Tag: Motley Fool Australia

I’ve been keeping a close eye on what substantial shareholders have been doing recently.

Substantial shareholders are shareholders that hold 5% or more of a company’s shares. These tend to be large investors, asset managers, and investment funds. These shareholders are obliged to update the market when they make any changes to their holdings.

As a result, I feel investors should look to use these notices to their advantage. After all, they show where the smart money is going.

Two notices that have caught my eye are summarised below:

Altium Limited (ASX: ALU)

According to a notice of initial substantial holder, Pinnacle Investment Management has just become a substantial shareholder of this electronic design software company. The notice reveals that Pinnacle has been adding to its position this month, bringing its total holding to 6,931,951 shares. This equates to a 5.29% stake in Altium. The fund manager was buying shares in or around the level Altium’s shares are trading at now. Which would appear to indicate that it believes they offer plenty of upside from here. I certainly believe this is the case and feel Altium is a top buy and hold option thanks to its exposure to the Internet of Things market.

Atomos Ltd (ASX: AMS)

According to a change of interests of substantial holder notice, Ellerston Capital has taken advantage of a pullback in this video hardware technology company’s share price to top up its position. The notice reveals that Ellerston has bought almost 6 million shares over the last couple of months. This lifted its holding to a total of 22,311,112 shares, which equates to 10.58% of its issued stock. The Atomos share price is down 72% from its 52-week high and at a level which this fund manager appears to believe is attractive. Its shares were hit hard after the pandemic shut down its core pro video market. But with economies slowly reopening around the world, this fund manager may be expecting a rebound in sales and its share price in the near future.

More reading

• Is the Altium share price a buy at $36?
• 3 top ASX growth shares that could smash the market in the 2020s
• 3 shares I’d buy if the coronavirus selloff gets worse
• How to become a millionaire with a $5,000 investment in ASX 200 shares each year
• 5 things to watch on the ASX 200 on Thursday

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 Atomos Ltd. The Motley Fool Australia owns shares of Altium. 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 Fund managers have been buying these ASX shares appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/36m9U6K

Is the Altium Limited (ASX: ALU) share price a buy at $36? I think the electronic PCB software business is a great company.

Altium’s share price has been a strong performer over the past couple of months. Since 23 March 2020 the Altium share price has gone up by 45%. That’s strong gains if you bought at the time, but what about now?

There are plenty of reasons to like Altium:

Growing profit margins – A business can grow its profit faster than revenue if the profit margin can increase as economies of scale keep increasing. These are the types of businesses we want to have in our portfolio. Altium is a great example of this effect (in normal times).

Strong balance sheet – It’s the businesses with a strong balance sheet that are able to cope with the coronavirus situation the best. Altium has no debt and a solid pile that was growing, until recently at least.

Excellent management – I think the management is one of they key reasons the Altium share price has done so well over the past decade. They are long-term focused, set tough but attainable goals and are very considered with capital.

Growing dividend – There aren’t many businesses that offer that attractive combination of fast growth and a growing dividend. Plenty of businesses retain all their profit for further growth. But a dividend is a nice way of getting returns without resorting to selling shares.

So Altium’s share price is a buy today?

I’m confident about Altium’s long-term future. The issue I see is the short-term. Altium has already warned that it’s having to reduce prices to continue to attract new subscribers. That’s the right thing for the long-term – prices can be increased in the future. But it will hurt Altium’s profit in FY20 and maybe even FY21.

We don’t yet know how much profit pain that will entail. It’s true the Altium share price is being helped by the current ultra low interest rates. However, we should be cautious about businesses that are being priced with not much downside. I’d be interested if Altium’s share price was under $30, so I’m going to wait for a better buying opportunity.

More reading

• Fund managers have been buying these ASX shares
• 3 top ASX growth shares that could smash the market in the 2020s
• 3 shares I’d buy if the coronavirus selloff gets worse
• How to become a millionaire with a $5,000 investment in ASX 200 shares each year
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Tristan Harrison owns shares of Altium. The Motley Fool Australia owns shares of Altium. 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 Is the Altium share price a buy at $36? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2WU1KPS

Shares in ASX essential network services business Service Stream Limited (ASX: SSM) look set to end the week down more than 6% despite the company’s attempts to reassure the market that it hasn’t been experiencing any overly negative financial impacts from COVID-19.

Service Stream designs, constructs, operates and maintains essential telecommunications and utilities infrastructure, including water and gas distribution networks. With large portions of the Australian population still more or less confined to their homes, people are relying on this infrastructure now more than ever.

In a business update released to the market on Thursday, Service Stream stated that demand for its services had remained strong throughout the pandemic. However, it did note that the costs of delivering those services had increased, and some “minor” projects had been delayed or paused.

Service Stream had originally forecast operational earnings before interest, tax, depreciation and amortisation expenses (EBITDA) for the second half of FY20 to be in line with the first half result of $58.1 million. Due to the impacts of the coronavirus pandemic, the company now expects full year operational EBITDA to be $108 million, which would imply a second half operational EBITDA in the range of $49.9 million, or a decline of a little over 7% versus the first half.

The market reacted negatively to the news, with the Service Stream share price dropping almost 6% on Thursday. However, while it’s disappointing that the company is now forecasting a drop in EBITDA, Service Stream does point out that operational EBITDA of $108 million for the year would still be a record result for a growing company.

Should you invest?

Service Stream doesn’t provide the exciting growth narratives of coronavirus market darlings like Kogan.com Ltd (AS:KGN), Appen Limited (ASX:APX) or NextDC Limited (ASX:NXT). But the fact that it is flying under the radar for many investors works in its favour.

Shares in many of those sexier tech companies are now trading higher than they were pre-coronavirus, which seems unsustainable as the country heads into a potential economic recession. For example, despite its soaring share price, Kogan relies on strong consumer sentiment, which may not exist once the economic impacts of the coronavirus pandemic are fully realised.

Service Stream, on the other hand, should have a much more reliable source of revenue. Even in periods of economic stress and uncertainty, people will continue to depend on the infrastructure that supports necessities like water, gas and telecommunications.

Service Stream could make a good defensive option for investors looking to safeguard their portfolio against a severe downturn. Plus, at its current price of around $2.00 it is still well short of the 52-week high price of $3.06 it reached back in August – meaning it could represent great value.

More reading

• Why Afterpay and these ASX shares just hit multi-year highs
• ASX 200 drops 0.4%, Chinese threat to Australian iron
• If you invested $10,000 in the Kogan IPO, this is how much you’d have now
• Why the share price of this top dividend share just sank 6%
• 3 mid cap ASX growth shares to buy for monster returns

Motley Fool contributor Rhys Brock owns shares of Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended Service Stream 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 this ASX infrastructure company could help protect your portfolio in a downturn appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3e0WyzE

Card payment options and a surge in e-commerce has created a new era in how we complete transactions. The coronavirus pandemic has accelerated the death of cash with many conducting their business and discretionary transactions via alternative methods. With the World Health Organization also advising people to use contactless payment to reduce the risk of transmission, it’s heightened people’s consciousness of cash handling.  

Here are 2 ASX stocks that could benefit from the death of cash.

EML Payments Ltd (ASX:EML)

EML Payments is an Australian fintech company providing technology solutions for payouts, gifts, rewards and supplier payments. The company has a large presence in Australia, North America and Europe, issuing mobile, virtual and physical card solutions.

The coronavirus pandemic has seen EML’s retail segment struggle, however, its salary packaging and online gaming businesses have outperformed. In a recent trading update, EML reported a 55% increase in Gross Debit Volume of $9.83 billion and a 20% increase in revenue of $87.1 million for the 9 months ending 31 March. Despite being sold-off earlier this year, the EML share price has bounced more than 173% from its March low and is poised to head higher.

Pushpay Holdings Ltd (ASX: PPH)

Believe it or not, the Pushpay share price has surged more than 181% from its March low and is now trading at all-time highs. Pushpay provides donor management services and finance tools targeted towards non-profit, religious and education providers. The company predominately operates in the US and has digitised the way people make donations.

With many churches and religious gatherings banned during the coronavirus pandemic, Pushpay has emerged at the right place, at the right time. The company’s platform has enabled people to make donations whilst also abiding by social distancing measures.

Earlier this month Pushpay released its annual report, posting a 32% surge in revenue for the full-year. The company also noted the successful acquisition of US software company Church Community Builder, allowing Pushpay to provide more innovative solutions for customers.

Pushpay expects further revenue growth in the future as more customers adopt mobile technology, post-pandemic. As a result, the company is targeting 50% of the medium and large church segments in the US and expects EBITDAF in the range of US$48 million and US$52 million for FY21.

Foolish takeaway

The coronavirus pandemic has brought with it many permanent changes in consumer behaviour, such as online shopping and greater attention to infection control. Although cash may, realistically, never be replaced, EML and Pushpay reflect the exciting opportunities and innovations available to investors on the ASX.

More reading

• Here are all the ASX 200 shares that have doubled or more since the bottom of the bear market
• 3 leading ASX 200 tech shares to buy now
• Where growth, income, and value investors can invest right now
• These ASX payments shares could be long term market beaters
• Where to invest $20,000 into shares right now

Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Emerchants Limited. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia has recommended Emerchants 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 2 ASX stocks that could replace cash appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2XnNyxX

We’re almost 2 months on from the fastest bear market on record, which saw the S&P/ASX 200 Index (ASX: XJO) fall 36.53% from 7,162.50 points on 20 February to a low of just 4,546 on 23 March.

In the time since, however, the market has rallied on the back of unprecedented fiscal support, a flattening COVID-19 curve, and perhaps a whole lot of optimism. So much so that a number of ASX 200 shares heavily sold-off in the downturn have bounced back with a vengeance.

With this in mind, here are all the ASX 200 shares that have doubled or more in price from 23 March through to yesterday’s close:

Afterpay Ltd (ASX: APT) — 394.38%

It’s been an eventful couple of months for the Afterpay share price. The buy now, pay later provider’s recent rollercoaster ride on the ASX has certainly been a hot topic, falling to a low of $8.01 in March due to COVID-19 concerns. The thinking was that with the economy in hibernation and unemployment becoming a real issue, Afterpay’s bad debts were at risk of blowing out, all the while customers would have less of an appetite to spend. 

But 2 months, a flattening curve, and a JobKeeper package later, the Afterpay share price is reaching new heights. Just yesterday, Afterpay shares hit an all-time high of $45.17, buoyed by the company’s announcement of reaching 5 million active US customers.

Since the bottom of the bear market in March, the Afterpay share price has also been boosted by a positive trading update and news of Chinese tech giant Tencent becoming a substantial shareholder.

EML Payments Ltd (ASX: EML) — 171.16%

The EML share price experienced a significant fall from grace in the recent bear market, plunging from its February high of $5.70 to close on 23 March at just $1.34. 

Whilst the broader market has been on an upward trend ever since, it’s EML’s renegotiated acquisition terms that have gotten investors particularly enthused. In late March, the company announced more favourable contract terms for its acquisition of Prepaid Financial Services, a leading provider of white-label payments and banking-as-a-service technology across the UK and Europe.

What’s more, earlier this week, EML released a trading update, quantifying the effects of COVID-19 on March and April performance and remaining upbeat about achieving a solid full-year result in FY20.

Perenti Global Ltd (ASX: PRN) — 147.92%

The mining services group has been on a tear recently, notching up a number of impressive one-day gains at times when there was seemingly no news out of the company. 

Perenti first delivered a trading update on 24 March, disclosing that COVID-19 hadn’t yet had an impact on its financial performance. Nonetheless, it decided to withdraw FY20 earnings guidance for safe measure. The following day, the company deferred its interim dividend and outlined a range of capital management initiatives to ensure financial strength throughout the crisis.

On 15 April, Perenti confirmed it still hadn’t experienced any material financial impact from the pandemic. On the whole, it appears investors deemed this mining services share heavily oversold, flooding back to the company in droves.

Credit Corp Group Limited (ASX: CCP) — 143.36%

Being Australia’s largest debt buyer and collector, Credit Corp shares naturally took a beating as soon as the market started taking a turn for the worse. In fact, the Credit Corp share price spiralled from an all-time high of $37.99 in February to just $6.25 on 23 March – an 84% drop.

In the period since, Credit Corp made the move to withdraw its FY20 earnings guidance and completed a $120 million institutional placement to strengthen its balance sheet and pursue debt purchasing opportunities. In any case, as one of the hardest-hit companies in the bear market, investors saw value in the Credit Corp share price after the government announced a series of financial support measures. However, most of Credit Corp’s recent gains have come in late March and early April, with shares actually down 15.64% since 14 April. 

Nearmap Ltd (ASX: NEA) — 110.80%

Those following along with Nearmap’s journey might remember a fateful day in late January this year when the company downgraded FY20 guidance, causing shares to plummet 30%. Well, despite COVID-19 concerns, the Nearmap share price is actually now trading higher than these January lows after more than doubling since the bottom of the bear market.

Along with overall market sentiment, shares in the aerial imagery and location data company have been spurred on by a business update released in April. At the time, Nearmap revealed trading conditions had not been materially impacted by COVID-19, brushed off concerns over the need to raise additional capital, and announced its intention of reaching cash flow breakeven by the end of FY20.

PolyNovo Ltd (ASX: PNV) — 106.82%

Last but not least we have PolyNovo, the up-and-coming healthcare star that announced its arrival on the ASX 200 stage last year by posting a 231% annual gain.

After succumbing to a near 60% fall in the recent bear market, investors have been clamouring to get their hands on PolyNovo shares following a positive trading update released in early April. The company announced a record monthly sales result for the US in March and didn’t believe the coronavirus would have a material impact on its business.

Foolish takeaway

The seemingly never-ending sea of red we saw in the markets earlier this year was, understandably, a difficult pill to swallow for many investors. However, these gains just go to show the kinds of opportunities that can arise in a bear market.

Learning to master your emotions and capitalise on depressed valuations in times like this can go a long way in fast-tracking your journey to long-term wealth creation.

More reading

• 2 ASX stocks that could replace cash
• Is Afterpay an ASX blue chip of tomorrow?
• 3 leading ASX 200 tech shares to buy now
• Brokers name 3 ASX 200 shares to buy right now
• Is Telstra about to be caught in a new mobile phone war?

Cathryn Goh owns shares of AFTERPAY T FPO and Nearmap Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Emerchants Limited. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Emerchants 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 Here are all the ASX 200 shares that have doubled or more since the bottom of the bear market appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3e9RkBw

Smartpay Holdings Ltd (ASX: SMP) shares have stormed out of a trading halt this morning to be up by as much as 14.29% in early trade. The trading halt was put in place on Wednesday, pending the announcement of a capital raising.

Dual-listed on the NZX, Smartpay is a small-cap payments share that has been trading on the ASX since 2013. With a share price of 46 cents at the time of writing, the company’s market capitalisation sits at around $80 million.

Smartpay is an independent full-service EFTPOS provider, directly servicing more than 25,000 merchants with around 35,000 EFTPOS terminals across Australia and New Zealand.

What did Smartpay announce?

Before the market opened this morning, Smartpay revealed it has raised $13 million via a placement to institutional, sophisticated, and professional investors.

Unlike many other ASX shares raising capital at meaningful discounts to their last closing price, Smartpay offered no discount to investors. It completed the raising at an issue price of 42 cents, which was in line with its last closing price on Tuesday.

Smartpay also intends to undertake a share purchase plan for retail investors at the same price of 42 cents, with more details to be announced next week.

According to the company, the funds raised will be used to capitalise the business for growth in both the Australian and New Zealand markets, as well as strengthen its balance sheet through debt reduction.

Commenting on the successful raising, managing director Bradley Gerdis, said:

After having proved up the Australian growth opportunity, as evidenced in our strong revenue growth figures recently released to the market for the year ended 31 March 2020, we are now readying the business to resume and accelerate our Australian growth and to pursue opportunities in the NZ market as we come through the COVID period.

Recent headline results

Earlier this week, Smartpay revealed it had seen a steady recovery in merchant transactions over the past 4 weeks – so much so that aggregate transactional revenue had recovered to 75% of pre-COVID-19 levels.

Prior to this, the company released a trading update in April, informing a 40% decline in aggregate transactional revenues as government restrictions affected the trading conditions of many of Smartpay’s merchants.

With a financial year ending 31 March, Smartpay recently revealed unaudited full-year FY20 revenue of NZ$28.3 million, up 34% from last year’s result of NZ$21.1 million.

The company expects the effects of COVID-19 to further entrench cashless and contactless payments and believes it is well-positioned to benefit from these positive tailwinds.

More reading

• Why this ASX infrastructure company could help protect your portfolio in a downturn
• 2 ASX stocks that could replace cash
• Here are all the ASX 200 shares that have doubled or more since the bottom of the bear market
• Is Afterpay an ASX blue chip of tomorrow?
• 3 leading ASX 200 tech shares to buy now

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.

The post Small-cap ASX payments share jumps 14% on successful capital raise appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2LLTZp7

Will Afterpay Ltd (ASX: APT) join the likes of Commonwealth Bank of Australia (ASX: CBA) and CSL Limited (ASX: CSL) and be an ASX blue chip of tomorrow?

The way the Afterpay share price has been performing in recent weeks would indicate so, at least.

Afterpay shares have been on an absolute tear since reaching a two-year low back in March. Then, Afterpay reached as low as $8.01 a share – a level not seen since June 2018.

Today, it’s a different story, with Afterpay at fresh all-time highs above $44 a share. Anyone who picked up some Afterpay shares in late March would be looking at a gain of over 400% in just two months.

So will this breakneck growth continue for Afterpay long enough to justify that coveted ‘blue chip’ status?

Does Afterpay have what it takes to become an ASX blue chip?

On current prices, Afterpay has a market capitalisation of $11.9 billion. That’s enough to put the company in the S&P/ASX 200 Index (ASX: XJO) to be sure – even into the ASX 50. But (at the time of writing), there is still a lot of space between Afterpay’s market cap, and the market cap of real ASX blue chips like Woolworths Group Ltd (ASX: WOW), Commonwealth Bank and CSL.

But there’s more to being a blue chip than just sheer size.

The term ‘blue chip’ derives from poker, where the highest value gambling tiles are coloured blue. Conventionally, ‘blue chip’ shares represent not just size, but safe cash flows and a robust business model. Afterpay is yet to fulfil those two criteria in my view.

But that doesn’t mean it won’t in the near future.

Afterpay’s opportunity for ‘blue chip’ status

For Afterpay to be a true ASX blue chip, I think it has to cement its position in the crowded field of the payments sector. It will need to prove it can become reliably profitable and prove it can fend off competition from the real blue chips in the payments space – the US giants MasterCard and Visa.

These companies are stupendously profitable and have market caps of $US292.2 billion and US$405.8 billion respectively.

Australia is a fantastic economy, but it’s my belief that it doesn’t offer Afterpay enough scale and ammunition for ‘blue chip’ status on its own, given Afterpay’s small-margin ‘clip the ticket’ business model. For Afterpay to truly succeed and become a blue chip, it needs to operate on a global scale much like MasterCard and Visa.

The good news is that Afterpay is heading in the right direction. Its US growth numbers are very pleasing, as are its numbers from the UK and Europe. Its partnership with Chinese giant, Tencent Holdings is also conducive for growth opportunities in Asia.

We’ll have to see if Afterpay can truly become an ASX blue chip. But I think it’s treading the right path!

More reading

• Here are all the ASX 200 shares that have doubled or more since the bottom of the bear market
• Brokers name 3 ASX 200 shares to buy right now
• Is Telstra about to be caught in a new mobile phone war?
• Why Aristocrat Leisure, Afterpay, Corporate Travel, and Sydney Airport are pushing higher
• ASX 200 down 0.2%: Wesfarmers overhauls Target, Sydney Airport has no plans to raise equity

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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 Is Afterpay an ASX blue chip of tomorrow? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2ZplLQ2

The reopening of the Australian economy and record-low interest rates has made the S&P/ASX 200 Index (ASX: XJO) and All Ordinaries (ASX: XAO) rife with opportunities. For investors interested in the technology sector, here are three leading ASX 200 tech shares to consider buying today. 

1. EML Payments Ltd (ASX: EML) 

The EML share price ascended to an almost ‘market darling’ status following years of consistent organic growth and strategic acquisitions. However, global social distancing and lockdown measures due to the coronavirus have derailed its business model that is largely dependent on shopping centres and recreational activities. 

Prior to EML’s acquisition of Irish firm, Prepaid Financial Services (PFS), its revenue from shopping centre gift cards represented approximately 65% of group revenues. Its long-term strategy is to diversify its earnings away from its dependency on shopping centres. The acquisition of PFS pivoted its earnings to more General Purpose Reloadable (GPR) than Gift & Incentive (G&I). GPRs have various applications including salary packaging benefit accounts, fintech and digital banking, and sports betting/gaming. 

I believe EML’s positive business update and depressed share price bodes well with the reopening global economy. Its G&I segment should see volumes recover as lockdowns ease and trading conditions improve. 

2. Data#3 Limited (ASX: DTL) 

Data#3 is a business communications technology leader that provides an integrated array of solutions including cloud, mobility, security data and analytics and IT lifecycle management. The company’s 1H20 results announced that revenue had increased by 11.6% to $718.9m and NPAT jumped 41.5% to $8.7m. 

On 2 April the company provided an update on the impact of COVID-19. It cited that, to date, there has been no material change to its overall sales pipeline. Customers have been shifting their priorities to address immediate remote working, cloud and security requirements. Its performance to date and current pipeline of opportunities will help it achieve its full year financial objectives.

However, it noted that its performance is typically dependent on significant earnings in the fourth quarter, and it is too early to provide more specific guidance at this point in time. It reassured the market that approximately 60% of its revenue is recurring from contracts with government and large corporate customers. 

3. Tyro Payments Ltd (ASX: TYR) 

Tyro is one of the many businesses that will benefit from a reopening Australian economy. The company offers payment solutions for credit and debit card transactions.

As of 30 June 2019, 77% of Tyro’s merchants were SMEs and 86% were in the health, hospitality and retail sectors. Despite these sectors being hit the hardest by lockdown rules, Tyro only experienced a 38% fall in transaction values in April and 20% fall in the first two weeks of May (on prior corresponding period). The reopening of retail, restaurants and cafes should see volumes improve moving forward. 

More reading

• ASX 200 ends the day higher, EML share price rises another 12%
• Do the Altium and Xero share prices still represent good long-term buys?
• Why ALS, Clover, Computershare, & EML Payments shares are storming higher
• ASX 200 down 0.2%: Big four banks lower and TPG announces demerger plans
• Why the EML Payments share price is rocketing over 12% higher today

Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Emerchants Limited and Tyro Payments. The Motley Fool Australia has recommended Data#3 Ltd. and Emerchants 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 3 leading ASX 200 tech shares to buy now appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2Zr9Z80

Australia’s top brokers have been busy adjusting their estimates and recommendations again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Aristocrat Leisure Limited (ASX: ALL)

According to a note out of UBS, its analysts have retained their buy rating and lifted the price target on this gaming technology company’s shares to $31.80. The broker believes investors need to overlook the difficult trading conditions it is facing at present and focus on the future. It remains positive on its outlook thanks to its fast-growing digital business and the reopening of casinos. I agree with UBS on Aristocrat and would be a buyer of its shares.

Qantas Airways Limited (ASX: QAN)

A note out of Morgan Stanley reveals that its analysts have retained their overweight rating but trimmed the price target on this airport operator’s shares slightly to $5.20. According to the note, the broker expects Qantas’ passenger numbers to return to previous levels in 2023. Though, a return to profitability is likely to come a year earlier. This should mean it has sufficient liquidity to ride out the storm. I think Qantas could be a good option for investors, but you might want to restrict an investment to just a small part of your portfolio. Just in case there is a second wave that hinders the reopening of Australia.

Telstra Corporation Ltd (ASX: TLS)

Analysts at Goldman Sachs have retained their conviction buy rating but trimmed the price target on this telco giant’s shares slightly to $4.05. According to the note, the broker has been looking into the sustainability of its 16 cents per share dividend. It concludes that it sees little risk of a cut in the next three years, even after stress testing several bear case scenarios. I think Goldman Sachs is spot on and Telstra would be a great option for investors at the current level.

More reading

• Is Telstra about to be caught in a new mobile phone war?
• Where growth, income, and value investors can invest right now
• Why Aristocrat Leisure, Afterpay, Corporate Travel, and Sydney Airport are pushing higher
• ASX 200 down 0.2%: Wesfarmers overhauls Target, Sydney Airport has no plans to raise equity
• 3 reasons the Telstra dividend is sustainable for the foreseeable future

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra 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 Brokers name 3 ASX 200 shares to buy right now appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3bSnFeN

ASX dividend shares are a great way to boost your income.

Cash is still a good way to protect your capital value. But what if you’re trying to make an income? It hardly earns anything any more. But dividends can be the answer. Businesses are still earning profits and paying out dividends. Even during this coronavirus period. 

Here are the three best ASX dividend shares I’d buy right now:

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts could be the best ASX dividend share when it comes to reliability. It has increased its dividend every year since 2000. It has also paid a dividend every year since it listed in 1903, including through all of the wars and recessions.

The way Soul Patts is able to do this is because it’s an investment conglomerate that’s invested in a variety of different businesses and industries such as TPG Telecom Ltd (ASX: TPM) and soon it’ll be invested in regional data centres.

Each year Soul Patts pays out the majority of its investment income that it receives, less the expenses it pays for.

It’s the type of business that you can invest in and hold for many years to come. What’s the yield for the ASX dividend share? It has a grossed-up dividend yield of 4.7%.

Brickworks Limited (ASX: BKW)

Brickworks is another great option in my opinion. This ASX dividend share hasn’t decreased its dividend for more than four decades. It owns a range of building products businesses which are among the biggest in Australia, particularly the brickmaking divisions.

The recent expansion into the US through acquisitions should be a smart move if Brickworks can become more efficient there over time.

What’s particularly attractive at the moment is that Brickworks’ share price has fallen so hard, but it’s actually invested in an industrial property trust along with Goodman Group (ASX: GMG) which generates good reliable cashflow. It also owns a large stake of Soul Patts shares. Soul Patts also owns a large chunk of Brickworks.

The non-construction businesses alone are creating enough cashflow for Brickworks to keep paying the dividend. It currently has a grossed-up dividend yield of 6%. I think that’s solid

WAM Research Limited (ASX: WLE)

WAM Research is one of the best listed investment companies (LICs) for income. It has grown its dividend every year since the GFC.

The ASX dividend share has a grossed-up dividend yield of 10.4%. It manages to fund such a large dividend by generating strong investment returns by targeting small and medium shares where there’s a catalyst to boost the share price.

Dividends have to be funded by the profit reserve, but it’s currently healthy for the LIC.

Foolish takeaway

Each of these ASX dividend shares have attractive income prospects and could be much better ideas for income compared to the overall ASX. But Soul Patts would be my preferred pick for long-term income.

More reading

• Where to invest $20,000 into shares right now
• 3 shares now trading at crazy cheap prices
• 2 ASX shares I plan to hold til I’m 100
• Is the ASX 200 getting too far ahead of itself?
• 3 ASX shares that will have strong dividends in 2020

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company 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 My 3 best ASX dividend shares to buy right now appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2WUvPit