Tag: Motley Fool Australia

I don’t know about you but I’m starting to get a feeling in my bones that our febrile ASX is headed for trouble. For me, the market seems to have recovered too quickly and the cynics are starting to become very loud. Moreover, I think real estate is likely to be the bellwether sector. From retail to housing to commercial real estate, the indicators lie somewhere between confusing and concerning. So if there is a fall in commercial property values and residential house prices, how will this impact the ASX?

The retail sector

GPT Group (ASX: GPT) yesterday downgraded the value of its seven directly held retail assets by $476.7 million. This is approximately 8.8% of book value at 31 December 2019. This resulted from an independent valuation. GPT’s Chief Executive Officer Bob Johnston explained the revaluation as resulting from the effects of COVID-19. He held up reduced foot traffic, reduced rental growth, as well as increasing vacancy and abatement rates as contributing factors. 

The recent release of the Australian Bureau of Statistics official retail data for April painted a further bleak picture. The report contained the strongest seasonally adjusted fall ever published from the retail trade survey.

Scentre Group (ASX: SCG) and Vicinity Centres (ASX: VCX) also have high exposure to the same retail headwinds.

The housing sector

The third-quarter update from Commonwealth Bank of Australia (ASX: CBA) forecasts a fall in the Australian house price index, a proxy for house prices, of between 11% to a worst-case scenario of 32%. REA Group Limited (ASX: REA) also reported a 33% slide in residential real estate listings during April.

According to its 2019 portfolio report, Stockland Corporation Ltd (ASX: SGP) has a development pipeline of 76,000 lots of residential real estate. The company estimates this has an end market value of $21.4 billion. In the event of falling house prices, the negative financial impact on this ASX 200 company is inevitable, in my view. 

Of course the impact of falling house prices spreads a lot wider than just ASX listed real estate investment trusts (REITs) and developers. Boral Limited (ASX: BLD), for example, is likely to see the impact of a real estate downturn on its earnings, among its other issues. Furthermore, the major banks will also likely see a reduction in lending, with CBA being the country’s largest mortgage lender.

Commercial real estate

The commercial real estate market is still very uncertain. It remains to be seen what the impacts of the ‘work from home model’ and widespread business closures will be on this sector. GPT Group also has significant exposure in this sector as it has 41% of its funds invested in premium office space. 

Another major participant in the commercial real estate sector is DEXUS Property Group (ASX: DXS). Dexus is a ‘pure play’, Australian office REIT. It has around $15 billion invested in office real estate across central Sydney, Melbourne, Brisbane and Perth.

Foolish takeaway

A real estate downturn is likely to weigh heavily across many sectors on the ASX. However, I believe Vicinity Centres has the balance sheet to withstand this disruption. I also feel that with all major REITs on the ASX underperforming the market since the 23 March trough, they should still see high share price growth once the market stabilises.  If you can withstand the near-term volatility, the Vicinity Centres share price is currently selling at a P/E ratio of 5.42.

More reading

• 3 ASX 200 shares I’d buy for 2020 and beyond
• 3 ASX shares to buy now with $10,000
• CBA share price lower on Slater & Gordon class action news
• Leading brokers name 3 ASX 200 shares to sell today
• Are Aussies still withdrawing cash like crazy?

Motley Fool contributor Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group Limited and Scentre Group. 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 What is the ASX impact of a fall in house prices? appeared first on Motley Fool Australia.

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The Keytone Dairy Corporation Ltd (ASX: KTD) share price is racing higher this morning on the back of a sales update.

Keytone Dairy is a manufacturer and exporter of formulated dairy products in Australia and New Zealand.

The company manufacturers its own products under its KeyDairy, KeyHealth and FaceClear brands. These products include premium milk and nutrition powders and health supplement capsules for the treatment of acne. 

Additionally, Keytone is a production partner for leading retailers and supermarket chains, undertaking contract packing operations for brands around the world.

Headquartered in the heart of New Zealand’s South Island, Keytone Dairy floated on the ASX in July 2018 at an offer price of 20 cents. With a share price of 29 cents at the time of writing, the company’s market capitalisation currently sits at around $74 million.

Why is the Keytone Dairy share price surging?

This morning, Keytone Dairy revealed that it has received its largest follow-on order from Nouriz to date.

Nouriz is a related party of China Animal Husbandry Group, a China state-owned enterprise, that orders whole and skim milk powders from Keytone for its Nouriz private label.

The large purchase order announced today is priced at $1.39 million and is significantly higher than Nouriz’s recent orders and forecasts. More specifically, this latest order is around 11.3 times and 1.6 times greater than Nouriz’s first and second orders, respectively.

The order will be manufactured in Keytone’s New Zealand facilities in August 2020.

Commenting on today’s update, Keytone CEO Danny Rotman said:

“These significant follow-on orders from strategic clients of the business are increasing in both frequency and size. With the New Zealand second manufacturing facility online, Keytone is well equipped to service these growing orders from Nouriz and other key strategic clients of the business and will continue to work closely with these clients, growing the product offering and volumes.”

Recent developments

Today’s announcement follows another positive update in late May regarding a new licensing agreement. The agreement gives Keytone a distribution license for a range of Baileys ready-to-drink dairy products products in Australia, New Zealand, Hong Kong and Taiwan.

Additionally, the next day, Keytone announced its full-year financial results for the 12 months ending 31 March 2020.

Headline results include total sales revenue of $22.53 million, up 799% from $2.51 million in the prior year, and cash receipts of $24.68 million. However, the company reported a full-year statutory loss of $7.45 million, up from a loss of $3.29 million in the prior year.

More reading

• Keytone Dairy share price storms 14% higher on new licensing agreement

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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S&P/ASX 200 Index (ASX: XJO) investors in their 20s have a unique set of advantages over other share investors. Primarily, younger people have much more time before their retirement. This group of investors are in a fantastic position to take on more risk in search of outperforming the share market, more so than their older counterparts.

ASX 200 investors in their 20s

As investors, we’re a motley crew. We all have motley goals, motley resources and motley risk appetite. Because of this, it is important to understand your own personal circumstances and invest accordingly. The below ASX shares may be fantastic options for most investors in their 20s, but not for all. 

I am in my 20s myself and am passionate about wealth creation through share investing. As a result, I spend a lot of my time analysing the share market, economics and my portfolio. But I know that not everyone in their 20s is interested or in a position to invest. But you, just by reading this article, are already ahead of your peers when it comes to investing knowledge and potential returns. Potential returns that are all thanks to the power of time and compound interest.

3 best ASX 200 shares to buy now

EML Payments Ltd (ASX: EML)

The EML share price is still down from its 14 February high of $5.66. Shares are trading for $4.17 at the time of writing. EML is a financial services company providing solutions for payouts, gifts, incentives and rewards, and supplier payments. Although the company is exposed to mall-based retail through its prepaid cards, it also has digital solutions. The company has done a good job at diversifying through the acquisition of Prepaid Financial Services. This acquisition gives EML exposure to banking as a service (BaaS).

Pointsbet Holdings Limited (ASX: PBH)

Pointsbet shareholders have had a wild ride. The share price went from $6.65 in January, down to $1.12 in March to be at a high of $7.45 at the time of writing. That’s a whopping 80% decline followed by a 565% gain! I’m personally kicking myself for not buying during the dip, but I don’t think it’s too late to pick up shares. During the coronavirus pandemic, the company did well to continue its US licence expansion and is in a good position to grow long term once all sports are back to normal.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara has done a great job at growing market share in the US. The company has built an installed software base covering over 27% of US women screened for breast cancer. The 31 March full-year results were impressive with total revenue up 153% and subscription revenue up 106%. The gross margin also increased from 83% to 86% year-on-year. What’s more, Volpara shares are significantly down from their late November high of $2.17, currently trading at $1.36 at the time of writing.

Foolish bottom line

These ASX 200 shares are smaller, fast-growing businesses. They offer huge potential returns, but with added risk. If you’re an ASX 200 investor in your 20s, they could be great long-term market beaters.

More reading

• Why do I own this ASX 200 share?
• 3 ASX 200 shares to add to your watchlist in 2020
• 5 things to watch on the ASX 200 on Thursday
• Afterpay share price up 7%, ASX 200 edges higher
• Latest 3 ASX buy ideas from leading brokers

Lloyd Prout owns shares in EML Payments Limited and expresses his own opinions. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Emerchants Limited, Pointsbet Holdings Ltd, and VOLPARA FPO NZ. The Motley Fool Australia has recommended Emerchants Limited, Pointsbet Holdings Ltd, and VOLPARA FPO NZ. 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 Kogan.com Ltd (ASX: KGN) share price has returned from its trading halt and zoomed higher.

At the time of writing the ecommerce company’s shares are up 11% to a record high of $13.77.

Why was the Kogan share price in a trading halt?

Kogan requested a trading halt on Wednesday in order to undertake a $115 million capital raising.

This capital raising comprises a $100 million fully underwritten placement at $11.45 per share and a non-underwritten share purchase plan to raise up to $15 million. The placement price represents a 7.5% discount to its last close price.

This morning Kogan revealed that its placement has completed successfully and was oversubscribed with strong investor demand from domestic and international institutions.

Kogan’s Chair, Greg Ridder, commented: “We would like to thank our existing shareholders for their strong support for this capital raising, and also recognise the overwhelming interest from new investors.”

“We recognise the significant trust placed in our management team to deliver a strong return on your capital, and we have every confidence the team will rise to the challenge. To all our shareholders, your company has gone from strength to strength since listing and, with the capital we have raised this week, your company is now stronger than ever,” he added.

Why is Kogan raising capital?

Kogan chose to raise capital in order to provide it with the financial flexibility to act quickly on future value accretive opportunities.

These opportunities are ones that it feels broaden its offering, expand its customer base, or enhance its operating model. Much like its acquisition of replica furniture and homewares retailer Matt Blatt for $4.4 million last month.

While the company has not revealed what it has its eyes on, management notes that multiple opportunities are presenting themselves already.

And judging by its share price reaction today, investors appear confident that Kogan will spend these funds wisely and drive further strong growth in the coming years.

More reading

• Afterpay share price up 7%, ASX 200 edges higher
• 3 top ASX shares to buy now to get rich later
• ASX winners and losers from last week’s rally
• Kogan announces $115 million capital raising to fund future acquisitions
• Can Kogan.com survive Amazon?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Kogan.com 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 Kogan share price jumped 11% to a record high today appeared first on Motley Fool Australia.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Johnson & Johnson (NYSE: JNJ) announced on Wednesday that it expects to begin a phase 1/2a clinical trial of its COVID-19 vaccine candidate Ad26.COV2-S, recombinant, in the second half of July. The company previously projected that the early-stage clinical study would begin in September.

In February, Johnson & Johnson established a partnership with BARDA (the Biomedical Advanced Research and Development Authority) to develop a COVID-19 vaccine candidate at an accelerated pace. Chief Scientific Officer Paul Stoffels noted that the strong preclinical data observed thus far and the company’s discussions with regulatory authorities were key in allowing it to speed up the development program.

The early-stage clinical trial will be conducted in the U.S. and in Belgium. Johnson & Johnson plans to enroll 1,045 healthy adults between the ages of 18 to 55, plus adults aged 65 and over.

Johnson & Johnson is also talking with the National Institutes of Allergy and Infectious Diseases about the possibility of starting a phase 3 study of its COVID-19 vaccine sooner if the early-stage studies produce positive results. The healthcare giant is ramping up manufacturing capacity for the experimental vaccine even before clinical testing is completed, with a goal of being able to supply over 1 billion doses next year if the vaccine proves safe and effective.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Why the Keytone Dairy share price opened 9% higher this morning
• 3 great shares to buy now if you’re an ASX 200 investor in your 20s
• Why the Kogan share price jumped 11% to a record high today
• JB Hi-Fi share price higher after upgrading profit guidance for FY 2020
• Why do I own this ASX 200 share?

Keith Speights has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Johnson & Johnson. 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 Johnson & Johnson to Begin Coronavirus Vaccine Clinical Trial in July appeared first on Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The JB Hi-Fi Limited (ASX: JBH) share price is pushing higher on Thursday morning after the release of an announcement.

At the time of writing the retailer’s shares are up almost 1% to $42.30. This compares to a sharp decline by the S&P/ASX 200 Index (ASX: XJO).

What did JB Hi-Fi announce?

Hot on the heels of a sales update by rival Harvey Norman Holdings Limited (ASX: HVN) yesterday, this morning JB Hi-Fi released one of its own.

According to the release, the JB Hi-Fi Australia business has been performing very strongly during the pandemic.

Second half sales are up 20% over the prior corresponding period both in total and on a comparable store sales basis. This compares to first half sales growth of 5.1% and brings its year to date growth to 11%.

It doesn’t stop there. The company’s The Good Guys business has been performing even better. Its sales are up 23.5% so far in the second half. This has been a significant improvement on its performance during the first half, which saw the business deliver only a 1.5% increase in total sales. As a result of this impressive performance, The Good Guys sales are now up 10.7% year to date.

Unfortunately, things weren’t anywhere near as positive for its JB Hi-Fi New Zealand business. It was forced to close its doors at the height of the pandemic, which has inevitably had a big impact on its second half sales. The business has recorded a 19.3% drop in sales so far this half, which means its year to date sales are now down 7.3%.

Though, given how small this business is in comparison to the other two, I don’t think investors will be overly concerned with this news. Incidentally, management revealed that it is reviewing the carrying value of the New Zealand business and expects to make a non-cash impairment of $25 million in FY 2020.

What has been the driver of JB Hi-Fi’s strong sales growth?

Management advised that its strong sales growth in the second half has been driven by customers spending more time working, learning, and enjoying entertainment at home.

Pleasingly, although the company has invested in additional operating costs associated with ensuring team members and customers remain safe during the pandemic, it has still experienced strong operating leverage from this elevated sales growth.

As a result, management notes that both JB HI-FI Australia and The Good Guys have seen strong earnings growth during the second half.

FY 2020 guidance.

When the company released its half year results in February, it provided guidance for the full year. At the time, it expected total sales to be ~$7.33 billion with net profit after tax in the range of $265 million to $270 million. The latter represents an increase of 6.1% to 8.1% on the prior corresponding period.

The following month the company understandably withdrew its guidance due to the uncertainty caused by the pandemic.

This morning JB Hi-Fi has not just reinstated its guidance, but upgraded it materially.

Barring any significant changes to its trading performance, management expects total sales of $7.86 billion and net profit after tax (after the aforementioned impairment) in the range of $300 million to $305 million. This will be a 20% to 22% increase on FY 2019’s profits.

More reading

• 3 ASX 200 shares to add to your watchlist in 2020
• Afterpay share price up 7%, ASX 200 edges higher
• ASX 200 up 0.45%: Harvey Norman declares special dividend, gold miners race higher
• Why CSL, Harvey Norman, IPH, & Saracen shares are charging higher
• Harvey Norman share price flat on sales update and special dividend announcement

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.

The post JB Hi-Fi share price higher after upgrading profit guidance for FY 2020 appeared first on Motley Fool Australia.

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It’s important to properly review your investment portfolio on a regular basis and ask: why do I own this ASX 200 share? Personally, I like to do this just before the end of the financial year as it helps me with my tax planning. I would also recommend doing something similar annually, bi-annually or every quarter, when results are announced.

Doing this year’s review, I found myself asking the question, why do I own this S&P/ASX 200 Index (ASX: XJO) share? I discuss this share below, but first I feel it’s important for me to define myself as an investor and outline my investment strategy.

My ASX 200 investor profile

• Demographic: Generation Y
• Investment time horizon: 50 years +
• Investing experience: high
• Risk tolerance: very high
• End goals: Join the FIRE (Financial Independence Retire Early) movement and go travelling. Pass on a financial legacy to my kids.

My ASX 200 investment strategy

Because I have such a long time horizon in which to invest, as well as minimal financial commitments, I’m able to be an ultra long-term, aggressive growth investor. My strategy is to build a highly diversified portfolio of quality growth companies with a lot of risk, but massive multi-bagger potential. I try to invest funds into the market on a monthly basis (or as close to this as possible).

I have been implementing this strategy for over half a decade now, which has seen my portfolio grow to nearly 60 active positions. But importantly, part of my strategy is to let my winners run and to concentrate the portfolio into about 30 meaningful positions. This is already starting to happen naturally. Currently, including roughly a 10% cash position, over 50% of my portfolio is in 18 stocks. Take it out to 32 stocks and that’s 70% of my portfolio.

So, why do I own this ASX 200 share?

Challenger Ltd (ASX: CGF) is a financial services company known for being Australia’s largest annuity provider. With so much money in superannuation, my thesis was that our aging population would have growing demand for these types of products. As a result, Challenger could provide market beating total returns by investing funds under management. I also thought the company paid a decent dividend.

Challenger is one of the first shares I bought, back when I didn’t have a proper strategy. Because of this, it isn’t fully aligned with my current strategy of targeting growth. With interest rates at historic lows, it’s also harder for Challenger to earn high returns on its funds.

I still think that the investment theme is true and Challenger is a leader in the space. The company also possesses some quality characteristics, but with interest rates so low it probably isn’t the right fit for my portfolio right now. But, it may be for yours.

Foolish takeaway

I wrote this article to highlight the fact we are all constantly learning. I learn the most from my ASX 200 investment mistakes, not my winners. My advice is to invest based on your own personal circumstances and goals.

More reading

• 3 ASX 200 shares to add to your watchlist in 2020
• 5 things to watch on the ASX 200 on Thursday
• Afterpay share price up 7%, ASX 200 edges higher
• Latest 3 ASX buy ideas from leading brokers
• How Australian super funds are letting the team down on ethics

Motley Fool contributor Lloyd Prout owns shares in Challenger Limited and expresses his own opinions. The Motley Fool Australia owns shares of and has recommended Challenger 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 Why do I own this ASX 200 share? appeared first on Motley Fool Australia.

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ASX 200 shares had yet another day of gains on Wednesday as the S&P/ASX 200 Index (ASX: XJO) closed 0.06% higher at 6,148.40 points.

There was a mix of winners and losers on the share market yesterday from tech shares to gold miners and Aussie retailers. 

Despite the market noise, there are still a couple of ASX 200 shares that I’m keeping my eye on right now. Check out why these top picks are on my watchlist below.

3 ASX 200 shares I’m watching in 2020

The first Aussie share that I’m watching is JB Hi-Fi Limited (ASX: JBH). JB Hi-Fi shares are up 11.49% this year and have delivered strongly for shareholders.

That’s despite the February and March bear market that sent ASX 200 shares plummeting lower.

JB Hi-Fi has really benefitted from a strong online presence and its extensive electronics range. More Aussies have been stocking up on laptops, monitors and other accessories in the move towards a work from home model.

It’s not just JB Hi-Fi shares that have been climbing in 2020. The NextDC Ltd (ASX: NXT) share price has rocketed 34.95% this year as demand for its services has surged.

NextDC owns and operates data centres around Australia and recently expanded its balance sheet with a $672 million equity raising.

While a 34.95% gain doesn’t scream a buy to most investors, I believe NextDC still has some strong growth potential with a good strategy and clear expansion steps.

One ASX 200 share to watch that hasn’t climbed higher this year is BHP Group Ltd (ASX: BHP). Shares in the Aussie miner are down 3.65% but have some strong momentum behind them.

With iron ore prices rebounding strongly at the moment, I think the BHP share price is worth watching in 2020.

Foolish takeaway

These are just a few of the ASX 200 shares I’ve got my eye on right now. The share market volatility seems to have partially subsided since March and April.

This means right now could present a good opportunity to assess the real value of some of these companies without market noise.

More reading

• Why do I own this ASX 200 share?
• 5 things to watch on the ASX 200 on Thursday
• Afterpay share price up 7%, ASX 200 edges higher
• 2 ASX shares to buy to benefit from the cloud computing boom
• Latest 3 ASX buy ideas from leading brokers

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

The post 3 ASX 200 shares to add to your watchlist in 2020 appeared first on Motley Fool Australia.

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If you’re new to investing, it is quite likely that you will not have considerable funds to put into the share market.

But I wouldn’t let that put you off starting your investment journey. After all, even an annual investment of $500 has the potential to grow into something meaningful over a long enough period of time.

For example, if you were to invest $500 into the share market each year for 30 years and earned an average annual return of 10%, your investments would grow to be worth over $90,000 at the end of the period.

I think this demonstrates how rewarding long term investing can be even when investing relatively small sums.

With that in mind, here are three top ASX shares that I think could be great options for that first $500 investment:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first option to consider buying with $500 is the BetaShares Asia Technology Tigers ETF. I’m a big fan of this exchange traded fund due to the collection of exciting tech shares which it gives investors exposure to. These companies are revolutionising the lives of billions of people in Asia and look very well-positioned for growth over the next decade and beyond. These include ecommerce giants Alibaba and JD.com, search engine company Baidu, electronics giant Samsung, and WeChat owner Tencent.

Nanosonics Ltd (ASX: NAN)

Another ASX share to consider buying with $500 is Nanosonics. It is an infection control specialist which currently generates its revenue from the trophon EPR disinfection system for ultrasound probes. This system has a massive market opportunity and could alone drive strong earnings growth over the next decade. However, it will soon be joined by a number of secretive products targeting other unmet needs. These products are also understood to have similar market opportunities. If they are a success, then they could take Nanosonics’ growth to the next level this decade

Pushpay Holdings Ltd (ASX: PPH)

A final ASX share to consider investing $500 into is Pushpay. It is a quick-growing provider of donor and church management software. Demand for its offering has been increasing very strongly over the last few years and particularly in FY 2020. This led to Pushpay recording a 33% increase in operating revenue to US$127.5 million this year. The good news is that the company still has a significant runway for growth. Management is aiming to capture a 50% share of the medium to large church market in the future. It estimates this to be a US$1 billion revenue opportunity. This is almost 8 times greater than its FY 2020 revenue.

More reading

• 2 ASX shares I’d buy in a heartbeat
• 3 top ASX shares to buy now to get rich later
• 3 ASX shares to buy for the big shift to contactless payments
• 3 ASX growth shares that could generate strong long term returns
• How to become a millionaire before your parents with ASX shares

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nanosonics Limited and PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended Nanosonics Limited and PUSHPAY FPO NZX. 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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I tend to concentrate my investing in a few shares and mostly diversify if I see opportunities in sectors which I am not currently in. During the coronavirus pandemic, it was hard to stay focussed as there were value opportunities everywhere. Below I’ll detail some of the shares I recently bought and sold.

Mining share investing

Fortescue Metals Group Limited (ASX: FMG) has long been a cornerstone of my portfolio. I bought into the company at a very low price compared to today. During the pandemic, I purchased more Fortescue shares at a price of $8.80 per share. At the close of business last week I had made around 64%. 

Fortescue is a local company for me. I like the “can-do” attitude, the use of local supply chains, and the year-on-year performance increases. Most of all, I really like the dividend.

I owned Bellevue Gold Ltd (ASX: BGL) before the pandemic, sold it to take profits, and then I have recently bought back in. Knowing what I know now, I would not have sold when I did. However, in March the whole world looked a lot more bleak and uncertain than it does now. 

In my view, Bellevue is a great opportunity for growth. It is developing a high-grade, high-ounce ore body. It has pre-existing infrastructure to reduce the costs of ramp-up. And it is employing many of the professionals who have done similar during the last decade with Northern Star Resources Ltd (ASX: NST).

Financial sector

I sold Westpac Banking Corp (ASX: WBC) for a significant loss during the lockdown period. My initial position was part of a turnaround strategy which I expected to be executed by September or so of this year. The share price had dropped due to the money laundering scandal.

However, once the pandemic hit, the situation changed immediately. It became clear that holding the Westpac shares was a lost opportunity for me. I am sure the Westpac share price will lift significantly. However, for me, there are more profitable ways to put capital to work in the short term.

Recently I also started a position in Sezzle Inc (ASX: SZL). I had long favoured Zip Co Ltd (ASX: Z1P) as a likely challenger to Afterpay Ltd (ASX: APT). Yet I decided Sezzle already had a good head-start among the Gen Z demographic in the $5 trillion US retail market. Sezzle is up around 20% for me so far. 

Foolish takeaway

As somebody approaching retirement years, yet, with no intention to ever retire, I use a higher-risk strategy than most.

My foundation is in solid income-producing shares, preferably those that will also increase in value. This is backed with a significant share investment in growth companies at a good price. Lastly, I work a lot on finding and exploiting share market events.

Most times, it has gone well. Sometimes it goes badly. When it goes badly there is no point in wasting time with regrets. Just pick yourself up, learn from the mistake, and put your capital back to work. 

More reading

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Daryl Mather owns shares of Bellevue Gold Ltd, Fortescue Metals Group Limited, and Sezzle Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia has recommended Sezzle 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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