As I’ve mentioned here before, I like to keep an eye on substantial shareholder notices.

This is because it gives you an idea of which shares large investors, asset managers, and investment funds are buying or selling.

Two notices that have caught my eye today are summarised below. Here’s what these fund managers have been buying:

IDP Education Ltd (ASX: IEL)

A notice of initial substantial holder reveals that Capital Group Companies has been buying the shares of this provider of international student placement services and English language testing services. Capital Group is an American financial services company. It is one of the world’s oldest and largest investment management companies with over US$2 trillion in assets under management.

According to the notice, Capital Group has been building a position in the company over the last six months and was buying shares as recently as Wednesday. It now owns 14,201,994 IDP Education shares, which equates to a 5.1% stake in the company. With its share price down 33% from its 52-week high, Capital Group appears to see a lot of value here.

TechnologyOne Ltd (ASX: TNE)

Another notice of initial substantial holder reveals that VicSuper has been taking advantage of a recent pullback in this enterprise software company’s shares to top up its position. VicSuper, which was established in 1994, is one of Australia’s leading profit-to-member super funds.

According to the notice, VicSuper now owns 17,953,423 TechnologyOne shares. This represents a 5.63% stake in the company. The TechnologyOne share price is down almost 12% since the release of its half year update last month. Investors were a touch underwhelmed by its 6% lift in sales and profits during the six months ending March 31. Nevertheless, judging by its purchases, this fund manager appears confident in TechnologyOne’s growth prospects and has seen this pullback as a buying opportunity. 

More reading

• ASX 200 Weekly Wrap: Surging bank shares push ASX toward 6,000
• These were the worst performing ASX 200 shares last week
• Insiders have been buying these ASX shares this week
• Build wealth for life with these 2 ASX 200 shares
• Why ANZ, Blackmores, IDP Education, & Nearmap shares are racing higher

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 Idp Education Pty 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.

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The Wide Open Agriculture Ltd (ASX: WOA) share price has charged out of a trading halt today, rallying as much as 30% on the back of a completed capital raising.

Wide Open Agriculture is in the business of regenerative food and farming. Through its farmland portfolio and Dirty Clean Food brand, the company grows, markets and distributes food products.

More specifically, Dirty Clean Food offers regeneratively grown animal and plant-based products, such as lamb, beef, milk, and bread, to consumers located primarily in Australia and South-East Asia.

Wide Open Agriculture is dual-listed on the Frankfurt Stock Exchange and has been publicly listed in Australia since July 2018.

Details of the capital raising

Wide Open Agriculture shares resumed trading on the ASX this morning after being placed in a trading halt at the beginning of the week.

The resumption of trading came as the company announced the successful completion of a $3 million institutional placement.

The placement will see Wide Open Agriculture issue around 11 million new ordinary shares to institutional and sophisticated investors at a price of 27 cents apiece. This represents an 18.2% discount to the company’s last closing price of 33 cents.

Wide Open Agriculture stated that the placement was strongly supported by existing shareholders. It also introduced a number of new, high net-worth investors to its share register.

The company believes the strong demand for the placement provides validation of its growth strategy to increase revenue and launch additional products for its growing customer base.

Following this boost to its cash reserves, Wide Open Agriculture will now work towards expanding and diversifying its online product offering, launching oat milk and plant-based protein products for Australian and global markets, and accelerating sales of regenerative meat.

Commenting on the placement, managing director Ben Cole said:

“The overwhelming demand from institutional and sophisticated investors is a strong endorsement of WOA’s execution to date, but also demonstrates the belief that the Company is positioned to grow alongside the rapidly expanding base of conscious food consumers and regenerative farmers.”

“Our highly capable, experienced team is now ready to grow the Company and maximise shareholder return and scale our positive impact,” he added.

At the time of writing, Wide Open Resources shares are changing hands at 40 cents apiece, taking the company’s current market capitalisation to just $28 million. 

More reading

• Fund managers have been buying these ASX shares
• Here’s why I think CBA shares are a good buy today
• 3 more founder-led ASX 200 shares to buy today
• 3 tips for surviving an ASX recession
• CSL share price lower despite COVID-19 vaccine news

Motley Fool contributor Cathryn Goh 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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Commonwealth Bank of Australia (ASX: CBA) shares are currently selling at a price-to-earnings ratio (P/E) of 12.41. This is just below the company’s 10 year P/E average of 13.7. Year-to-date the CommBank share price is still down by 14.3%. For me, this appears a relatively good entry price for a bona fide ASX blue chip. Moreover, beyond price, the company is working diligently to build value.

CBA wealth

Colonial First State has long been the CommBank’s wealth-management arm. On 15 March CommBank announced it would be selling 55% of Colonial to US private equity firm KKK for AUD$1.7 billion. This will allow the bank to simplify its business model and focus on its core business of banking.  

CommBank and KKK have both announced plans to invest significant capital into Colonial. Among these is a more rapid transition to digital channels. 

Commonwealth Bank CEO Matt Comyn said:

“We are confident that together with KKR, we can provide CFS with an increased capacity to invest in product innovation, new services and its digital capabilities. We have a shared vision for CFS to be one of the leading superannuation and investment businesses in Australia.”

Branching into buy now pay later (BNPL)

CommBank announced it was to launch Swedish private fintech, Klarna in Australia on 30 January. A plan later derailed by the COVID-19 outbreak. CommBank holds a 5.5% stake in Klarna. Increasing from its original 1.8% holding. The companies will jointly fund and have 50:50 ownership rights to Klarna’s Australian and New Zealand business.

Given the events in the BNPL sector this week this is a very big deal. Although it recently made a loss, Klarna is already one of the giants in the BNPL space. In fact, it was the original pioneer. CommBank’s 5.5% purchase provides access to an existing large customer and merchant base with an established beachhead in the USA. 

CommBank is Australia’s largest payments processor. This means its 50%-owned Klarna Australian operations will start with immediate national coverage.

CBA shares

 CommBank shares are selling at a reasonable price of $68.76 at the time of writing and it is well-positioned for future growth. Its $1.5 billion allowance for COVID-19-related damage is covered by the sale of 55% of Colonial. Furthermore, Colonial is more likely to increase earnings as part of the core business of a private equity firm. Lastly, its position in Klarna sets it up to play a dominant role in the Australian BNPL sector, as well as on the global stage. 

There are still uncertain times ahead to be sure. However, I believe that CommBank shares are a wise investment at this price over the medium to long term. It will lock in steady capital growth, as well as locking in a future dividend at a 12-month trailing average at 6.28%.  

More reading

• Ready to invest your first $2,000 in ASX shares? Do these 3 things first
• 2 ASX growth shares I’d buy before Afterpay shares
• Why today might be a good day to buy NAB and Westpac shares
• ASX 200 rises 0.8%, travel shares fly higher
• The 10 shares that significantly move the ASX 200 index

Motley Fool contributor Daryl Mather 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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As I mentioned here earlier this week, founder-led companies have traditionally outperformed the rest of the market. 

This is believed to be because founders are focused on the long term and building something significant, whereas some professional CEOs have a tendency to be focused on short term goals.

With that in mind, I think having exposure to founder-led companies could be a great thing for a portfolio.

Here are three more founder-led shares that I would buy for the long-term:

Goodman Group (ASX: GMG)

The first founder-led share to consider is Goodman Group. It is an integrated commercial and industrial property group. I’m a big fan of the company due to the quality and growth potential of its portfolio, which has been put together expertly by co-founder and Group Chief Executive Officer, Gregory Goodman. He has played an integral role in establishing its specialist global position in the property market through various corporate transactions. This includes takeovers, mergers, and acquisitions. This has led to its shares generating market-beating returns for investors over the last decade and I expect more of the same in the future. Especially given its exposure to industries benefiting from structural tailwinds like ecommerce.

Jumbo Interactive Ltd (ASX: JIN)

This online lottery ticket seller was founded by Mike Veverka all the way back in 1995. He remains the company’s CEO today. A lot has changed with the business since then, but all for the better. As well as operating the Oz Lotteries website, Jumbo now has its software as a service platform. This allows other lotteries to run their online operations via the platform. It also entered into the UK market last year via the acquisition of Gatherwell Limited. Combined, I feel this puts the company on a path to achieve its target of $1 billion in ticket sales on the Jumbo platform by FY 2022. This compares to its ticket sale estimates of $335 million to $341 million in FY 2020.

SEEK Limited (ASX: SEK)

Another founder-led company which I think is a great long term option for investors is SEEK. The job listings giant is still led by Andrew Bassat, who co-founded the company in 1997 along with his brother Paul Bassat and Matt Rockman. As with Jumbo, SEEK has set itself some bold growth targets for the medium term. It is targeting revenue of $5 billion later this decade, up from $1,537.3 million in FY 2019. Due to the strength of its core ANZ business and the rapidly growing Zhaopin business in China, I think SEEK has a great chance of delivering on its target.

More reading

• Why I would buy these outstanding ASX 50 shares right now
• Where to invest $2,000 in cheap shares
• These ASX 200 shares could be perfect for a retirement portfolio
• 3 high quality ASX blue chip shares to buy in June
• 3 exciting ASX growth shares for stellar long term returns

James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Jumbo Interactive Limited. The Motley Fool Australia has recommended Jumbo Interactive Limited and SEEK 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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Well, its official, we’re technically in a recession for the first time in almost three decades.

Well, almost official. A recession is officially defined as two or more consecutive quarters of negative economic growth. We’ve only had one so far – the quarter ending 31 March. But since it’s almost a certainty that the quarter ending 30 June will reveal a massive economic slowdown, we can pretty much say today that Australia is in a generational first of a recession.

But what does a recession really mean for S&P/ASX 200 Index (ASX: XJO) shares? And how can we survive one with our wealth intact? To this end, here are three tips:

1) Remember cash is king in a recession

The first thing you should think about as we enter this recession is the regal supremacy of cash. Not as an investment mind you – cash is still lousy at growing your wealth. But it’s more important than ever to secure your cash and cash flow. Recessions are tragically a time when many Australians will be out of work. So I think it’s imperative that we all ready our personal finances for a potential shock. All jobs are safe until they’re not, and now is the time to hope for the best, but prepare for the worst.

So before you even think about investing during a recession, make sure you have a couple of months of living expenses saved up for that rainy day. Hopefully, the skies will stay clear for us all, but you will still want to have a raincoat in case it clouds over.

2) Don’t let ASX 200 volatility get the better of you

Recessions and ASX bear markets can be a great time to invest in shares at cheap prices for the long-term. But many investors don’t get to enjoy these opportunities because they do silly things with their investments amid the volatility that recessions can bring. Selling your shares at a loss, for example, is usually not a good idea in the midst of widespread market panic.

I personally have a rule of never selling in a bear market unless absolutely necessary – and I’m usually a net buyer of shares. This means that even if I had to sell off some shares in order to buy others, I would always try to avoid doing this in a bear market. So have a mental battle plan at the ready for what you might do with your shares in a recession-induced bear market. This will hopefully save you from making emotional decisions that cost you down the road.

3) Always remember there’s light at the end of the tunnel

Although not recently, Australia and the wider global economy have gone through many recessions before. And you know what these recessions all had in common? They all eventually ran their course and were replaced by good times once again. Yes, this recession is different – we haven’t had to deal with a pandemic like this for a hundred years. But all other recessions were ‘different’ too, and we eventually saw them off. I have full confidence that this time will, in fact, be no different.

More reading

• Why Alumina and Stockland share prices could outperform in coming weeks
• 2 ASX REITs to buy with $1,000 today
• We’re in recession. What does that mean for investors?
• ASX 200 down 0.35%: UBS upgrades NAB and Westpac, Qantas soars again
• 3 of the best ASX 200 tech shares for your watchlist

Motley Fool contributor Sebastian Bowen 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 CSL Limited (ASX: CSL) share price is having another off day on Friday despite the release of a potentially positive announcement.

In afternoon trade the biotherapeutics company’s shares are down 3% to $285.04. This means the CSL share price is now down 17% from its 52-week high.

What did CSL announce?

This morning CSL revealed that it has entered into a new, significant partnering agreement to accelerate the development, manufacture, and distribution of a COVID-19 vaccine candidate.

The agreement has been made with the Coalition for Epidemic Preparedness Innovations (CEPI) and the University of Queensland. It formalises the support provided by the company to the two parties since the onset of the pandemic earlier this year.

CEPI and CSL will fund the development and manufacture of the University of Queensland’s “molecular clamp” enabled vaccine. This is a transformative technology patented by the university’s technology transfer company.  It enables rapid vaccine design and production against outbreak viral pathogens.

According to the release, the university is aiming to take the vaccine candidate into a phase 1 clinical trial in July. Should its clinical trials be successful, a vaccine could be available for distribution in 2021.

While acknowledging that there is still a lot of work to be done, CSL believes its production technology can be scaled to produce up to one hundred million doses towards the end of 2021.

It would also subcontract other global manufacturers. This would increase the number of doses that can be produced and broaden the geographical distribution of vaccine production.

That is of course if other companies such as Moderna don’t get there first with the vaccines they have in clinical trials at present.

A “promising vaccine.”

Professor Andrew Cuthbertson, CSL’s Chief Scientific Officer, commented: “We are very pleased to be able to provide our scientific expertise and platform technologies to make a strong contribution to this critical joint effort with CEPI, the University of Queensland and others.”

“CSL will contribute to UQ’s promising vaccine with our proprietary adjuvant, MF59, made by Seqirus, along with expertise in process science and scale-up from our Australian facilities, managing advanced clinical trials and the large-scale manufacture of the recombinant vaccine,” he added.

The Chief Scientific Officer concluded: “Should trials be successful, this vaccine holds the potential to provide protection against this urgent public health emergency for Australians and those around the world vulnerable to this devastating virus.”

More reading

• Brokers name 3 ASX shares to buy today
• 2 ASX growth shares I’d buy before Afterpay shares
• Why Appen, CSL, Openpay, & Zip Co shares are tumbling lower
• The 10 shares that significantly move the ASX 200 index
• 3 top ETFs you can easily diversify your portfolio with immediately

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 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.

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The Aumake International Ltd (ASX: AU8) share price is zooming higher today after the company announced it now offers leading Chinese-owned buy now, pay later (BNPL) services via its in-store and online channels.

AuMake is a specialist retailer that caters for Asian tourists and daigou personal shoppers in Australia and New Zealand. The company has a multichannel distribution network, selling Australian and New Zealand products online via owned and third-party channels, and through brick and mortar stores.

The company operates 15 stores under the AuMake and Broadway brands, located along the east coast of Australia and in New Zealand. These stores primarily cater to organised tour groups. The types of products on offer include skincare, health supplements, wool, honey and clothing.

Before we dig into the announcement, it’s important to note that AuMake sits at the very small end of the ASX with a current market capitalisation of around $21 million. At the time of writing, the AuMake share price is sitting 10.34% higher for the day at 6.4 cents after rallying as much as 27.59% in early morning trade.

What did AuMake announce?

This morning, AuMake revealed that it now supports BNPL services for its in-store customers and 40,000-strong online database.

Accordingly, AuMake’s customers will be able to use Alipay’s “Huabei” feature and Tencent’s “Fenfu” feature to make purchases.

Alipay is one of the most popular online payment solutions in China and falls under the umbrella of Chinese multinational giant Alibaba.

Huabei allows purchases made via the Alipay wallet to be paid using credit facilitates, including interest-free or daily incurring interest loans. According to AuMake’s announcement, Huabei has more than 190 million users, with 93% of them being under the age of 35.

Meanwhile, rival conglomerate Tencent is reportedly in the final stages of developing its Fenfu BNPL credit feature. Fenfu will offer similar credit facilities to Huabei that can be used by its 1.1 billion customer base.

Tencent recently made headlines in the ASX BNPL space after news broke that it had acquired a 5% stake in market darling Afterpay Ltd (ASX: APT).

AuMake believes the adoption of these BNPL payment methods will assist the company to penetrate a younger Asian customer demographic. The retailer concluded today’s announcement by stating it will continue to assess initiatives that provide a contemporary shopping experience for its customers.

According to Market Index, the 4-week average turnover of AuMake shares currently sits at only $26,821. So if you’d rather invest in larger and more liquid companies, the top ASX shares in the free report below might be more up your alley.

More reading

• Here’s why CBA shares are a good buy today
• 3 more founder-led ASX 200 shares to buy today
• 3 tips for surviving an ASX recession
• CSL share price lower despite COVID-19 vaccine news
• Why Alumina and Stockland share prices could outperform in coming weeks

Motley Fool contributor Cathryn Goh 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 Alumina Limited (ASX: AWC) share price and Stockland Corporation Ltd (ASX: SGP) share price are likely to outperform even as doubts emerge on the short-term direction for the S&P/ASX 200 Index (Index:^AXJO).

The bullish take on both stocks come from Morgan Stanley, which is predicting that their share prices will rise in absolute terms over the next 60 days.

If the broker’s prediction is right, it would be a welcomed relief for shareholders as the aluminium producer and property group have underperformed since the COVID-19 outbreak.

The disruption to the global economy has weighed on the price of alumina, while pressure on residential and retail properties have put real estate stocks in the sin bin.

But this may be about to change.

Set for a rebound

“The alumina price is bouncing off support levels, with AWC offering a clean exposure (CY20e 5% aluminium revenue exposure),” said the broker.

“We expect unprofitable alumina producers to exit the market, given the ease of shutting and restarting refineries.

“We think 2020 will provide the low-point for alumina input costs, and cost inflation could help to buoy prices.”

Dividend looks safe

While no one believes the price of the commodity is set to surge, Morgan Stanley believes it will hover somewhere below the marginal cost of production of Chinese smelters, which is estimated at around US$285 a tonne.

At that price, Alumina is well placed to generate a decent dividend for investors at around 4.5% in calendar 2020 and 3.4% the following year.

It’s not a big dividend but it’s enough to compensate investors to hang on to the stock in anticipation of the alumina price recovery.

Morgan Stanley estimates there is a 70% to 80% chance that the Alumina share price will rise in the next two months. The broker’s recommendation on the stock is “overweight” (or “buy”) with a $2.05 a share price target.

HomeBuilder stimulates Stockland

Meanwhile, Morgan Stanley is tipping a 60% to 70% chance that the Stockland share price will trend in the same direction over a similar period.

This is thanks to the recently announced $688 million HomeBuilder grant from the federal government.

The grant gives eligible new home buyers a $25,000 handout for properties that are worth under $750,000.

Well placed to benefit

“This is in SGP’s sweet-spot,given 70-80% of its products are sold to owner-occupiers/First Home Buyers,and its properties are at the affordable end (eg Sydney house & land entry price c.A$720k),” said Morgan Stanley.

“This will be a material positive for SGP’s FY21 outlook as we transition out of COVID-19.”

The broker recently upgraded Stockland to “overweight” with a price target of $4.30 a share.

More reading

• 2 ASX REITs to buy with $1,000 today
• We’re in recession. What does that mean for investors?
• ASX 200 down 0.35%: UBS upgrades NAB and Westpac, Qantas soars again
• 3 of the best ASX 200 tech shares for your watchlist
• The Kogan share price is surging higher following another positive business update

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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Will the Qantas Airways Ltd (ASX: QAN) share price and other ASX travel shares crash back to Earth?

Forgive the terrible pun, but I think it’s a question well worth asking today.

The Qantas share price has been on an absolute tear in recent weeks. Just today, the Aussie airliner’s shares are up 3.9% to $4.66, at the time of writing. This follows a ~7% gain yesterday. Since 19 March, the Qantas share price has risen nearly 130% from its low of $2.03.

Other ASX travel shares have made similar movements in recent weeks. Webjet Limited (ASX: WEB) shares are up nearly 100% since late-April. And Corporate Travel Management Ltd (ASX: CTD) shares are up more than 180% since their 19 March closing price.

So what do these extraordinary moves tell us?

Well, at their lows, I think it’s safe to say these companies were being priced for bankruptcy or something close to it which would have involved massive shareholder dilution. The market has rapidly moved away from these assumptions, particularly with the easing of coronavirus-related restrictions. Along with this, the conceptual floating of a return to travel explains the massive share price increases we have seen in recent weeks.

Even just yesterday, Qantas announced it would be increasing the availability of domestic flights over this month and next. According to the release, the new services will see Qantas’ domestic capacity increase from 5% of pre-pandemic levels to 15% by the end of this month and even possibly up to 40% by the end of July, depending on state-level restrictions.

Is it too late to buy back into Qantas and other ASX travel shares?

On one level, I think the time for making massive gains in ASX travel shares is over. Opportunistic investors who bought in near the lows we saw in March and April would be sitting on handsome profits right now. But remember, these were high-stakes gambles, in my view. We are fortunate that coronavirus has not taken hold in Australia to the same extent as other countries around the world however the situation could have easily gone the other way.

Unfortunately, I don’t see too much further upside for the ASX travel sector from here on in. Yes, domestic travel looks to be on the right track for recovery. But I believe international travel will still be off the cards for at least another year, if not longer. And that’s where Webjet, Corporate Travel and, to a lesser extent, Qantas used to derive the lion’s share of their business.

Foolish takeaway

The future is still highly uncertain for these companies in my view, so I won’t be investing in them myself – especially at current prices. Warren Buffett’s first rule of investing is ‘don’t lose money’ and I don’t think ASX travel shares can live up to this rule for investors today.

More reading

• We’re in recession. What does that mean for investors?
• ASX 200 down 0.35%: UBS upgrades NAB and Westpac, Qantas soars again
• Why Kogan, NAB, Qantas, & Sydney Airport shares are racing higher
• Qantas share price soars on plans to increase domestic flights
• ASX 200 rises 0.8%, travel shares fly higher

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and Webjet 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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