from Yahoo Finance https://ift.tt/30wmoI8
-
Tesla (TSLA): Don’t Believe the Hype, Says Analyst
-
Why the Keytone Dairy share price opened 9% higher this morning
The Keytone Dairy Corporation Ltd (ASX: KTD) share price is racing higher this morning on the back of a sales update.
Keytone Dairy is a manufacturer and exporter of formulated dairy products in Australia and New Zealand.
The company manufacturers its own products under its KeyDairy, KeyHealth and FaceClear brands. These products include premium milk and nutrition powders and health supplement capsules for the treatment of acne.
Additionally, Keytone is a production partner for leading retailers and supermarket chains, undertaking contract packing operations for brands around the world.
Headquartered in the heart of New Zealand’s South Island, Keytone Dairy floated on the ASX in July 2018 at an offer price of 20 cents. With a share price of 29 cents at the time of writing, the company’s market capitalisation currently sits at around $74 million.
Why is the Keytone Dairy share price surging?
This morning, Keytone Dairy revealed that it has received its largest follow-on order from Nouriz to date.
Nouriz is a related party of China Animal Husbandry Group, a China state-owned enterprise, that orders whole and skim milk powders from Keytone for its Nouriz private label.
The large purchase order announced today is priced at $1.39 million and is significantly higher than Nouriz’s recent orders and forecasts. More specifically, this latest order is around 11.3 times and 1.6 times greater than Nouriz’s first and second orders, respectively.
The order will be manufactured in Keytone’s New Zealand facilities in August 2020.
Commenting on today’s update, Keytone CEO Danny Rotman said:
“These significant follow-on orders from strategic clients of the business are increasing in both frequency and size. With the New Zealand second manufacturing facility online, Keytone is well equipped to service these growing orders from Nouriz and other key strategic clients of the business and will continue to work closely with these clients, growing the product offering and volumes.”
Recent developments
Today’s announcement follows another positive update in late May regarding a new licensing agreement. The agreement gives Keytone a distribution license for a range of Baileys ready-to-drink dairy products products in Australia, New Zealand, Hong Kong and Taiwan.
Additionally, the next day, Keytone announced its full-year financial results for the 12 months ending 31 March 2020.
Headline results include total sales revenue of $22.53 million, up 799% from $2.51 million in the prior year, and cash receipts of $24.68 million. However, the company reported a full-year statutory loss of $7.45 million, up from a loss of $3.29 million in the prior year.
We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
* Extreme Opportunities returns as of June 5th 2020
More reading
Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The post Why the Keytone Dairy share price opened 9% higher this morning appeared first on Motley Fool Australia.
from Motley Fool Australia https://ift.tt/2UwKPBz
-
3 great shares to buy now if you’re an ASX 200 investor in your 20s
S&P/ASX 200 Index (ASX: XJO) investors in their 20s have a unique set of advantages over other share investors. Primarily, younger people have much more time before their retirement. This group of investors are in a fantastic position to take on more risk in search of outperforming the share market, more so than their older counterparts.
ASX 200 investors in their 20s
As investors, we’re a motley crew. We all have motley goals, motley resources and motley risk appetite. Because of this, it is important to understand your own personal circumstances and invest accordingly. The below ASX shares may be fantastic options for most investors in their 20s, but not for all.
I am in my 20s myself and am passionate about wealth creation through share investing. As a result, I spend a lot of my time analysing the share market, economics and my portfolio. But I know that not everyone in their 20s is interested or in a position to invest. But you, just by reading this article, are already ahead of your peers when it comes to investing knowledge and potential returns. Potential returns that are all thanks to the power of time and compound interest.
3 best ASX 200 shares to buy now
EML Payments Ltd (ASX: EML)
The EML share price is still down from its 14 February high of $5.66. Shares are trading for $4.17 at the time of writing. EML is a financial services company providing solutions for payouts, gifts, incentives and rewards, and supplier payments. Although the company is exposed to mall-based retail through its prepaid cards, it also has digital solutions. The company has done a good job at diversifying through the acquisition of Prepaid Financial Services. This acquisition gives EML exposure to banking as a service (BaaS).
Pointsbet Holdings Limited (ASX: PBH)
Pointsbet shareholders have had a wild ride. The share price went from $6.65 in January, down to $1.12 in March to be at a high of $7.45 at the time of writing. That’s a whopping 80% decline followed by a 565% gain! I’m personally kicking myself for not buying during the dip, but I don’t think it’s too late to pick up shares. During the coronavirus pandemic, the company did well to continue its US licence expansion and is in a good position to grow long term once all sports are back to normal.
Volpara Health Technologies Ltd (ASX: VHT)
Volpara has done a great job at growing market share in the US. The company has built an installed software base covering over 27% of US women screened for breast cancer. The 31 March full-year results were impressive with total revenue up 153% and subscription revenue up 106%. The gross margin also increased from 83% to 86% year-on-year. What’s more, Volpara shares are significantly down from their late November high of $2.17, currently trading at $1.36 at the time of writing.
Foolish bottom line
These ASX 200 shares are smaller, fast-growing businesses. They offer huge potential returns, but with added risk. If you’re an ASX 200 investor in your 20s, they could be great long-term market beaters.
Below, us Fools share a few other growth shares to help you outperform the ASX 200.
3 “Double Down” Stocks To Ride The Bull Market
Motley Fool resident tech stock expert Dr. Anirban Mahanti has stumbled upon three under-the-radar stock picks he believes could be some of the greatest discoveries of his investing career.
He’s so confident in their future prospects that he has issued “double down” buy alerts on each of these three stocks to members of his Motley Fool Extreme Opportunities stock picking service.
*Extreme Opportunities returns as of June 5th 2020
More reading
- Why do I own this ASX 200 share?
- 3 ASX 200 shares to add to your watchlist in 2020
- 5 things to watch on the ASX 200 on Thursday
- Afterpay share price up 7%, ASX 200 edges higher
- Latest 3 ASX buy ideas from leading brokers
Lloyd Prout owns shares in EML Payments Limited and expresses his own opinions. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Emerchants Limited, Pointsbet Holdings Ltd, and VOLPARA FPO NZ. The Motley Fool Australia has recommended Emerchants Limited, Pointsbet Holdings Ltd, and VOLPARA FPO NZ. 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 great shares to buy now if you’re an ASX 200 investor in your 20s appeared first on Motley Fool Australia.
from Motley Fool Australia https://ift.tt/3hcAHHQ
-
Why the Kogan share price jumped 11% to a record high today
The Kogan.com Ltd (ASX: KGN) share price has returned from its trading halt and zoomed higher.
At the time of writing the ecommerce company’s shares are up 11% to a record high of $13.77.
Why was the Kogan share price in a trading halt?
Kogan requested a trading halt on Wednesday in order to undertake a $115 million capital raising.
This capital raising comprises a $100 million fully underwritten placement at $11.45 per share and a non-underwritten share purchase plan to raise up to $15 million. The placement price represents a 7.5% discount to its last close price.
This morning Kogan revealed that its placement has completed successfully and was oversubscribed with strong investor demand from domestic and international institutions.
Kogan’s Chair, Greg Ridder, commented: “We would like to thank our existing shareholders for their strong support for this capital raising, and also recognise the overwhelming interest from new investors.”
“We recognise the significant trust placed in our management team to deliver a strong return on your capital, and we have every confidence the team will rise to the challenge. To all our shareholders, your company has gone from strength to strength since listing and, with the capital we have raised this week, your company is now stronger than ever,” he added.
Why is Kogan raising capital?
Kogan chose to raise capital in order to provide it with the financial flexibility to act quickly on future value accretive opportunities.
These opportunities are ones that it feels broaden its offering, expand its customer base, or enhance its operating model. Much like its acquisition of replica furniture and homewares retailer Matt Blatt for $4.4 million last month.
While the company has not revealed what it has its eyes on, management notes that multiple opportunities are presenting themselves already.
And judging by its share price reaction today, investors appear confident that Kogan will spend these funds wisely and drive further strong growth in the coming years.
Missed out on these gains? Then don’t miss these exciting shares which could be future stars…
One trick to potentially generating life-changing wealth from the stock market is to buy early-stage growth companies when their share prices still look dirt cheap.
Motley Fool’s resident tech stock expert Dr. Anirban Mahanti has identified 5 stocks he thinks are screaming buys. And you can buy them now for less than $5 a share!
* Extreme Opportunities returns as of June 5th 2020
More reading
- Afterpay share price up 7%, ASX 200 edges higher
- 3 top ASX shares to buy now to get rich later
- ASX winners and losers from last week’s rally
- Kogan announces $115 million capital raising to fund future acquisitions
- Can Kogan.com survive Amazon?
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. 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 Kogan share price jumped 11% to a record high today appeared first on Motley Fool Australia.
from Motley Fool Australia https://ift.tt/2UvkDr5
-
Johnson & Johnson to Begin Coronavirus Vaccine Clinical Trial in July
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.
Johnson & Johnson (NYSE: JNJ) announced on Wednesday that it expects to begin a phase 1/2a clinical trial of its COVID-19 vaccine candidate Ad26.COV2-S, recombinant, in the second half of July. The company previously projected that the early-stage clinical study would begin in September.
In February, Johnson & Johnson established a partnership with BARDA (the Biomedical Advanced Research and Development Authority) to develop a COVID-19 vaccine candidate at an accelerated pace. Chief Scientific Officer Paul Stoffels noted that the strong preclinical data observed thus far and the company’s discussions with regulatory authorities were key in allowing it to speed up the development program.
The early-stage clinical trial will be conducted in the U.S. and in Belgium. Johnson & Johnson plans to enroll 1,045 healthy adults between the ages of 18 to 55, plus adults aged 65 and over.
Johnson & Johnson is also talking with the National Institutes of Allergy and Infectious Diseases about the possibility of starting a phase 3 study of its COVID-19 vaccine sooner if the early-stage studies produce positive results. The healthcare giant is ramping up manufacturing capacity for the experimental vaccine even before clinical testing is completed, with a goal of being able to supply over 1 billion doses next year if the vaccine proves safe and effective.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
3 "Double Down" Stocks To Ride The Bull Market
Motley Fool resident tech stock expert Dr. Anirban Mahanti has stumbled upon three under-the-radar stock picks he believes could be some of the greatest discoveries of his investing career.
He’s so confident in their future prospects that he has issued “double down” buy alerts on each of these three stocks to members of his Motley Fool Extreme Opportunities stock picking service.
*Extreme Opportunities returns as of June 5th 2020
More reading
- Why the Keytone Dairy share price opened 9% higher this morning
- 3 great shares to buy now if you’re an ASX 200 investor in your 20s
- Why the Kogan share price jumped 11% to a record high today
- JB Hi-Fi share price higher after upgrading profit guidance for FY 2020
- Why do I own this ASX 200 share?
Keith Speights has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Johnson & Johnson. 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 Johnson & Johnson to Begin Coronavirus Vaccine Clinical Trial in July 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/2UzF06t
-
Second U.S. Virus Wave Emerges With Texas Hitting Record
(Bloomberg) — Texas on Wednesday reported 2,504 new coronavirus cases, the highest one-day total since the pandemic emerged.A month into its reopening, Florida this week reported 8,553 new cases — the most of any seven-day period.California’s hospitalizations are at their highest since May 13 and have risen in nine of the past 10 days.A fresh onslaught of the novel coronavirus is bringing challenges for residents and the economy in pockets across the U.S. The localized surges have raised alarms among experts even as they’re masked by the nation’s overall case count, which early this week rose just under 1%, the smallest increase since March.“There is a new wave coming in parts of the country,” said Eric Toner, a senior scholar at the Johns Hopkins Center for Health Security. “It’s small and it’s distant so far, but it’s coming.”Though the outbreaks come weeks into state reopenings, it’s not clear that they’re linked to increased economic activity. And health experts say it’s still too soon to tell whether the massive protests against police brutality that have erupted in the past two weeks have led to more infections.In Georgia, where hair salons, tattoo parlors and gyms have been operating for a month and a half, case numbers have plateaued, flummoxing experts.Puzzling differences show up even within states. In California, which imposed a stay-at-home order in late March, San Francisco saw zero cases for three consecutive days this week, while Los Angeles County reported well over half of the state’s new cases. The White House Coronavirus Task Force has yet to see any relationship between reopening and increased cases of Covid-19, Food and Drug Administration Commissioner Stephen Hahn said on a podcast.But in some states, rising numbers outpace increases in testing, raising concerns about whether the virus can be controlled. It will take a couple of weeks to know, Toner said, but by then “it’s going to be pretty late” to respond.QuickTake: Where Are We in Quest for Coronavirus Drugs, Vaccine?Since the pandemic initially swept the U.S. starting early this year, almost 2 million people have been infected and more than 110,000 have died.After a national shutdown that arrested the spread, rising illness had been expected as restrictions loosened. The trend has been observed across 22 states in recent weeks, though many increases are steady but slow.In New York, the state hardest hit by Covid-19, Governor Andrew Cuomo only recently started reopening by region. New York City, the epicenter, began the first of four phases Monday.“We know as a fact that reopening other states, we’re seeing significant problems,” Cuomo said Tuesday. “Just because you reopen does not mean you will have a spike, but if you are not smart, you can have a spike.”Experts see evidence of a second wave building in Arizona, Texas, Florida and California. Arizona “sticks out like a sore thumb in terms of a major problem,” said Jeffrey Morris, director of the division of biostatistics at University of Pennsylvania’s Perelman School of Medicine.Arizona SpikeArizona’s daily tally of new cases has abruptly spiked in the last two weeks, hitting an all-time high of 1,187 on June 2.This week, its Department of Health Services urged hospitals to activate emergency plans. Director Cara Christ, told a Phoenix television station that she was concerned about the rising case count and percentage of people tested who are found to be positive.Valleywise Health, the public hospital system in Phoenix, has seen an increase in Covid-19 cases during the past two weeks. It’s expanded its intensive-care capacity and those beds are 87% full, about half with Covid patients, according to Michael White, the chief medical officer.White said Valleywise has adequate protective gear for staff, but hospitals aren’t getting their entire orders. A surge in Covid cases could put that supply under stress, he said.The increase in transmission follows steps to resume business and public life.“Within Phoenix, we’ve been more relaxed than I’ve seen in some of the other parts of the country,” White said, with some people disregarding advice to wear masks and maintain six feet of distance from others. “People are coming together in environments where social distancing is challenging.”Texas on Wednesday reported a 4.7% jump in hospitalizations to 2,153, the fourth consecutive daily increase. The latest figures showing an escalation came as Governor Greg Abbott tweeted a public service announcement featuring baseball legend Nolan Ryan urging Texans to wash their hands and to not be “a knucklehead.”Abbott was criticized for an aggressive reopening last month. Mobile-phone data show activity by residents is rebounding toward pre-Covid levels, according to the Children’s Hospital of Philadelphia’s PolicyLab.That could reflect a perception that the virus wasn’t “ever a big threat,” said Morris, who recently moved to Philadelphia after 20 years in Houston.Florida’s health department said in a statement that it attributes the increase in cases to “greatly expanded efforts in testing,” and noted that overall positivity rates remain low, at about 5.5%.Bucking the trend is Georgia, which was the first U.S. state to reopen. Covid cases there have plateaued. Despite local outbreaks in the state, “their sea levels did not rise,” said David Rubin, director of the PolicyLab, which has been modeling the virus’ spread. “They’ve kind of held this fragile equilibrium.”Creeping InCalifornia was the earliest state to shut down its economy over the coronavirus, after one of the nation’s first outbreaks in the San Francisco Bay Area. It has been slower than most to reopen.Even so, the state has also seen the number of people hospitalized with Covid-19 rebound in the past two weeks, as commerce accelerates. Case counts are climbing too, although officials attribute that to increased testing and say it’s a sign of preparation.In part, rising numbers represent the virus spreading into places that largely avoided the first round of infections, including rural Imperial County in California’s southeastern desert. Yet the contagion remains present in places that bore the brunt of the first wave, including Los Angeles County. Hospitalizations there are lower than at the start of May, but deaths remain stubbornly high, with 500 in the past week alone.Barbara Ferrer, Los Angeles County public health director, said the region has likely not seen the end of the first wave. And despite concerns about infections coming out of mass demonstrations in the sprawling city, she thinks the reopening of the economy will have a bigger impact.“We’re not at the tail end of anything,” Ferrer said. “We never had a huge peak. We’ve kind of been within this band. We’re not in decline, we’re kind of holding our own in ways that protect the health-care system.” But, she added, “go to Venice and see the crowds, and you’ll understand why I have concerns.”Another OnslaughtThe U.S. has long been bracing for another wave, but future outbreaks are likely to take a different shape. Social distancing and mask-wearing, as well as careful behavior by individuals, are likely to have staying power even as economies reopen.Experts are steeling for autumn, when changes in weather and back-to-school plans could have damaging repercussions.“The second wave isn’t going to mirror the first wave exactly,” said Lance Waller, a professor at Emory University’s Rollins School of Public Health in Atlanta. “It’s not snapping back to exactly the same thing as before, because we’re not exactly the way we were before.”Daniel Lucey, a fellow at the Infectious Diseases Society of America, compared the virus’ new paradigm with a day at the beach: The U.S. has been bracing for another “high tide” like the one that engulfed New York City. Today is a low tide, but “the waves are always coming in.”(Adds new Texas figures in first paragraph, Cuomo comments in 12th.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
from Yahoo Finance https://ift.tt/2Aq2Udz
-
JB Hi-Fi share price higher after upgrading profit guidance for FY 2020
The JB Hi-Fi Limited (ASX: JBH) share price is pushing higher on Thursday morning after the release of an announcement.
At the time of writing the retailer’s shares are up almost 1% to $42.30. This compares to a sharp decline by the S&P/ASX 200 Index (ASX: XJO).
What did JB Hi-Fi announce?
Hot on the heels of a sales update by rival Harvey Norman Holdings Limited (ASX: HVN) yesterday, this morning JB Hi-Fi released one of its own.
According to the release, the JB Hi-Fi Australia business has been performing very strongly during the pandemic.
Second half sales are up 20% over the prior corresponding period both in total and on a comparable store sales basis. This compares to first half sales growth of 5.1% and brings its year to date growth to 11%.
It doesn’t stop there. The company’s The Good Guys business has been performing even better. Its sales are up 23.5% so far in the second half. This has been a significant improvement on its performance during the first half, which saw the business deliver only a 1.5% increase in total sales. As a result of this impressive performance, The Good Guys sales are now up 10.7% year to date.
Unfortunately, things weren’t anywhere near as positive for its JB Hi-Fi New Zealand business. It was forced to close its doors at the height of the pandemic, which has inevitably had a big impact on its second half sales. The business has recorded a 19.3% drop in sales so far this half, which means its year to date sales are now down 7.3%.
Though, given how small this business is in comparison to the other two, I don’t think investors will be overly concerned with this news. Incidentally, management revealed that it is reviewing the carrying value of the New Zealand business and expects to make a non-cash impairment of $25 million in FY 2020.
What has been the driver of JB Hi-Fi’s strong sales growth?
Management advised that its strong sales growth in the second half has been driven by customers spending more time working, learning, and enjoying entertainment at home.
Pleasingly, although the company has invested in additional operating costs associated with ensuring team members and customers remain safe during the pandemic, it has still experienced strong operating leverage from this elevated sales growth.
As a result, management notes that both JB HI-FI Australia and The Good Guys have seen strong earnings growth during the second half.
FY 2020 guidance.
When the company released its half year results in February, it provided guidance for the full year. At the time, it expected total sales to be ~$7.33 billion with net profit after tax in the range of $265 million to $270 million. The latter represents an increase of 6.1% to 8.1% on the prior corresponding period.
The following month the company understandably withdrew its guidance due to the uncertainty caused by the pandemic.
This morning JB Hi-Fi has not just reinstated its guidance, but upgraded it materially.
Barring any significant changes to its trading performance, management expects total sales of $7.86 billion and net profit after tax (after the aforementioned impairment) in the range of $300 million to $305 million. This will be a 20% to 22% increase on FY 2019’s profits.
3 “Double Down” Stocks To Ride The Bull Market
Motley Fool resident tech stock expert Dr. Anirban Mahanti has stumbled upon three under-the-radar stock picks he believes could be some of the greatest discoveries of his investing career.
He’s so confident in their future prospects that he has issued “double down” buy alerts on each of these three stocks to members of his Motley Fool Extreme Opportunities stock picking service.
*Extreme Opportunities returns as of June 5th 2020
More reading
- 3 ASX 200 shares to add to your watchlist in 2020
- Afterpay share price up 7%, ASX 200 edges higher
- ASX 200 up 0.45%: Harvey Norman declares special dividend, gold miners race higher
- Why CSL, Harvey Norman, IPH, & Saracen shares are charging higher
- Harvey Norman share price flat on sales update and special dividend announcement
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 JB Hi-Fi share price higher after upgrading profit guidance for FY 2020 appeared first on Motley Fool Australia.
from Motley Fool Australia https://ift.tt/3fabkVg
-
U.S. FDA Commissioner says agency seeks fast review of COVID-19 products
from Yahoo Finance https://ift.tt/3f9VIRC
-
Why do I own this ASX 200 share?
It’s important to properly review your investment portfolio on a regular basis and ask: why do I own this ASX 200 share? Personally, I like to do this just before the end of the financial year as it helps me with my tax planning. I would also recommend doing something similar annually, bi-annually or every quarter, when results are announced.
Doing this year’s review, I found myself asking the question, why do I own this S&P/ASX 200 Index (ASX: XJO) share? I discuss this share below, but first I feel it’s important for me to define myself as an investor and outline my investment strategy.
My ASX 200 investor profile
- Demographic: Generation Y
- Investment time horizon: 50 years +
- Investing experience: high
- Risk tolerance: very high
- End goals: Join the FIRE (Financial Independence Retire Early) movement and go travelling. Pass on a financial legacy to my kids.
My ASX 200 investment strategy
Because I have such a long time horizon in which to invest, as well as minimal financial commitments, I’m able to be an ultra long-term, aggressive growth investor. My strategy is to build a highly diversified portfolio of quality growth companies with a lot of risk, but massive multi-bagger potential. I try to invest funds into the market on a monthly basis (or as close to this as possible).
I have been implementing this strategy for over half a decade now, which has seen my portfolio grow to nearly 60 active positions. But importantly, part of my strategy is to let my winners run and to concentrate the portfolio into about 30 meaningful positions. This is already starting to happen naturally. Currently, including roughly a 10% cash position, over 50% of my portfolio is in 18 stocks. Take it out to 32 stocks and that’s 70% of my portfolio.
So, why do I own this ASX 200 share?
Challenger Ltd (ASX: CGF) is a financial services company known for being Australia’s largest annuity provider. With so much money in superannuation, my thesis was that our aging population would have growing demand for these types of products. As a result, Challenger could provide market beating total returns by investing funds under management. I also thought the company paid a decent dividend.
Challenger is one of the first shares I bought, back when I didn’t have a proper strategy. Because of this, it isn’t fully aligned with my current strategy of targeting growth. With interest rates at historic lows, it’s also harder for Challenger to earn high returns on its funds.
I still think that the investment theme is true and Challenger is a leader in the space. The company also possesses some quality characteristics, but with interest rates so low it probably isn’t the right fit for my portfolio right now. But, it may be for yours.
Foolish takeaway
I wrote this article to highlight the fact we are all constantly learning. I learn the most from my ASX 200 investment mistakes, not my winners. My advice is to invest based on your own personal circumstances and goals.
If Challenger isn’t up your alley, one of these high quality stocks may suit you!
We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
* Extreme Opportunities returns as of June 5th 2020
More reading
- 3 ASX 200 shares to add to your watchlist in 2020
- 5 things to watch on the ASX 200 on Thursday
- Afterpay share price up 7%, ASX 200 edges higher
- Latest 3 ASX buy ideas from leading brokers
- How Australian super funds are letting the team down on ethics
Motley Fool contributor Lloyd Prout owns shares in Challenger Limited and expresses his own opinions. The Motley Fool Australia owns shares of and has recommended Challenger 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 do I own this ASX 200 share? appeared first on Motley Fool Australia.
from Motley Fool Australia https://ift.tt/2Ym5MAm
-
3 ASX 200 shares to add to your watchlist in 2020
ASX 200 shares had yet another day of gains on Wednesday as the S&P/ASX 200 Index (ASX: XJO) closed 0.06% higher at 6,148.40 points.
There was a mix of winners and losers on the share market yesterday from tech shares to gold miners and Aussie retailers.
Despite the market noise, there are still a couple of ASX 200 shares that I’m keeping my eye on right now. Check out why these top picks are on my watchlist below.
3 ASX 200 shares I’m watching in 2020
The first Aussie share that I’m watching is JB Hi-Fi Limited (ASX: JBH). JB Hi-Fi shares are up 11.49% this year and have delivered strongly for shareholders.
That’s despite the February and March bear market that sent ASX 200 shares plummeting lower.
JB Hi-Fi has really benefitted from a strong online presence and its extensive electronics range. More Aussies have been stocking up on laptops, monitors and other accessories in the move towards a work from home model.
It’s not just JB Hi-Fi shares that have been climbing in 2020. The NextDC Ltd (ASX: NXT) share price has rocketed 34.95% this year as demand for its services has surged.
NextDC owns and operates data centres around Australia and recently expanded its balance sheet with a $672 million equity raising.
While a 34.95% gain doesn’t scream a buy to most investors, I believe NextDC still has some strong growth potential with a good strategy and clear expansion steps.
One ASX 200 share to watch that hasn’t climbed higher this year is BHP Group Ltd (ASX: BHP). Shares in the Aussie miner are down 3.65% but have some strong momentum behind them.
With iron ore prices rebounding strongly at the moment, I think the BHP share price is worth watching in 2020.
Foolish takeaway
These are just a few of the ASX 200 shares I’ve got my eye on right now. The share market volatility seems to have partially subsided since March and April.
This means right now could present a good opportunity to assess the real value of some of these companies without market noise.
We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
* Extreme Opportunities returns as of June 5th 2020
More reading
- Why do I own this ASX 200 share?
- 5 things to watch on the ASX 200 on Thursday
- Afterpay share price up 7%, ASX 200 edges higher
- 2 ASX shares to buy to benefit from the cloud computing boom
- Latest 3 ASX buy ideas from leading brokers
Motley Fool contributor Ken Hall 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 3 ASX 200 shares to add to your watchlist in 2020 appeared first on Motley Fool Australia.
from Motley Fool Australia https://ift.tt/2YlPibn