The S&P/ASX 200 Index (ASX: XJO) ended up 1.9% last week to finish the week at 6033.6. The market was boosted mid-week on hopes of a coronavirus vaccine, and seems to be pricing in an accelerated recovery from COVID-19. Experts, however, have warned impacts will be ongoing, with a vaccine unlikely to be widely available for at least a year. 

Investors moved out of high flying technology shares such as Afterpay Ltd (ASX: APT) last week, possibly locking in gains from recent meteoric share price rises. The S&P/ASX 200 Information Technology Index (ASX: XIJ) ended the week down 4.5%. Hurdles to economic recovery may prompt higher volatility as investors look to cash in on share price rises since March. 

The share market was buoyed by healthcare and the miners last week. The S&P/ASX 200 Health Care Index (ASX: XHJ) gained 0.8%, with Ansell Limited (ASX: ANN) gaining 2.2%. BHP Group Ltd (ASX: BHP) was up 3.5%, and Rio Tinto Limited (ASX: RIO) rose nearly 5%.

We take a look at the 5 top performing ASX 200 shares last week. 

Alumina Limited (ASX: AWC) 

The Alumina share price rose 12.9% last week to finish the week at $1.80 following strong second quarter earnings. Alumina has interests in bauxite mining, alumina refining, and aluminium smelting operations via a joint venture. The share price rose when Alumina announced it had received $58.6 million in distributions from the joint venture, which was above analyst expectations. This was an 87% increase on the $31.3 million received the previous quarter. 

Alumina prices have risen from their lows of $225 a tonne in April. Increased importing by China has seen prices rise to $284 a tonne. Commenting on the rebounding commodity price, CEO Mike Ferraro said:

Global demand for smelter-grade alumina so far in 2020 is slightly higher than 2019 volumes. Market sentiment globally has improved and there are signs of a promising economic recovery in China. However, it is still to be seen how the economic impact of the pandemic will pan out.

Credit Corp Group Limited (ASX: CCP)

The Credit Corp Group share price gained 10.8% last week to finish the week at $16.91. The debt collection group announced its unaudited FY20 results last week, revealing FY20 net profit after tax is expected to be $10 million–$15 million. This includes impairment charges relating to purchased debt ledger assets and additional provisioning from the impact of the COVID pandemic. Net profit before these adjustments is expected to be $75 million–$80 million. 

Credit Corp reports its customers have been less prepared to agree and maintain longer-term repayment plans since the implementation of isolation measures. This initially produced a sharp decline in collections and rising loan book arrears. More recently, willingness to make one-off payments has brought collections for May and June closer to pre-COVID levels. Persistently elevated levels of unemployment will likely see loan book arrears rise. Nonetheless, Credit Corp reports increased interest in debt sales.

With a strong capital position including no net debt and undrawn funding lines of $375 million, Credit Corp will be able to maximise investment opportunities as they arise. 

Cooper Energy Ltd (ASX: COE) 

The Cooper Energy share price rose 10.5% last week to close the week at 42 cents. Cooper Energy is an oil and gas company supplying customers including AGL Energy Limited (ASX: AGL) and Origin Energy Ltd (ASX: ORG). Gas is produced in the Otway basin and accounts for the major share of the company’s sales revenue, production, and reserves.

There was no news out of Cooper Energy last week to account for the rise in share price, however the company has a number of projects under development which could add value and increase gas production. 

Gas prices have trended lower recently, led by LNG prices. This is expected to improve in July, however, and in the southern states production from existing and committed sources is expected to fall short of demand by 2021. With capital spending being reduced in FY20 and FY21, this shortfall could widen, leading to the need for new sources of supply. 

Fortescue Metals Group Limited (ASX: FMG) 

The Fortescue Metals share price climbed 10.4% last week to finish the week at $16.39 with the miner benefitting from a soaring iron ore price. Iron ore rose to $110 a tonne in July, its highest point since August 2019. The surge in coronavirus infections in Brazil triggered concerns of a supply disruption, as demand from China rises. The Chinese Government has pledged to increase infrastructure spending to offset the impact of coronavirus on the economy. 

In the March quarter Fortescue reported record iron ore shipments of $32.3 million tonnes, 10% high than Q3 FY19. Year-to-date shipments were a record $130.9 million tonnes. Costs were 2% lower than 3Q FY19. Strong free cash flow generation resulted in cash on hand of US$4.2 billion at 31 March 2020 and net cash of US$0.1 billion, compared to net debt of US$2.9 billion at 31 March 2019. 

Orocobre Limited (ASX: ORE) 

The Orocobre share price rose 9.4% last week to finish the week at $2.80. Orocobre is a mineral resource company focused on lithium and borax mining operations. There was no news out of the company to prompt the price rise last week and lithium prices remain at record lows. Demand continues to be subdued in China’s lithium market, despite the resumption of economic activity. Nonetheless, investors may be buying into Orocobre now as lithium prices are poised to rally in the next few years as electric vehicle sales accelerate. This will be driven by government efforts globally to shift toward cleaner modes of mobility. 

In the June quarter, Orocobre sold approximately 1,600 tonnes of lithium carbonate at around US$4,105 a tonne. COVID-19 restrictions limited the ability to complete sales during the quarter. While most logistical issues have been addressed, delivery of product is yet to return to normal levels as customers delay shipments due to lower production and excess inventory.

More reading

• ASX 200 down 0.5%: Sydney Airport and South32 updates, HUB24 delivers record Q4
• Why the South32 share price is falling today
• 3 ASX shares to leverage the booming iron ore price
• Is the Xero share price in the buy zone right now?
• Coles and 2 more ASX 200 shares to watch this week

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

The post 5 top performing ASX 200 shares from last week appeared first on Motley Fool Australia.

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

The 1300 Smiles Limited (ASX: ONT) share price is currently trading 3.11% higher after the release of the company’s most recent trading results today.

1300 Smiles owns and operates full-service dental facilities in New South Wales, South Australia and across 10 major population centres in Queensland. 

Trading update

Despite the coronavirus pandemic impacting its April and May profitability, the group delivered strong June results.  

The group reported that its June 2020 revenue was up 18% compared with the same time last year (June 2019). Additionally, same-store sales increased by 20%. Earnings before interest, tax, depreciation and amortisation (EBITDA) was up by 65% on the prior corresponding period (pcp). The group also reported its online booking platform saw a 216% increase in use on pcp. 

1300 Smiles had net debt of $8.3 million as at the end of last month.

In the update, the group highlighted it benefitted from the reopening of dental clinics after restrictions went back down to level 1. Pleasingly, the strong results last month have continued this month. The group is still finalising its full year results, but reported its revenue was only down by 3%.

1300 Smiles managing director Dr Daryl Holmes said “these are truly amazing results that I am so excited and reassured by, after coming through the most challenging and extraordinary months… the ongoing out-performance continues to amaze our board and I.”

Today’s announcement follows an update on 6 April 2020. In April, the group had about 50% of its practices open throughout its network, in accordance with advice from the relevant authorities.

Across the pandemic, 1300 Smiles has been supported by its senior lender Commonwealth Bank of Australia (ASX: CBA). It had approximately $10 million in undrawn facilities, as per the April update.

About the 1300 Smiles share price

In its half yearly report released in February this year (before the full impact of the pandemic on operations), the company reported revenue and net profit after tax was up 14.5% and 6.8%, respectively. 

However, the group’s shares have since been impacted by the lockdown restrictions and are trading down 15.87% over the past year. The 1300 Smiles share price is currently sitting at $5.30 per share. 

More reading

• Leading brokers name 3 ASX shares to buy today
• 5 of the worst performing ASX shares from last week
• 5 top performing ASX 200 shares from last week
• 2 quality ASX 200 shares to buy and hold beyond 2027
• How to invest $10,000 in ASX 200 shares for growth and dividends

Motley Fool contributor Matthew Donald has no position in any of the stocks mentioned. The Motley Fool Australia has recommended 1300SMILES 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 1300 Smiles share price rises on strong trading update appeared first on Motley Fool Australia.

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

In my opinion, investing in ASX 200 shares is very much a long term game. Here we look at two quality ASX 200 shares that may not have been top performers over the past year in terms of share price gains, but which I believe are both well positioned for above average shareholder returns over the next five years and beyond.

2 ASX 200 shares to buy and hold 

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

The Soul Patts share price rallied strongly during 2018, however lost some ground in the first part of 2019. Since then, it has been largely trending sideways, despite a dip in the early phase of the coronavirus pandemic. However, I believe looking back over a longer period provides greater insight into the Soul Patts business model. Over the past 10 years, this ASX 200 share has increased by nearly 60%.

In fact, Soul Patts has a strong, long-term track record of outperforming the ASX index. Also, it has been listed on the ASX for over a century, and has paid a dividend every year in that time.

I am particularly attracted to Soul Patts as an ASX 200 share investment due to its highly diversified business model. The company invests across a broad spectrum of industries, ranging from pharmacies and telecommunications to mining and building products.

Soul Patts also keeps a significant amount of cash on its books. This positions it well to snap up any lucrative investment opportunities that may come its way. With its share price currently trading at well below levels seen in early 2019, Soul Patts is definitely in my buy zone right now.

Blackmores Limited (ASX: BKL)

The Blackmores share price has experienced a downward trend after its lofty heights at the beginning of 2016 when it was trading above $210. It is now trading at $73.15. However, I feel this downward trend needs to be considered within the context of Blackmores’ share price performance during 2015, when it grew at a phenomenal pace. At the beginning of 2015, the Blackmores share price was trading at around half of its current level.

Granted, Blackmores recent financial performance has not been overly impressive. In particular, the company’s operations in China have underperformed. However, Blackmores now has a plan in place to rejuvenate its growth in Asia, particularly in the massive Chinese market. The company is injecting more funds into its South East Asian operations, and will also target the Indian market.

Despite the challenges ahead, Blackmores remains my buy zone. I believe that its Asian strategy holds promise, and with its share price well down on the levels seen at the beginning of 2019, I believe it offers a reasonably good buying opportunity for patient, long-term investors.

Foolish takeaway

Soul Patts and Blackmores are two quality ASX 200 shares that are in my buy zone right now. My pick of the two would probably be Soul Patts, due to its more diversified business model and strong track record of shareholder returns.

More reading

• How to create a yearly income of $65,000 in dividends
• Fund managers have been buying these ASX shares
• What I’m looking for in dividend shares during COVID-19
• 2 ASX shares that could be 10-baggers
• 3 top ASX 200 blue chip shares to buy

Motley Fool contributor Phil Harpur owns shares of Blackmores Limited. The Motley Fool Australia owns shares of and has recommended Blackmores Limited and Washington H. Soul Pattinson and Company 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 2 quality ASX 200 shares to buy and hold beyond 2027 appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/39e7c52

Growth and dividends. That’s the holy grail that most ASX 200 share investors are looking for.

It’s a rare combination, but one that can be an absolute gold mine if you can find it.

If you’re looking to invest $10,000 for both growth and dividends, here’s how I’d go about setting up a brand new ASX 200 share portfolio.

Where I’d invest $10,000 in ASX 200 shares

I’m going to assume I’m building a diversified portfolio from the ground up. I personally like the ‘satellite’ approach, which is underpinned by a diversified core with some smaller allocations to growth companies.

That means it’s good to start with a cornerstone investment that can underpin portfolio growth. With $10,000 to invest, allocating your first $5,000 to a diversified exchange-traded fund (ETF) like Vanguard Australian Shares Index ETF (ASX: VAS) could be a good move.

Vanguard Australian Shares Index ETF seeks to track the S&P/ASX 300 Index (ASX: XKO) and invests in 306 companies. With a management fee of just 0.10% p.a., this Vanguard fund could give your portfolio instant diversification with a high weighting towards ASX 200 shares.

Once you’ve got your $5,000 ETF investment, it’s time to build out the ‘satellite’. If you’re looking for growth in the next 10 years, it’s worth thinking about potential boom industries.

To me, that means I’m looking in the biotech and data management industries.

With the remaining $5,000, I wouldn’t want to spread my investment too thin across ASX 200 shares. That means shares like Polynovo Ltd (ASX: PNV) and NextDC Ltd (ASX: NXT) could be in my sights.

Polynovo continues to kick goals and make the most of its significant research and development capabilities. Polynovo shares are up 17.65% this year but further applications of its NovoSorb BTM product could see the ASX 200 biotech share climb higher, in my view. Specifically, Polynovo is eyeing off the lucrative breast augmentation and hernia repair markets right now.

I think the data management sector could also have a huge decade in the 2020s. NextDC is currently a leader in the data storage and security space. That leaves the ASX 200 tech share well-placed to climb higher if earnings continue at a strong pace in the next decade.

So… what’s the end result?

Putting $5,000 into Vanguard Australian Shares Index ETF should provide a handy dividend and franking credits for investors. Then, investing $2,500 in each of NextDC and Polynovo shares rounds out your ASX portfolio with a potential growth platform. If these 2 Aussie companies can continue their strong growth in the next 10 years, then that could be a solid mix of growth and dividends by 2030, in my opinion.

More reading

• ASX 200 Weekly Wrap: Blue chip shares pull ASX 200 back over 6,000 points
• 3 reasons to buy Vanguard Australian Shares Index ETFs
• These were the worst performing ASX 200 shares last week
• 3 excellent ASX ETFs to buy for dividends
• Where to invest your first $500 into ASX shares

Ken Hall owns shares of Vanguard Australian Shares Index. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of POLYNOVO FPO. 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 How to invest $10,000 in ASX 200 shares for growth and dividends appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3jlnGg7

The Noxofarm Ltd (ASX: NOX) share price soared after positive results regarding its cancer treatment drug, Veyonda, were released this morning. The immuno-oncology drug development company saw its share price rise 12% to 37 cents on the news. Noxofarm shares have since been sold down to 34 cents (at the time of writing) representing a more modest gain of 3% for the day so far.

While this is good news for the company, the drug is still a very long way off commercialisation stage. If Veyonda does actually reach commercialisation, it’s likely the Noxopharm share price will once again surge. Currently, however, Noxopharm continues consuming cash via capital raisings. The company’s share price has been gradually shrinking over the past couple of years due to the ballooning number of shares on issue. Noxopharm has already undertaken two equity raises this year.

What does Noxopharm do?

Noxopharm is an ASX listed, clinical stage drug development company. Noxopharm’s current clinical stage drug is Veyonda. Veyonda aims to work with the body to fight cancer, not against it as is commonplace. It enhances the cancer-killing effect of standard chemotherapy and radiotherapy. Thus, enabling lower doses of these toxic therapies to be successfully administered. Furthermore, the drug seeks to activate the body’s innate immune cell function to attack those cancer cells that have survived the initial treatment.

Why did the Noxopharm share price soar?

The Noxopharm share price soared as it was announced that independent data confirmed Idronoxil could convert ‘cold’ tumours to ‘hot’ tumours. Idronoxil is the main active ingredient in Veyonda. This action is regarded as a fundamental goal in enabling immuno-oncology drugs. These drugs have long been hailed as the future of cancer therapy, but are poorly effective in ‘cold’ tumours. ‘Cold’ tumours are the majority of those found in human cancer patients. The ability to convert tumours to ‘hot’ restores cancer-fighting immune cells to tumours. Therefore enabling the body to aid in the fight against cancer.

This conversion is seen as a prerequisite in expanding the annual US$20 billion immuno-oncology drug market. Furthermore, a patent has been lodged on this potentially highly valuable intellectual property with Noxopharm to commence discussions with global oncology firms.

What now for the Noxopharm share price?

Despite this encouraging news, the data is only pre-clinical and, as such, the drug is still a long way from being released to the markets. Nevertheless, it is much needed good news for the ASX biotech stock. The Noxopharm share price has seen its share price spike 100% so far in July despite this being the first piece of news announced this month.

More reading

• 2 quality ASX 200 shares to buy and hold beyond 2027
• How to invest $10,000 in ASX 200 shares for growth and dividends
• Why Catapult, Eclipx, FlexiGroup, & Whispir shares are charging higher
• The Coles share price is flying under the radar
• Why CSR, South32, Sydney Airport, & Webjet shares are tumbling lower

Motley Fool contributor Daniel Ewing 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 Noxopharm share price soars 12% higher on drug update appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/30uAgB4

In afternoon trade the S&P/ASX 200 Index (ASX: XJO) looks set to start the week with a disappointing decline. At the time of writing the benchmark index is down 0.6% to 5,995.3 points.

Four shares that have not let that hold them back are listed below. Here’s why they are charging higher:

The Catapult Group International Ltd (ASX: CAT) share price has rocketed over 12% higher to $1.43. Investors have been buying the sports analytics and wearables company’s shares following the release of its full year update. According to the release, Catapult generated net free cash of $9 million in FY 2020. This was a massive $24.1 million increase on FY 2019’s result. As a result, it has achieved positive cash flow a year earlier than forecast. This was driven partly by its subscription-based business model.

The Eclipx Group Ltd (ASX: ECX) share price is up 6% to $1.38. This follows the announcement of a binding agreement for the sale of the Right2Drive business to Growth Factor Group for a purchase price of up to $26.5 million. The transaction includes an ongoing commercial relationship with Right2Drive, including a right to supply new vehicle leases to Right2Drive for a period of three years. All existing leases between Eclipx and Right2Drive will also remain on foot.

The FlexiGroup Limited (ASX: FXL) share price is up 3.5% to $1.25. This morning FlexiGroup released an update on its buy now pay later platform, Humm. According to the release, fourth quarter ecommerce volume was up 315%, with total transactions up 447% on the prior corresponding period. This was driven by a record number of ecommerce and instore integrations during the quarter and a new BPAY feature which allows customers to pay for bills in manageable interest. At the end of the quarter, the humm platform had a total of 56,000 retail partners.

The Whispir Ltd (ASX: WSP) share price has surged 17% higher to $3.94 following its fourth quarter update. The communications workflow platform provider’s update revealed strong demand by new and existing customers during the pandemic. According to the release, the company’s annualised recurring revenue rose 4.2% over the March quarter and 35.7% over the prior corresponding period to $42.2 million. This was driven by strong growth in the ANZ and Asia regions.

More reading

• Whispir share price surges 8% to a record high on stellar Q4 update
• FlexiGroup share price jumps 8% higher following BNPL update
• Catapult share price on watch after FY20 Results Preview
• These are the 10 most shorted shares on the ASX
• How to get rich by investing in small cap ASX shares

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 Catapult Group International Ltd and Whispir Ltd. The Motley Fool Australia has recommended Catapult Group International Ltd, FlexiGroup Limited, and Whispir 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 Catapult, Eclipx, FlexiGroup, & Whispir shares are charging higher appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/30yH94C