fortescue shares plunged yesterday and gave investors a -2.53% return in August. When a company goes ex-dividend, new shareholders aren’t entitled to that payment. Thus, those shares are automatically worth 5.3% less as of the ex-dividend date. That explains Fortescue’s plunge yesterday.

Are Fortescue shares a buy today?

You might be looking at that dividend yield and salivating, but are Fortescue shares a buy today for future dividend income? Well, it’s worthwhile noting that Fortescue shares are sitting on top of an iron ore price that has climbed to the historically high level of US$120 per tonne. As long as it stays near these levels (or climbs higher), Fortescue will be able to fund the kinds of dividends we have just seen. But iron ore is a notoriously cyclical commodity, and thus there is a significant risk that it will fall back to earth in the short-to-medium term. If and when that does happen, Fortescue’s ability to fund these kinds of dividend will dry up.

As such, I’m not too wild about buying Fortescue today at these high prices. I think the best time to buy a cyclical company like Fortescue is when no one else wants to. And even though I might miss out on a year or two of hefty dividend payments, I’d feel far more comfortable buying Fortescue at a low point in the iron ore cycle.

More reading

• These ASX stocks at earnings risks as the Aussie is forecast to hit US80 cents
• ASX 200 down 1.7%: Afterpay sinks on PayPal news, QBE sacks its CEO, bank shares lower
• Is the Treasury Wine share price a buy after a 14% slump in August?
• ASX 200 drops 0.2%, Scentre soars
• 2 ASX dividend shares with yields over 10%

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 Why the Fortescue share price went backward in August appeared first on Motley Fool Australia.

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The Australian dollar surged to more than two-year high and some experts are predicting it will go a lot higher. That’s bad news for many S&P/ASX 200 Index (Index:^AXJO) stocks.

The Aussie battler is currently trading at US74 cents, taking its gain since the depth of the COVID-19 in March to nearly 30%.

The advance isn’t over as market economists are predicting our dollar to hit US80 cents next year, reported the Australian Financial Review.

What’s driving the exchange rate

It’s more the weakness of the greenback than the strength of the Aussie that is driving the latest rally. The change in the US Federal Reserve’s inflation targeting policy is causing the US dollar to lose ground against its peers.

The Fed signalled it will tolerate a temporary jump in inflation above its comfort zone. This means it can release more stimulus into the market without worrying about inflationary pressure.

Unless the Reserve Bank of Australia (RBA) announces something unexpected when it releases its interest rate decision at 2.30pm today, the Aussie is likely to stay on the front foot.

A$ finding support from commodities

But the rise of the Aussie isn’t only supported by a flagging US dollar. The stubbornly high iron ore price, which surged nearly 35% to over US$122 a tonne over the past year is also fuelling its ascend.

There’s also a bit of a virtuous cycle happening here. The retreating US dollar tends to lift commodity prices, including copper and gold. Commodity exporting nations like Australia and Canada will see increase demand for their currencies as a result.

Further, the RBA is far more resistant to pumping liquidity into our financial system compared to others, including the Fed. This means less downward pressure on our currency than the US dollar.

Why a stronger Australian dollar is a headwind

However, a strong Aussie isn’t what we need as Australia awaits official confirmation this week that our economy has slumped into a recession. A stronger local currency is an earnings headwind for large cap stocks on a net basis.

If the Aussie is on a new uptrend as currency forecasters are predicting, we could see earnings downgrades start to flow through ahead of the February reporting season.

ASX stocks with large US dollar exposure will see earnings drop when profits are converted into the Australian dollar.

ASX stocks facing earnings headwinds

Many of these companies have hedging contracts in place to reduce the volatility, but even then, the expected big more in the Aussie towards US80 cents will hurt.

Some of the ASX large caps with significant US exposure includes global logistics group Brambles Limited (ASX: BXB), building materials supplier James Hardie Industries plc (ASX: JHX) and gaming machine maker Aristocrat Leisure Limited (ASX: ALL).

Even the Afterpay Ltd (ASX: APT) share price will feel the heat given it’s counting on its US expansion to became a key growth driver for the tech superstar.

Let’s hope the Aussie bulls are wrong.

More reading

• Zip and Brainchip were among the most traded shares on the ASX last week
• Why the Fortescue share price went backward in August
• ASX 200 down 1.7%: Afterpay sinks on PayPal news, QBE sacks its CEO, bank shares lower
• Why Afterpay, Flight Centre, Helloworld, & QBE shares are tumbling lower
• Zip share price drops lower despite completing QuadPay acquisition

Motley Fool contributor Brendon Lau owns shares of Aristocrat Leisure Ltd. and James Hardie Industries plc. Connect with me on Twitter @brenlau.

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 These ASX stocks at earnings risks as the Aussie is forecast to hit US80 cents appeared first on Motley Fool Australia.

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A former BlueScope Steel Limited (ASX: BSL) executive has pleaded guilty to inciting colleagues to give false evidence to a cartel enquiry.

Jason Ellis was the general manager of sales and marketing at BlueScope when he instructed two other employees to give false evidence to the Australian Competition and Consumer Commission (ACCC).

The watchdog was investigating alleged cartel behaviour at BlueScope, and Ellis’ incitement related to conversations he and the colleagues had with other steel companies.

According to ACCC Chair, Rod Sims, the conviction was unprecedented.

“This is the first time an individual has been charged with inciting the obstruction of a Commonwealth public official in relation to an ACCC investigation,” he said.

The Motley Fool has contacted BlueScope Steel for comment.

Ellis will be sentenced at a local court hearing on 8 December.

ACCC’s separate civil case against Ellis and BlueScope remains in the Federal Court.

In that case, the competition watchdog alleges BlueScope and Ellis attempted to put in a price fixing regime with multiple steel distributors.

The BlueScope share price was down 2.44% as at 12:50pm AEST, to fall to $12.38. It was as high as $18.83 back in July 2018.

More reading

• Top brokers are urging investors to buy these ASX stocks today
• Bluescope Steel shows strength amid 90% profit fall
• The next ASX stocks to beat expectations during this reporting season

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

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In afternoon trade the the S&P/ASX 200 Index (ASX: XJO) is off its lows but still deep in the red. At the time of writing the benchmark index is down 1.9% to 5,943 points.

Four shares that have not let that hold them back are listed below. Here’s why they are pushing higher:

The Lendlease Group (ASX: LLC) share price is up 2.5% to $11.88. Investors have been buying the international property and infrastructure company’s shares after brokers responded positively to its strategy update. One broker that liked what it saw was Goldman Sachs. This morning it retained its conviction buy rating and lifted the price target on its shares to $16.37.

The Redbubble Ltd (ASX: RBL) share price has jumped 6% to $4.16. This is despite there being no news out of the ecommerce company. However, last week analysts at Morgans upgraded the company’s shares from a reduce rating to an add rating with an improved price target of $4.33. It was impressed with its full year results and believes it is in the right place at the right time.

The Sealink Travel Group Ltd (ASX: SLK) share price is up over 4% to $4.95. Investors have been buying the travel and transport company’s shares since the release of its full year results on Monday. One broker that was pleased with its results was Ord Minnett. This morning its retained its buy rating and lifted the price target on its shares to $6.08. It likes the way the company is transforming into a defensive business with growth options.

The Starpharma Holdings Limited (ASX: SPL) share price has jumped 11.5% higher to $1.69. The catalyst for this was the announcement of the development of a slow release soluble DEP remdesivir nanoparticle. According to the release, Starphrma has applied its novel DEP drug delivery technology to create a long-acting, water soluble version of remdesivir. Remdesivir is an antiviral drug which is currently being developed by US giant Gilead to treat COVID-19.

More reading

• Starpharma share price rockets to record high on DEP remdesivir COVID-19 news
• ASX 200 edges higher: Fortescue sinks, NAB sells MLC Wealth, Costa jumps
• Sealink share price jumps higher after delivering strong profit growth in FY 2020
• Starpharma share price rockets to 52-week high on full year update
• This ASX dividend share offers a 9% fully franked yield

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 Starpharma Holdings Limited. The Motley Fool Australia has recommended Starpharma Holdings Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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At lunch on Tuesday the S&P/ASX 200 Index (ASX: XJO) is having a terrible start to the month. While all sectors are currently in the red, the tech and financial sectors are weighing heavily on proceedings.

The benchmark index is currently down 1.7% to 5,959.9 points.

Here’s what is happening on the ASX 200 today:

Afterpay sinks on PayPal news.

The Afterpay Ltd (ASX: APT) share price has come under pressure today following an announcement by PayPal overnight. The payments giant has revealed plans to launch Pay in 4 in the United States in the fourth quarter of 2020. As its name implies, the service will allow consumers to buy things and spread the payment out over four interest-free instalments. Afterpay’s ASX-listed rivals are all falling hard on Tuesday.

QBE sacks its CEO.

The QBE Insurance Group Ltd (ASX: QBE) share price has tumbled notably lower today after announcing the shock sacking of its CEO. This morning the insurance giant revealed that it had given Pat Regan the boot following an external investigation concerning workplace communications. While no real details were provided by the company, it advised that the investigation found his communications did not meet the standards set out in the company’s code of ethics and conduct. This led to the board taking decisive action.

Bank shares lower.

Westpac Banking Corp (ASX: WBC) and the rest of the big four banks are all trading lower today and are weighing heavily on the ASX 200. The worst performer in the group is the National Australia Bank Ltd (ASX: NAB) share price with a decline of almost 3%. Investors appear nervous ahead of the Reserve Bank’s meeting this afternoon.

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Tuesday has been the Bingo Industries Ltd (ASX: BIN) share price with a modest 2% gain on the back of no news. The worst performer on the index is the Afterpay share price with a decline of over 6%. This follows PayPal’s entry into the buy now pay later space.

More reading

• This chart shows why big banks are in trouble
• Why Afterpay, Flight Centre, Helloworld, & QBE shares are tumbling lower
• Zip share price drops lower despite completing QuadPay acquisition
• Afterpay and Zip shares sink lower after PayPal announces Pay in 4 BNPL product
• 4 ASX growth shares I’d buy in September

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. 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 ASX 200 down 1.7%: Afterpay sinks on PayPal news, QBE sacks its CEO, bank shares lower appeared first on Motley Fool Australia.

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