Tag: Motley Fool Australia

Although the ANZ region’s tech sector is small in comparison to those in the United States, Europe, and China, it isn’t short of quality.

I believe there are a good number of quality tech companies which are worthy of a spot in most portfolios.

Three of my favourites are listed below. Here’s why I like them:

Afterpay Ltd (ASX: APT)

The first ASX tech share to consider buying is Afterpay. I think the payments company could be a fantastic long term investment due to the sizeable market opportunity it has in the ANZ, UK, and United States markets. These markets alone have the potential to drive strong sales growth for a long time to come. But I don’t expect the company to stop there. It is already plotting an expansion into Canada and I wouldn’t be surprised to see it launch in mainland Europe and Asia in the coming years. The latter could be supported by its new substantial shareholder, Tencent Holdings. It is the US$535 billion owner of WeChat.

Nearmap Ltd (ASX: NEA)

Another ASX tech share to look at is Nearmap. It is a leading aerial imagery technology and location data company which also has a sizeable market opportunity. A recent market update reveals that its annualised contract value (ACV) has hit $102 million financial year to date. This means Nearmap is on course to achieve its ACV guidance of $103 million to $107 million in FY 2020. This is still only a fraction of its total addressable market (TAM), which is estimated to be worth $2.9 billion per year. And it is worth noting that this TAM relates to the countries it currently operates in. As with Afterpay, I believe Nearmap could expand into other territories in the future.

Xero Limited (ASX: XRO)

A final tech share to consider buying is Xero. It is a leading cloud-based business and accounting software provider which has been growing at a rapid rate for many years. This has led to the company surpassing 2 million subscriptions for the first time earlier this year. While this may seem like a large number, it still has a long runway for growth over the next decade. Especially given how less than 20% of the global English-speaking target market is believed to be using cloud-based accounting software at present. I expect more businesses to shift to this technology in the coming years, underpinning solid subscription and sales growth.

More reading

• Will ASX 200 shares hit a record high in June?
• Why CSL, Elders, Evolution, & Xero shares are dropping lower
• These are the 10 most shorted ASX shares
• 3 quality ASX 200 shares to buy and hold until at least 2030
• ASX shares could be the best way to grow your wealth in 2020

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 AFTERPAY T FPO, Nearmap Ltd., and Xero. The Motley Fool Australia has recommended Nearmap 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 I would buy Afterpay and these exciting ASX tech shares appeared first on Motley Fool Australia.

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The S&P/ASX 200 Index (ASX: XJO) has continued to recover strongly.

Over the weekend New Zealand officially declared itself COVID-19 free. Most Australian states reported no new cases. International share markets performed well on Monday, so it was not surprising to see the ASX do well too.

Unloved shares keep bouncing

Some of the ASX 200 shares to have seen the biggest selloff during the coronavirus crash are among the ones bouncing back the hardest today.

The Credit Corp Group Limited (ASX: CCP) share price jumped 15.7% today.

The Worley Ltd (ASX: WOR) share price increased by 14.6%.

Virgin Money UK Plc (ASX: VUK) saw its share price rise by 14.3%.

The Flight Centre Travel Group Ltd (ASX: FLT) share price soared 13.8% higher.

The Scentre Group (ASX: SCG) share price went up almost 10%.

Wesfarmers Ltd (ASX: WES) retail trading update

The (mostly) retail ASX 200 conglomerate released an impressive trading update today.

In the second half of FY20 to 31 May 2020, Wesfarmers has seen strong growth. Bunnings sales were up 19.2% compared to the prior corresponding period. Officeworks sales were up 27.8%. Catch’s gross transaction value was up 68.7%. Kmart sales were up 4.1%. Only Target has seen a revenue decline in the second half, with sales retreating 1.8%.

Excluding Catch, Wesfarmers’ online sales are up 60% in the financial year to date.

However, whilst sales are up strongly, costs have risen too for the ASX 200 company because of coronavirus restrictions and expenses to ensure safe stores.

CSL Limited (ASX: CSL) share price drops on acquisition

The ASX 200 biotech giant’s share price fell over 2% today after announcing an acquisition. The falling US dollar isn’t helping either.

CSL is exercising its option to acquire biotech company Vitaeris. This company is a clinical-stage biotechnology company focused on the phase III development of a treatment for rejection in solid organ kidney transplant patients.

CSL said the cost of the acquisition is modest and does not materially change the company’s profit expectation for 2020. However, there will be extra R&D expenses in FY21 estimated to be between $30 million to $50 million.

More reading

• Why the CSL share price continues to trail the ASX 200
• The ASX bank dividend recovery may be better than what the market thinks
• Why Credit Corp and Zip Co shares jumped over 15% higher today
• Top brokers just upgraded these 3 ASX stocks to “buy”
• Not keen on Westpac? Then buy these top ASX dividend shares instead

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended Flight Centre Travel 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.

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The Novonix Ltd (ASX: NVX) share price was one of the standout performers on the ASX today, finishing the day 76.64% higher at $1.21. This rise takes the company’s current market capitalisation to just under $260 million.

Novonix is an integrated developer and supplier of materials, equipment and services for the global lithium-ion battery industry.

The company has operations in the US and Canada, and sales in more than 14 countries across the globe. Its customer base comprises leading global brands like Samsung, Apple, Honda, Panasonic, and Sanyo.

What caused the Novonix share price to surge?

This morning, Novonix revealed it has developed an advanced cathode material manufacturing method using its proprietary dry particle microgranulation (DPMG) technique. The manufacturing method relates to new single crystal cathode materials and processes.

The breakthrough of the DPMG technique was reported to the market on 15 May 2020. The company believes that today’s announcement further demonstrates the commercial application of DPMG.

Single crystal cathode materials have reportedly demonstrated outperformance over the current standard, possessing enhanced energy density and ultra-long life when used in electric vehicles (EVs) and energy storage systems.

The significance of single crystal cathode was highlighted in The Journal of The Electrochemical Society. A 2019 paper published by Professor Jeff Dahn and his team concluded that cells of this type should be able to power an EV for over 1.6 million kilometres and last at least 2 decades in grid energy storage.

The new single crystal cathode materials and DPMG method were developed by the Professor Mark Obrovac Research Group at Dalhousie University. This group has been funded by Novonix in partnership with the Canadian government.

Under the commercialisation arrangements with Professor Obrovac and Dalhousie University, Novonix owns the intellectual property rights to the new single crystal cathode technology on an exclusive and royalty-free basis.

Novonix, through its wholly-owned subsidiary Novonix BTS, has filed a patent application to protect these new single crystal cathode methods. This is on top of the patent applications already filed to protect the DPMG process.

What now?

Commenting on today’s update, Novonix managing director Phil St Baker said:

The Single Crystal Cathode development complements NOVONIX’s PUREgraphite anode product, both addressing the ultra-long-life battery performance requirements critical to the achieving the million-mile battery life being sought by leading EV automakers.

Meanwhile, Professor Mark Obrovac, lead inventor of the DPMG and new single crystal cathode materials, shed some light on the research project by stating:

A major focus of my lab’s research is the development of elegant dry processing methods for battery materials that are amenable to scaling, while simultaneously increasing yields, eliminating waste, and enabling the use of inexpensive feedstocks. Along the way we found out that these new methods can enable the synthesis of new advanced materials with properties that have not been previously accessible by more conventional methods. This has created a tremendous opportunity for the advancement of practical battery materials.

More details regarding the developed methods and materials will be published by Professor Obrovac and his team in the coming months. 

More reading

• Why the CSL share price continues to trail the ASX 200
• The ASX bank dividend recovery may be better than what the market thinks
• Why I would buy Afterpay and these exciting ASX tech shares
• ASX 200 jumps 2.4%, unloved shares keep rising
• Why Credit Corp and Zip Co shares jumped over 15% higher today

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 Australian share market has just started the week in sensational form.

At the close of play the S&P/ASX 200 Index (ASX: XJO) was up 2.45% to 6,144.9 points and the All Ordinaries index (ASX: XAO) was up 2.4% to 6,262.9 points.

While a large number of shares on these indices recorded strong gains, two stood out with particularly impressive gains.

Here’s why these two ASX shares smashed the market on Tuesday:

Credit Corp Group Limited (ASX: CCP)

The Credit Corp share price jumped 15.5% to $20.94 on Tuesday. This was despite there being no news out of the debt collector. However, prior to today, Credit Corp’s shares were down 52% from their February high. This could mean that bargain hunters were swooping in today on the belief that its shares had been severely oversold during the pandemic.

Credit Corp’s shares were sold off over the last few months amid concerns that it might be hard to collect debts during the crisis. So, with things appearing to be a lot better economically than first feared, its collections may not end up being impacted as greatly as its share price weakness implied. In addition to this, thanks to its $120 million equity raising in April, Credit Corp is well-funded and able to ride out this storm.

Zip Co Ltd (ASX: Z1P)

The Zip Co share price was back on form and surged almost 16% higher to $6.54 today. It appears as though investors were taking advantage of a pullback in its share price late last week to top up their positions. That share price weakness was driven by profit taking after an incredible rise following the announcement of its expansion into the $5 trillion U.S. retail market.

Today’s rebound means that Zip Co’s shares are now up 85% since the start of the year. One broker that doesn’t believe the gains are over is Morgans. Last week the broker retained its add rating and lifted its price target on the payments company’s shares to $7.00. It was pleased with its acquisition of QuadPay and believes it is a low risk way to enter the key market.

More reading

• ASX 200 jumps 2.5%: Big four banks surge higher, CSL announces an acquisition
• ASX shares could be the best way to grow your wealth in 2020
• Brokers name 3 ASX shares to buy today
• Why Appen, CSL, Openpay, & Zip Co shares are tumbling lower
• Could the Openpay share price signal a wider boom for BNPL?

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

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A recent article in the Australian Financial Review has highlighted that the market capitalisaion of Kogan.com Ltd (ASX: KGN) is 5 times that of Myer Holdings Ltd (ASX:MYR). Here’s what has led to the boom in the Kogan share price and what the future looks like for the online retailer.

Coronavirus sees sales boom

Late last week, Kogan released a market update that provided a glimpse of how the coronavirus pandemic has positively impacted the company. As at 31 May, Kogan saw its active customer base grow to over 2 million, with 126,000 additional customers joining the company in May.

Kogan also reported a 100% increase in gross sales across the April and May period in comparison with the same period last year and also reported a 130% surge in gross profit for the period. As a result, the company’s financial year-to-date EBITDA grew by more than 50% to the end of May.

Dominating the future of retail

Kogan’s stellar performance comes as sales in the broader retail sector fell a record 17.7% for April. The coronavirus lockdowns saw online sales boom as consumers flocked to set up home offices, whilst also fulfilling their discretionary needs from home isolation.

The company’s outstanding sales results have been reflected in the Kogan share price, which is currently trading near all-time highs. This comes after the Aussie etailer’s shares surged an amazing 255% from their late-March lows. As a result, the company has a current share market capitalisation of approximately $1.16 billion. This market value is more than 5 times that of department store giant Myer, which tips in at a market cap of a little over $220 million.

Kogan has looked to expand its market share by acquiring furniture and homewares retailer Matt Blatt last month. By relaunching the business online, Kogan is looking to solidify its dominance of the retail sector by competing with other homewares giants such as Adairs Ltd (ASX:ADH).

Is the current Kogan share price a buy?

In my opinion, the coronavirus pandemic could have fast-tracked the changing of the guard in the retail sector. As consumers opt for the convenience of online shopping over traditional brick and mortar shops, online retailers like Kogan.com could be poised to boom in 2020 and beyond.

Having said that, the Kogan share price has had a remarkable ascent from its lows in mid-March. As a result, I won’t be rushing in to buy at the current price. Given the potential for growth in the online retail sector overall, however, I think it would be wise for investors to compile a watchlist of ASX online retailers with the potential to thrive over the next 20 years.

More reading

• These are the 10 most shorted ASX shares
• Why I’d buy Appen and these ASX growth shares for the 2020s
• How I would invest $50,000 into ASX shares right now
• Could these ASX shares be the future dividend stars that make you rich?
• What ASX shares should you invest in during a bull market?

Motley Fool contributor Nikhil Gangaram 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 The Kogan share price makes it 5 times bigger than Myer appeared first on Motley Fool Australia.

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What a way to start a (shortened) week for the ASX.

The S&P 500 is now showing a positive return so far in 2020, and the ASX may well close the day above 6,000 points for the first time since March.

What pandemic, right?

I wrote about it last week, but it bears repeating: these are strange and unusual times.

I think you should keep investing. I will be.

(Those who are saying not to might well be the same people who told you not to invest in March and April, too, so be careful who you listen to.)

But that doesn’t mean I expect it to be smooth sailing.

Make no mistake, the economy is on the proverbial mat.

Unemployment, here and in the US, has spiked. Whether it keeps climbing may well depend on what ‘echo’ effects we feel — which businesses can’t make it by themselves when government support runs out, and which employees end up getting laid off once JobKeeper winds down.

No, I’m not being a pessimist. I remain resolutely optimistic for the long term.

Instead — and as usual — I’m encouraging you to remain realistic.

Volatility is not over. Bad news is not all in the rear vision mirror (unfortunately).

We will overcome. We will, in time, thrive.

But it might take time and there might be stumbles.

For years, I’ve been telling people “these are good times, but be mentally prepared for when the tough times come”.

I hope you’ve been with us long enough to have heard and internalised the message.

For the last few months, I’ve been saying the reverse: “These are tough times, but make sure you keep investing, so you’ll benefit when the good times return”.

In the event, they returned far more quickly than even I expected: the ASX is up by almost one-third since mid-March.

I hope you held on.

I hope you kept investing.

I hope you kept your eyes on the horizon.

And now?

Now it’s a mix of both. 

Australian shares are still the best part of 17% off their highs.

They’re up about 32% from their lows.

The long term future is still, in my view, very bright.

But the ground between here and there is uncertain. Or, perhaps, it’s more certain, but that certainty includes hills and valleys, meadows and thick forest.

Be prepared for anything and everything in the short term, Fools.

But keep your eyes on the (long term) prize.

—–

2020 has had everything — and we’re not even half-way done, yet!

It’s had droughts, fires and floods. A pandemic and an ongoing trade war. And yes, a market that has soared, crashed and is seemingly rising, phoenix-like, from the ashes.

It has also had injustice and protest.

I tend not to use this space to talk much about things outside business and investing (and associated government policy, from time to time), but I did want to share something from our company that made me incredibly proud last week.

It’s a message that stands on its own as a moral view.

Last week, The Motley Fool chose to stand and be counted.

In part, the statement read:

“At The Motley Fool, we believe that diverse voices, insights, and expertise fuel innovation and human progress in the marketplace of business, and the world at large.

and:

“We reject racism, inequality of opportunity, hatred, and cruelty.

“We will expand our commitment in helping ensure that our employees, our members, our future members, and our fellow humans are safer, treated fairly, and given every opportunity to live out their true potential.”

The company is also distributing US$100,000 to employees to “support equality, justice, and peace in a way that’s meaningful to them.”

You can read our full statement, here.

All that’s required for evil to flourish, Simon Wiesenthal said, is that good people do nothing.

The standard we walk past is the standard we accept, according to Lieutenant General David Morrison.

Both men are, of course, right. 

I’m proud of our company for doing the right thing.

This is not a political act. It’s not a partisan act. It’s not virtue-signalling.

It’s adding our collective voice to improving our society. To simply standing for what is right.

For what it’s worth, there are also all-but irrefutable arguments for exactly the same view being taken purely out of economic self-interest. I might write about them another day.

Today, though, it’ll just be the moral argument. Which, really, isn’t an argument at all, but something we should all embrace, because it’s right.

—–

Lastly, a Buy idea.

The market has bounced, hard, as I mentioned above.

Many of the companies that seemed cheap a little more than 2 months ago, have gone on to new highs, or have gained back much of what they lost.

Which, for the bargain hunter, can be frustrating.

“Why, oh why, didn’t I buy when those stocks were so cheap”.

Maybe it was a lack of spare cash. Maybe it was just the emotionally challenging task of buying while the market seemed to be in (virtual) flames.

I hear that! I invested quite a bit of my spare cash a little early — before the bottom. And while I did buy more during the down days, I wish I’d have had more cash to do more buying.

In that spirit, I want to highlight a company whose shares I own (for the record) and that’s an active Buy recommendation of Motley Fool Share Advisor.

Yes, shares are up 28% from their lows.

But they are still down 37% from its pre-crisis 2020 high.

The company is Treasury Wine Estates (ASX: TWE).

And here’s the thing: on the most recent pre-pandemic numbers I saw, wine sales from Australia to China were up a full 40% year-on-year: 20% more volume (more bottles) plus 20% higher prices (essentially, but not completely, more profit per bottle).

If (and I think when) that export growth recommences — and looking out a few years past that — if more Asian customers in general, and more Chinese customers in particular,  enjoy more high-priced, premium Australian wines, then Treasury is in the box seat.

And at today’s price — higher than it was, but much lower than it was before that! — I think the shares are a great buy (the wine is pretty good, too!).

Fool on!

More reading

• Not keen on Westpac? Then buy these top ASX dividend shares instead
• Why didn’t Warren Buffett buy more shares in the recent bear market?
• Top brokers name 3 ASX 200 shares to sell today
• 2 ASX shares in the firing line of trade tensions with China
• Are these China-exposed ASX shares in danger in 2020?

Motley Fool contributor Scott Phillips owns shares of Treasury Wine Estates Limited. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates 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 market jumped to a three-month high on a quicker than expected recovery from the COVID-19 pandemic.

The S&P/ASX 200 Index (Index:^AXJO) jumped 2.4% to 6,145 points as we head into the close as a sense of FOMO gripped the market.

I don’t subscribe to using the fear of missing out as an investment strategy and I think investors will need to be more discerning about stocks to buy.

While some stocks look like they have run ahead of fundamentals, there are a handful that’s only just been upgraded by brokers to “buy”.

This stock’s a steel

One ASX stock that just got bumped up to “buy” by Goldman Sachs is BlueScope Steel Limited (ASX: BSL).

This probably explains the 3.8% jump in the BlueScope share price to $12.84 at the time of writing.

“Steel spreads in both Asia and North America have bounced off floor levels, and we expect improvement over the coming months and a return to levels more consistent with more balanced supply/demand environments,” said the broker.

“This is to be supported by positive reversion of volumes across the core markets, in particular in Australia where our channel checks suggest that demand has been a lot more supportive than previously expected.

What’s more, Goldman thinks the good times will roll on for the next 12-months thanks to additional government stimulus.

The broker lifted its price target on BlueScope to $14.95 from $10.25 a share.

Right kind of exposure

Another ASX stock that is outperforming today is the Worley Ltd (ASX: WOR) share price.

Shares in the oil and gas engineering group surged 14.3% to $10.63 to become the second top performer on the ASX 200 in late afternoon trade.

The stock was underperforming due to the slump in the oil price but Credit Suisse believes its oversold and upgraded it to “outperform” from “neutral”.

The broker also pointed out that Worley is more exposed to operational projects than the more volatile capital projects.

However, Worley’s big price gain today may limit further upside as Credit Suisse’s 12-month price target on the stock is $10.50 a share.

Good medicine

Defensive stocks like healthcare may have fallen out of favour in the rebounding bull market, but the Healius Ltd (ASX: HLS) share price is bucking the trend.

Shares in the medical facilities group rallied 3.2% to $2.62 after Macquarie Group Ltd (ASX: MQG) lifted its rating on the stock to “outpeform” from “neutral”.

While the coronavirus shutdown led to a drop in face-to-face appointments at Healius’ general practitioners (GP) offices, the broker said this is more than offset by telehealth services.

Further, comments from diagnostic services group Capitol Health Ltd (ASX: CAJ) about increase demand for its services from GP referrals support this upbeat prognosis.

Macquarie’s 12-month price target on the stock is $3 a share.

More reading

• What 2020 has taught us about investing
• Chief analyst expects Australian share market to continue rising, says ASX 200 could approach 6,600 in the weeks ahead
• Leading brokers name 3 ASX 200 shares to buy today
• Flight Centre share price and other ASX 200 travel shares look set to continue rising
• Will ASX 200 shares hit a record high in June?

Motley Fool contributor Brendon Lau owns shares of BlueScope Steel Limited, Macquarie Group Limited, and WorleyParsons Limited. The Motley Fool Australia owns shares of and has recommended Macquarie 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.

The post Top brokers just upgraded these 3 ASX stocks to “buy” appeared first on Motley Fool Australia.

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I think Westpac Banking Corp (ASX: WBC) and the rest of the big four banks remain good value despite their strong gains over the last few weeks.

However, not everyone is keen on the banks and other investors may already have enough exposure to the sector.

So, if you’re looking for dividends outside the banking sector, then I would suggest you look at the shares below. Here’s why I would buy them:

BWP Trust (ASX: BWP)

The first ASX dividend share to consider ahead of Westpac and the rest of the big four is BWP. It is a real estate investment trust which leases the majority of its properties to Wesfarmers Ltd (ASX: WES) owned Bunnings Warehouse. As Bunnings is one of the highest quality retailers in the country, I believe it is a great tenant to have. Furthermore, with Wesfarmers also a substantial shareholder in BWP, its interests are firmly aligned with the investment trust. All in all, I believe BWP is well-positioned to deliver solid income and distribution growth over the next decade. At present I estimate that it offers investors a forward 5% yield.

Rural Funds Group (ASX: RFF)

Another property company which I think could be a great alternative to the big four banks is Rural Funds. It has a focus on Australian agricultural assets and owns a portfolio of high quality properties across different industries. These properties are leased by some of the biggest names in the industry such as Treasury Wine Estates Ltd (ASX: TWE) on ultra long leases.  Thanks to these long leases and fixed rental increases, I believe Rural Funds can grow its distribution at a strong rate over the next decade. In FY 2021 the company intends to grow its distribution to 11.28 cents per share. This equates to a 5.6% distribution yield.

Telstra Corporation Ltd (ASX: TLS)

Another dividend share to look at buying is Telstra. I think the telco giant is a great alternative to the big four banks due to its defensive qualities, attractive valuation, and generous yield. Another positive is that a return to growth doesn’t appear to be too far away. This is thanks to the NBN headwinds easing and its sizeable cost cutting and simplification plans. For now, I’m confident that its free cash flows are sufficient to maintain its 16 cents per share dividend for the foreseeable future. This equates to a fully franked 4.9% dividend yield.

More reading

• Two perspectives and a Buy recommendation
• Leading brokers name 3 ASX 200 shares to buy today
• Why Bendigo and Adelaide Bank, BWP, G8 Education, & Westpac are zooming higher
• 3 ASX 200 shares to watch this week
• Can the Wesfarmers share price continue to rise after its market update today?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and Telstra Limited. The Motley Fool Australia owns shares of Wesfarmers 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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As I’ve mentioned here previously, I like to keep an eye on substantial shareholder notices.

This is because these notices give 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:

Corporate Travel Management Ltd (ASX: CTD)

A notice of initial substantial holder reveals that ECP Asset Management has been buying this corporate travel specialist’s shares. ECP is an active investment company which has beaten the market since 2010. It likes to invest with a long term approach in companies with durable competitive advantages and a sustainable business model.

According to the notice, ECP was buying shares last week. These latest purchases pushed its holding to a total of 5,611,329 shares. This represents a 5.15% stake in Corporate Travel Management. With the company’s shares down 42% from their 52-week high (even after a strong gain today), it appears as though this fund manager sees a lot of value in them.

Infomedia Limited (ASX: IFM)

A notice of change of interests of substantial holder shows that WAM Capital Limited (ASX: WAM) has been increasing its stake in this automotive software company. WAM is a leading fund manager founded by Geoff Wilson AO.

According to the notice, WAM has been on a buying spree since the start of May and has grown its position by 7.2 million shares since its last notice at the end of April. This means WAM now owns a total of 24,034,732 shares, which represents a 6.42% stake in Infomedia. When the fund manager first started to top up its holding, Infomedia’s shares were down 37% from their high. This appears to have been a level which WAM felt was undervalued. But given that it was still buying shares as recently as last week, it must still see value in them today.

More reading

• Flight Centre share price and other ASX 200 travel shares look set to continue rising
• Will the Qantas share price crash back to Earth?
• We’re in recession. What does that mean for investors?
• ASX 200 rises 0.8%, travel shares fly higher
• This ASX 200 stock is well placed to beat earnings expectations

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 Infomedia. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It’s a rare ASX share which can give investors both growth and income. But that’s exactly what we’re trying to find today. Normally, investors either stick with a ‘growth strategy’ or an ‘income strategy’ but with Magellan High Conviction Trust (ASX: MHH) and NIB Holdings Limited (ASX: NHF) shares, we’re looking for both. 

Why wouldn’t you want the benefits of a growing company and one that pays you income along the way? 

Magellan High Conviction Trust 

This Listed Investment Trust (LIT) from Magellan Financial Group Ltd (ASX: MFG) is geared for growth. It only invests in 8-12 companies that Magellan decides are the ‘best in the world’. Right now, this includes Alibaba, Alphabet, Microsoft and Visa.

I think this trust is a great long-term investment for both growth and income. It’s built to harness the potential of companies that compound earnings growth at market-beating levels. All of its holdings also operate in growth industries like e-commerce and cashless payments.

But there’s potential for income, too. MHH aims to pay a decent 3% distribution yield every year to its investors. You can either take this in cash or choose to reinvest it for a 5% discount – a nice perk. For its exposure to some of the best growth companies in the world as well as its shareholder-friendly dividend policy, I think MHH is a top buy today for both growth and income.

NIB Holdings 

NIB is the second-largest ASX-listed health insurance provider after Medibank Private Ltd (ASX: MPL). Even though NIB shares have recovered substantially since March, the NIB share price remains well below its 52-week high of $8.20 today. Thus, I think it could be a great time to pick up this company on current prices ($4.69 at the time of writing).

NIB has a long history of providing both growth and income for ASX investors. Its shares have almost quadrupled over the past decade and it has grown its dividend meaningfully over the same period. Right now, NIB is offering a trailing 4.81% dividend yield, fully franked.

The private health insurance industry is facing a few headwinds in the coming years, including expensive premiums and falling membership from young Australians. But the importance of this industry towards government expenditure on healthcare will give providers like NIB accommodative government policy which, in my view, will ensure its prosperity in the years ahead.

Thus, I think this ASX company is a good long-term buy today for both growth and potential income down the road.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares), Magellan High Conviction Trust, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares) and Visa. The Motley Fool Australia has recommended Alphabet (A shares) and NIB 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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