Tag: Motley Fool Australia

Analysts from notable stockbroking firm, Lodge Partners, yesterday released a bullish research note on the archTIS Ltd (ASX: AR9) share price.

Why are analysts backing the archTIS share price?

Analysts from Lodge Partners backed their bullish outlook for archTIS by citing the company’s recent quarterly update, board restructuring, fully developed product offering and commercialisation prospects. According to analysts, archTIS has made strong progress over the past 6 months and is well positioned to benefit from a range of domestic and international tailwinds such as the growing focus on cyber security.

The research report noted that the appointment of Dr Miles Jakeman to the archTIS board will provide the company with added experience and strong networks. Analysts also acknowledged the commercial performance of the company and its ability to renew key contracts with government clients as validation of it services. Also highlighted was the diverse applications of the company’s services as well its achievement of a new contract with defence company, Norththrop Grumman.

What does archTIS do?

archTIS is an Australian based cyber security technology company that specialises in the safe and secure sharing of classified information. Since its establishment in 2006, the company has provided cyber security consulting and infrastructure and software development services to Australian Government clients. In a bid to commercialise its services, archTIS launched its software-as-a-service (SaaS) Kojensi platform last year to service government, defence and commercial clients.

How has the archTIS share price performed?

Yesterday, archTIS released an update for the fourth quarter of FY20, which noted the company’s strong progress in commercialising its Kojensi platform. A highlight of the quarterly update included a renewed contract with the Commonwealth Government worth $400,000.

Additional highlights included archTIS securing its first commercial contract with the defence industry, reflecting the company’s growing sales momentum. The company also acknowledged the successful completion of a $2.26 million capital raise in early June, which is designed to help archTIS accelerate the growth of its Kojensi platform to new markets.

Analysts from Lodge Partners also noted the federal government’s $1.35 billion Cyber Enhanced Situational Awareness and Response (CESAR) package as a potential tailwind for archTIS given the recent cyber attacks from overseas operators.

The archTIS share price closed trading Tuesday around 4% higher and has rallied more than 380% since mid-June.

More reading

• Should you buy a2 Milk Company shares right now?
• Why the WhiteHawk share price leapt 70% higher on Tuesday
• Is Bubs Australia the next Blackmores?
• 3 ASX dividend shares with yields over 5%
• Are ASX tech shares the only way to protect your portfolio against the coronavirus?

Motley Fool contributor Nikhil Gangaram 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 a2 Milk Company Ltd (ASX: A2M) share price has been a strong performer this year.

Since the start of the year the infant formula and fresh milk company’s shares have generated a staggering return of 38%.

In fact, the performance of the a2 Milk share price has been so strong, the company has grown to a size that saw it added to the illustrious ASX 50 index.

It joined the index during the June quarterly rebalance at the expense of embattled financial services company AMP Limited (ASX: AMP).

A2 Milk’s meteoric rise.

It is incredible to think that just five years ago a2 Milk was a small cap and loss-making company flying largely under the radar. Whereas today it is one of the top 50 companies on the ASX and highly profitable.

This meteoric rise has been driven by the insatiable demand for its infant formula products in the Australia and China markets and its expanding fresh milk footprint.

The good news is that I believe there I still a lot more growth in its tank. This is particularly the case in China for its infant formula. Despite its incredible sales growth in the lucrative market, it still only has a consumption market share of 6.6%.

In addition to this, it is worth noting that the company is sitting on a hefty cash balance. At the end of the first half the company had NZ$618.4 million in cash. Given how profitable its operations are, this is likely to have increased even further during the second half.

This is a big positive in my opinion. Because I suspect these funds will be used in the near future to fund potential value accretive acquisitions and new product launches.

In respect to the latter, earlier this week its smaller rival Bubs Australia Ltd (ASX: BUB) demonstrated how an infant formula company can expand into new markets with relative ease. It is launching a range of children’s vitamin products later this year and has secured ranging in hundreds of Chemist Warehouse stores.

Should you invest?

While the a2 Milk share price has been a very strong performer this year, I don’t believe it is too late to invest.

I think a2 Milk remains one of the best growth shares to buy on the Australian share market and believe it is well-positioned to deliver above-average earnings growth throughout the 2020s.

More reading

• 3 unstoppable ASX shares to buy right now
• Where to invest $500 into ASX shares immediately
• a2 Milk and 1 other quality ASX 200 share to buy and hold beyond 2026
• Why I would buy and hold NEXTDC and these quality ASX growth shares
• 3 ASX 200 shares to buy for the long-term

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BUBS AUST FPO. The Motley Fool Australia owns shares of A2 Milk. 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 WhiteHawk Ltd (ASX: WHK) share price soared 70.21% higher to 16 cents on Tuesday after the company announced that it had secured a United States government contract.

What are the details of the contract?

The contract between WhiteHawk and the US government has an annual base of US$580,000 per year with a contract option for an additional $600,000 in services each year. The contract will run for 5 years with the option for additional services included each year. It is the first time WhiteHawk has won a primary US federal government contract, previously providing services as a subcontractor.

WhiteHawk will operate a cyber risk radar which will monitor cyber risks and business risks for the supply chain vendors of a key US federal government IT team. The company will provide cyber risk score cards for over 150 vendors, via an integrated risk management dashboard.

WhiteHawk stated that its software-as-a-service (Saas) approach will allow for rapid implementation and scaling across over 150 vendors virtually and remotely, it also stated that this was the optimal approach due to the current coronavirus pandemic.

The company suggested that supply chain vendor cyber risks remained at high levels globally and that cyber risk solutions are currently in high demand.

 Executive chair of WhiteHawk, Terry Roberts commented on the contract, stating;

“After a very successful proof of value early last year, now we are putting in place our first 5-year cyber risk radar contract with a sophisticated U.S. government CIO,  who will work with us to take the capabilities of our platform and virtual services to the next level.”

About the WhiteHawk share price

WhiteHawk is a Saas company that was founded in 2016. WhiteHawk helps its clients to identify cyber security risks and to choose solutions providers that can meet client needs.

In the first quarter of 2020, Whitehawk collected US$561,000 in sales receipts from customers. Of the funds received, US$263,000 were renewable SaaS subscriptions. The company had accrued revenue in the first quarter of 2020 of US$516,000, compared to US$333,000 in the previous quarter. Cash held by the company was reduced from US$1,527,000 in the previous quarter to US$1,471,000 at the end of the first quarter of 2020.

The WhiteHawk share price is up 540% since its 52-week low of 2.5 cents. It is up 78% since the beginning of the year. The WhiteHawk share price has returned 60% since this time last year.

More reading

• Analysts back archTIS share price to outperform
• Should you buy a2 Milk Company shares right now?
• Is Bubs Australia the next Blackmores?
• 3 ASX dividend shares with yields over 5%
• Are ASX tech shares the only way to protect your portfolio against the coronavirus?

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

The post Why the WhiteHawk share price leapt 70% higher on Tuesday appeared first on Motley Fool Australia.

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Bubs Australia Ltd (ASX: BUB) is looking to follow in the footsteps of Blackmores Limited (ASX: BKL) as the infant formula company expands into the vitamins sector. What could this mean for the Bubs share price?

Expanding into vitamins

In an announcement to the market earlier this week, Bubs informed investors that the company will be entering into the vitamin and mineral supplements (VMS) category. Through an agreement with Chemist Warehouse, the company will be launching a new VitaBubs infant and children’s VMS range.

According to the company’s management, expanding into the lucrative VMS sector will allow Bubs to leverage its unique brand awareness, consumer base and marketing coverage. By tapping into Australia’s $2.3 billion VMS sector, Bubs will be able to maintain its strategy of evolving into high margin categories. In addition, the company’s launch partner, Chemist Warehouse, accounts for more than 50% of the VMS products retailed in Australia.

Bubs will be launching 40 retail products into the VMS sector that will be available in both child-friendly chewable tablets and single-serve powder sachets. The product range will tailor for new-borns through to 12-year-olds and cater for various growth and development matters.

How has Bubs performed?

In addition to its announcement to expand into the VMS sector, Bubs also released its activities report for the fourth quarter of FY20. The report indicated that the core Bubs range of goats milk infant formula products had seen a slowdown with Australian sales falling 15% during the June quarter. The fall in demand was attributed to disruptions in the logistics of the daigou trade into China as well as panic buying in the months prior sapping sales.

Despite the fall in Australian sales, the company reported a 32% increase in gross revenue of $62 million for FY20. In addition, Bubs saw China Direct sales for the fourth quarter increase 26% on the prior corresponding period. Although the company reported a negative operating cash flow of $6.9 million for the quarter, Bubs assured shareholders of its robust balance sheet, boasting $26 million in cash reserves.

Will the Bubs share price become the next Blackmores?

In my opinion, Bubs is still in the early stage of expansion in its core products of goats milk infant formula. This is because revenue is still driven by the company’s expansion into different markets, different sectors and higher margin products. By moving into the VMS sector, the company is following its growth blueprint, however it is yet to produce consistent operating and free cashflow.

Instead of jumping the gun and buying in at today’s Bubs share price, I think a more prudent strategy would be to wait until the company reports its full-year results or perhaps take a longer view and wait for the company to show signs of sustainable cash flows.  

More reading

• 3 coronavirus ASX shares to buy right now
• Why Bubs, PointsBet, Perpetual, & Waypoint shares are dropping lower
• Got $1,500? Here are 3 ASX shares I’d buy
• 2 top ASX growth shares to buy for long-term growth
• Why I would buy Pushpay and these ASX growth shares in August

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores Limited and BUBS AUST 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.

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In this article I’m going to talk about three ASX dividend shares with income yields of more than 5%.

I think that ASX dividend shares are the only answer for people looking for income. The RBA interest rate is almost at 0%. That’s not going to generate much interest from a bank account.

These three ASX dividend shares offer yields that are at least 5% better than the RBA rate and I think they’re trading at pretty good value:

Rural Funds Group (ASX: RFF)

Rural Funds is a real estate investment trust (REIT) that owns agricultural land and leases it to high-quality operators. Some of its tenants include Select Harvests Limited (ASX: SHV), Treasury Wine Estates Ltd (ASX: TWE), Olam and JBS. It owns various farm types including cattle, cotton, macadamias, vineyards and almonds.

The resilience of farmland has shown through during this difficult COVID-19 period. We all need to eat, so Rural Funds and its tenants can still expect demand for the produce. Rural Funds was able to stick to its 4% distribution growth guidance in FY20 and FY21. The farmland REIT tries to grow its distribution by 4% every year.

The ASX dividend share has increased its distribution every year since it started paying one several years ago. The distribution can grow because of the built-in rental indexation that is included in Rural Funds’ rental contracts. The rental income increases by either a fixed 2.5% per annum or it’s linked to CPI inflation, plus market reviews.

At the current Rural Funds share price it offers a FY21 yield of 5.6%.

WAM Leaders Ltd (ASX: WLE)

WAM Leaders is a listed investment company (LIC) that invests in large cap ASX shares on behalf of its shareholders.

It’s not just a passive holder of shares. It actively trades, so it’s possible to make good returns even in volatile (mostly negative) periods. FY20 is a great example of WAM Leaders’ capability to outperform. In the year to 30 June 2020 WAM Leaders’ investment portfolio returned 2.7% (before expenses, fees and taxes), outperforming the S&P/ASX 200 Accumulation Index by 10.4% which returned a negative 7.7%.

The ASX dividend share can turn its investment returns into a smoothed dividend for shareholders. That dividend has grown every year since FY17 when it started paying a dividend.

At the end of June 2020 some of its largest positions included shares like Newcrest Mining Limited (ASX: NCM), OZ Minerals Limited (ASX: OZL), Wesfarmers Ltd (ASX: WES), Woolworths Group Ltd (ASX: WOW), CSL Limited (ASX: CSL), Goodman Group (ASX: GMG), BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO).

Thankfully it’s trading at a discount to its net tangible assets (NTA) of $1.176 per share at 30 June 2020. At the current WAM Leaders share price of $1.16, the ASX dividend share offers a grossed-up dividend yield of 8%.  

Vitalharvest Freehold Trust (ASX: VTH)

Vitalharvest is another agriculture-related REIT. At the moment it owns some of the largest berry and citrus farms in the country, which are leased to Costa Group Holdings Pty Ltd (ASX: CGC). The ASX dividend share has a profit share agreement with Costa, so it also suffers in bad years and benefits in good years.

I think Costa and Vitalharvest are likely to report improving operating profit numbers over the next 12 months. Despite a difficult period, at the current share price Vitalharvest still offers a distribution yield of 6.1%. A return to 2019’s profitability could mean a distribution of 5.65 cents per unit, equating to a yield of 7.2%.

I think Vitalharvest’s distribution outlook and share price could improve over the next 12 months as the new manager shifts the REIT towards assets that are used in the food supply chain process.

Primewest Group Ltd (ASX: PWG) is looking for assets that are used for food processing and food storage, on top of the usual farmland targets.

At 31 December 2019 it had a net asset value (NAV) of $0.95 per share. That means the Vitalharvest share price is trading at an 18% discount to the NAV, assuming the NAV hasn’t changed since then.

Foolish takeaway

I like all three of these dividend shares for income. Rural Funds has the most reliable distribution in my opinion. WAM Leaders has proven to be a solid performer. Vitalharvest could be the best value buy as it’s trading cheaply compared to its assets. I don’t think the market is appreciating how much value Vitalharvest offers investors at the moment.  

More reading

• 3 quality ASX dividend shares to buy in August
• 2 ASX shares I would buy for growth and income today
• Why I would buy Coles and these ASX dividend shares today
• Beat low interest rates on savings accounts with these ASX dividend shares
• Where I’d invest $9,000 in ASX shares

Tristan Harrison owns shares of RURALFUNDS STAPLED. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO, RURALFUNDS STAPLED, and Treasury Wine Estates 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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Are ASX tech shares the only way to protect your portfolio against the coronavirus?

2020 has seen something akin to what Ray Dalio might call a ‘paradigm shift’ for investors right around the world. With a rampaging pandemic, the way we spend money has changed, and fast. And when we change how we spend money, it changes the manner in which every company on the ASX receives revenue. As the old adage goes, one person’s spending is another person’s income.

One massive facet of this ‘paradigm shift’ has been an acceleration of the trend towards all things digital. As most of us could barely leave the house over March and April, we had to change how we ate, how we shopped, how we worked and how we entertained ourselves. So it’s no surprise that US tech companies like Slack, Microsoft, Amazon and Netflix have seen their share prices balloon over the course of the year so far.

But what of ASX shares?

Comparatively speaking, the ASX doesn’t have as much exposure to the tech space as our friends over in the US. Lacking big names like Alphabet or Microsoft, our largest companies are still mostly banks and miners. Even the home-grown Atlassian now counts itself as a US tech company — our loss, their gain.

ASX tech shares on fire

But this hasn’t stopped ASX tech shares from receiving a lot of investor attention since March. Just think of Afterpay Ltd (ASX: APT). Its share price is up an astonishing 670% since 23 March. Or Appen Ltd (ASX: APX), up more than 100%. Maybe Seek Ltd (ASX: SEK) with 87%. Or Xero Limited (ASX: XRO) with 57%.

Meanwhile, a blue chip share like Westpac Banking Corp (ASX: WBC) is ‘only’ up a touch over 20% over the same period. Woolworths Group Ltd (ASX: WOW) shares haven’t offered too much relative upside either, with a 6.4% gain. And our largest company CSL Limited (ASX: CSL)? It’s gone backward since 23 March.

So are ASX tech shares (or US tech shares if you’re so inclined) the only way to protect your portfolio against the coronavirus pandemic?

Well, I do think the investing landscape has changed, and semi-permanently so. There’s no question that the pandemic has accelerated technological adoption. But I don’t think ASX tech shares are the only way to protect a portfolio.

Just this week, ASX gold miners like Newcrest Mining Limited (ASX: NCM) have been in the spotlight due to the price of gold breaking its all-time high. That’s one avenue of exploration to consider (no pun intended) for portfolio protection. Ditto with waste companies like Cleanaway Waste Management Ltd (ASX: CWY), which is about as far from an exciting tech stock as you can get.

It may be morbid to consider, but funeral provider InvoCare Limited (ASX: IVC) benefits from the former of the two certainties of life.

Foolish takeaway

Whatever happens with the coronavirus, companies like Cleanaway, InvoCare and Newcrest are going to have solid markets with solid demand. Thus, I don’t think you need to solely chase ASX tech shares for your portfolio if you don’t wish. There’s plenty of fish in the sea!

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Is the Newcrest share price a buy?
• What would deflation mean for your ASX shares?
• WAAAX shares see mixed recovery from COVID-19
• Top broker warns earnings expectations for the ASX reporting season are too high

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) and Newcrest Mining Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. and Xero. The Motley Fool Australia owns shares of AFTERPAY T FPO, Appen Ltd, and Woolworths Limited. The Motley Fool Australia has recommended Alphabet (A shares), InvoCare Limited, and SEEK Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re looking for some dividend shares to buy in August, then I think it would be worth considering the three listed below.

Here’s why I think they are in the buy zone:

BWP Trust (ASX: BWP)

The first ASX dividend share I would buy is BWP. I’m a big fan of the real estate investment trust due to my belief that it is well-positioned to continue growing its income and distribution throughout the pandemic and beyond it. This is because BWP’s warehouses are predominantly leased to home improvement giant, Bunnings Warehouse. Given how Bunnings is one of the best retailers in the country and government stimulus is supporting the home improvement market, I believe the risk of store closures and rental defaults is extremely low and periodic rental increases remain possible. At present I estimate that its units offer a FY 2021 4.7% yield.

Lendlease Group (ASX: LLC)

Another dividend share that I would suggest income investors consider buying is Lendlease. The international property and infrastructure company had a tough time in FY 2020 and reported a material drop in profits. However, I believe the worst is now behind the company and it is well-placed to return to growth. Especially given its burgeoning global development pipeline, which includes a mega project with Google. I estimate that the company will pay a 57 cents per share dividend next year. Based on the current Lendlease share price, this equates to a 4.9% dividend yield.

Rural Funds Group (ASX: RFF)

A final ASX dividend share to consider buying is Rural Funds. I think the agriculture-focused property group is one of the best income options due to the quality and diversity of its assets and its very positive long term outlook. This is thanks to its long tenancy agreements with some of the biggest players in the industry and their periodic rental increases. I believe this puts Rural Funds in a position to continue growing its distribution during the pandemic and beyond. In FY 2021 it expects to pay shareholders a 11.28 cents per share distribution. Based on the latest Rural Funds share price, this equates to a 5.6% yield.

More reading

• 2 ASX shares I would buy for growth and income today
• Why I would buy Coles and these ASX dividend shares today
• Beat low interest rates on savings accounts with these ASX dividend shares
• Value stocks to rise on strong A$ and broker picks the cheapest ASX stocks to buy today
• 2 of the best ASX dividend shares to buy now

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

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On Tuesday the S&P/ASX 200 Index (ASX: XJO) gave back its strong morning gains to finish the day lower. The benchmark index fell 0.4% to 6,020.5 points.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 expected to drop lower.

The ASX 200 is expected to drop lower again on Wednesday after a poor night of trade on Wall Street. According to the latest SPI futures, the benchmark index is expected to fall 24 points or 0.4% at the open. On Wall Street the Dow Jones fell 0.8%, the S&P 500 dropped 0.65%, and the Nasdaq tumbled 1.3% lower.

Rio Tinto half year results.

The Rio Tinto Limited (ASX: RIO) share price will be one to watch on Wednesday when it releases its half year results. According to a note out of Goldman Sachs, it expects the mining giant to report underlying earnings of US$4 billion and underlying EBITDA of US$9.1 billion. In respect to its dividend, Goldman is expecting Rio Tinto to declare a US$1.51 per share interim dividend.

Virgin Money UK Q3 update.

The Virgin Money UK PLC (ASX: VUK) share price could be on the rise today following the release of its third quarter update after the market close on Tuesday. The UK-based bank reported a 4.8% increase in customer deposits to £67.7 billion and a 5.7% increase in Business lending growth to £8.8 billion. Over in the UK, the Virgin Money share price rose 2.5% overnight.

Oil prices pull back.

Energy producers including Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) could come under pressure today after oil prices pulled back. According to Bloomberg, the WTI crude oil price fell 1.3% to US$41.06 a barrel and the Brent crude oil price dropped 0.35% to US$43.26 a barrel. Oil prices tumbled after rising coronavirus cases sparked demand fears.

Gold price jumps again.

Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could be on the rise again on Wednesday after the gold price continued its ascent. According to CNBC, the spot gold price rose 1% to US$1,950.30 an ounce. This could be the start of even greater rises, with some analysts tipping the price of the precious metal to go materially higher from here.

More reading

• Are ASX tech shares the only way to protect your portfolio against the coronavirus?
• Is the Newcrest share price a buy?
• ASX 200 down 0.4%, Credit Corp and Temple & Webster impress
• Will Rio Tinto pay a special dividend tomorrow?
• Virgin Money UK share price on watch after Q3 update

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

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Every week, we Fools like to look at both the ASX and international shares that Aussie investors have been buying recently. Using data from Commonwealth Bank of Australia‘s (ASX: CBA) CommSec platform (the most popular broker in Australia) we can get a fair idea of which shares have been of most interest to ASX investors.

My Fool colleague James Mickleboro has already covered the top ASX shares that Aussie investors were adding to their portfolios last week, but here are the most popular shares from beyond our shores that ASX investors were buying between 20-24 July.

The top international share: Tesla Inc. (NASDAQ: TSLA)

Electric vehicle and battery manufacturer Tesla once again tops the list this week. Tesla shares have been on an extraordinary run over the past few years, and have gained around 250% in 2020 alone, so perhaps it’s no surprise that Aussie investors are fighting to get a piece of the action (or just a piece of anything Tesla CEO Elon Musk owns). Tesla has also been making waves recently over the company’s possible inclusion in the flagship American S&P 500 Index on the back of a positive earnings update last week.

2) Microsoft Corporation (NASDAQ: MSFT)

Microsoft is more of a blue chip juggernaut these days with its market capitalisation of more than US$1.5 trillion, but that didn’t stop Aussie investors adding this tech giant to their portfolios last week. Microsoft’s low exposure to the coronavirus pandemic as well as its capital-light earnings model has brought a lot of additional investor interest this year. Its Azure cloud platform, as well as its new Teams software, are exciting growth areas.

3) Apple Inc. (NASDAQ: AAPL)

Apple is a company that never really needs an introduction. It’s iPhone product range is amongst the most popular and sought after products in the world. Not only does Apple have an additional range of top-notch products across its Mac and Accessories ranges, but its also been growing its Services range (which includes Apple Music, TV and News) at an impressive speed as well. With one of the most valuable brands on the planet, it’s no surprise Aussie investors are keen to add this one to their portfolios as well.

4) Amazon.com Inc. (NASDAQ: AMZN)

If you think of one company that has benefitted the most from the coronavirus-induced lockdowns around the world, it’s probably going to be this undisputed emperor of online retail. Amazon is one of the most dominant companies in the world, in my view. For one, it has the Amazon store, where you can buy almost any product you can think of, often at the cheapest price you can find. But the company also has its fingers in a baker’s dozen of other pies too. It owns the audiobook site Audible, online pharmacy PillPack as well as the growing behemoth that is Amazon Web Services, just to name a few. It seems Aussies aren’t turning a blind eye to all of this, despite Amazon’s sky-high share price of over US$3,000.

5) Moderna Inc (NASDAQ: MRNA)

Lastly, we have biotech company Moderna. This company has been in the news recently as the company has made significant progress on a treatment for the coronavirus, which is now in Phase III trials over in the US. ASX investors might be chasing Moderna because they believe this company’s COVID treatment will be successful or otherwise be jumping on this stock after it has appreciated by around 300% in 2020 so far. Either way, it was a share of interest for ASX investors last week.

Foolish takeaway

It’s always interesting to see which international shares ASX investors have been interested in. There seems to be a healthy mix of blue chip shares like Apple and Microsoft, as well as some more speculative shares like Moderna and Tesla this week. It will be interesting to see how this list changes throughout the rest of the year, so stay tuned to the Fool for more updates next week!

More reading

• Will Rio Tinto pay a special dividend tomorrow?
• Top broker warns earnings expectations for the ASX reporting season are too high
• Is CommBank the BNPL killer?
• What APRA’s latest release means for ASX bank shares like Westpac
• HUB24 and 2 more ASX 200 shares to watch this week

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon, Apple, Microsoft, and Tesla and recommends the following options: long January 2021 $85 calls on Microsoft, short January 2021 $115 calls on Microsoft, short January 2022 $1940 calls on Amazon, and long January 2022 $1920 calls on Amazon. The Motley Fool Australia has recommended Amazon and Apple. 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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If you’re looking for buy and hold options, then I think the tech sector would be a great place to start.

In this sector I believe there are a number of companies which have the potential to grow materially over the 2020s and beyond.

Three fantastic ASX tech shares that I feel are standout buys are listed below. Here’s why I like them:

Altium Limited (ASX: ALU)

I think Altium shares could smash the market over the next 10 years. This is because the electronic design software company has exposure to the fast-growing Internet of Things (IoT) and artificial intelligence (AI) markets. These markets are driving the proliferation of electronic devices, which in turn is driving strong demand for its software subscriptions. Combined with the benefits of scale and its other growing businesses, such as NEXUS and Octoport, I believe Altium is well-placed to deliver on its FY 2025 revenue target of US$500 million. This compares to Altium FY 2020’s expected revenue of ~US$189 million.

Kogan.com Ltd (ASX: KGN)

Another tech share to consider buying is Kogan. I believe the rapidly growing ecommerce company has the potential to grow materially over the next decade. This is thanks to the growing popularity of its website and the accelerating shift to online shopping. As of 2019, just ~10% of consumer spending was being made online. I expect this to grow significantly in the future. So with this tailwind in its sails and acquisitions in its sights, I think Kogan has a bright future ahead of it.

Pushpay Holdings Ltd (ASX: PPH)

A third tech share that I would buy and hold is this donor management platform provider. Pushpay has been benefiting greatly from the shift to a cashless society. Gone are the days of churches passing around a bucket, now they can use Pushpay’s app to donate. Adoption of its platform has been increasing rapidly, leading to the company’s revenue and operating earnings growing at an explosive rate. The good news is that Pushpay still has a very long runway for growth. It is aiming to win a 50% share of the medium and large church market, which represents a US$1 billion revenue opportunity. This compares to the US$127.5 million operating revenue it recorded in FY 2020.

More reading

• 3 unstoppable ASX shares to buy right now
• WAAAX shares see mixed recovery from COVID-19
• Pushpay and 1 other 5-star ASX share to buy right now
• Latest ASX entrant mixes BNPL with eCommerce
• 5 things to watch on the ASX 200 on Tuesday

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 and recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd and PUSHPAY FPO NZX. The Motley Fool Australia has recommended Kogan.com ltd 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.

The post 3 of the best ASX tech shares to buy and hold until 2030 appeared first on Motley Fool Australia.

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