Stock Pick

  • Why the best performing ASX stock might have more room to run higher

    Race

    The Graincorp Ltd (ASX: GNC) share price is rallying for the second day and is topping the charts!

    Shares in the grain handler jumped 8.5% to $3.98 in morning trade. This makes it the best performer on the S&P/ASX 200 Index (Index:^AXJO) with gold miner Silver Lake Resources Limited. (ASX: SLR) a distant second.

    Graincorp’s gains comes on top of yesterday’s near 12% run after it posted a better than expected first half profit result.

    The brightening outlook for agribusinesses is also giving Elders Ltd (ASX: ELD) a lift with the stock jumping 5% to $9.52 at the time of writing. Elders is expected to report its earnings on Monday.

    The question facing investors is whether it’s too late to buy Graincorp shares.

    Bumper growth

    The good news is there is quite a bit of space for the stock to climb before hitting fair value, according to the analysts at Macquarie Group Ltd (ASX: MQG).

    Graincorp’s interim net profit from continuing operations of $27 million is well ahead of Macquarie’s estimates of $18 million.

    What’s more, all the group’s divisions, including its processing business, were performing better than the broker expected.

    Firing on all cylinders

    “Processing reported EBITDA of $23m, stronger than our $11m forecast,” said Macquarie.

    “Oilseed crush margins have recovered strongly due to increased ECA canola supply and stronger oil and meal demand/pricing.”

    The good times may continue to roll on into the second half, thanks in no small part to the recent wet weather along the east coast.

    Trade war misses mark

    Even the diplomatic spat between China and Australia doesn’t faze Macquarie. China threatened to buy fewer Australian exports in retaliation to Prime Minister Scott Morrison’s call for an independent investigation on the origins of COVID-19.

    Tensions escalated when China formally threatened to slap a 80% tariff on Australian barley and suspended the import licenses of four of our abattoirs.

    But Graincorp may not be as impacted by the potential barley tariff as some investors might have thought.

    This is because 88% of Aussie barley exports come from Western Australia and Graincorp is an east coast centric business, explained Macquarie.

    Clearer skies ahead

    “GNC is planning for higher grain exports in 2H20 (exports generally higher margin vs domestic),” said the broker.

    “Oilseed crush margins are expected to remain favourable in the second half due to prevailing canola oil and meal values.

    “Favourable soil moisture levels across large parts of eastern Australia have supported widespread planting for the FY21 crop.”

    What’s more, Graincorp is tipped to restart paying dividends in FY21 after a three-year break.

    Macquarie is urging investors to buy the stock and its price target is set at $4.79 a share. This leaves Graincorp with a 23% potential upside over the next 12 months, if forecast dividends are included.

    One “All In” ASX Buy Alert, that could be one of our greatest discoveries

    Investing expert Scott Phillips has just named what he believes is the #1 Top “Buy Alert” after stumbling upon a little-owned opportunity he believes could be one of the greatest discoveries of his 25 years as a professional investor.

    This under-the-radar ASX recommendation is virtually unknown among individual investors, and no wonder.

    What it offers is an utterly unique strategy to position yourself to potentially profit alongside some of the world’s biggest and most powerful tech companies.

    Potential returns of 1X, 2X and even 3X are all in play. Best of all, you could hold onto this little-known equity for DECADES to come

    Simply click here to see how you can find out the name of this ‘all in’ buy alert… before the next stock market rally.

    Find out the name of Scott’s ‘All in’ Buy Alert

    Returns as of 6/5/2020

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

    The post Why the best performing ASX stock might have more room to run higher appeared first on Motley Fool Australia.

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  • ASX 200 up 0.8%: Big four banks push higher but Xero tumbles lower

    ASX share

    At lunch the S&P/ASX 200 Index (ASX: XJO) has followed the lead of U.S. markets and is pushing higher. The benchmark index is currently up 0.8% to 5,370.2 points.

    Here’s what has been happening on the market today:

    Bank shares push higher.

    Commonwealth Bank of Australia (ASX: CBA) and the rest of the big four banks are pushing higher on Friday. This follows a strong night of trade on Wall Street for U.S. banks. The best performer in the group today has been the Westpac Banking Corp (ASX: WBC) share price with a 1.1% gain.

    Tech shares dropping lower.

    The tech sector is having another off day on Friday. At lunch the S&P/ASX 200 Information Technology index is down 1.7% and acting as a drag on proceedings. Payments company Afterpay Ltd (ASX: APT) and cloud-based accounting software provider Xero Limited (ASX: XRO) are amongst the worst performers with 1% and 5% declines, respectively.

    Gold miners charge higher.

    One area of the market performing particularly strongly today has been the gold mining industry. At lunch the S&P/ASX All Ordinaries Gold index is up a solid 3.2% after the gold price hit a three-week high overnight. Evolution Mining Ltd (ASX: EVN) and St Barbara Ltd (ASX: SBM) shares have been positive performers with gains of 4% each.

    Best and worst ASX 200 performers.

    The best performer on the ASX 200 today has been the Graincorp Ltd (ASX: GNC) share price again with an 8% gain. This morning analysts at Macquarie retained their outperform rating and lifted the price target on its shares to $4.79. The worst performer has been Graincorp’s spun off malt business, United Malt Group Ltd (ASX: UMG). Its shares are down 7% after completing a $140 million institutional placement. The new shares were issued at $3.80 per share, representing an 11.4% discount to its last traded price.

    5 cheap stocks that could be the biggest winners of the stock market crash

    Investing expert Scott Phillips has just named what he believes are the 5 cheapest and best stocks to buy right now. Courtesy of the crashing stock market, these 5 companies are suddenly trading at significant discounts to their recent highs… creating what could be incredible opportunities for bargain-hungry investors. Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares to buy now… before the next stock market rally.

    See the 5 stocks

    Returns as of 7/4/2020

    Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of AFTERPAY T FPO and Xero. 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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  • Why Kogan, Macquarie, Newcrest, & Santos shares are zooming higher

    The S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a positive note. In late morning trade the benchmark index is up 0.7% to 5,365.2 points.

    Four shares that have climbed more than most today are listed below. Here’s why they are zooming higher:

    The Kogan.com Ltd (ASX: KGN) share price is up 4% to $8.91 after announcing a new acquisition. The ecommerce company has bought the intellectual property and goodwill of replica furniture and homewares retailer Matt Blatt for $4.4 million. Kogan will relaunch the business as an online-only offering. It expects the acquisition of Matt Blatt to give it a springboard from which to expand its reach in the furniture and homewares market.

    The Macquarie Group Ltd (ASX: MQG) share price is up 2% to $105.10. The banking sector is on course to end the week on a high after their U.S. counterparts stormed higher overnight. In addition to this, investors may have been buying Macquarie’s shares before they trade ex-dividend on Monday. To be eligible for its upcoming final $1.80 per share dividend, investors need to be on the share registry at the close of play today.

    The Newcrest Mining Limited (ASX: NCM) share price is up 3% to $29.85. Investors have been buying Newcrest and other gold miners after the price of the precious metal hit a three week high overnight. Traders were buying gold amid concerns that a trade war is brewing between the U.S. and China. The S&P/ASX All Ordinaries Gold index is up 3.2% at the time of writing.

    The Santos Ltd (ASX: STO) share price is up 2% to $4.65. Santos and other energy shares have been performing strongly today after a spike in the oil price overnight. Oil prices pushed higher after data revealed that U.S. inventories had fallen more than expected last week.

    Missed these gains? Then don’t miss these dirt cheap shares which look set to rebound strongly.

    5 cheap stocks that could be the biggest winners of the stock market crash

    Investing expert Scott Phillips has just named what he believes are the 5 cheapest and best stocks to buy right now.

    Courtesy of the crashing stock market, these 5 companies are suddenly trading at significant discounts to their recent highs… creating what could be incredible opportunities for bargain-hungry investors.

    Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares to buy now… before the next stock market rally.

    See the 5 stocks

    Returns as of 7/4/2020

    More reading

    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd and Macquarie 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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  • U.S. regulator is reviewing Abbott’s fast COVID test after studies raise accuracy concerns

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  • What Negative Interest Rates Would Mean For Banks, Stocks And The Average American

    What Negative Interest Rates Would Mean For Banks, Stocks And The Average AmericanOn Wednesday, Federal Reserve Chair Jerome Powell said the Fed is still not considering cutting interest rates into negative territory.Goldman Sachs co-head of global foreign exchange, rates and emerging markets strategy Zach Pandl said Thursday that the Fed is just one more COVID-19 outbreak wave away from cutting rates below zero. What Are Negative Rates? The primary interest rate the Federal Reserve manages is the fed funds rate. The fed funds rate is the interest rate banks and other institutions charge to lend money to each other, typically on an overnight basis. Banks also indirectly base savings rates, mortgage rates and credit card rates on the fed funds rate as well.When interest rates drop below zero, lenders are actually forced to pay borrowers to take their money. On the surface, the idea is counterintuitive. Yet several central banks around the world have tested the waters of negative interest rates as a way of providing artificial economic stimulus.How Are Banks Impacted? Banks are unable to drop interest rates below zero on the average consumer deposit accounts or they risk customers withdrawing and hoarding their cash. Banks in other parts of the world have successfully been able to lower interest rates on large corporate accounts below zero because it's nearly impossible for tax-compliant large businesses to operate without deposit accounts.How Will Banks Profit? Retail banks make profit on the difference between the interest rates they charge on loans and the rates they pay on deposits. This spread is known as a bank's net interest margin, or NIM. In general, the lower interest rates go, the more NIM is compressed and the less wiggle room banks have in maximizing profits.When Japan dropped interest rates below zero, bank NIMs predictably dropped, applying pressure on bank earnings. In a negative rate environment, banks will be forced to try to offset these pressures by increasing profits in areas outside of deposits, such as ramping up fee revenue or increasing investment banking activities.Negative Rate Winners, Losers The most obvious winners from negative interest rates are people and companies with large debt loads. Falling interest rates decrease the cost of borrowing money. In the theoretical extreme, some companies could even be paid to borrow money if interest rates are below zero.The biggest losers from negative interest rates are people with savings and companies with large cash balances. If interest rates drop below zero, companies will essentially be penalized for holding cash. Instead, many companies will be forced to invest that cash, which is the theoretical justification for negative rates in the first place. By forcing companies to invest and spend money, negative rates in theory will help drive economic growth.That same stimulus also benefits stock investors. In addition to forcing companies to invest cash, negative interest rates also make low-risk sources of investment income, such as savings accounts, CDs and Treasury bonds, unappealing. The lower interest rates fall, the fewer viable options investors have and the more money flows into stocks, driving share prices higher.What Else Can The Fed Do To Stimulate? The Federal Reserve essentially cut the fed fund rate to zero back in March, but that doesn't mean that it has no other options for stimulating the economy. The Fed has a history of quantitative easing, buying large quantities of government and mortgage bonds to provide liquidity to the economy. In March, the Fed announced a new unlimited QE program to help combat the economic slowdown.The Fed also initiated a program for buying corporate bonds for the first time and even set aside up to $500 billion to buy bonds from state and large local governments as well.There are other more extreme measures that the Fed could potentially take in the future in addition to dropping interest rates below zero. The Federal Reserve could actually print money and distribute it directly to Americans. This policy is known as "helicopter dropping."The Fed could also choose to go beyond supporting corporations by buying bonds and also begin buying shares of stock. That idea may seem extreme, but Japan's central bank has already been buying stocks.Benzinga's Take With even President Donald Trump talking up the potential economic benefits of negative interest rates, American investors should be financially prepared for the possibility. If cash becomes the enemy and the the Fed forces companies to spend it all, one of the best places to invest may simply be a low-cost S&P 500 index fund, such as the VANGUARD IX FUN/S&P 500 ETF SHS NEW (NYSE: VOO) or the SPDR S&P 500 ETF Trust (NYSE: SPY).Related Links:Powell Says US Economic Recovery 'May Take Some Time To Gather Momentum'2 Technical Levels That Will Determine If S&P 500 Strength Is Just A Bear Market RallySee more from Benzinga * ETF Short Sellers Are Targeting Retail, Biotech * Why Whitney Tilson Is Selling Stocks: 'We're In An Enormous Hole'(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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  • ASX construction shares feel impacts of COVID-19 shutdowns

    Building material shares

    The Australian building industry is feeling the combined effects of the summer bushfires and coronavirus. While construction has continued to operate as an essential business throughout COVID-19, disruptions have been inevitable. ASX building suppliers such as Boral Limited (ASX: BLD) and CSR Limited (ASX: CSR) are feeling the effects. 

    Boral experiences disruptions 

    Boral has continued to operate and supply customers in most jurisdictions, albeit with additional health and safety measures in place. In some jurisdictions, however, stricter mandates have resulted in temporary closures and substantial disruption. 

    This morning, Boral reported that for the 4 months ended April 2020, Australian concrete volumes were down 16% and revenue down 6% compared to the prior corresponding period (pcp).

    In the North American division, around 25% of the workforce has been placed on furlough. 4 operations are in full or partial shutdown as a result of government mandates and around 70% of building product plants have been impacted. 

    For the 4 months from January to April 2020, revenue for Boral North America decreased by around 5% on the pcp. Production volumes across the roofing, stone, and fly ash businesses were also down. CEO Mike Kane said, “the impacts of COVID-19 measures on our people and our markets have been significant and will be for some time.”

    Debt financing extended to maintain liquidity

    Boral has extended its debt facilities with a new US Private Placement note of US$200 million. It has also secured new loan facilities of A$365 million and approved an extension of US$665 million in existing facilities. This has increased Boral’s liquidity and extended its debt maturity. 

    The company is taking action to preserve cash through shift reductions and temporary plant closures to align production with current and expected lower levels of activity. Capital expenditure has been reduced by 15% to 20% to ~$330 million in FY20. 

    CSR sees declining revenues 

    Earlier this week, CSR reported a 5% reduction in revenue for the full year ended March 2020. Net profit after tax (NPAT) from continuing operations fell 10% to $125 million, although total NPAT rose 61%. This was because total NPAT in the previous year was impacted by impairment charges relating to the Viridian Glass business. 

    CSR reports it hasn’t experienced a significant drop in activity since the end of March, although building product revenue was down 3% compared to the pcp. CSR nonetheless anticipates there will be an impact on activity in key markets this year. The company has declined to provide earnings guidance due to the uncertainty from COVID-19. 

    Foolish takeaway

    The construction sector may see a pullback this year as economic contraction takes hold. This will put pressure on sales for ASX construction shares like CSR and Boral until building markets recover.  

    While ASX construction shares may face some near-term headwinds, be sure to check out the report below for an ASX share we Fools like the look of right now.

    One “All In” ASX Buy Alert, that could be one of our greatest discoveries

    Investing expert Scott Phillips has just named what he believes is the #1 Top “Buy Alert” after stumbling upon a little-owned opportunity he believes could be one of the greatest discoveries of his 25 years as a professional investor.

    This under-the-radar ASX recommendation is virtually unknown among individual investors, and no wonder.

    What it offers is an utterly unique strategy to position yourself to potentially profit alongside some of the world’s biggest and most powerful tech companies.

    Potential returns of 1X, 2X and even 3X are all in play. Best of all, you could hold onto this little-known equity for DECADES to come

    Simply click here to see how you can find out the name of this ‘all in’ buy alert… before the next stock market rally.

    Find out the name of Scott’s ‘All in’ Buy Alert

    Returns as of 6/5/2020

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    Motley Fool contributor Kate O’Brien 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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  • Where growth, income, and value investors can invest $5,000 today

    where to invest

    If you’re looking to invest $5,000 into the Australian share market, then one of the shares listed below could be worth considering whether you’re looking for growth, income, or value.

    Here’s why I think investors should buy these ASX shares:

    Accent Group Ltd (ASX: AX1)

    I think Accent could be a great option for value investors. Although the retail sector is having a very tough time and trading conditions are unlikely to improve quickly, I still think this footwear retailer could prove to be a bargain buy. While its earnings will almost certainly decline this year, I expect a rebound of sorts in FY 2021 before a full recovery a year later. Based on a recent note out of Morgan Stanley, it expects earnings per share of 7 cents in FY 2020 and then 8 cents in FY 2021. Based on the latter, its shares are currently changing hands at just 13x FY 2021 earnings.

    Dicker Data Ltd (ASX: DDR)

    If you’re an income investor you might want to consider investing $5,000 into Dicker Data’s shares. The wholesale distributor of computer hardware and software has been growing its earnings and dividends at a consistently strong rate for many years. The good news is that this trend has continued during the pandemic. Last month the company released its first quarter update and revealed a 36.3% increase in profit before tax to $18.4 million. Management also advised that it intends to increase its dividend by 31% in FY 2020 to 35.5 cents per share. This represents a 5.1% fully franked dividend yield.

    Xero Limited (ASX: XRO)

    Xero could be a good long term option for growth investors. Earlier this week the cloud-based business and accounting software provider released its full year results and revealed a 30% increase in operating revenue to NZ$718.2 million. Things were even better further down the income statement, with its margin expansion leading to a 52% increase in EBITDA to NZ$139.17 million. While FY 2021 is likely to be impacted by the pandemic and could stifle its growth somewhat, I believe its long term outlook is as positive as ever. Xero has a significant global market opportunity and, thanks to the quality and stickiness of its product, I expect it to capture a big slice of it.  

    And here are five dirt cheap shares which combined offer a mix of growth, income, and value as well. They all look like great options to buy after the market crash.

    5 cheap stocks that could be the biggest winners of the stock market crash

    Investing expert Scott Phillips has just named what he believes are the 5 cheapest and best stocks to buy right now.

    Courtesy of the crashing stock market, these 5 companies are suddenly trading at significant discounts to their recent highs… creating what could be incredible opportunities for bargain-hungry investors.

    Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares to buy now… before the next stock market rally.

    See the 5 stocks

    Returns as of 7/4/2020

    More reading

    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 owns shares of Xero. The Motley Fool Australia has recommended Accent 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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  • PPP Loans Under $2 Million Get A Significant Waiver From SBA

    PPP Loans Under $2 Million Get A Significant Waiver From SBAIf your company received a loan of less than $2 million under the Paycheck Protection Program, the new message from the Small Business Administration is that you're OK.In an addition to its lengthy list of FAQs, the SBA said Wednesday that all loans granted under that dollar threshold will be viewed as having met the "good faith" standard necessary under the PPP.The clarification comes after Treasury Secretary Steve Mnuchin said in April that the SBA would be reviewing PPP recipients who received more than $2 million to be sure that they needed those funds given their large size. In particular, public companies that received the funds have been ordered to give them back. The sole known public transportation company that received one, Evo Transportation & Energy Services, had not indicated by Thursday whether it was returning its $10 million. (It had disclosed the receipt of the loan in an 8-K filing with the Securities & Exchange Commision in late April. No subsequent 8-K filing announcing the return of the funds has been filed)."Any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith," the SBA said in its updated FAQs.Statistics released by the SBA for round 2 of the PPP, which began April 27, showed that just over 19% of the loans were over the $2 million cutoff, which means more than 80% don't need to worry about the certification.The law firm of Scopelitis Garvin Light Hanson Feary sent out a notice on the change, laying out the concern that some smaller borrowers under the PPP faced. "Many PPP borrowers have been struggling with the new SBA mandate that borrowers revisit their loan application certification that ‘[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant,'" Scopelitis said in its Law Alert. The law firm noted that the mandate was not part of the original CARES Act that set up PPP, but was handed down later "in response to much negative publicity surrounding high profile borrowers."The $2 million threshold and the need to certify the need for those funds if a company got more than that is leading some loan recipients to give back the money. The deadline for doing that without triggering a "good faith" investigation was Thursday but has been pushed back to Monday."SBA has determined that this safe harbor is appropriate because borrowers with loans below [the $2 million] threshold are generally less likely to have had access to adequate sources of liquidity in the current economic environment than borrowers that obtained larger loans," the SBA said in its FAQs. "This safe harbor will also promote economic certainty as PPP borrowers with more limited resources endeavor to retain and rehire employees."The SBA also said the sheer number of loans under $2 million would be difficult to investigate for their good faith certification given the stretched resources at the agency. "This approach will enable SBA to conserve its finite audit resources and focus its reviews on larger loans, where the compliance effort may yield higher returns," the agency said.(There already has been discovery of potential PPP fraud involving a trucking company).   Through last Friday, the SBA had approved 2,571,167 loans under phase 2 of the PPP, disbursing approximately $188.9 billion. Companies with less than $10 billion in assets got 32% of the disbursed loans, while companies with more than $50 billion got 53%. The tranche between those two got 15%.See more from Benzinga * US Airlines Aim To Keep It Clean During COVID-19 * Today's Pickup: COVID-19 Gives Smaller e-Commerce Firms A Chance Against Amazon * Largest East Coast Retail Grocery Group Taps Americold For New Frozen Facilities(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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  • Want to invest like Warren Buffett? Buy and hold these ASX 200 shares

    warren buffett

    One of the simplest and arguably most effective investment strategies is buy and hold investing.

    This strategy sees investors buy the shares of quality companies with positive long term outlooks and hold onto them for as long as the investment thesis remains intact.

    This is a strategy that has been used by legendary investor Warren Buffett. And you can’t argue with his track record, can you?

    With that in mind, here are two top S&P/ASX 200 Index (ASX: XJO) shares that I think would be quality buy and hold options:

    Nanosonics Ltd (ASX: NAN)

    The first buy and hold option to consider is Nanosonics. It is best-known for its trophon EPR disinfection system for ultrasound probes. It has been growing its installed base at a rapid rate over the last few years and has continued this trend in FY 2020. During the first half it increased 17% on the prior corresponding period to 22,500 units. This is still well short of its addressable market of 120,000 units.

    Which is positive for two reasons. As well as benefiting from unit sales, Nanosonics earnings lucrative recurring revenues from the consumable products the system requires. Consumable and service sales were up 40% to $34.1 million in the first half. This represents 70% of its total sales during the period. As its market share grows, so too will these sales. Combined with the impending launch of several new products, I believe the future is bright for Nanosonics.

    REA Group Limited (ASX: REA)

    I think REA Group would be a great buy and hold option. I’ve been very impressed with the way the realestate.com.au operator can still deliver earnings growth in the toughest of trading conditions. This was evident in its third quarter update which revealed a 1% increase in revenue to $199.8 million and an 8% lift in EBITDA to $119.6 million. This was despite a 7% decline in listings during the quarter.

    While listings volumes are likely to remain subdued for the immediate term, when conditions do improve I expect REA Group’s earnings growth to accelerate. So with its shares down 23% from their 52-week high, now could be an opportune time to snap them up.

    And don’t miss out on these top stocks which have been sold off and could be great buy and hold options now.

    5 cheap stocks that could be the biggest winners of the stock market crash

    Investing expert Scott Phillips has just named what he believes are the 5 cheapest and best stocks to buy right now.

    Courtesy of the crashing stock market, these 5 companies are suddenly trading at significant discounts to their recent highs… creating what could be incredible opportunities for bargain-hungry investors.

    Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares to buy now… before the next stock market rally.

    See the 5 stocks

    Returns as of 7/4/2020

    More reading

    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 Nanosonics Limited. The Motley Fool Australia has recommended Nanosonics Limited and REA 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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  • Take advantage of ASX share market volatility

    stock market chart volatility

    I think it’s important to take advantage of ASX share market volatility when we can.

    Volatility is a key feature of shares. Each day there are different buyers and sellers. Obviously there will be different views about what price people are willing to buy and sell at.

    This coronavirus period of time has seen some of the strongest volatility in decades. I think it’s important to take advantage of the lower share prices. Collectively, investors are only willing to sell their shares at lower prices when there’s something to actually worry about. And there’s always something to worry about. Eventually that particular worry will pass, just like the GFC. 

    The price we pay for our investments is the biggest factor for deciding our future returns. If you can buy during periods like this when prices are a lot lower then you’ll boost your future returns significantly.

    These low share prices don’t last forever. Just look at how the ASX share market volatility has lowered and prices have recovered strongly since 23 March 2020 even though the actual economic numbers like unemployment just get worse and worse.

    What ASX shares on the share market are opportunistic buys due to volatility?

    A number of exciting shares like Pushpay Holdings Ltd (ASX: PPH) were a lot cheaper a few weeks ago, but I wouldn’t describe those shares as opportunistic any more. They’re still solid buys though.

    I think ASX share market volatility have made these shares buys: diversified property business Brickworks Limited (ASX: BKW), water entitlement business Duxton Water Ltd (ASX: D2O) and investment business Magellan Global Trust (ASX: MGG).

    Plenty more investment opportunities

    Those few named ideas aren’t the only shares that could be great buys today. These top ASX shares could be wonderful cheap buys right now.

    Our experts at The Motley Fool have just released a FREE report detailing 5 shares you can buy now to take advantage of the much cheaper share prices on offer.

    One is a diversified conglomerate trading 40% off it’s all time high, all while offering a fully franked dividend yield of over 3%…

    Another is a former stock market darling that is one of Australia’s most popular and iconic businesses. Trading at a significant discount to its 52-week high, not only does this stock offer massive upside potential, but it also trades on an attractive fully franked dividend yield of almost 4%.

    Plus, this free report highlights 3 more cheap bets that could position you to profit in 2020 and beyond.

    Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares.

    But you will have to hurry because the cheap share prices on offer today might not last for long.

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