• 2 ASX shares I would buy for growth and income today

    dividend shares

    I love an ASX share that offers both growth and income potential. Many ASX shares are pigeon-holed into just one of these two categories. Since many ASX growth shares don’t even pay a dividend, this is understandable.

    But don’t make the mistake of thinking that just because a company is paying a substantial dividend, it doesn’t offer concurrent growth prospects as well. So here are two ASX shares that I think offer investors both growth potential and dividend income today.

    Rural Funds Group (ASX: RFF)

    Rural Funds is an agriculturally-focused real estate investment trust (REIT). This means the company primarily focuses on owning and renting out land and property — in this case, farmland.

    Rural Funds owns farms that produce cotton, wine, beef cattle, almonds and macadamias, and leases those farms to many different clients — some of them blue chip ASX companies like Treasury Wine Estates Ltd (ASX: TWE). The average weighted lease of these tenants is more than 11 years, which gives us as investors a lot of certainty.

    If this doesn’t sound like a growth company to you, then think again. According to a report in the Australian Financial Review (AFR), prime farmland delivered a total return of 14.9% for the 12 months to March 2020, helped by a falling Aussie dollar and strong commodity prices. That’s a tailwind Rural Funds gives plenty of exposure to.

    As an REIT, this company also offers strong income potential as well. On current prices, Rural Funds is offering a trailing distribution yield of 4.18%. Since the company aims to increase this distribution by around 4% per annum, I think this is an investment with lots of future income prospects.

    WAM Global Ltd (ASX: WGB)

    Listed investment company (LIC), WAM Global, is another top pick for both growth and income in my view. It invests in a diversified portfolio of internationally-based and ‘undervalued’ growth companies, which (as of 30 June) include growth names like Tencent Holdings, Hasbro, Microsoft and EA Games.

    WAM Global uses the profits from investing in these growth shares to fund a healthy and growing dividend. Just last week, WAM Global announced a 100% increase to its final dividend, which brought it up to 4 cents per share. On an annualised basis, this gives WAM Global a forward, grossed-up dividend of 5.64% on its current share price.

    As such, I think WAM global is another great company for both growth and income exposure today.

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

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  • The TPG share price has fallen 9% in a month. Time to buy?

    man making thumbs down gesture

    The TPG Telecom Ltd (ASX: TPG) share price hasn’t been a top performer on the S&P/ASX 200 Index (ASX: XJO) of late. In fact, since its reincarnation as a merged entity with Vodafone last month, the TPG share price has fallen more than 9%, 9.44% to be exact. TPG shares are trading for $8.06, down from the $8.54 level we were seeing just 10 days ago, and well below the ~$8.90 levels we saw at the end of last month. In contrast, TPG’s arch-rival Telstra Corporation Ltd (ASX: TLS) shares are up 7.67% over the same period. So it’s clearly not a ‘telco’ problem going on here. As such, is there a buying opportunity for TPG shares today after this slide?

    Why the TPG share price has been dropping out

    I think the recent TPG share price performance can be explained by one factor – investors now have nothing to look forward to. For over a year, the battle to merge TPG’s and Vodafone’s operations raged. The two companies initially proposed the merger way back in 2018. But since then, TPG has had to endure the ACCC rejecting its proposed merger on competition grounds. It was only after a successful appeal to the Federal Court last year that this blockage was removed and TPG was allowed to join forces with Vodafone to produce the combined entity we see today. Any TPG shareholder that held their shares prior to 30 June has benefitted in a couple of ways.

    Firstly, the marriage of TPG and Vodafone elicited a hefty special and fully franked dividend of 51.6 cents per share.

    Secondly, the merger also saw the spinoff of TPG’s Singapore operations into a new company called Tuas Ltd (ASX: TUA). Any shareholders that held TPG shares before 30 June received one Tuas share for every two TPG shares they owned.

    Now TPG has completed this reshuffling of capital, I think many ASX investors have cashed out and moved on. This might be why the TPG share price has fallen nearly 10% since 30 June.

    Is the TPG share price a buy today?

    I’m not very enthused by the current TPG share price, even after the drop over the past month. TPG is a quality company, to be sure. It has built a top-notch business over the past couple of decades on an aggressive pricing model. But I still prefer Telstra to TPG as an ASX telco company today.

    Telstra’s shares are looking cheaper from a price-to-earnings perspective and offer a larger forward dividend yield, in my view. Additionally, Telstra is way ahead of TPG in terms of investing in the next-generation 5G mobile technology. TPG has been caught up in the ban of Chinese telco supplier Huawei in a way Telstra hasn’t. That’s left TPG a laggard in the 5G race in my view, leaving me far more excited about Telstra’s future than TPG’s. Thus, if I was looking to add an ASX telco play to my portfolio, I would choose Telstra over TPG today.

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

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  • Intel Engineering Head Leaving After Delay Disaster; Analyst Says Sell Now

    Intel Engineering Head Leaving After Delay Disaster; Analyst Says Sell NowFollowing Intel’s (INTC) disastrous 7nm product delay due to a process “defect mode”, the company has announced a major shakeup to its tech team – including the departure of Chief Engineering Officer Murthy Renduchintala on August 3 2020.According to Intel this will “accelerate product leadership and improve focus and accountability in process technology execution.”The Technology, Systems Architecture and Client Group (TSCG) will be separated into five teams, with leaders reporting directly to CEO Bob Swan: 1. Technology Development – Run by Dr. Ann Kelleher & Dr. Mike Mayberry with the focus on 7nm and 5nm processes. 2. Manufacturing and Operations – Run by Keyvan Esfarjani with the focus on product ramp and new fab capacity build-outs. 3. Design Engineering – Run by Josh Walden in the interim. 4. Architecture, Software, and Graphics – Run by Raja Koduri with the continued focus of developing Intel’s architecture and software strategy and graphics portfolio. 5. Supply Chain – Run by Dr. Randhir Thakur with the focus on ensuring the supply chain is a competitive advantage for the companyFollowing the news Rosenblatt analyst Hans Mosesmann reiterated his Sell rating on Intel with a $45 price target. “Murthy’s departure is not surprising given recent developments of Intel’s 7nm delay and likely move to a fab-lite and/or fabless business model over time” he wrote.Mosesmann continued: “As was the case with Murthy, a relatively recent non-Intel ex-Qualcomm player, senior management is still non-Intel and not engineering-centric in terms of historical skill sets.”According to the analyst Intel is a company in major upheaval and not at all in control of benefiting from industry transitions, much less its own process and architectural roadmaps. He believes it will take years before things can stabilize for the company, adding “If and when this happens, Intel likely never regains semiconductor excellence and compute supremacy.”Shares in Intel are down 17% year-to-date, with a 19% drop in the last week alone. Analysts have a cautious Hold consensus on the stock with a $58 average analyst price target (16% upside potential).Related News: Advanced Micro Devices Surges To 52-Week High On Intel’s Woes Intel Faces Analysts’ Wrath, Stock Slips Over 16% AMD Jumps Over 8% On New Line Of Chips More recent articles from Smarter Analyst: * Pfizer, BioNTech Rise As Phase 2/3 Covid-19 Vaccine Trial Kicks Off * Facebook Delays 2Q Results As Zuckerberg To Provide Congress Testimony * Aurora Cannabis (ACB): Beneficial Canadian Cannabis Consolidation Ahead * Beyond Meat Releases New High-Protein, Low-Fat Burger

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  • ASX 200 down 0.4%, Credit Corp and Temple & Webster impress

    ASX 200

    The S&P/ASX 200 Index (ASX: XJO) dropped 0.4% to 6,021 points today.

    Victoria announced another 384 more COVID-19 cases today and NSW also reported another 14 cases.

    Temple & Webster Group Ltd (ASX: TPW) share price rises 5.5%

    The online furniture retailer impressed investors today after giving a preview into its upcoming FY20 result.

    Temple & Webster reported that its full year revenue increased by 74% to $176.3 million. It achieved 96% revenue growth in the second half of FY20 and 130% growth in the final quarter of FY20. Management boasted that the company achieved its first day of at least $2 million sales in June 2020.

    Part of the growth came from the fact that active customers rose by 77% year on year to 480,000.

    Temple & Webster also saw the trade and commercial division grow revenue by 68% year on year.

    The company achieved earnings before interest, tax, depreciation and amortisation (EBITDA) of $8.5 million, up 483% from $1.5 million over the prior corresponding period (pcp).

    Management said that the company was cash flow positive during the year and it finished FY20 with $38.1 million of cash with no debt. This excludes proceeds from the recent $40 million placement.

    In FY21 Temple & Webster has continued to see revenue growth rates in line with those experienced in the FY20 fourth quarter.

    Temple & Webster CEO Mark Coulter said: “Our strategy of being a category specialist, with a clear customer offering built around the biggest and best range of furniture and homewares in the country, combined with the most inspirational content and services and a great delivery experience and customer service, is working. The advantages of being the online market leader are apparent as we continue to grow our market share.”

    Credit Corp Group Limited (ASX: CCP) share price rises 8.8%

    Credit Corp released its statutory result today for FY20. The ASX 200 share has been impacted by COVID-19.

    Net profit after tax (NPAT) for FY20 was down heavily to $15.5 million due to $64.1 million of impairments and provisioning relating to its purchased debt ledger (PDL) assets and the impact of COVID-19. NPAT before those adjustments was up 13% to $79.6 million.

    The debt collector decided not to pay a final dividend for FY20. But it does expect to resume dividends in FY21. Its board will need to be content with the capital position and investment outlook.

    In FY21 Credit Corp expects to make PDL acquisitions of between $120 million to $180 million. NPAT in FY21 is expected to be between $60 million to $75 million. The FY21 annual dividend guidance is for between $0.45 to $0.55 per share.

    If the ASX 200 share achieves the middle of its guidance range, it expects to produce free cash flow of $175 million in FY21.

    Volpara Health Technologies Ltd (ASX: VHT) share price falls 2.5%

    Healthcare business Volpara released its update for the first quarter of its 2021 financial year.

    Cash receipts from customers for the quarter were NZ$5 million, up 112% compared to the prior corresponding period.

    Annual recurring revenue increased by NZ$1.1 million to NZ$19.1 million. The company had NZ$67.5 million of cash at 30 June 2020.

    Net operating cash outflow in this quarter was NZ$3.7 million. This was less than projected and the lowest since Volpara’s acquisition of MRS Systems in June 2019.

    Volpara continues to cover approximately 27% of US women who undergo screening and have had at least one Volpara product applied to their images and data.

    Dr Ralph Highnam, CEO of Volpara, said: “Q1 saw the emergence of COVID-19, but we’re very heartened by the strong cash receipts, negligible churn, and the fact that we got a significant number of new deals over the line. However, we remain fully cognizant of the challenges ahead and are carefully plotting out new strategies so that we can emerge from this crisis strong – COVID-19 will go away, cancer will not.”

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    Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd and VOLPARA FPO NZ. The Motley Fool Australia has recommended Temple & Webster Group 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.

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  • AMD Biggest Beneficiary of Intel’s 7nm Delay, Says 5-Star Analyst

    AMD Biggest Beneficiary of Intel’s 7nm Delay, Says 5-Star AnalystMerrill Lynch analyst Vivek Arya said on July 27 that Advanced Micro Devices (AMD) is the biggest beneficiary of Intel’s (INTC) 7-nanometer product delay. During its second-quarter earnings release on July 23, the chipmaker announced that the launch of its new processor chips would be postponed by a year.The five-star analyst reiterated his Buy rating on the stock and raised the price target to $77 (11.6% upside potential) from $65, saying that “he has higher confidence in AMD's medium/longer-term prospects.”Arya pointed out that Intel’s product “delay could accelerate AMD market share gains back toward their historical peaks of 20% for PC and 25% servers, up from 17% and 10%, today.” He expects AMD to be "on track to achieve earnings power of $3-plus by 2023, suggesting a CAGR of 43%.”Similarly, Raymond James analyst Chris Caso is also confident about the impact of Intel’s 7-nanometer product delay, saying that “the news will be viewed as a positive for AMD since it will now have transitor advantage for the next 3 years.”Currently, the rest of the Street has a cautiously optimistic outlook on AMD. The Moderate Buy analyst consensus is based on 12 Buys and 11 Holds. The average price target of $60.28 implies a potential downside of 13%. (See AMD stock analysis on TipRanks).Related News: Intel Faces Analysts’ Wrath, Stock Slips Over 16% AMD Jumps Over 8% On New Line Of Chips AMD Surges To 52-Week High On Intel’s Woes More recent articles from Smarter Analyst: * Intel Engineering Head Leaving After Delay Disaster; Analyst Says Sell Now * Pfizer, BioNTech Rise As Phase 2/3 Covid-19 Vaccine Trial Kicks Off * Facebook Delays 2Q Results As Zuckerberg To Provide Congress Testimony * Aurora Cannabis (ACB): Beneficial Canadian Cannabis Consolidation Ahead

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  • Will Rio Tinto pay a special dividend tomorrow?

    Woman holding up wads of cash

    Special dividends aren’t something you hear much about these days, but there’s a chance Rio Tinto Limited (ASX: RIO) could pay one tomorrow.

    Our largest iron ore miner is scheduled to report its first half earnings after the market closes on Wednesday and expectations are high.

    The Rio Tinto share price jumped 1.2% on Tuesday to $104.11 even as the S&P/ASX 200 Index (Index:^AXJO) slipped 0.4% into the red on profit taking.

    High earnings expectations

    Rio Tinto just about regained all of its losses from the COVID-19 market meltdown and investors will see tomorrow if the rebound is justified.

    But it isn’t so much the profit numbers that will be dominating as the market got a good sense of what’s coming after the miner posted its second quarter production report two weeks ago.

    However, the analysts at Macquarie Group Ltd (ASX: MQG) still believes Rio Tino can deliver a modest but pleasant earnings surprise.

    Chance of a small earnings beat

    “Our revenue, EBITDA and earnings forecasts are 1%, 3% and 4% higher than Vuma consensus, respectively,” said the broker.

    “Divisionally, our EBITDA forecast is in line for iron ore while beats in Aluminium and at IOC is offset by lower forecasts for Copper and Other.”

    Dividends to steal the limelight

    Having said that, it’s the interim dividend that will steal the show. Consensus expectations on this front is very wide as it ranges from US$0.94 to US$2.21 a share.

    Analysts are clearly dividend on the dividend with Macquarie tipping a regular US$1.70 ($2.38) a share first half dividend. If the broker is right, it will reflect a 60% payout ratio.

    “However, given strong iron ore driven cash flows and low levels of gearing of ~3%, we believe there is scope for a special dividend surprise of up to US$1.00,” added Macquarie.

    High yield income stock

    This will put Rio Tinto’s 2020 yield at 5.5%, or 8% if franking is included. That’s a pretty generous payment given that dividend superstar Commonwealth Bank of Australia (ASX: CBA) may not pay a final dividend this year.

    Paying a special dividend provides a benefit beyond its monetary value. If management provides this one-off reward, it will also signal a bullish outlook.

    High quality ASX stocks that are concerned about future earnings may still pay its regular dividend, but it certainly won’t cough up a special dividend.

    Foolish takeaway

    The broker reiterated its “outperform” (or “buy”) recommendation on Rio Tinto ahead of its results and its 12-month price target is $111 a share.

    Other major iron ore producers are also well placed to undertake a capital return of sorts. But if I had to guess which, I would pick the Fortescue Metals Group Limited (ASX: FMG) share price over the BHP Group Ltd (ASX: BHP) share price.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

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    Motley Fool contributor Brendon Lau owns shares of BHP Billiton Limited, Commonwealth Bank of Australia, Macquarie Group Limited, and Rio Tinto Ltd. Connect with him on Twitter @brenlau.

    The Motley Fool Australia owns shares of and has recommended 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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  • Virgin Money UK share price on watch after Q3 update

    Worried young male investor watches financial charts on computer screen

    The Virgin Money UK PLC (ASX: VUK) share price will be one to watch on Wednesday following the after-market release of its third quarter update.

    How did Virgin Money perform in the third quarter?

    For the three months ended June 30, the UK-based bank reported a 4.8% increase in customer deposits to £67.7 billion. This was driven primarily by lower Personal customer spending during lockdown and Business customers maintaining higher levels of liquidity.

    Virgin Money reported a 1% reduction in its Mortgage portfolio to £58.9 billion. This reflects the effective closure of the new purchase market under lockdown, partially offset by improved retention rates.

    Pleasingly, the bank experienced a 5.7% increase in Business lending growth to £8.8 billion during the quarter. Management advised that this was driven by significant demand for the Government backed lending schemes. A total of £619 million of BBLS and £248 million of CBILS lending were provided at end of June.

    Unsurprisingly, Personal lending reduced 2.7% during the quarter to £5.2 billion. This was due to lower credit card balances.

    Net interest margin in line with expectations.

    During the third quarter the bank’s Net Interest Margin (NIM) declined in line with expectations to 147 basis points. This means Virgin Money’s NIM now stands at 157 basis points for the 9 months.

    Management revealed that this reduction was due to the immediate asset repricing following the base rate reduction and cost of holding excess customer deposits.

    The good news is that liability repricing actions will drive an improvement in its NIM in the fourth quarter. As a result, management continues to expect a FY 2020 NIM of 155 basis points to 160 basis points.

    Asset quality.

    Virgin Money advised that it hasn’t seen any significant specific provisions or credit losses in relation to the pandemic given a backdrop of Government support and forbearance measures.

    Nevertheless, it has updated its impairment models incorporating more cautious economic scenarios and refined its overlays to reflect payment holiday assumptions. This has resulted in a prudent net increase in its provisions of £42 million, primarily in Mortgages and Personal.

    “A severely disrupted environment.”

    Virgin Money’s Chief Executive Officer, David Duffy, was pleased with the company’s performance during the pandemic.

    He commented: “I am pleased with the way the Group has performed during the pandemic. In a severely disrupted environment we are delivering on what we set out in May; to safeguard the health and wellbeing of our colleagues, customers and communities while protecting the bank.”

    “Our Q3 financial results reflect lower demand from consumers due to the pandemic, but strong demand from businesses for Government supported schemes, with the Group further increasing its provisions to reflect the uncertain economic outlook while maintaining a focus on margin, cost and capital management,” he added.

    The chief executive also advised that the bank has been supporting its customers during these difficult times.

    He explained: “We have now granted c.67k mortgage and c.53k personal payment holidays, and we’ve supported c.25k business customers with lending arrangements. We know that things may yet get more difficult for many of our customers, but we are determined to continue to support their needs where we can and to fulfil our role in the economic recovery.”

    Despite the pandemic, the company remains focused on the future and disrupting the status quo.

    Mr Duffy concluded: “We have now recommenced our transformation and rebrand activity, taking what we have learned through the pandemic to deliver on our mission to disrupt the status quo as a full-service digital bank.”

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

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    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.

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  • What would deflation mean for your ASX shares?

    Market up or down

    Deflation can strike fear into the hearts of ASX share investors. 

    Deflation can eat away at profits and drive real returns lower. However, there are certain industries that may do better than others in a deflationary setting.

    According to an article in the Australian Financial Review (AFR), now could be the time to start looking at those options.

    The impact of deflation across industries

    Westpac Banking Corp (ASX: WBC) is forecasting a record-breaking 2.4% decline in the June quarter CPI to be released today.

    Deflation may set off warning bells for many investors. Given benchmark interest rates are affected by inflation figures, deflation could lower rates and impact returns on many loans, leases and other contracts.

    However, the nuts and bolts of legal documents may save the day.

    For starters, many landlords and other businesses have reference rates that include a floor at 0%. That means real estate groups like Mirvac Group (ASX: MGR) may weather any deflationary storm.

    But it’s not just landlords and real estate moguls that may be protected. Industries that receive strong support through government contracts might also benefit.

    One such industry involves toll roads, meaning ASX shares like Transurban Group (ASX: TCL) may do better than expected.

    Long-term government contracts often have scheduled payment escalations, and that means current deflation will make those relative payment increases even more valuable.

    How can I take advantage of deflation with ASX shares?

    In theory, deflation should lower the price of general goods in the economy, which means earnings for consumer discretionary shares like Coles Group Ltd (ASX: COL) could take a hit.

    Part of the reason for the forecast deflation is due to a short drop in fuel prices, and this could help industries that benefit from lower fuel costs. Normally that would be the travel sector, but thanks to coronavirus that’s no longer the case.

    I would look at companies in the manufacturing sector that benefit from cheaper energy. A big-name manufacturer like Brambles Limited (ASX: BXB) could be in the buy zone.

    I also think the healthcare sector could benefit due to its non-discretionary earnings.

    Healthcare prices aren’t really correlated to the general price of goods and services. Therefore, an ASX healthcare provider like Ramsay Health Care Limited (ASX: RHC) could be worth a look to protect your portfolio against deflation.

    Foolish takeaway

    Investing in ASX shares to fight inflation can be good for diversification and overall return.

    However, you may also open yourself up to other potential issues like currency or company risk.

    5 stocks under $5

    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!

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    Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Transurban Group. The Motley Fool Australia has recommended Ramsay Health Care 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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  • Musgrave Minerals share price climbs 7% on ‘bonanza’ drill results

    Hand holding gold nugget

    The Musgrave Minerals Ltd (ASX: MGV) share price has surged more than 20% in today’s trading before ending the session 6.5% up. The increase in the Musgrave Minerals share price came after the company reported ‘bonanza-grade’ drilling results.

    Bonanza drilling results

    Earlier today, Musgrave Minerals reported promising drilling results from its Starlight gold discovery at the Break of Day corridor. The company’s drilling report included results from 5 reverse circulation (RC) drill holes and 5 diamond drill holes. Results from the report were highlighted by bonanza-grade results of up to 3 metres at 884.7 g/t gold from 5 metres.

    Musgrave also provided additional results from the 5 RC holes which included; 22 metres at 5.8 g/t from 15 metres (including 3 metres at 26.2 g/t from 31 metres); 5 metres at 14.3 g/t from 90 metres, and 6 metres at 5.3 g/t from 232 metres. Highlights from the diamond drill holes included; 16 metres at 13.7 g/t from 18 metres (including 4 metres at 40.8 g/t from 18 metres, 9 metres at 6.1 g/t from 25 metres, and 0.5 metres at 25.4 g/t from 269.5 metres).

    According to Musgrave’s management, the drilling results confirm the high-grade nature of the Starlight and White Light discoveries. The company noted that further drilling is underway to extend the Starlight mineralisation site, with aims to complete a JORC (Joint Ore Reserves Committee) resource update late in the third quarter of 2020.

    How has the Musgrave Minerals share price performed?

    Musgrave Minerals is a gold and metals explorer and has 100% ownership of its flagship Cue Gold Project located in Western Australia. Both the Starlight and White Light sites at the Break of Day gold corridor are located in the Cue project.

    The company has an $18 million earn-in and exploration joint venture with Evolution Mining Ltd (ASX: EVN) over the Lake Austin portion of the Cue Project. In late April, Musgrave completed a $6 million capital raise to accelerate drilling at the Starlight gold discovery site and to test similar targets along the Cue Project. Including today’s price action, the Musgrave Minerals share price has surged 390% since late May. 

    Foolish takeaway

    The Musgrave Minerals share price soared more than 20% higher in early trade, hitting an intra-day high of 83 cents. At the close of trade, the company’s shares have dipped to around 73.5 cents and are trading 6.5% higher for the day.

    5 stocks under $5

    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.

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    Motley Fool contributor Nikhil Gangaram 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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  • Is this why the Catapult share price sank lower today?

    catapult share price

    The Catapult Group International Ltd (ASX: CAT) share price was out of form on Tuesday and dropped notably lower.

    The sports analytics and wearables company’s shares fell as much as 5.5% to $1.69 at the close.

    Why did the Catapult share price drop lower?

    Although Catapult released an update on its customer-led innovation, I suspect that something else could be weighing on investor sentiment today.

    On the other side of the world in the United Kingdom, over 400 current and former professional soccer players are understood to have signed up to something called “Project Red Card.”

    According to the Athletic, these players are raising questions regarding who owns and profits from the data generated when they play.

    Project Red Card is looking to take legal action against betting, gaming, and data-processing companies for six years’ worth of lost earnings. The players believe their statistics are being used without their permission and without any sort of compensation.

    Given how Catapult has a long history of providing broadcasters with in-game data, investors may be concerned that Project Red Card could have an impact on this revenue stream.

    Though, it is worth noting that legally you can’t trademark or copyright a fact that is already in the public domain. So the aforementioned project, could quite easily fall flat on its face before it even gathers pace.

    Nevertheless, it will be interesting to follow developments and see what impact this has on future sports data collection and usage.

    Should you buy the dip?

    Today’s decline means that Catapult’s shares are now down 23% from their 52-week high.

    While this leaves them trading at a potentially attractive level for a long term investment, I would suggest investors wait for its full year results release and FY 2021 guidance before picking up shares.

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

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