It has been a disappointing year for the Jumbo Interactive (ASX: JIN) share price.

The online lottery ticket seller and operator of the Oz Lotteries website has seen its shares fall ~25% since the start of 2020.

This poor form has culminated in the company being dumped out of the S&P/ASX 200 Index (ASX: XJO) at the next rebalance on 22 June.

Why is the Jumbo share price down 25%?

Investors have been selling Jumbo’s shares this year for a couple of reasons.

The first is its investment in growth opportunities, which is expected to temporarily soften its margins.

This was evident in its first half result when Jumbo delivered a 23% increase in revenue but a 14% lift in net profit after tax. Quite a contrast to previous years where its profit growth has thoroughly outpaced its revenue growth.

What else is weighing on its shares?

The other potential reason for its share price weakness is Tabcorp Holdings Limited (ASX: TAH) reporting quicker growth in its digital lottery ticket sales.

In the first half, the gambling company reported a 39.8% increase on the prior corresponding period. This compares to a 25% lift in transaction value by Jumbo during the half.

This has sparked fears that Tabcorp will be less reliant on Jumbo to sell its tickets in the future and could be in a stronger negotiating position when Jumbo’s reseller contract ends in 2022. The worst-case scenario would be Tabcorp showing Jumbo the door completely.

Though, it is worth noting that Tabcorp is a substantial shareholder in Jumbo and the two parties have worked together successfully for years. I feel this means it is unlikely to do anything that would impact the value of its shareholding.

In addition to this, with Jumbo expanding internationally, in the coming years it will be less reliant on the Australia market. In fact, it is thanks partly to its expansion plans that Jumbo is aiming to generate $1 billion in global ticket sales annually through its platform by FY 2022. This will be triple what it achieved in FY 2019.

Should you invest?

I’m optimistic that Jumbo and Tabcorp will extend their reseller agreement in 2022.

However, until this happens, the uncertainty is likely to weigh heavily on the company’s shares. This could mean they continue to underperform during the near term until things become clearer.

Nevertheless, I still believe Jumbo could be a great long term investment option for patient investors due to its sizeable global market opportunity.

Incidentally, this morning Jumbo requested a trading halt, pending the release of an announcement in relation to its reseller operations in Western Australia. No details have been released as of yet, but this could potentially shed some light on its future. I would suggest investors keep a close eye out for that announcement.

More reading

• ASX 200 down 2.2%: Westpac tumbles, TPG reveals special dividend plans
• Why Jumbo, Santos, Westpac, & Zip Co shares are crashing lower
• S&P quarterly rebalance: A2 Milk added to ASX 50 & NEXTDC in the ASX 100
• The Sezzle and Pointsbet share prices have hit new, all time highs. Time to invest?
• Could these ASX shares be the future dividend stars that make you rich?

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

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Top-quality ASX shares with strong dividend yields can be hard to come by in 2020. Many reliable dividend payers like the big banks have slashed dividends to conserve capital.

However, the recent bear market has hit many S&P/ASX 200 Index (ASX: XJO) constituents hard. That means that dividend yields have surged higher and many ASX dividend shares could be in the buy zone.

3 top ASX dividend shares 

Fortescue Metals Group Limited (ASX: FMG) is one of those ASX dividend shares right now.

The Fortescue share price has rocketed 72.6% higher since 9 March, but is still yielding a tidy 6.75% at the time of writing. With iron ore prices on the rise, Fortescue could be a bargain given its capital growth and income prospects.

Fortescue isn’t the only top ASX dividend share trading for a good price today. The Harvey Norman Holdings Limited (ASX: HVN) share price is trading at $3.54 per share with a 5.93% dividend yield.

Harvey Norman recently announced a 6 cents per share special dividend for shareholders. This came after a strong sales period during the coronavirus shutdown, as Aussies spent big on their home improvements and office setups.

Sticking with the retail theme, Scentre Group (ASX: SCG) is another ASX dividend share that’s worth watching, with a current dividend yield of 8.39%. 

Scentre shares have been on a rollercoaster ride in 2020 as investors try to work out the impact on real estate investment trusts (REITs) from the pandemic restrictions. 

Scentre owns and operates Westfield shopping centres across Australia and New Zealand. That means what is good for the retail sector is good for Scentre.

With restrictions starting to ease, we could see retail stores reopen for business and earnings bounce back. That means more stable tenants for Scentre, which could make it a strong dividend share in 2021 and beyond.

Foolish takeaway

These are just a few examples of top ASX dividend shares as we start this new week. Of course, dividend yields can be misleading right now, but I think the long-term picture is still good for many of these companies.

More reading

• Gold mining shares – these are the facts and myths
• Is the Transurban share price a secret bargain?
• 50% off: these ASX 200 shares are dirt cheap today
• ASX winners and losers from last week
• Where to invest $10,000 into ASX 200 shares immediately

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Scentre Group. 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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The S&P/ASX 200 Index (ASX: XJO) slumped 2.5% lower last week as many ASX 200 shares plummeted.

Despite a strong bull run in recent months, investors were spooked towards the end of last week.

3 dirt-cheap ASX 200 shares to buy

Travel, media and oil are some of the sectors most affected by the coronavirus pandemic.

That’s been reflected in the hardest-hit Aussie shares on the market. For instance, the Southern Cross Media Group Ltd (ASX: SXL) share price has fallen 66.10% lower in 2020.

Southern Cross is a major media company with a number of interests in Australian television and radio.

The pandemic has hit the media sector hard with advertising revenues plummeting lower. Investors have been pessimistic about Southern Cross’ prospects this year and the Aussie media group could be trading dirt-cheap right now.

Another ASX 200 share worth watching is Flight Centre Travel Group Ltd (ASX: FLT). The Flight Centre share price fell 5.30% on Friday and is down 64.94% for the year.

Times are tough for the travel industry right now. Booking revenues have plummeted as airlines have collapsed and travel has been heavily restricted.

This sent the Flight Centre share price into freefall from mid-February onwards. Of course travel isn’t the only sector feeling the heat though, with ASX 200 oil shares also trading cheaply.

The Oil Search Limited (ASX: OSH) share price has slumped 53.43% lower this year. The shutdowns in both travel and manufacturing have reduced global demand for oil by a huge proportion.

Combined with an oil price war between OPEC+ and Russia, oil prices dived through the floor (literally) and went negative in April.

The volatility and global supply glut is bad for Oil Search’s earnings and sent the ASX 200 oil share tumbling lower to its current $3.29 valuation.

Foolish takeaway

These are just a few ASX 200 shares that could be trading dirt-cheap right now.

It is important, however, not to buy Aussie companies only because they’ve experienced share price falls. Often very smart investors are selling them for a reason, so you have to remember why you’re buying – to build long-term wealth.

The recent rally has boosted some share prices higher but there are still bargains if you are willing to take some risks.

More reading

• Gold mining shares – these are the facts and myths
• Is the Transurban share price a secret bargain?
• 3 ASX shares with 6% dividend yields to buy for income
• ASX winners and losers from last week
• Where to invest $10,000 into ASX 200 shares immediately

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.

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The S&P/ASX 200 Index (ASX: XJO) started last week strongly, continuing the upward trend of the past month. However, in a sign of the fragility in the markets, the ASX 200 then fell by 4.9% from the close of trading on Wednesday to the close of trading on Friday, leaving the week with very few ASX winners. This was in response to the largest fall in US markets since March.

The sectors below were home to some of last week’s biggest ASX winners and losers.

Insurance and Financials

There were few ASX winners across the financials sector during last weeks trading. Insurance and diversified financials were hit particularly hard. 

Two ASX 200 shares that led the plunge in the insurance sector were QBE Insurance Group Ltd (ASX: QBE) and Suncorp Group Ltd (ASX: SUN). The QBE share price retreated by 13.17% and Suncorp shares fell by 13.49%.

Across the broader financial sector, the Netwealth Group Ltd (ASX: NWL) share price fell by 7.9% and lender Credit Corp Group Limited (ASX: CCP) saw a 11.52% share price drop.

Over in the buy now pay later sector, the Zip Co Ltd (ASX: Z1P) share price rose by 5%. However, after a recent surge in the Openpay Group Ltd (ASX: OPY) share price, it plummeted last week by 30.4%. 

Real Estate

Real estate was again the heaviest traded sector across the ASX large cap companies. Unibail-Rodamco-Westfield (ASX: URW), the European-domiciled shopping centre operator, saw its share price fall by 20%. Of the A-REITs focused largely on the Australian market, it was the Scentre Group (ASX: SCG) share price that recorded the largest fall of 12.6%.

Tourism and Entertainment

One sector hit hard last week by continued uncertainty over the coronavirus was tourism. The Webjet Limited (ASX: WEB) share price was down 15.9%, and the Event Hospitality and Entertainment Ltd (ASX: EVT) share price fell by 16.3%.

Gold

The gold mining sector has seen continual share price falls over the past 2 weeks. However, as the market slid on Thursday and Friday, the share prices of gold mining companies again started to rise. Most gold companies finished the week either on par or slightly lower. 

Bellevue Gold Ltd (ASX: BGL) has been cutting a counter cyclical path over the past 3 months. Investors have supported Bellevue across market rises and falls, with Bellevue shares finishing last week up by 16.34%.

Foolish takeaway

The pull back across the financial and tourism sectors shows how fragile the market is at the moment. Capital moved again to defensive sectors and into the gold mining companies. On Sunday, China announced it had a new wave of coronavirus diagnoses. For the foreseeable future, I personally intend to invest only in companies that are least impacted by the virus. 

More reading

• Where to invest $10,000 into ASX 200 shares immediately
• 3 ASX 200 shares to watch this week
• ASX 200 Weekly Wrap: ASX bears take control as market volatility returns
• These are the 10 most shorted ASX shares
• 5 things to watch on the ASX 200 on Monday

Daryl Mather owns shares of Bellevue Gold Ltd. 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 Webjet Ltd. The Motley Fool Australia owns shares of Netwealth. The Motley Fool Australia has recommended Scentre Group. 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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If you’re lucky enough to have $10,000 sitting in a savings account and no immediate use for it, I would suggest you consider putting it to work in the share market where the potential returns are vastly superior.

But where should you invest these funds? I think the two top ASX 200 shares listed below would be great options:

Nanosonics Ltd (ASX: NAN)

The first ASX 200 share to consider buying with $10,000 is Nanosonics. It is a leading infection control company which provides a market-leading disinfection system for ultrasound probes. I’m a big fan of Nanosonics’ business model. As well as selling the units, the company also sells consumable products that the system requires to function. This means that as its installed base grows, so too does its recurring consumables revenues.

The good news is that its installed base, which is growing quickly, now stands at 22,500 units. This represents just under 19% of its global market opportunity of 120,000 units. I feel this gives it a long runway for growth from this product alone. However, another big positive is the impending release of new products targeting unmet needs. Not a lot is known about the products, but management has revealed that they have similar market opportunities. If they are a success, I believe they could underpin explosive growth in the 2020s.

NEXTDC Ltd (ASX: NXT)

Another ASX 200 share which I think could be a good option for a $10,000 investment is NEXTDC. It is a data centre operator with a portfolio of world class centres in key locations across Australia. NEXTDC has been growing at a very strong rate over the last few years thanks to the increasing demand for capacity at its centres.

This has continued in FY 2020, with NEXTDC reporting revenue of $97.7 million and underlying operating earnings of $50.9 million in the first half. This represents an 8% and 21% increase, respectively, over the prior corresponding period. Pleasingly, since then, demand for its data centres has increased thanks partly to the pandemic. The work from home initiative appears to have accelerated the shift to the cloud and looks set to underpin an even stronger second half result. And with more and more infrastructure moving to the cloud, I expect this positive trend to continue for some time to come. This could make NEXTDC  a great long term option for investors.

More reading

• ASX winners and losers from last week
• 3 ASX 200 shares to watch this week
• ASX 200 Weekly Wrap: ASX bears take control as market volatility returns
• 5 things to watch on the ASX 200 on Monday
• Why the Healius share price will be in the spotlight tomorrow morning

James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nanosonics Limited. The Motley Fool Australia has recommended Nanosonics 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 Where to invest $10,000 into ASX 200 shares immediately appeared first on Motley Fool Australia.

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It was a disappointing end to the week for ASX 200 shares as the S&P/ASX 200 Index (ASX: XJO) closed down 2.5% at 5,847.80 points.

Last week I was watching Stockland Corporation Ltd (ASX: SGP), SkyCity Entertainment Group Limited (ASX: SKC) and Westpac Banking Corp (ASX: WBC).

The Stockland share price finished the week down 8.84% as the Aussie REIT pared back its recent gains. SkyCity shares finished down 4.10% while the Westpac share price slumped 4.79% to $17.89 on Friday.

After a disheartening week for last week’s top picks, here are 3 shares I’ll be watching in the week ahead.

3 ASX 200 shares to watch this week

I think the Woodside Petroleum Limited (ASX: WPL) share price is worth watching this week. 

The Aussie oil and gas operator’s shares slumped 8.52% lower last week as one of many underperforming ASX 200 shares.

However, I think the technical environment remains pretty solid for Woodside. Factories are starting to ramp up production again and travel restrictions are being slowly eased.

That’s good news for the oil price and producers like Woodside over the next few months. Another ASX 200 share that could be worth a look is Scentre Group (ASX: SCG).

Scentre owns and operates Westfield shopping centres across Australia and New Zealand. Lower foot traffic due to coronavirus restrictions has hammered the Scentre share price 40.21% lower in 2020.

However, if restrictions continue to ease in Australia and New Zealand, we could see retail stores bounce back quickly this year.

Finally, one defensive ASX 200 share to watch this week is Newcrest Mining Limited (ASX: NCM). The Newcrest share price jumped 3.58% higher last week as investors got nervous.

If we see more volatility in the week ahead, I expect ASX gold shares like Newcrest to outperform once again.

Foolish takeaway

These are just a few of the ASX 200 shares I’m watching at the moment. As always, I believe it’s important to focus on a long-term investment horizon rather than getting too caught up in daily or weekly moves.

More reading

• ASX winners and losers from last week
• Where to invest $10,000 into ASX 200 shares immediately
• ASX 200 Weekly Wrap: ASX bears take control as market volatility returns
• 5 things to watch on the ASX 200 on Monday
• Why the Healius share price will be in the spotlight tomorrow morning

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

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