At lunch on Monday the S&P/ASX 200 Index (ASX: XJO) is on course to record a very strong gain. The benchmark index is currently up 1.7% to 5,589.3 points.

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

Bank shares storm higher.

The big four banks have started the week very strongly and are helping drive the ASX 200 higher. All four banks are in the black at lunch, but the standout performer has been the National Australia Bank Ltd. (ASX: NAB) share price. Its shares are up by a solid 2.75% at the time of writing as investors pile back into the sector.

Travel shares charge higher.

One of the best performing areas of the market on Monday has been the travel sector. The prospect of New Zealand opening its borders to Australian tourists appears to have given the sector a boost. The likes of Flight Centre Travel Group Ltd (ASX: FLT) and Webjet Limited (ASX: WEB) are up 12.5% and 10%, respectively, at the time of writing.

Afterpay hits a record high.

The Afterpay Ltd (ASX: APT) share price has stormed to a record high of $47.48 on Monday. This appears to have been driven by positive investor sentiment and news that it has appointed a permanent Chair. Elana Rubin will has become the payments company’s Chair with immediate effect. She will retire from the ME Bank board in June, but remain as a Non-Executive Director for Telstra Corporation Ltd (ASX: TLS) and Slater & Gordon Limited (ASX: SGH).

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Monday has been the Flight Centre share price with its 12.5% gain. Going the other way, the worst performer on the index on Monday has been the TechnologyOne Ltd (ASX: TNE) share price with a 3.5% decline. The enterprise software company’s shares have come under pressure since the release of its half year update last week.

More reading

• Leading brokers name 3 ASX 200 shares to buy right now
• Telstra share price down 21% since February. Is it now in the buy zone?
• Why Leigh Creek, Lynas, Monadelphous, & TechnologyOne are dropping lower
• Should you invest $1,000 in Altium shares today?
• 3 commodity trends to watch this week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited and Webjet Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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.

The post ASX 200 up 1.7%: Flight Centre and Webjet rocket, Afterpay hits record high appeared first on Motley Fool Australia.

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

Telstra Corporation Ltd (ASX: TLS) has seen a significant correction to its share price over the past few months, declining by around 21% since early February. Does this now place Australia’s largest telecommunications provider in the buy zone?

Strong continued demand for telco services

Although Telstra’s share price fall has been in line with many other S&P/ASX 200 Index (ASX: XJO) listed shares, I don’t believe the sharp sell-off was fully justified.

While many ASX listed companies have seen a decline in demand for their products or services, over the past few months, Telstra’s broadband and mobile services are proving to be essential to both businesses and consumers throughout the coronavirus crisis. This has helped with strong continued demand. There has been a sharp increase in fixed broadband bandwidth with more Aussies working from home, people keeping in touch with family and friends online and staying entertained through streaming media services like Netflix.

T22 strategy still on track

In a market update in March, Telstra revealed that it still appears to be on track to achieve most of the goals it had put in place as part of its T22 strategy, which includes reducing underlying fixed costs by $2.5 billion annually by the end of FY22. Telstra also announced that it would move forward capital expenditure initiatives, from the second half of FY 2021 into the calendar year 2020, to increase its overall network capacity and to accelerate the rollout of its 5G network.

In fact, Telstra was actually part of a small group of ASX 200 companies which were recently able to reaffirm their guidance in light of the coronavirus impact. However, the telco provider did acknowledge in its March update, that it expects both free cash flow and EBITDA for FY2020 to be at the bottom end of its guidance range.

In addition, the defensive nature of Telstra’s telecommunications business model, the continued demand for its services throughout the crisis and its strong free cash flow positions it well to maintain its current dividend of 16 cents per share. On current prices, Telstra pays a trailing fully franked dividend yield of 3.24%.

Foolish takeaway

I believe that Telstra was, to some degree, unfairly caught up in the wider market sell-off triggered by the coronavirus crisis. I feel that long-term, focused investors are presented with a fairly good buying opportunity after its recent market correction. Telstra’s fundamentals remain solid and Australia’s largest telecommunications provider appears reasonably placed for long-term growth over the next five to 10 years, driven by its market-leading position in the rollout of 5G services. I currently prefer it over its other rivals such as Optus, Vodafone-TPG and Vocus Group Ltd (ASX: VOC).

More reading

• Leading brokers name 3 ASX 200 shares to buy right now
• ASX 200 up 1.7%: Flight Centre and Webjet rocket, Afterpay hits record high
• Should you invest $1,000 in Altium shares today?
• 3 commodity trends to watch this week
• ASX 200 Weekly Wrap: ASX rallies on mining highs

Motley Fool contributor Phil Harpur 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 Telstra share price down 21% since February. Is it now in the buy zone? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3ecI3sD

This month I have been looking at what would have happened if you had invested $10,000 into the IPOs of some of the most popular ASX shares.

The last one I wrote about, which can be found here, was the Kogan.com Ltd (ASX: KGN) IPO.

Spoiler alert. The ecommerce company’s shares have been very strong performers since their IPO in June 2016.

Today I thought I would turn my attention to the Appen Ltd (ASX: APX) IPO.

The Appen IPO.

Appen is a leading provider of language technology data and services. It provides or improves data that is then used for the development of machine learning and artificial intelligence products

Its shares landed on the ASX boards just over five years ago in January 2015. The company raised $15 million at an offer price of 50 cents per share, which gave it a market capitalisation of approximately $47.3 million. This means that a $10,000 investment would have got you $20,000 shares at its IPO.

Management told investors that the funds raised would help it “take advantage of, and grow with, the recent acceleration of devices and technology that interact with humans on human terms and advances in mobile communications and social media that are driving unified communication in any language and across languages.”

Stellar growth.

Well, management certainly delivered on its prospectus promises and more.

Since its IPO Appen has gone from strength to strength, culminating in the company delivering revenue of $536 million and earnings before interest, tax, depreciation, and amortisation (EBITDA) of $101 million in FY 2019.

But it isn’t stopping there. Last month Appen released a market update which revealed that it remains on course to achieve its FY 2020 guidance despite the pandemic. It expects underlying EBITDA in the range $125 million to $130 million, which represents a year on year increase of 23.8% to 28.7%.

The high end of its EBITDA guidance is a massive 175% greater than its market capitalisation at listing. I believe this demonstrates just how quickly the company has grown.

Unsurprisingly, this has led to its shares rising very strongly since its IPO. At the time of writing they are changing hands for $30.59, which is within sight of their all-time high of $32.00. This gives it a market capitalisation of almost $3.75 billion.

Which means that the 20,000 shares you would have picked up at Appen’s IPO now have a market value of approximately $612,000.

Overall, I believe this demonstrates how rewarding it can be to invest in shares with quality business models, strong growth potential, and talented management teams.

More reading

• Why this ASX infrastructure company could help protect your portfolio in a downturn
• 5 things to watch on the ASX 200 on Thursday
• These are the latest ASX shares to be downgraded by top brokers
• $2,500 invested in these 3 ASX shares could make you a fortune in 10 years
• How you can get very rich with ASX 200 shares

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. The Motley Fool Australia owns shares of Appen 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 If you invested $10,000 in the Appen IPO, this is how much you’d have now appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3edcY84

The S&P/ASX 200 Index (ASX: XJO) has started the week very strongly. In late morning trade the benchmark index is up 1.6% to 5,583.9 points.

Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:

The Leigh Creek Energy Ltd (ASX: LCK) share price is down 5.5% to 8.3 cents. On Thursday the gas producer put its shares in a trading halt pending a material announcement in relation to a proposed capital raising. This morning the company launched an underwritten share purchase plan to raise just $1 million. It is raising the funds at a 20% discount to the five-day volume weighted average price on June 15.

The Lynas Corporation Ltd (ASX: LYC) share price is down 2% to $2.07. Investors have been selling the rare earths producer’s shares after it revealed doubts over its U.S. activities. Last month the U.S. Department of Defense revealed that it plans to award a Phase I contract for a U.S. based Heavy Rare Earth separation facility to Lynas. Since then there have been objections to its construction. So much so, Lynas understands that plans are now on hold while political issues are addressed.

The Monadelphous Group Limited (ASX: MND) share price has fallen 3.5% to $10.35. This decline appears to have been driven by a broker note out of Ord Minnett. This morning the broker retained its lighten rating on the engineering company’s shares and slashed the price target on them to $10.00. It has concerns over the impact of the pandemic on its operations.

The TechnologyOne Ltd (ASX: TNE) share price has continued its slide and is down a further 4% to $9.53. The enterprise software company’s shares have come under pressure since the release of its half year update. Investors appear underwhelmed by its 6% lift in sales and profits during the six months ending March 31. Especially given the significant premium that its shares trade at.

More reading

• ASX 200 Weekly Wrap: ASX rallies on mining highs
• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to sell next week
• What to watch on the ASX 200 next week
• These were the best performing ASX 200 shares last week

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 Why Leigh Creek, Lynas, Monadelphous, & TechnologyOne are dropping lower appeared first on Motley Fool Australia.

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

Altium Limited (ASX: ALU) shares have edged 5.41% higher this year, but is the Aussie tech company in the buy zone?

What’s happened to Altium shares in 2020?

The Aussie tech share started the year in typically strong fashion. In fact, Altium hit a new 52-week high of $42.76 as recently as February 17. There’s been quite a bit of downhill from there with Altium shares bottoming at a 52-week low of $23.11 on March 23.

Unsurprisingly, Altium was not the only WAAAX share to fall lower in March. Even Afterpay Ltd (ASX: APT) shares fell to $8.90 but have since bounced back to over $46 per share. 

The Aussie-American software business focuses on electronic design systems for 3D printed circuit boards (PCBs). However, many of the company’s small and medium enterprise (SME) business customers have been short on cash amid the pandemic.

Altium shares have made a recovery since their March lows, and are trading at $36.60 per share right now. That’s despite the recent business update announcing some headwinds for the tech group.

Altium has launched ‘attractive pricing’ and extended payment terms to drive volume. This means that while volume should increase, the price component is likely to drive down revenue and cash flow in the short-term.

However, it’s not all doom and gloom for the software company. Altium’s push for more volume could drive market share and position it as a clear market leader in the medium to long-term.

With a strong cash balance and clear strategic goals, Altium shares could be on the move again in 2020.

There’s also something to be said for a strong US presence. The nature of the pandemic has forced many countries to look internally for business growth.

Altium could be well-placed to drive further change in both Australia and the United States thanks to its unique market positioning.

Foolish takeaway

No one knows where Altium shares are headed in 2020, but I feel the company’s long-term outlook still looks good. I think it could be a good value ASX tech share to buy if you want to boost your portfolio growth potential.

More reading

• 3 commodity trends to watch this week
• Why Afterpay, Flight Centre, TPG Telecom, & Western Areas are charging higher
• ASX 200 Weekly Wrap: ASX rallies on mining highs
• ASX 200 shares to buy for growth and income
• 3 ASX dividend shares to buy today

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO and Altium. 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 Should you invest $1,000 in Altium shares today? appeared first on Motley Fool Australia.

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

In a country like ours it pays to be aware of the underlying commodity trends. This is more true today than at any other time as the world awakes from the coronavirus pandemic to a world fraught with tension. I have found that if you pay attention, and understand the way things are moving there is always a chance to profit. 

Gold miners

The gold price is the king of all commodity trends. It remains at an all time high in Australian dollars. Recent falls have been more influenced by the exchange rate with the US dollar than giant swings in the gold price. The easy analysis is to say gold is a hedge against uncertainty. An asset that rises when equities fall. However, there is more to it than that. 

Record low interest rates, even negative interest rates, around the world have combined with immense levels of quantitative easing. This means more available cash. Where there is a high demand, like investment assets, we see inflationary pressures. 

Within this space there are still S&P/ASX 200 (INDEXASX: XJO) shares selling at reasonable prices. The Regis Resources Limited (ASX: RRL) share price fell by 5.5% last week for no discernible reason. The company has maintained a 9-year compound annual growth rate for sales at 22%. An 8-year earnings per share CAGR at 17.2% and a share price CAGR at 22.9%.

Battery Metals

Rumours this week that Tesla Inc (NYSE: TSLA) had developed a million mile battery caused a lot of speculation.  Including a claim from General Motors Company (NYSE: GMC) that they too had almost completed a million mile battery. This means a renewed upward commodity trend for future facing metals such as nickel, silver, and copper in particular. Companies like BHP Group Ltd (ASX: BHP) and Sandfire Resources Ltd (ASX: SFR) are ASX 200 shares that may benefit from any rise in the copper price, with BHP also heavily involved in global nickel production.

South32 Ltd (ASX: S32) is a large scale player in the nickel industry. It is also a high volume producer of silver from the Cannington mine in Queensland. Both of these are used on battery manufacture as well as across the board in the renewables sector. 

Grain industry

The upward commodity trend in grain has continued despite the Chinese 80% tariffs. The share price of Australian producer Graincorp Ltd (ASX: GNC) has continued its upward momentum. GrainCorp is not very exposed to the tariffs imposed thus far.

Food security is quietly becoming a very important issue. Over the past three months we have seen the worst locust plagues for a generation across Africa, The Middle East and South Asia. Ukraine, the food bowl of Europe, is also expecting a markedly lower harvest in 20/21 after a record crop in 19/20. Moreover, the UN has raised the spectre of starvation at “biblical” levels.

More reading

• Should you invest $1,000 in Altium shares today?
• ASX 200 Weekly Wrap: ASX rallies on mining highs
• ASX 200 shares to buy for growth and income
• Where to invest $5,000 in ASX 200 shares immediately
• Is the NAB share price a buy today?

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

The post 3 commodity trends to watch this week appeared first on Motley Fool Australia.

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

In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to start the week on a positive note. At the time of writing the benchmark index is up a sizeable 1.6% to 5,583.4 points.

Four shares that are climbing more than most today are listed below. Here’s why they are charging higher:

The Afterpay Ltd (ASX: APT) share price has jumped 6% higher to $47.24. This morning the payments company announced that Elana Rubin will become its permanent Chair with immediate effect. Rubin intends to retire from the ME Bank board following its June 2020 meeting, but will remain as a Non-Executive Director on the boards of Telstra Corporation Ltd (ASX: TLS) and Slater & Gordon Limited (ASX: SGH).

The Flight Centre Travel Group Ltd (ASX: FLT) share price has climbed 5.5% higher to $11.92. The prospect of New Zealand opening up its borders to Australian tourists could be behind this gain. It isn’t just Flight Centre on the rise. A number of travel shares have started the week in a very positive fashion.

The TPG Telecom Ltd (ASX: TPM) share price is up 3% to $8.04. The catalyst for this gain appears to have been a broker note out of Morgans this morning. According to the note, the broker has upgraded TPG Telecom’s shares to an add rating with an improved price target of $9.14. It sees a lot of positives in its merger with Vodafone Australia.

The Western Areas Ltd (ASX: WSA) share price has pushed 2.5% higher to $2.28. This morning the nickel producer announced that it has entered into a subscription agreement with Panoramic Resources Limited (ASX: PAN) to acquire up to 19.9% of its rival. Western Areas will pay cash of $28.6 million for the stake in the junior nickel producer. This investment provides Western Areas with exposure to the future restart of the promising Savannah Project.

More reading

• Should you invest $1,000 in Altium shares today?
• Why these ASX stocks will be under the spotlight on Monday
• Why Afterpay and cohorts could confirm the economy bottomed in April
• How these 3 ASX financial shares have proved their doubters wrong
• How to use ASX shares to become a millionaire

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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.

The post Why Afterpay, Flight Centre, TPG Telecom, & Western Areas are charging higher appeared first on Motley Fool Australia.

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