The Seven Group Holdings Ltd (ASX: SVW) share price is up 2% today following an investor presentation released this morning. The presentation was given to analysts by Mr Ryan Stokes AO, Managing Director and CEO of Seven Group.

What was in the announcement?

The article included updates about the company’s WesTrac and Coates hire subsidiaries. It also included updates regarding Seven Group’s energy assets, media assets and capital management situation. It was a positive announcement overall which was reflected by the company’s higher share price today.

WesTrac

Seven Group’s Westrac subsidiary has performed well through the recent coronavirus crisis. According to the announcement, the pandemic has so far had a minimal impact on the key drivers of mining production along with fleet utilisation and age. Revenue of the subsidiary for the year to May 2020 was up 15% on the prior corresponding period. WesTrac was recently awarded new contracts from several mining companies including Rio Tinto Limited (ASX: RIO).

Coates Hire

The group’s Coates Hire business has been negatively affected by coronavirus with both the events hire and construction hire businesses impacted. Lockdown measures are estimated to have adversely impacted vertical construction productivity by 30% and horizontal construction activity by 10%. Despite this, the business reported that year to date revenue was up 2% on the prior corresponding period. It also announced that governments were focused on accelerating ‘shovel ready’ projects with demand for engineering and construction poised to benefit. The company reported that Australia was in the midst of its largest ever transport infrastructure boom with investment set to reach $18 billion per annum by 2023.

Energy

Seven Group reported that gas prices for 2020 contracts had remained strong. It also boasted that through its investments in Beach Energy Ltd (ASX: BPT) and SGH Energy the company had the potential to take advantage of a projected supply gap for gas beyond the next 2-3 years.

Media

The company reported that government measures surrounding coronavirus had negatively impacted advertising revenue for Seven West Media Ltd (ASX: SWM). It also announced that it had made some media asset sales and realised more than $140 million in the process. Additionally, it reminded investors that Seven also had other media investments that would expose the group to growth in China’s media, entertainment and consumer sectors.

Capital management

Seven Group’s announcement regarding its capital management was positive with the group reporting it has over $700 million in new funding available. It also announced that its private placement, priced in May, was oversubscribed with US$865 million in bids received. It also has $616 million in existing committed undrawn facilities.

About the Seven Group share price

The Seven Group Holdings share price is up 95% since its 52-week low of $8.92 reached in March this year. The company’s share price closed at $17.35 on Friday which is 10.89% down since the beginning of the year.

More reading

• Keep a watch on these 3 ASX trends next week
• 3 top ASX dividend shares to add to your portfolio in June
• 3 quality ASX dividend shares to solve your income needs
• 2 top ASX dividend shares for income in 2020
• Can the Boral share price continue to rise?

Motley Fool contributor Chris Chitty 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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Buying dividend stocks in the current economic climate may not appear to be a worthwhile move for many investors. However, over the long run, many dividend stocks that have recently crashed could deliver strong recoveries. As such, it may be worth buying a selection while they offer value for money. This strategy could improve your financial outlook, and help you to retire early.

Value for money

Buying stocks while they offer good value for money has been a highly successful investment strategy in the past. Following this strategy at the present time could prove a shrewd move. This is since a number of high-quality dividend stocks appear to be trading on valuations that are lower than their historic averages.

Certainly, a challenging economic outlook could cause their prices to move even lower in the short run. But, the past performance of the stock market shows they are unlikely to remain at depressed prices over the long run. In fact, the stock market has always recovered from its various bear markets to move higher than those achieved in its previous bull market.

Therefore, purchasing high-quality companies with the potential to pay growing dividends could lead to a substantial nest egg in the coming years and the chance of early retirement.

Relative appeal

Demand for dividend stocks may not be especially high at the present time among income investors. Significant risks are facing the world economy that may disrupt operating environments across a wide range of industries.

However, over time the popularity of dividend stocks could increase significantly. It is becoming increasingly difficult to generate a worthwhile income return from other mainstream assets such as cash and bonds. As the economy recovers, policymakers are likely to maintain a supportive monetary policy stance. This could be through policies such as low-interest rates and demand for income-paying stocks could increase.

This may help to push the prices of dividend stocks higher in the coming years, ultimately helping you retire early. Therefore, the end result could be a larger retirement nest egg making it easier for you to generate a generous passive income in an older age.

Focusing on quality

At the present time, many industries are experiencing significant change. This may persist over the next few years, as consumer habits are potentially altered by the unprecedented coronavirus pandemic.

Therefore, diversifying across a range of dividend stocks could be a logical move. It will enable you to reduce your overall risk at a time when it is unclear exactly which sectors will deliver strong performances in the long run. This strategy could also boost your returns and provide a more resilient passive income. All of this put together should equal the opportunity for you to retire early and achieve ‘nest egg’ status much sooner than expected.

More reading

• Why the Seven Group share price was up 2% on Friday
• 3 ASX shares I’d buy if the market hits 23 March levels again
• Why the Lovisa share price is at risk of falling further over the coming weeks
• 3 defensive ASX shares to buy if the sell-off continues
• Leading fund manager names 4 ASX stocks set to benefit from a faster re-opening of the Australian economy

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23 March 2020.

That’s the day the S&P/ASX 200 Index (ASX: XJO) found its bottom for the year so far. On that fateful day, the ASX 200 descended below 4,500 points before finishing the day at 4,546. That’s a long way from the levels we see today (even after the savage sell-off). But this dip was so quick if you blinked, you probably would have missed it. The next trading day, shares were back up and the rest is, as they say, history.

But sometimes history repeats itself – or at least rhymes.

So if we do see an ASX 200 back at the levels we saw on 23 March, I will be buying shares, no question. But which ones? Well, these 3 are on my wishlist for the prices they were offering 2½ months ago.

Afterpay Ltd (ASX: APT)

Afterpay hit the unbelievable share price of $8.90 on 23 March – a lightyear away from its current share price of over $50. Yep, that’s right, anyone who won the lottery by buying Afterpay on this date would be sitting on an almost 500% gain today. That’s not bad for a couple of months’ work. I think this company is one of the most exciting and disruptive companies on the ASX (and maybe even in the world). If the Afterpay share price got back to single digits, I wouldn’t hesitate to back up the truck.

WAM Research Limited (ASX: WAX)

I love locking in a solid dividend yield, and WAM Research is known for exactly that. On current prices, this company is offering a hefty 7% dividend yield, complete with full franking credits. However, WAM Research dipped to around 94 cents per share on 23 March – which would have enabled a lucky investor to lock in the far more preferable yield of 10.4%. That’s a yield I couldn’t say no to, and so WAM Research shares will be at the top of my watchlist if the ASX dips once again.

Newcrest Mining Limited (ASX: NCM)

Newcrest is the ASX’s largest gold miner and a great way to get some indirect exposure to gold through ASX shares in my view. I think there is a strong bull case for the yellow metal over the coming years. With central banks around the world lowering rates to zero and printing massive amounts of money to counter the economic effects of the coronavirus, I think there will be a high demand for tangible (and unprintable) assets like gold in the years to come.

On 23 March, Newcrest shares dipped down to $21.06. Given that they’re over $30 today, I think it would have been a great move to pick up some Newcrest shares then. It’s a mistake I won’t make again if the ASX gets back to 23 March levels.

More reading

• Leading fund manager names 4 ASX stocks set to benefit from a faster re-opening of the Australian economy
• ASX 200 falls 1.9%, big 4 ASX banks retreat
• Down 20% in 7 trading hours… Worse to come?
• The latest ASX shares to be hit by broker downgrades to “sell” today
• What would I rather buy today: TPG or Telstra shares?

Sebastian Bowen owns shares of Newcrest Mining Limited and WAM Research Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T 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.

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The Lovisa Holdings Ltd (ASX: LOV) share price tumbled on Friday along with its peers, but the costume jewellery retailer may continue to lag ahead of its profit results in August.

This is the prediction from Morgan Stanley who’s warning that there is a 70% to 80% chance the Lovisa share price will fall over the next 60 days.

The bearish prediction stands in contrast to the recent re-rating of ASX retail stocks as Australia emerges from the COVID-19 shutdown.

Retail re-rating

Some retailers like JB Hi-Fi Limited (ASX: JBH) and Harvey Norman Holdings Limited (ASX: HVN) have benefitted from increased demand for IT equipment and electronics from stuck-at-home consumers.

Meanwhile, other retailers like Baby Bunting Group Ltd (ASX: BBN) and Kathmandu Holdings Ltd (ASX: KMD) have experienced a spike in online sales.

The sector also got a boost on news that the economic fallout from the coronavirus pandemic isn’t half as bad as what experts were predicting.

Left behind

But Lovisa may be among the worst placed retailers to benefit from these tailwinds. Morgan Stanley sees near-term risk to its share price as its store rollout in the US, UK and France may take six to 12 months to ramp up again.

This is significant as new store openings in those key markets are a major earnings driver for the group.

But these countries are having more trouble than Australia in flattening the coronavirus curve. The US may be particularly hard hit on fears of a second wave of infections as the number of Americans catching the virus surpassed two million.

All glammed up and nowhere to go

This may not be the only thing to weigh on Lovisa’s share price. Morgan Stanley doesn’t think the small cap retailer will benefit so much from the rebound in consumer spending in Australia.

The reason is social events like weddings are a big driver for jewellery demand and there are still strict limits on the number of people who can attend such gatherings.

Disconnected from online sales

Finally, Lovisa may not benefit significantly from the big shift to online shopping because the company doesn’t have a strong presence in this channel, explained Morgan Stanley.

If the broker is right, the company’s full year result announcement in August may be a sombre affair!

Morgan Stanley’s recommendation on Lovisa is “equal weight” (equivalent to a “hold”) and its price target on the stock is $6.50 a share.

If you are looking for ASX shares to buy during the market volatility, you might want to read this free report from the experts at the Motley Fool.

They’ve picks some of their best buy now stock ideas. Click on the free link below to find out what they are.

More reading

• The latest ASX shares to be hit by broker downgrades to “sell” today
• Brokers name 3 ASX shares to buy right now
• ASX 200: improved consumer sentiment to near pre COVID-19 levels
• 5 things to watch on the ASX 200 on Friday
• ASX 200 drops 3%, Webjet share price sinks

Motley Fool contributor Brendon Lau 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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The S&P/ASX 200 Index (ASX: XJO) seems to have had a rather dramatic mood swing. After some great gains early in the week, both Thursday and Friday have seen massive sell-offs, pushing the ASX 200 decisively back below 6,000 points.

With the global economy and the coronavirus pandemic still in very fluid situations, next week might well see the sell-off of ASX shares continue.

So with this in mind, here are 3 ASX shares that I think have defensive qualities and should be an asset to any portfolio if the sell-off continues next week.

Transurban Group (ASX: TCL)

Transurban is a gigantic owner and operator of tolled roads and motorways across Australia and North America. Transurban’s monopolistic grip on the roadways of our major capital cities is inescapable – both as a motorist and as an investor. Yes, Transurban did see a massive collapse in road usage during the height of the lockdown period over March and April. But I think with restrictions easing, this company will continue to bounce back and remain a great investment for the long-term.

BHP Group Ltd (ASX: BHP)

Miners are not normally my ‘go-to’ for a defensive holding. But I think the unique circumstances 2020 has brought us has changed the game somewhat. Commodity prices have held up remarkably well over the coronavirus pandemic. Chief amongst those has been iron ore, which has topped US$100 per tonne in recent weeks. Thus, I think a diversified commodity play like BHP is a prudent investment going forward. It’s one of the largest miners in the world, is diversified across coal, iron, copper and oil, and has some of the lowest extraction costs in the business. Therefore, I don’t think you can go wrong with Broken Hill Proprietary if the markets sell-off once more.

Metcash Limited (ASX: MTS)

Metcash is often overlooked for its larger rivals Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW). But I think this perpetual underdog is a great defensive investment if there is another ASX sell-off. Not only does it own the IGA network of grocers, but it also has in its stable hardware chains Mitre 10 and Home Timber & Hardware.

Both grocers and hardware stores have seen increased consumer spending during the coronavirus lockdowns, and I see these trends continuing well into the future. As such, I think Metcash is another great defensive share to look at if the ASX does indeed continue to shed value next week.

More reading

• 3 top ASX dividend shares to add to your portfolio in June
• Woolworths facing fresh threat from Amazon.com
• 3 quality ASX dividend shares to solve your income needs
• 3 ASX 200 shares to add to your watchlist in 2020
• 2 top ASX dividend shares for income in 2020

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET, Transurban Group, and Woolworths 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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Despite the falls we have seen today, the S&P/ASX 200 Index (ASX: XJO) has still had a remarkable month and is up 7.8% over the past 4 weeks.

This is in no small part due to the ongoing easing of restrictions related to the coronavirus pandemic. Australia’s success so far in containing the disease is enabling the economy to slowly return to ‘normal’, which is obviously great news for ASX companies.

So with the coronavirus still looking to be the major market mover in 2020, it makes sense to position your portfolio accordingly. That’s what the fund managers at Spheria Asset Management are looking at anyway. Spheria runs a micro-cap fund that returned more than 15% in April – so I reckon we should at least have a look at what they’re doing.

Spheria’s top 4 ASX picks

In its April update, Spheria named 4 ASX picks for a COVID-19 recovery.

First off, we have G8 Education Ltd (ASX: GEM). Spheria notes that childcare providers like G8 have benefitted enormously from the government offering free childcare over the last few months. Although this support is scheduled to end soon, it’s still likely to have residual benefits for G8. The fundies also note that due to the successful capital raising G8 recently undertook, the company has fortified its balance sheet for the rest of the year.

Next, we have Ardent Leisure Group Ltd (ASX: ALG). Ardent runs a portfolio of theme parks including Dream World and WhiteWater World. Obviously, this company struggled immensely with the coronavirus outbreak with its parks forced to shut down. But Spheria thinks there is a lucrative potential recovery to be harnessed here, once restrictions are lifted and business can start to return to normal.

Village Roadshow Ltd (ASX: VRL) is next cab off the rank here. This company is another theme park operator, which owns Movie World, Sea World and Wet’n’Wild. Clearly, Spheria is making another bet on the easing restrictions, with Village Roadshow likely to benefit from the same potential tailwinds as Ardent Leisure. The fund notes that any increase in domestic tourism as a result of bans on international travel will likely benefit these 2 theme park operators as well.

Finally, we have Vista Group International Ltd (ASX: VGL). Vista provides exhibition software to cinemas – another industry that has been hit hard by the coronavirus restrictions. As people start returning to movie theatres around the country, Vista Group is an obvious beneficiary. Spheria is going for a value play on this one, noting it is priced well below its software-based peers when compared to its revenues (even if they don’t return to pre-COVID levels).

Foolish takeaway

Although we should never take fund managers’ picks as investment advice, it’s always interesting and illuminative to check out what ‘the professionals’ are buying!

More reading

• 3 ASX shares I’d buy if the market hits 23 March levels again
• ASX 200 falls 1.9%, big 4 ASX banks retreat
• Down 20% in 7 trading hours… Worse to come?
• The latest ASX shares to be hit by broker downgrades to “sell” today
• What would I rather buy today: TPG or Telstra shares?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Vista Group Intl. 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 S&P/ASX 200 (ASX: XJO) fell by 1.9% today. Overnight the Dow Jones Industrial Average (DJI) fell by 6.9% on fears of a second wave of COVID-19.

This week the Federal Reserve boss Jerome Powell said: “This is going to take a whole lot of time. There are just a lot of people that are unemployed and it seems quite likely there will be a significant group, even after a lot of strong jobs growth, that will still be struggling to find jobs.” 

But there was some good news for Australians today. The federal government has announced it’s working on rules with the states to allow stadiums with 40,000 seats to hold crowds of up to 10,000 people. Bigger stadiums could be allowed to fill a quarter of the seats. These changes could come in July.

Major ASX banks retreat

The share prices of each of the big four ASX banks went backwards today.

The Commonwealth Bank of Australia (ASX: CBA) share price dropped 1.2%, the Westpac Banking Corp (ASX: WBC) share price fell 3.1%, the Australia and New Zealand Banking Group (ASX: ANZ) share price declined 2.8% and the National Australia Bank Ltd (ASX: NAB) share price dropped 2.2%.

However, they remain higher than where they were a month ago. 

Big falls in the ASX 200

Thankfully the ASX 200 actually recovered some lost ground – it was down over 3% this morning. However, whilst some shares like Afterpay Ltd (ASX: APT) managed to reverse the decline, others ended the day down heavily.

The Platinum Asset Management Ltd (ASX: PTM) share price went down 12%.

The oOh!Media Ltd (ASX: OML) share price dropped 9.8%.

Southern Cross Media Group Ltd (ASX: SXL) saw its share price decline 9.1%.

ASX 200 engineering business Monadelphous Group Limited (ASX: MND) suffered a share price decline of 8.9%.

The Unibail-Rodamco-Westfield (ASX: URW) share price went down 8.8%.

Zip Co Ltd (ASX: Z1P) announces May 2020 trading update

The buy now, pay later (BNPL) ASX 200 business said that it grew its monthly revenue to $15.6 million, an increase of 78% year on year. Zip’s monthly transaction volume increased by 63% to $189.3 million.

Zip said its receivables figure was up 85% compared to a year ago to $1.2 billion.

Customer and merchant numbers were also up by a significant amount. Customers increased by 63% to 2.1 million. It added 65,000 new customers over the course of the month. Merchant numbers increased by 46% year on year to 23,600.

In terms of net bad debts and monthly arrears, the ASX 200 said it was doing very well. Net bad debts of 2.16% were in-line with management expectations, Zip said this significantly outperformed the market. Monthly arrears reduced from 1.57% in April to 1.47% in May. Monthly arrears are seen as a forward indicator of future losses.

The ASX 200 business said that customer repayment success rates are higher or on par with pre COVID-19 rates. Monthly repayments as a percentage of opening receivables increased to 16%, up from 15% in April.

Pleasingly, there has been no material change to the number of requests for hardship assistance, which peaked at the end of March 2020 at less than 0.08% of receivables.

Zip reminded investors of the acquisition of QuadPay. Management are looking to accelerate Zip’s global expansion strategy. Zip also re-iterated to investors it has reached an agreement to raise up to $200 million from US-based Susquehanna International Group to further drive growth.

The Zip managing director and CEO Larry Diamond said that the BNPL business remains on track to hit its FY20 target of $2.2 billion in annualised transaction volume set at the beginning of the year.

More reading

• 3 ASX shares I’d buy if the market hits 23 March levels again
• Leading fund manager names 4 ASX stocks set to benefit from a faster re-opening of the Australian economy
• Down 20% in 7 trading hours… Worse to come?
• The latest ASX shares to be hit by broker downgrades to “sell” today
• What would I rather buy today: TPG or Telstra shares?

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 AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia has recommended oOh!Media 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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If you’re looking to add a bit of international exposure to your portfolio, then it is remarkably easier than you might think.

This is thanks to the emergence of exchange traded funds (ETFs). Through just a single investment, ETFs can provide investors with exposure to a wide range of international indices and themes.

Two ETFs that I think would be great additions to a balance portfolio are listed below:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

If you’re a fan of tech shares then you might want to look at the BetaShares NASDAQ 100 ETF. This ETF gives investors exposure to the 100 largest non-financial shares on the famous NASDAQ index. Among its biggest holdings you’ll find tech giants Apple, Microsoft, Amazon, Facebook, and Google. Whereas some of its smaller holdings include online conferencing company Zoom, Chinese search engine giant Baidu, and eBay. On the whole, I believe the majority of companies on the NASDAQ 100 are well-placed to grow at a quicker than average rate. This could drive strong returns for investors in this ETF.

Vanguard US Total Market Shares Index ETF (ASX: VTS)

Another option to consider buying is the Vanguard US Total Market Shares Index ETF. If you want a more balanced ETF with less of a focus on tech shares, then this ETF could be the one for you. It provides investors access to approximately 3,500 shares listed on the U.S. stock market. While this means it gives investors exposure to many of the tech giants listed above, it also gives investors access to blue chips such as Berkshire Hathaway, Johnson & Johnson, Proctor & Gamble, and Visa and Mastercard. And as many of these companies pay dividends, it also provides investors with a source of income. At present the ETF offers a trailing 2% dividend yield.

More reading

• Tech shares! Should we even invest in anything else?
• 3 of the best ETFs to give ASX investors international exposure
• Are Macquarie Group shares worth investing part of $3,000 into this June?
• 3 top ETFs you can easily diversify your portfolio with immediately
• Where to invest $10,000 into ASX shares immediately

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. 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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