Tag: Motley Fool Australia

On Friday, the Structural Monitoring Systems Plc (ASX: SMN) share price shot up by 12% to $0.56 cents following an annual performance summary. The Structural Monitoring Systems share price has opened strongly again this morning, with shares up another 6.25% to 0.60 per share at the time of writing.

What were the results

The announcement by Structural Monitoring Systems included information about the unaudited financial performance of wholly owned subsidiary, AEM. It also included an update about the approval process underway for the company’s new technologies.

AEM’s full year 2020 normalised earnings before interest tax depreciation and amortisation were approximately $4.4 million. This represents a 24.6% increase on financial year 2019. 

Full year sales for the 2020 financial year were $18.96 million, which is a 10.7% increase on the 2019 financial year.

Structural Monitoring Systems, the parent entity, reported a cash balance of $2.113 million at the end of the financial year.

The announcement stated: “The 2020 revenue and profitability achieved by AEM is a remarkable accomplishment particularly in light of the unprecedented challenges present in the global aviation market together with the operating impact imposed by COVID-19 on holistic commercial platforms.”

Structural Monitoring Systems reported that AEM will continue to work on developing new generation product solutions that are primarily focused on rotorcraft markets, with R&D spending increasing from 10% of sales to 13% of sales. According to the announcement, AEM will continue to add to its pipeline of new products under development and will target several of the largest global original equipment manufacturers around the world.

The company reported that AEM’s sales for the first quarter of the new financial year were already strong and higher than the same time last year.

The company’s CVM technology, which involves sensors placed at strategic locations on an aircraft to detect cracks, moved closer to commercialisation with testing commencing in the coming month. This supervised testing will move the technology closer to gaining approval from the American Federal Aviation Administration.

Structural Monitoring Systems also reported that its 2ku wifi program, which allows flight passengers access to internet much faster than usual in flight internet speeds, is also on schedule toward gaining approval from the Federal Aviation Administration.

About the Structural Monitoring Systems share price

Structural Monitoring Systems develops and manufactures aviation-related technology that has seen demand from airlines around the world. Recent announcements suggest that the process of gaining government approval for the company’s new technologies has been tracking according to schedule.

The Structural Monitoring Systems share price is up 155% from its 52 week low of $0.235 cents, however, it is down 40% since the beginning of the year. The Structural Monitoring Systems share price is down 9.77% since this time last year.

More reading

• Why I would buy a2 Milk and this ASX growth share right now
• Should you buy the beaten down shares of Aristocrat Leisure and Flight Centre?
• My ASX share of the week
• EOS share price on watch following defence spending talks
• Mayne Pharma share price on watch after announcing major Novast Laboratories agreement

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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Because I have a high tolerance for risk, I’m a big fan of investing in growth shares.

Luckily for me, there are a large number of companies listed on the Australian share market that have strong long-term growth prospects.

Two which I think are among the best on the local market right now are listed below. Here’s why I like them:

A2 Milk Company Ltd (ASX: A2M)

I think A2 Milk Company is one of the best growth shares on the local market. The leading dairy and infant formula company has been an impressive performer over the last few years thanks largely to the strong sales growth of its a2 Platinum infant formula. The main catalyst for this has been demand in China and from daigou shoppers in Australia.

The good news is that this strong demand doesn’t appear to be waning and a2 Milk Company’s market share in the lucrative market is still a reasonably modest 6.6%. I believe this gives it a long runway for growth over the coming years. And although the a2 Milk share price is trading at 35x estimated FY 2021 earnings, I feel this is a fair multiple given its very positive long term outlook.

ResMed Inc (ASX: RMD)

Another top growth share which I think investors ought to consider buying is ResMed. It is a sleep treatment-focused medical device company which has a portfolio of leading masks and software solutions treating obstructive sleep apnoea.

ResMed has consistently delivered solid earnings growth over the last decade and I expect this positive trend to continue for the foreseeable future. This is thanks to the expected growth of the sleep treatment market, strong demand for ventilators, and its investment in research and development. And while the ResMed share price has just hit an all-time high, I would still be a buyer of its shares if you’re planning to make a long term investment.

More reading

• Why Domino’s and these ASX 200 shares have just hit new highs
• Where to invest $10,000 into ASX shares in July
• Here’s how to play China’s V-shaped growth story
• Diversify your portfolio with BHP, ResMed, and Wesfarmers shares
• Why I would buy Appen and this ASX growth share right now

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended ResMed Inc. 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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Earlier today I highlighted three shares on the S&P/ASX 200 Index (ASX: XJO) that have recently reached new highs.

While those ASX 200 shares have recovered strongly from the market selloff earlier this year, not all shares on the index have done so.

Two ASX 200 shares that are still trading notably lower than their 52-week highs are listed below. Are they in the buy zone?

Aristocrat Leisure Limited (ASX: ALL)

The Aristocrat Leisure share price is down over 30% from its 52-week high of $38.23. The gaming technology company’s shares have come under significant pressure this year after the pandemic forced the closure of casinos. This impacted land-based unit sales and revenues generated from its daily fee model. The good news is that the company’s Digital segment have helped cushion the blow. Thanks to lockdowns, closures, and the growing popularity of mobile gaming, Aristocrat’s digital operations have been thriving and generating significant recurring revenues.

For example, during the first half of FY 2020, group revenue increased 7% to $2.25 billion. This reflects a 6% decrease in Land-based revenues and 19% growth in Digital revenue. Given the favourable tailwinds, I’m confident there will be more of the same in the second half and beyond. Which should lead to stellar earnings growth once trading conditions return to normal for its Land-based operations. As a result, I think the weakness in the Aristocrat Leisure share price is a buying opportunity for long-term focused investors.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is down a whopping 77% from its 52-week high of $49.14. Investors have of course been selling the travel agent’s shares due to the negative impact the coronavirus pandemic is having on bookings. With travel markets coming to a standstill, Flight Centre was left generating next to no revenue and still had considerable operating costs to pay. This led to the company having to undertake a material capital raising (which diluted shareholders greatly) to give it sufficient liquidity to survive the crisis.

Positively, Flight Centre appears to have raised enough funds now to see it through the crisis. It has also cut its operating costs materially, which should mean it operates a leaner business when travel markets return to normal. However, I’m not convinced the company will be profitable for a little while to come. In light of this, I wouldn’t be in a rush to invest right now.

More reading

• Altium and 2 more ASX 200 shares to watch this week
• Why Domino’s and these ASX 200 shares have just hit new highs
• ASX 200 Weekly Wrap: Afterpay, Tech push ASX 200 back above 6,000
• 5 things to watch on the ASX 200 on Monday
• 5 ASX shares rated as strong buys by brokers

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

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My ASX share of the week is listed investment company (LIC) PM Capital Global Opportunities Fund Ltd (ASX: PGF).

The best performers over the last few months have been growth shares that are leveraged to the change in the way that people are now spending or living. Usually those strong performers have a strong digital presence. Some of the ASX shares that have performed really well have been Afterpay Ltd (ASX: APT), Temple & Webster Group Ltd (ASX: TPW) and Pushpay Holdings Ltd (ASX: PPH). I think it will be hard for them to perform as well over the next six months as the last six months.

It’s getting harder to find good value. The businesses that are doing well are priced highly and the rest face a lot of uncertainty over the next six months or longer.

But I think there are some ASX shares like LICs that look good value which are trading at an attractive discount to their net tangible assets (NTA).

You may be wondering what a LIC actually does. It’s pretty simple, it’s just a listed investment fund that invests in other shares on your behalf. I think globally-focused LICs are good investment ideas because ASX shares only represent 2% of the global share market. You may be missing out on exposure to good opportunities. 

Overview of ASX share PM Capital Global Opportunities Fund

It’s a LIC that invests in international shares. It’s run by PM Capital, an investment management business led by Paul Moore. The ASX share was listed in December 2013, though there has been an unlisted version of the fund operating since October 1998.

The LIC charges a management fee of 1% per annum of the portfolio and a performance fee of 15% of the investment return above the benchmark return. The benchmark is the Morgan Stanley Capital International World Index (AUD).

What shares does it invest in?

The ASX share can invest in any global share. It’s not restricted by country, industry sector or market capitalisation. It only invests in businesses that it has conviction in. It generally holds around 40 globally listed shares in its portfolio.

Each month the LIC discloses what percentage of its portfolio is invested in a particular theme or sector. At the end of May, 8% of the portfolio was invested in businesses related to housing Ireland and Spain, global domestic banking was a 24.4% weighting, service monopolies had a 14.8% allocation, Macau gaming was a 8.3% weighting, alternative investment managers had a 12.6% allocation, industrial European businesses had a 6.7% allocation, materials had a 11.4% weighting and ‘other’ had a 12% allocation.

The LIC can also short shares if it wants to. It had short positions amounting to 8.2% of the portfolio at the end of May 2020.

Some of the actual names it actually owns include: Cairn Homes, Bank of America, Visa, MGM China, KKR & Co, Siemens and Freeport-McMoRan Copper.

Why I think it’s good value

I think the ASX share represents good value. Many of the businesses that it’s invested in are somewhat cyclical, those shares have been punished more than others due to COVID-19. I’m not expecting rapid returns, but some of those holdings do look cheap. When investing in cyclical shares the best time to invest is during the bottom of a cycle.

PM Capital Global Opportunities Fund releases a weekly NTA update. At 26 June 2020 it had NTA before tax of $1.12 per share. This is an 18% discount to the current PM Capital Global Opportunities Fund share price of $0.92.

The large NTA discount also boost the potential dividend yield from the ASX share. Assuming it pays 4 cents per share over the next 12 months, it has a grossed-up dividend yield of 6.2%.

Foolish takeaway

I think that over the next 24 months, or less, the shares that the LIC owns could perform well as the global economy recovers to a new normal. I’d be very happy to buy some shares today for the long-term. Both for capital growth and dividends. 

More reading

• Do you have $1k to invest? Buy 1 of these ASX shares
• 3 top international ASX shares for growth and income
• Have $1,000? You should pick one of these 8 ASX shares

Tristan Harrison owns shares of PM Capital Global Opportunities Fund Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended PUSHPAY FPO NZX and Temple & Webster Group 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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On Friday, defence contractor Electro Optic Systems Holdings Limited (ASX: EOS) announced it had entered into negotiations with the Commonwealth Government. This arose out of the government’s $270 billion investment being made in the Australian Defence Force (ADF) announced last week. During his speech, the Prime Minister specifically referred to high technology sensors, which are at the core of Electro Optic’s product range.

The EOS share price jumped by 16.1% following Mr Morrison’s speech, then went into a trading halt at the close of business on Wednesday. It begins to trade again today.

Defence spending negotiations

Electro Optic Systems is in negotiations with the government over the sale of 251 remote weapon stations over the next 12 months as part of the defence spending initiative. The systems will be added to the Army’s Bushmaster and Hawkei protected mobility vehicles and allow for operation from a protected position. 

These negotiations represent welcome news for the company after the recent impacts of COVID-19 on its business. In late May, Electro Optic Systems reported delays of 6 months to $100 million of receipts due to delivery issues. In addition, the company advised it has deferred $70 million in revenue and expects margins to fall from 13.5% to 11%.

As yet, it is unclear precisely which products are included as part of the negotiations. The company makes a range of vehicle-mounted, remote weapon stations of varying size and capability. Furthermore, it supplies comprehensive drone defence technologies which are battle tested. 

About the company

The privatisation of Commonwealth of Australia space activity formed Electro Optic Systems in 1983. The core of the company is its sensor technology which it has commercialised in the aerospace, defence and communications industries.

The weapons systems mentioned above include this sensor technology. In addition, it has also been applied in the Space Situational Awareness (SSA) partnership with the United States. SSA monitors and tracks orbiting space-based objects such as satellites and debris using ground-based radar and optical stations.

Electro Optic Systems presently has active contracts with several NATO naval forces and the Royal Australian Navy. It is the global market leader in lightweight remote weapons systems. 

The company expects to meet its FY20 guidance announced in April, 2020 of 38% revenue growth to $230 million.

More reading

• Electro Optic Systems share price on watch after winning major government defence contract
• Best growth shares to buy with $4,000
• Keep a watch on these 3 ASX trends next week

Daryl Mather owns shares of Electro Optic Systems Holdings Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Electro Optic Systems Holdings Limited. The Motley Fool Australia has recommended Electro Optic Systems Holdings Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Mayne Pharma Group Ltd (ASX: MYX) share price will be one to watch on Monday following the release of a positive update by the pharmaceutical company.

What did Mayne Pharma announce?

This morning Mayne Pharma announced that it has entered into a long-term supply agreement with Novast Laboratories for 13 U.S. generic oral contraceptive products. This includes five new products not previously marketed by the company.

Novast Laboratories is a pharmaceutical company based in Nantong, China. It develops and commercialises generic drugs for global markets. Novast has a significant number of products approved by the U.S. Food and Drug Administration (FDA), including hormone products and sustained-release oral dosage forms.

According to the release, four of the additional products are FDA approved and include generic equivalents of two of the highest prescribed oral contraceptive products in the United States.

These are Ortho Cyclen and Ortho Tricyclen, as well as Loestrin 24 FE and Desogen. The fifth new product included in the agreement is still pending review with the FDA.

Mayne Pharma’s CEO, Scott Richards, commented: “We are very pleased to have partnered with Novast, who have an outstanding quality track record manufacturing and supplying oral contraceptives to the US market. This transaction expands our women’s health portfolio and secures supply on more favourable terms of eight products previously acquired from Teva Pharmaceuticals to continue to drive growth of our women’s health franchise.”

What is the market opportunity?

The company notes that, according to IQVIA, the annual U.S. market sales for the five additional products were US$500 million, with more than 1.3 billion tablets sold annually.

This agreement has given Mayne Pharma’s women’s health portfolio a major boost in respect to its market opportunity.

Mr Richards said: “Mayne Pharma’s women’s health portfolio today includes 27 marketed and pipeline products, including a novel oral contraceptive E4/DRSP and two generic contraceptive products targeting markets with sales of US$1.2 billion and targeted to launch in FY21.”

Finally, with the Mayne Pharma share price down 22% since the start of the year, shareholders will no doubt be hoping this is the catalyst to narrowing this decline and ultimately taking its shares higher for the year in the near future.

More reading

• Why the Mayne Pharma share price is climbing today
• These 5 ASX shares saw the biggest losses last week
• ASX 200 Weekly Wrap: ASX back in the green
• These were the worst performers on the ASX 200 last week
• ASX 200 finishes higher by 0.8%, Carsales share price driven up by FY20 guidance

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

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Last week was a strong one for ASX 200 shares as the S&P/ASX 200 Index (ASX: XJO) surged 2.60% higher to 6,057.90 points.

Investors put aside fears of a second wave to push share prices higher on the back of a strong United States jobs report. There’s no doubt the coronavirus pandemic is weighing heavily on global markets. However, there are growing signs that economic growth could return sooner than expected.

Last week I was watching Tassal Group Limited (ASX: TGR), Tabcorp Holdings Limited (ASX: TAH) and Saracen Mineral Holdings Limited (ASX: SAR).

The Tassal share price jumped 4.1% higher last week while Tabcorp and Saracen shares climbed 2.4% and 8.2%, respectively.

Now find out why I’m watching Altium Limited (ASX: ALU) and two other ASX 200 shares in the week ahead.

Altium and 2 more ASX 200 shares to watch this week

The Altium share price jumped 4.6% higher on Friday and I think it could carry that momentum into this week.

Altium is in an interesting place given it spans both the US and Australia. In fact, the printed circuit board (PCB) software design company was founded in Tasmania but has its core research and development operations in San Diego, California.

Stronger economic and jobs data is a good thing for the ASX 200 tech share. If we see the US economy bounce back quicker than expected, this could mean a stronger business sector and potentially more North American sales for Altium.

Staying with the tech theme, I also like the look of NextDC Ltd (ASX: NXT) shares this week. 

The NextDC share price rocketed 15.5% higher last week, hitting a new record high of $11.12 per share. The ASX 200 tech share now boasts an impressive market capitalisation of just over $5.0 billion and sits within the S&P/ASX 100 Index.

Given the strong tailwinds I’m seeing in the data security and storage industry, I wouldn’t bet against NextDC. Particularly given the strong momentum behind the company’s share price from last week.

Finally, I think I’ll be keeping an eye on the Vicinity Centres (ASX: VCX) share price this week. The Vicinity share price dropped 3.7% lower on Friday to end the week on a disappointing note.

While the ASX 200 REIT share could be volatile for some time, I think it’s worth watching. The group has a strong portfolio of retail assets including Chadstone Shopping Centre in Melbourne and Queen Victoria Building in Sydney’s CBD.

If we see restrictions continue to tighten as they have been in Victoria, the Vicinity share price could slump lower in 2020. However, more good news on the pandemic front could trigger a quick recovery for the Aussie REIT.

Foolish takeaway

It’s easy to get carried away with what ASX 200 shares are doing week-to-week. While it’s great to keep on top of what’s happening, don’t forget to keep in mind that you’re investing for the long haul.

More reading

• Why Domino’s and these ASX 200 shares have just hit new highs
• ASX 200 Weekly Wrap: Afterpay, Tech push ASX 200 back above 6,000
• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to buy next week
• Gold at record highs! Are ASX gold miners or ETFs a better bet?

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 Altium. 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) was a very strong performer last week and charged materially higher. The benchmark index climbed a total of 153.8 points or 2.6% to end the week at 6057.9 points.

Given this strong form, it will come as no surprise to learn that a good number of shares raced notably higher. The positive investor sentiment even sent some shares to new highs.

Three ASX 200 shares that hit new highs are listed below. Here’s why they are on form:

Domino’s Pizza Enterprises Ltd (ASX: DMP) 

The Domino’s share price hit a multi-year high of $75.00 at the end of last week. Investors have been buying the pizza chain operator’s shares over the last few months after it revealed solid sales growth from the majority of its businesses during the pandemic. This appears to have put Domino’s in a position to deliver a solid result in FY 2020. In addition to this, management has reiterated its medium term outlook. It continues to target new store openings of 7% to 9% per year and same stores sales growth of 3% to 6% per year.

ResMed Inc. (ASX: RMD)

The ResMed share price continued its positive run and rose to a record high of $28.21 on Friday. The sleep treatment focused medical device company’s shares have been strong performers in FY 2020 thanks to its impressive earnings growth. The key drivers of this have been the increasing demand for its sleep treatment hardware and software and, most recently, ventilators. The latter are in great demand at present as countries battle the COVID-19 pandemic.

Saracen Mineral Holdings Limited (ASX: SAR)

The Saracen share price reached a record high of $5.83 last week. Investors have been fighting to get hold of the gold miner’s shares this year following a sharp rise in the gold price and its strong operational performance. In respect to the latter, during the March quarter Saracen reported record quarterly gold production of 158,132 ounces at an all-in sustaining cost (AISC) of A$1,133 per ounce. This brought its production for the first nine months of FY 2020 to 374,584 ounces with an AISC of A$1,081 per ounce. This AISC is significantly lower than the price it is commanding for its gold right now, putting it in a position to deliver bumper free cash flows. The Saracen share price was also given a boost after being included in the ASX 100 index at the June quarterly rebalance.

More reading

• Altium and 2 more ASX 200 shares to watch this week
• ASX 200 Weekly Wrap: Afterpay, Tech push ASX 200 back above 6,000
• 5 things to watch on the ASX 200 on Monday
• Where to invest $10,000 into ASX shares in July
• Gold at record highs! Are ASX gold miners or ETFs a better bet?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Domino’s Pizza Enterprises Limited and ResMed Inc. 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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Last week, the S&P/ASX 200 Index (ASX: XJO) managed to shake off its jitters and push decisively back above the 6,000 point threshold.

It was a stunning week for ASX shares. Gains were enjoyed by blue chips and small caps alike, but it was growth shares in the tech and payments space that really stole the show. As it usually is these days, Afterpay Ltd (ASX: APT) was in the hot seat. Afterpay shares had yet another resoundingly successful week, rising by more than 18% to print a succession of new all-time highs. The Afterpay share price was trading at $67.50 on Friday afternoon after rising as high as $70 (the new highwater mark) earlier in the day. Since Afterpay reached lows of $8.01 in late March, the shares have now soared more than 742%, truly extraordinary stuff for a 3-month period. At this rate, Afterpay is now looking at membership of the exclusive ASX 20 club — unthinkable just a few months ago.

Afterpay and ASX tech shares push ASX 200 higher

The ASX 200 is now at a 3-week high and back above the psychologically important 6,000 point mark, which it briefly breached in early June before getting cold feet.

It wasn’t just Afterpay that was inducing giddiness in the markets last week though. Xero Limited (ASX: XRO) managed a new all-time high on Friday ($93.26 to be precise), and was also joined intra-day by Nextdc Ltd (ASX: NXT) at $11.12 and Temple & Webster Group Ltd (ASX: TPW) at $7.59.

Illustrating just how much tech shares were influencing the broader market last week, take note of how the S&P/ASX All Technology Index (ASX: XTX) rose by more than 6% over the week.

But the party couldn’t be contained to just ASX tech shares. ASX blue chips like Wesfarmers Ltd (ASX: WES) and Telstra Corporation Ltd (ASX: TLS) notched up 5.01% and 7.35% gains respectively. Even Commonwealth Bank of Australia (ASX: CBA) managed to eke out a 3.32% rise over the 5 days.

We also saw the ‘new’ TPG Telecom Ltd (ASX: TPG) in action for the first time after the old TPG successfully completed its merger with Vodafone and joined forces in matrimony. Singapore-based TPG-spinoff Tuas Ltd (ASX: TUA) also hit the boards last week.

Oh, and National Australia Bank Ltd. (ASX: NAB) paid its first post-COVID dividend of 30 cents per share, well below the 80+ cents per share shareholders are normally accustomed to.

How did the markets end the week?

After finishing the week prior at 5,904.1 points, the ASX 200 managed to finish last week 153.8 points higher at 6,057.9 points – a healthy 2.6% increase. Monday ended up being the only day when the ASX 200 shed value last week, banking a hefty 1.8% loss. But Tuesday, Wednesday, Thursday and Friday all saw this loss erased and new gains made. Thursday was the standout performer, delivering a 1.8% surge.

Meanwhile, the All Ordinaries (INDEXASX: XAO) also had a strong week, rising from 6,011.8 points to 6,163.7 points for a 2.5% gain.

Which ASX 200 shares were the biggest winners and losers?

Now, let’s kick back and indulge in some gossip over last week’s best and worst performers. As always, we’ll start with the losers:

Worst ASX 200 losers	% loss for the week
Adbri Ltd (ASX: ABC)	(26.1%)
Perenti Global Ltd (ASX: PRN)	(8.3%)
Southern Cross Media Group Ltd (ASX: SXL)	(7.9%)
Reliance Worldwide Corporation Ltd (ASX: RWC)	(6.21%)

Taking out last week’s wooden spoon was Adbri (formerly known as Adelaide Brighton). This construction materials company was not in ASX investors’ good books last week after US-based aluminium producer Alcoa decided not to renew a lime supply contract with the company.

Mining engineer Perenti was also not in favour after reporting that its profits for the 2020 financial year are expected to come in around 4-8% lower than it initially expected.

Perennial loser Southern Cross couldn’t keep itself out of the bad books last week either. This advertising company has been hammered hard during the coronavirus crisis, with economy-wide cuts to advertising expenditure hurting this company badly.

Now the losers are out of the way, let’s take a look at who was taking home trophies last week:

Best ASX 200 gainers	% gain for the week
Afterpay Ltd (ASX: APT)	18.4%
Nearmap Ltd (ASX: NEA)	17.5%
NextDC Ltd (ASX: NXT)	14.6%
Domain Holdings Australia Ltd (ASX: DHG)	14.3%

As we discussed earlier, Afterpay went home with the silver spoon last week. Investors simply can’t get enough of this buy now, pay later (BNPL) company and now look to be happy owning it at any cost.

Meanwhile, aerial mapping company Nearmap took out the second spot last week after some favourable broker notes bumped up this share on investors’ horizons.

NextDC was another winner, which investors started climbing into after the company announced the signing of several new and exciting contracts for New South Wales.

Finally, Fairfax’s old online property marketplace Domain also had a stellar week, despite no obvious reason why.

What is this week looking like for the ASX 200?

New cases of coronavirus infections in Victoria last week, as well as ongoing social unrest over in the United States, didn’t seem to bother investors at all.

Even so, I think these two areas are the spaces to watch as we start another week in paradise. Investor sentiment (although surprisingly robust in recent times) can still turn on a dime, and, in my view, all ASX investors should keep this in mind.

So before we go, here’s a look at how the major ASX blue chip shares are looking:

And finally, here is the lay of the land for some leading market indicators:

•     S&P/ASX 200 (XJO) at 6,057.9 points
•     All Ordinaries (XAO) at 6,163.7 points
•     Dow Jones Industrial Average at 25,827.36 points after rising 0.36% on Thursday night (our time)
•     Gold (Spot) swapping hands for US$1,784.50 per troy ounce
•     Iron ore asking US$98.94 per tonne
•     Crude oil (Brent) trading at US$42.85 per barrel
•     Crude oil (WTI) going for US$40.30 per barrel
•     Australian dollar buying 69.37 US cents
•    10-year Australian Government bonds yielding 0.90% per annum

Foolish takeaway

Market exuberance (the likes of which we may be seeing in shares like Afterpay) is always fun to watch (and even better to gain from). But like investing legend Benjamin Graham once said, the market is a voting machine in the short term, and a weighing machine in the long term.

Right now, investors are certainly voting Afterpay and other ASX tech shares higher. But I would say to anyone who wants to join the bandwagon, make sure you’re buying assets with weight behind them. Otherwise, you might be caught short if and when the voters stampede the other way. So, as always, stay safe, stay rational and stay Foolish!

More reading

• Altium and 2 more ASX 200 shares to watch this week
• Why Domino’s and these ASX 200 shares have just hit new highs
• Why I would buy Wesfarmers and these quality ASX dividend shares
• These are 10 most shorted shares on the ASX
• 5 things to watch on the ASX 200 on Monday

Sebastian Bowen owns shares of National Australia Bank Limited, Newcrest Mining Limited, and Telstra Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd., Nearmap Ltd., Reliance Worldwide Limited, and Xero. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO, COLESGROUP DEF SET, Transurban Group, Wesfarmers Limited, and Woolworths Limited. The Motley Fool Australia has recommended Nearmap Ltd. and Reliance Worldwide 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 ASX 200 Weekly Wrap: Afterpay, Tech push ASX 200 back above 6,000 appeared first on Motley Fool Australia.

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If you’re looking to add some dividend shares to your portfolio this week, then you’re in luck.

Listed below are three top ASX dividend shares which I think are in the buy zone right now. Here’s why I like them:

Aventus Group (ASX: AVN)

I think this retail property company could be a dividend share to buy. Aventus specialises in large format retail parks and has a portfolio of 20 centres across Australia. I like the company due to the fact that its rental income has a reasonably high weighting towards everyday needs. I believe this leaves it better positioned than others in the sector to navigate the tough trading conditions. In addition to this, thanks to a sharp pullback in the Aventus share price, I estimate that it offers investors a very generous 7% FY 2021 distribution yield at present. 

Dicker Data Ltd (ASX: DDR)

Another dividend share to consider buying is Dicker Data. It is a wholesale distributor of computer hardware and software which has continued its solid form during the pandemic. Last week it released a half year update and revealed unaudited first half revenue of $1 billion and net profit before tax of $40 million. This was an increase of 18.3% and 25%, respectively, on the prior corresponding period. Looking ahead, the company intends to lift its dividend to 35.5 cents per share this year. Based on the latest Dicker Data share price, this equates to a fully franked 4.6% dividend yield.

Wesfarmers Ltd (ASX: WES)

A final dividend share to consider buying is this conglomerate. I like Wesfarmers due to its portfolio of strong businesses, high quality management team, and its sizeable cash balance. I suspect the latter two will combine in the near future to make some earnings accretive acquisitions that bolster its growth over the 2020s. Combined with the positive outlooks of its key businesses such as Bunnings and Kmart, I believe Wesfarmers is well-placed to grow its dividend at a solid rate for the foreseeable future. Based on the current Wesfarmers share price, I estimate that it offers a fully franked 3.4% FY 2021 dividend yield.

More reading

• Diversify your portfolio with BHP, ResMed, and Wesfarmers shares
• Why I think these ASX dividend shares are strong buys
• Why Afterpay, Bigtincan, Dicker Data, & NIB shares are racing higher
• Dicker Data share price surges higher after revealing strong first half profit growth
• 3 top ASX dividend shares to buy for FY21

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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 I would buy Wesfarmers and these quality ASX dividend shares appeared first on Motley Fool Australia.

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