The Pointsbet Holdings Ltd (ASX: PBH) share price has taken off in early trade, up 9.09% at the time of writing while many other ASX growth shares are in the red.

Why is the PointsBet share price spiking?

This morning, the company announced it had signed an agreement in Australia to become the exclusive wagering partner for Fox Sports AFL (Fox Footy) during the 2020 season. According to PointsBet, this highlights management’s continued deliberate approach to targeting media assets to deliver efficient client acquisition and increased betting volumes.

Additionally, the company also provided a net win trading update for the fourth quarter of FY20. As previously announced in its third-quarter update, PointsBet’s Australian trading business achieved a record net win month in February 2020, and again in March 2020.

PointsBet considers net win as the dollar amount received from clients who placed losing bets less the dollar amount paid to clients who placed winning bets, less client promotional costs such as money-back offers and bonus bets. So in other words, gross profit.

PointsBet revealed this positive trend is continuing in Q4, with the Australian trading business achieving net win of $18.2 million for the period from 1 April to 25 May 2020 (unaudited). And despite the closure of the major sporting leagues, the United States business recorded net win of $0.3 million for the same period.

Group year-to-date net win from 1 July 2019 to 25 May 2020 came in at $67.2 million (unaudited). For context, PointsBet achieved full-year net win of $28.9 million in FY19, up 181% on the prior corresponding period of FY18.

The company attributed the continued strong performance of the Australian trading business to 3 primary factors:

• The shift of gambling spend online due to retail venue closures;
• PointsBet’s year-over-year racing turnover growth outperforming other wagering service platforms – according to Racing Victoria’s 4-week average ending 10 May 2020; and
• The improvement in PointsBet’s overall product offering, leading to a greater share of wallet from existing clients.

What now?

As has already been announced, 2 of the major Australian sporting codes will soon be resuming their respective 2020 seasons – NRL on Thursday, 28 May and AFL on Thursday, 11 June. The resumption of both the NRL and AFL seasons expands PointsBet’s product offerings and is certainly welcome news for the revenue and growth of its Australian business.

As for the US, timing still remains unclear as to the start of the major sporting leagues. However, both the NBA (basketball) and MLB (baseball) are looking to resume their seasons in July. Meanwhile, the PGA (golf) has already announced the commencement of the PGA Tour on 11 June 2020.

According to PointsBet, its US business has continued to keep clients engaged during the shutdown period with the offering of additional wagering contingencies that are not impacted by COVID-19, along with its free to play offering.

In the meantime, the company reported a cash position of $149.4 million and no debt as of 31 March 2020, putting it in a strong position to continue to weather the COVID-19 storm.

More reading

• 5 dark horse ASX shares that have tripled in the last 2 months
• Is the Pointsbet share price poised for future growth?
• ASX gambling shares on watch as sporting codes make plans to resume
• 3 ASX shares I should have bought last month
• Are ASX shares about to surge higher in 2020?

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

The post Why the PointsBet share price is on a winning streak this morning appeared first on Motley Fool Australia.

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How much money should you have in your emergency fund going forwards?

The typical advice for an emergency fund is to have three to six months of living expenses in a high interest savings account. If you’ve followed that advice then your emergency fund may be coming to your assistance right now if you’ve lost your main source of income due to coronavirus impacts.

An emergency fund equating to six months of expenses would still have plenty of room left.

But is that going to be enough in the future? It’s very hard to say how safe your finances need to be. Someone still employed in a government role has a different level of income security compared to someone in a cyclical industry or say a hospitality job.

Maybe the new normal will be six to nine months of expenses?

A life-changing event like this can completely change people’s outlook on money and risk.

Where should your emergency fund be placed?

My emergency fund is in a high interest savings account in a separate financial institution. For example your transaction account may be with Commonwealth Bank of Australia (ASX: CBA) and then your savings account could be with one of the subsidiaries of Westpac Banking Corp (ASX: WBC) or National Australia Bank Ltd (ASX: NAB). Most other sizeable banks are good options too. 

I think it’s good to keep your money in separate institutions in-case there’s a technical (or worse) problem with one of the institutions.

By the way, your share portfolio isn’t an emergency fund. You may need to sell shares in a market crash just when you need the cash.

At the moment my household has six months of ‘ramen noodle’ life expenses. In other words, half a year of ultra-low-cost living. In light of the current crisis, I think we’ll aim to increase that to nine months once we’ve bought a house.

The stronger you make your financial foundations with a good emergency fund, the more you can put to investing in difficult times when it comes.

More reading

• Where to invest $5,000 in ASX 200 shares today
• 3 top ASX dividend shares I would buy for income right now
• ASX 200 rallies hard, no longer in bear territory
• Latest spending data could drive the ASX retail sector higher
• Why ANZ, CBA, NAB, and Westpac shares are storming higher today

Motley Fool contributor Tristan Harrison 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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When it comes to the share market there are two ways you can take part. You can invest or you can trade.

While day trading can generate great returns, it is worth remembering that statistically it creates far more losers than winners.

According to Cory Michael from Vantage Point Trading, the majority of people that day trade lose money. And those that succeed, only a very small portion are winning enough to make it worthwhile.

He told Forbes: “The success rate for day traders is estimated to be around only 10%, so …90% are losing money. Only 1% of [day] traders really make money.”

In light of this, I think readers interested in building their wealth should forget day trading and focus on investing with a long term view.

With that in mind, here are three ASX shares that I believe investors should consider:

Appen Ltd (ASX: APX)

Appen is a leading developer of high-quality, human annotated datasets for the machine learning and artificial intelligence markets. Thanks to the explosive growth of these markets, I expect demand for its services to continue to grow in the coming years and support strong earnings growth. This could make it a great buy and hold option.

Nearmap Ltd (ASX: NEA)

Nearmap is a leading aerial imagery technology and location data company. While FY 2020 looks set to be a tricky year for the company, I believe its long term outlook remains extremely positive. This year the company is aiming to deliver annualised contract value of $102 million to $110 million. This is only a fraction of the global aerial imagery market which is estimated to be worth US$10.1 billion in 2020.

Xero Limited (ASX: XRO)

A final option to consider is Xero. It is a leading cloud-based business and accounting software provider. I think it is a great option due to the quality of its product and the continued shift to online accounting. At the end of FY 2020 the company had ~2.3 million subscribers. This is still only a small portion of a massive global market opportunity. 

More reading

• 3 easy rules for building a massive ASX share portfolio
• Why Appen and these ASX shares just hit record highs
• Why these 3 ASX 200 tech shares offer great value
• 3 timeless investing lessons from 2020 (so far!)
• Up over 100% in 2 months. Are Nearmap shares still a buy at current prices?

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 Xero. The Motley Fool Australia owns shares of and has recommended Nearmap 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 Forget day trading: Get rich with these top ASX shares appeared first on Motley Fool Australia.

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The Blackmores Limited (ASX: BKL) share price won’t be going anywhere on Wednesday.

This morning the health supplements company requested that its shares be placed into a trading halt.

Why are Blackmores’ shares in a trading halt?

Blackmores requested a trading halt this morning while it undertakes a capital raising which aims to raise up to $127 million.

According to the release, Blackmores’ capital raising comprises a fully underwritten $92 million institutional placement and non-underwritten share purchase plan of up to $25 million.

Blackmores Chief Executive Officer, Alastair Symington, expects the capital raising to support its activities in the Asia market.

He explained: “The Equity Raise will strengthen Blackmores’ balance sheet and liquidity position and provide the flexibility to pursue our key strategic priorities. It will enable us to accelerate our growth initiatives in Asia and invest in our efficiency program which will help us to achieve our objective of returning Blackmores to sustainable, profitable growth.”

Trading update.

The company also provided the market with an update on how it is performing during the pandemic.

Blackmores advised that it has experienced a material increase in demand for its immunity products. However, as immunity products constitute only a small part of its portfolio, it isn’t having a major impact on its performance.

Furthermore, any of the benefits it is experiencing from the surge in demand for immunity products, is being offset elsewhere in the business.

Management notes that there has been a lag in non-immunity products, which has been partly driven by lower shopping traffic.

Also weighing on its performance has been issues gaining access to some overseas sourced materials and capacity constraints at some contract manufacturers. These have prevented the company from being able to fully meet demand in some products.

In light of this, the company expects to deliver underlying net profit after tax of $17 million to $21 million in FY 2020. This is in-line with the guidance it provided with its first half results in February.

More reading

• 2 quality ASX shares to buy for long-term growth
• ASX shares and investing trends that could boom post COVID-19
• Will coronavirus make Blackmores a market darling again?
• ASX 200 Weekly Wrap: ASX starts May with a slide

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores 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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Building a massive portfolio of ASX shares from scratch is no easy feat. Creating real wealth through the share market takes time, dedication and discipline. But it can be done, nonetheless. One thing I’ve learned over time is that sometimes it’s simple rules executed consistently that can really give your returns a boost. So, with that in mind, here are 3 rules for building a massive ASX share portfolio.

1) Set aside money for regular investing

I often hear would-be investors say something like ‘I want to invest, but there’s never any money left over from my pay packet’. Our brains have a funny ability to work with the cash we think is available. Whether you have $100 or $500 sitting in your account, there’s a high chance it will be gone by the time your next pay cheque comes in.

That’s why setting aside your investing cash when you get paid is vital for building wealth with ASX shares. If you make this a habit every time you get paid, and invest the money regularly, your chances of building a massive ASX share portfolio will balloon.

2) Don’t just buy ASX blue chips

There’s nothing wrong with having an ASX portfolio consisting of the big 4 banks, Woolworths Group Ltd (ASX: WOW), Wesfarmers Ltd (ASX: WES) and Telstra Corporation Ltd (ASX: TLS). But these companies are likely to give you a nice stream of dividend income and little else over the coming years. If you really want to make your ASX share portfolio massive, you’ll need some help from your shares too.

That’s why I think investors in the ‘wealth accumulation’ phase should mix blue chips with at least some growth shares. Whether it’s Afterpay Ltd (ASX: APT), Altium Limited (ASX: ALU), Xero Limited (ASX: XRO), Polynovo Ltd (ASX: PNV) or any other growth share, you want to have at least some portion of your portfolio dedicated to companies that have long runways in front of them.

3) Don’t act with emotion

Keeping a cool head is one of the best ways you can outperform the S&P/ASX 200 Index (ASX: XJO) over time. Most investors who underperform the index do so because they make silly decisions based on what ‘the crowd’ is doing.

This might involve buying an overvalued company in the hope it will make you a quick buck, or otherwise selling a perfectly good company at a terrible price because the market is crashing. Both of these decisions are emotional and have no place in the creation of a massive ASX share portfolio. The best investors in the world buy businesses, not ticker symbols, and any ambitious disciple would do well to follow by example.

More reading

• Where to invest $5,000 in ASX 200 shares today
• Where will the Coles share price be in 1 year?
• Tax planning for ASX 200 investors
• Is the BHP share price a buy?
• 3 top ASX dividend shares I would buy for income right now

Sebastian Bowen owns shares of Telstra Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO, Altium, Wesfarmers Limited, 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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On Tuesday the Australian share market continued its remarkable run and charged notably higher. This has led to a large number of shares racing higher this week.

Three which have climbed so much they have just reached record highs are listed below. Here’s why they are breaking records:

Ansell Limited (ASX: ANN)

The Ansell share price continued its positive run and hit a record high of $35.35 on Tuesday. The health and safety products company’s shares have been on fire this year due to the increasing demand it is experiencing it is during the pandemic. And unlike some companies which are getting a temporary sugar hit from the crisis, investors appear to believe the pandemic will cause a sustained increase in demand for Ansell’s hand and body protection solutions.

Appen Ltd (ASX: APX)

The Appen share price hit a record high of $32.02 yesterday. Investors have been fighting to get hold of the artificial intelligence company’s shares over the last couple of months after it released a positive market update. Appen revealed that demand for its services has remained strong despite the pandemic. According to the release, the company remains on course to achieve its FY 2020 operating profit guidance of $125 million to $130 million. This represents a 23.8% to 28.7% year on year increase.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price climbed to a record high of $4.49 on Tuesday. Investors have been buying the shares of Australia’s largest online retailer of furniture and homewares after it revealed stellar sales growth during the pandemic. A recent update shows that Temple & Webster’s second half revenue to 24 April was up 74% on the prior corresponding. This was driven by record new and repeat customer orders. Investors appear optimistic that this shift to online shopping will be sustained.

More reading

• 5 ASX 200 10-bagger shares of the decade
• If you invested $10,000 in the Appen IPO, this is how much you’d have now
• ASX 200 shares to buy for growth and income
• 2 quality ASX shares to buy for long-term growth
• Why this ASX infrastructure company could help protect your portfolio in a downturn

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 Temple & Webster Group Ltd. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended Ansell 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 Appen and these ASX shares just hit record highs appeared first on Motley Fool Australia.

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ASX 200 shares are starting to rebound after a tough start to 2020. The S&P/ASX 200 Index (ASX: XJO) is down 13.53% this year with some of the blue-chip shares down considerably more.

So in this up and down share market, here’s where I’d be investing $5,000 today.

Where to invest $5,000 in ASX 200 shares today

I like to stick to the large-cap shares when things are tough. There are some hard times ahead for the ASX banks but I think the National Australia Bank Ltd. (ASX: NAB) share price could be in the buy zone.

NAB shares are down 32.44% this year. This could mean the bank is in trouble, or that it is undervalued.

I think the bank dividend cuts have spooked some investors. There have also been significant impairments as the coronavirus pandemic continues to hit balance sheets.

However, I think the Aussie banks will remain a significant part of our economy. That means ASX 200 bank shares could be undervalued if corporate earnings bounce back quicker than expected.

I also consider CSL Limited (ASX: CSL) to be a good buy right now. The Aussie biotech share closed at $291.00 on Friday afternoon but has since surged to $307.63.

There’s been strong support for the CSL share price around the $290 to $300 mark in recent times. Given the current circumstances, ASX healthcare shares could be a solid buy right now.

Another ASX 200 share worth a look at today is Newcrest Mining Limited (ASX: NCM). Newcrest is a leading ASX gold miner and could benefit from the volatile share market.

Investors tend to flock to gold in times of uncertainty. That’s good news for the Newcrest share price, despite the fact it has already climbed 5.26% higher in 2020.

Foolish takeaway

There are a number of ASX 200 shares that are in the buy zone right now. The volatile market has created buying opportunities for patient investors with a long-term investment horizon.

More reading

• 3 easy rules for building a massive ASX share portfolio
• Where will the Coles share price be in 1 year?
• Tax planning for ASX 200 investors
• Is the BHP share price a buy?
• 5 things to watch on the ASX 200 on Wednesday

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. 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 Where to invest $5,000 in ASX 200 shares today appeared first on Motley Fool Australia.

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The Coles Group Ltd (ASX: COL) share price has been a strong outperformer in 2020. While the S&P/ASX 200 Index (ASX: XJO) is down 13.53% this year, Coles shares have climbed 3.91% higher.

But if you’re a long-term investor, you’re probably not too worried about the here and now. So, where will the Coles share price be in 1 year?

Where is the Coles share price headed?

It’s clear that the coronavirus pandemic has boosted supermarket sales this year. Even once the panic buying subsided, supermarkets have been busy with Aussies forced to stay home more.

But it’s harder to forecast sales over the next 12 months. I think it looks like we’re headed for a recession in Australia. Now, technically a recession is not necessarily a disaster but it still has the potential to impact the Coles share price.

A recession is simply 2 consecutive quarters of negative GDP growth. In fact, they’re quite common. But I think a 2020 recession will be tough with so many job losses across a number of sectors.

People tend to spend less in times of uncertainty. While the Coles share price benefits from non-cyclical earnings, even supermarkets get hit by Aussies tightening their spending.

That means that we could see lower earnings over the next 12 months. However, I think Coles will continue to be a strong defensive share.

I don’t think we’ll see spectacular Coles share price growth. But if the ASX 200 moves sideways or down over the next year or so, Coles could still outperform.

I like that Coles provides more concentrated exposure than Woolworths Group Ltd (ASX: WOW) following the former’s November 2018 demerger from Wesfarmers Ltd (ASX: WES).

Foolish takeaway

No one knows where the Coles share price is headed in the next 12 months. In my opinion, it will be trading at or near its current $15.42 valuation.

However, it’s important to consider your time horizon. If you’re investing for the next 30 years, what happens this year or next isn’t a huge concern.

More reading

• Tax planning for ASX 200 investors
• 3 exciting ASX growth shares to buy in June
• Is the BHP share price a buy?
• 3 top ASX dividend shares I would buy for income right now
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET, Wesfarmers Limited, 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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It’s nearly June so S&P/ASX 200 Index (ASX: XJO) investors should start considering their tax affairs for FY20. Investors should pay particular attention to anything that reduces the returns they’ve earned for the year. This includes transaction fees, advisor costs, expense ratios and taxes.

Here are a few things you can do to manage your ASX 200 portfolio, prepare for tax time and ensure you only pay the tax you are required to pay.

Rebalance your ASX 200 portfolio allocations

The financial year end provides a great opportunity for you to review your portfolio and investment strategy. This can be particularly relevant for growth investors, or investors who are not contributing more capital to their investment portfolio. 

Growth investors will often have an oversized portion of their portfolio concentrated in a few shares that have done particularly well. Each individual investor will have their own comfort level when it comes to concentration of risk. I was in this position with Altium Limited (ASX: ALU) and The Trade Desk Inc (NASDAQ: TTD) last year. This was because they had both grown much faster than the rest of my portfolio. Personally, I prefer to let my winners run and am continuing to add funds to my investment portfolio. Therefore, these winners are a part of my portfolio I’m comfortable with.         

Pay the piper, later   

Your individual circumstances, including whether your shares are in a gain or loss position, will dictate the best time or times to rebalance your portfolio. For example, if you already have a capital gain in FY20, selling shares at a loss before 30 June will mean you can reduce your gain. If the shares you want to sell down as part of the rebalance are in a gain position, waiting until 1 July could provide you an additional year before the tax is due. This is because the gain will be included in your FY21 tax return.

Organise your shoebox

Whether you give your accountant a shoebox or send them a link to a cloud drive, getting your documents in order prior to year end will give you a better idea of your tax position. This means you can also better plan your cash flows and invest accordingly. 

A further benefit is that if you have all of your Cochlear Limited (ASX: COH) retail entitlement documentation or Telstra Corporation Ltd (ASX: TLS) dividend reinvestment plan purchases organised, your accountant should be able to work more efficiently and you might save on their fees.

Foolish takeaway

Tax shouldn’t be what drives your investment decisions, but it should be a consideration. ASX investors should target outperforming the ASX 200 index’s return, after fees and taxes. Furthermore, legally lowering your average lifetime tax rate can significantly increase your annualised growth rate and wealth over time.

More reading

• Where will the Coles share price be in 1 year?
• Is the BHP share price a buy?
• 5 things to watch on the ASX 200 on Wednesday
• 2 ASX shares that are absurdly cheap right now
• Why ASX 200 travel shares are soaring higher today

Lloyd Prout owns shares in Altium Limited and The Trade Desk Inc and expresses his own opinions. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends The Trade Desk. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of Altium. The Motley Fool Australia has recommended Cochlear Ltd. and The Trade Desk. 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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