Tag: Motley Fool Australia

The Tesserent Ltd (ASX: TNT) share price has soared more than 42% higher today, on the back of an announcement regarding a strategic acquisition of Seer’s security businesses in Melbourne and Canberra.

What does Tesserent do?

Tesserent provides enterprise-grade cyber security and networking solutions targeted at the mid-market. Its customer base spans Australia, the United Kingdom and Korea. The company’s flagship offering is its ‘Cyber 360’ strategy which includes solutions such as identification, protection and 24/7 monitoring to combat the growing risk of cyber security threats. 

Tesserent’s acquisition today follows a series of previous cyber security acquisitions for the company. These include Pure Security, Rivium and North. Tesserent is now Australia’s largest ASX listed dedicated cyber security firm.

Details of Seer acquisition

Tesserent announced the strategic acquisition of Seer’s security businesses today by the signing of a binding share purchase agreement. Seer’s security businesses are based in Melbourne and Canberra. The acquisition was purchased with a combination of $5 million of cash and existing Tesserent shares.

Seer reported over $7.6 million in revenue and $2.2 million of sustainable earnings during FY 2020. In addition, Seer has strong revenue and earnings growth anticipated for FY 2021.

The acquisition strengthens Tesserent’s security services and delivery capabilities to a number of Australian Federal Government departments and agencies. These include both Defence and Law Enforcement. In particular, it will assist in the delivery of Assurance and Governance, as well as Risk and Compliance (GRC) services. The acquisition will also enhance Tesserent’s software development capabilities.

On the back of this most recent acquisition, Tesserent has now evolved to become Canberra’s largest pure cyber security provider.

Seer’s Managing Director, Scott Ceely, commented; “there is a significant opportunity for Australian-based cyber firms to work with all levels of Australian government to improve their security posture.”

Julian Challingsworth, Tesserent’s Co-CEO commented; “current market conditions continue to present tremendous consolidation opportunities in the short to medium term, and we fully expect to take advantage of this with additional acquisitions currently under consideration”.

Surge in Tesserent share price this week

The strong rise in the Tesserent share price today follows a surge in its share price earlier this week. This came after the company released a very positive trading update on Monday. Tesserent announced that it had successfully completed its financial objectives for the year and secured a debt facility. At the time of writing, the Tesserent share price is trading at 18.5 cents.

More reading

• Tesserent share price leaps 28% following trading update

Motley Fool contributor Phil Harpur 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 gold price is up more than 20% this year alone. Starting the year around US$1,500 and currently trading closer to US$1,860 (at the time of writing), there’s no doubt gold is doing very well. Despite a slump during the March ASX crash, it bounced strongly and has not looked back.

So, with the gold price now eyeing US$1,900, in my view it’s time to look at ASX gold shares and take advantage of this rising tide. 

Is the Newcrest Mining share price a ‘solid gold’ buy?

One ASX share I’m looking at for a ‘solid gold’ play right now is Newcrest Mining Limited (ASX: NCM). Even though the Newcrest Mining share price is currently up more than 60% from its March lows (at the time of writing), it’s still selling at around a 10% discount to it previous highs of around $38.00.

With the gold price continuing to rise, this 10% discount on Newcrest’s previous highs is an attractive proposition, in my view.

Operations

Newcrest is Australia’s largest ASX gold producer and is headquartered in Melbourne. The miner currently has 4 operations and 1 advanced project across Australia, Papua New Guinea and Canada.

Newcrest indicates that its reserve and resource base is strong, with estimates of current gold reserves able to sustain a minimum of 25 years at current production rates. This indicates a solid runway ahead for investors.

Performance

Newcrest’s share price returns are interesting if you plot them over a longer timeline. While its year-to-date share price growth is up around 15%, if we plot a 5-year return, the numbers stand at around 180%. As a point of reference and to ensure transparency, it should be noted that if we go back 10 years, the Newcrest share price is only up by 5%.

Interestingly, Newcrest shares peaked at an all-time high in November 2010 of around $43.00. Personally, I like to know what the previous all-time high was, as this gives us a soft target for future growth. The Newcrest Mining share price is trading at $34.78 (at the time of writing), so it is comforting to know there’s room to grow, even if it’s only a return to previous highs.

Recent reporting

Just this morning, Newcrest released its quarterly report with positive results. Some of the key details from the report include:

• Achieving FY20 guidance
• Gold production up 7% on previous quarter
• Refinancing of debt to lower costs
• Completion of a successful equity raise to support growth
• Copper production up 15% on previous quarter
• Priority of remaining COVID-19 free at Newcrest’s operations

The company’s quarterly report for the period ended September 2020 is due to be released in late October and the annual general meeting is scheduled for November. Based on the results we have seen from this most recent quarterly report, I am feeling positive about continued growth in both operations and the Newcrest share price.

Dividends

Newcrest has paid dividends twice a year for the last decade. Whilst the dividend yield is quite low (around 0.9%), it has certainly been reliable. The most recent dividend was paid on 27 March 2020 at 7.5 US cents. Newcrest switched its dividend currency from AUD to USD in 2015 and is currently paying all dividends in US dollars.

Foolish takeaway

Newcrest Mining isn’t the only gold stock on the ASX, but it is the largest ASX gold producer and has a solid track record.

The company’s goal of remaining COVID-19 free at its operations is an important one, as this can throw a spanner in the works of even the best companies. In its quarterly report Newcrest confirmed that, to date, it has not had a single case of COVID-19 across its workforce. Keeping it that way is critical.

With the Newcrest Mining share price trading at a 10% discount to its previous highs, its strong recovery from March lows and positive recent reports, I’m bullish on Newcrest shares. Add to this the strong gold price of late and in my opinion Newcrest is one stock to strongly consider adding to your portfolio.

More reading

• ASX 200 up 0.4%: Banks lower, Newcrest impresses, Coca-Cola Amatil jumps
• Why Coca-Cola Amatil, Newcrest, QBE, & Tabcorp shares are pushing higher
• Newcrest Mining share price on watch after strong Q4 update
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 Weekly Wrap: Blue chip shares pull ASX 200 back over 6,000 points

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For investors looking to access growth out of China, in my opinion it’s worth taking a closer look at VanEck’s China New Economy ETF (ASX: CNEW).

According to VanEck, the China New Economy ETF gives investors access to China’s most fundamentally sound companies. VanEck has determined that certain sectors make up what it refers to as “the new economy”. By investing in this ETF, you can gain access to these sectors and ride the wave of growth coming out of China.

What is “the new economy” in China?

VanEck believes that healthcare, consumer staples, consumer discretionary and of course, technology, make up the key sectors for growth in China. VanEck also argues that although China has historically obtained growth from sectors such as the financial, energy and materials industries, policy reform and a transitioning economy has led to a change in growth sectors. Its China New Economy ETF aims to capture this growth by spreading investment across the new sectors.

Tracking and performance

The fund aims to track the performance of the CSI MarketGrader China New Economy Index (AUD). The index is designed to follow the “most fundamentally sound” companies that trade and are headquartered in China.

Using the GARP principle (growth at a reasonable price), the index identifies companies within the new growth sectors that make the cut across 4 categories: growth, value, profit and cashflow. MarketGrader recently announced in its June 2020 rebalancing notes that it had replaced 61 companies within the index, citing that COVID-19 has caused much disruption to the economy and therefore the companies operating within it.

Since its inception on 8 November 2018, VanEck’s China New Economy ETF has returned approximately 86% for investors (at the time of writing). The return is sure to put a smile on the face of any early investor, however it is still a young product and I am looking forward to seeing how it performs in the future.

This year alone, CNEW is up more than 32%.

Holdings and fees

The VanEck website provides transparency in regard to CNEW’s full holdings. Of the 120 stocks held by the fund, the largest holding only constitutes 1.47%, which is great from a diversity point of view in my opinion.

However, it is worth noting the fund’s management fee. Clocking in at 0.95% p.a., this is hefty and certainly at the upper end of ETF fees. Personally, I can live with 0.95% p.a. if the returns continue at current rates (approximately 50% p.a.), however, this is one fee you will need to consider before adding CNEW to the portfolio.

About VanEck

VanEck is a long-standing asset manager, founded in 1955. It has actually been in business a lot longer than some of the well-known asset managers, such as Vanguard (1975) and BetaShares (2009). VanEck is one of the world’s largest issues of exchange-traded products (ETPs) and has operations across 6 countries. It is a reliable asset management firm with a long history of solid performance.

Foolish takeaway

Exposure to the Chinese economy is very interesting to me. These days, we are fortunate that we can access incredible products such as international market ETFs directly through the ASX. This means that not only are you able to gain exposure to the staggering growth coming out of these regions, but you are also able to effectively diversify your portfolio.

More reading

• Here’s how to play China’s V-shaped growth story

Motley Fool contributor Glenn Leese 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 Dicker Data Ltd (ASX: DDR) share price has surged 6.4% higher so far today, following the release of a very strong set of numbers in its unaudited H1 FY 2020 results.

Dicker Data has evolved to become Australia’s largest value added distributor of hardware, software, cloud and other emerging technologies.

Why the Dicker Data share price is climbing

Revenue growth climbs higher during the pandemic

Total half year revenue from ordinary activities broke through the $1 billion milestone for Dicker Data. It was up by 18.1% to $1,006 million for the six months ending 30 June 2020.

Particularly strong growth during the half has been driven by a surge in demand for remote and virtual work solutions during the coronavirus pandemic. This strong demand has been witnessed across both Dicker Data’s hardware and software portfolios.

Recurring software revenue was a real performer during the half, up by 53.1% to $225 million.

Profit surges higher on climbing revenues and increasing margins

Net profit also grew very strongly for Dicker Data. Net Profit before tax amounted to $42.0 million, an increase of 30.4%. Net Profit after tax was up by 23.5% to $29.4 million.

At a country level, New Zealand was the strongest performer, with revenues up by 31.6%. Australia’s revenue base grew by 17.2% during the six month period.

Gross profit increased by 24.8%, driven by growth in overall revenue and an improving margin. The driver of this growth has been a heightened focus on both the mid-market and the SMB market. Dicker Data specialises in servicing both of these market segments and specifically targets the pre-sales and value added services markets. The company also targets emerging solutions in the hybrid, end-to-end technology market.

During FY 2019 and H1 FY 2020, new vendors accounted for $26.3 million of incremental revenue during the half. Existing vendor relationships that were established in FY 2018 or prior, grew at 15.1% over the prior corresponding period, driven by access to new product lines.

Emerging opportunities

Dicker Data highlighted 5G as a particular area that it can tap into during the rest of 2020 and beyond.

As 5G is rolling out across Australia, more computing technology is required at the ‘Edge’ of the network. Dicker Data believes it is well placed to help supply the new devices and infrastructure required to support this growing trend.

How has the Dicker Data share price been performing?

The Dicker Data share price has been a strong performer since the beginning of 2019. It has increase from $3.10 to now be trading at $7.50. That’s an increase of 142%. However, most of that growth occurred in the first half of 2019. Dicker also pays an attractive forward dividend yield of 4.26%, fully franked.

More reading

• Why I would buy these fully franked ASX dividend shares
• Cash rate on hold until 2022? Buy these ASX dividend shares
• Why I would buy NAB and this ASX dividend share
• 2 ASX tech shares to buy and hold beyond 2025
• Why I would buy Telstra and these ASX dividend shares

Motley Fool contributor Phil Harpur has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data 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 Harvey Norman Holdings Limited (ASX: HVN) share price has fallen 16.44% in the past year. In contrast, the S&P/ASX200 Index (ASX: XJO) has dropped 9.35%. Despite underperforming, The Harvey Norman share price could represent good value when considering its long-term, international growth potential.

The group is a leading retailer in Australia with company operated stores and a franchise model. Additionally, Harvey Norman has a growing international presence in New Zealand, Ireland, Slovenia, Croatia, Singapore, and Malaysia.

Recent updates

Last month, Harvey Norman announced a profit increase of 20% from unaudited preliminary accounts for the period 1 July 2019 to 31 May 2020 compared to the prior corresponding period. However, this excludes the net impact of the accounting standard for leases and net property revaluation adjustments.

Additionally, Harvey Norman cancelled its 12-cent dividend in April this year. However, it did pay a 6-cent per share special dividend to shareholders last month. The cancellation and cut in dividend is a result of the company taking a conservative approach in view of the current economic environment.

Australian Franchisees experienced increased sales of 7.4% for the period 1 July 2019 to 31 May 2020. I believe this was assisted by government stimulus measures Jobkeeper, Jobseeker and early access to super.

Harvey Norman is scheduled to release its full year earnings on 28 August 2020.

International growth

According to Harvey Norman’s 1H FY20 half year report, there has been a 50% growth in its total overseas retail revenue and 345% growth in total overseas retail profit results over the last five years.

Malaysia appears to be a major growth driver for the company long term with the South East Asian country’s economy growing on average 5.4% per year since 2010. 

The international segment of Harvey Norman’s business has been impacted by closures in its overseas stores. However, the reduction in sales in local currencies was somewhat mitigated when converted into Australian dollars because of foreign exchange rates.

Foolish takeaway

Harvey Norman has experienced a lift in sales which has helped deliver a 20% lift in profit before adjustments. This is quite extraordinary considering that, in an economic downturn, consumer discretionary shares are usually hit hard. In my view, this has been a result of government intervention through stimulus measures leading to a strong rebound in retail sales.

Since the temporary closures of some Harvey Norman international stores for a period of time in FY20, most have re-opened to business as usual. This could assist a recovery in sales in the company’s international stores in FY21. Additionally, an investment in the Harvey Norman share price today could reward investors with appreciating value over the long term as the company benefits from its international expansion strategy. 

More reading

• How you can take advantage of the surging Australian dollar
• 3 ASX shares to buy before earnings season
• Breville share price surges as top broker reckons it’s worth $62 a share
• The difficulty of investing in shares right now
• How I’d build a $100,000 share portfolio with ASX ETFs

Motley Fool contributor Matthew Donald owns shares of Harvey Norman Holdings Ltd. 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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Equity markets have recovered well after dropping sharply in the month of March in the coronavirus-induced market crash. Since then, they have been climbing steadily even in the face of all the negative reports coming out regarding the state of the global economy.

This divergence between economic backdrop and the state of the market has had many people thinking that the market rise is not backed by fundamentals, and that a market crash might be round the corner again.

If the above thought, or a variation of it, has crossed your mind, then I have an old adage to share with you: It is not timing the market but time in the market that is important.

Trying to catch the top or the bottom of a volatile market is is what is being referred to here as ‘timing the market’. In my opinion, more money is likely lost in markets trying to catch absolute bottoms and tops than any other activity.

On the flip side, investing with a long-term horizon and patiently waiting through such volatile periods is what’s known as ‘time in the market’, and this is what generates wealth over time.

Can markets be ‘timed’?

Let’s ask some simple questions to help us answer this.

Can Mount Everest be climbed? Yes, and some people have indeed climbed it. 

Can you climb it? Potentially, but it would require some serious training and willpower to do so. 

Do training and willpower guarantee that you will reach the summit?’  Sadly, no. As mountaineers who have attempted the climb would say, ‘you do not climb Mount Everest, it lets you climb it’. Even with the best training under your belt, there is no guarantee that you will reach the summit. In fact, some of the best mountain climbers have died attempting Mount Everest, despite being at the top of their game.

In my opinion, you can think of timing the market as similar to climbing Mount Everest. It can be done, and some people indeed do manage to pull it off, but the activity is highly hazardous, and the odds are stacked heavily against us.

Thankfully, there are other ways to be successful when investing in the share market.

Time in the market

As investors, one of the biggest edges you have is your time horizon. When you buy shares with the aim of being invested for multiple years or even decades, the short-term noise of the ever-churning stock market matters much less.

As an ex-fund manager, I can tell you that most fund managers running large investment funds do not have this edge, because of the short-term performance pressures they face. And it is an edge they would give a lot to have.

A sound way to approach investing in equity markets is to select a few solid companies that you know about, make regular investments in them over time and then wait for market to do the work for you. Warren Buffett said this best: “The stock market is designed to transfer money from the active to the patient.” So, be patient and invest both money and time in the market.

So then when do I sell?

I believe that the act of selling shares is more complex and difficult than that of buying. When it comes to buying, your end objective is simple and straightforward – to generate wealth over time from surplus cash.

But your objectives for selling could be many. Perhaps you need to sell for emergency funds, or the termination of financial planning goals like paying for your children’s college. Perhaps a company’s performance isn’t turning out as expected, or individual stock investments have reached their market potential, or perhaps you’ve simply come across a better investment opportunity. And then there is the whole psychological aspect of selling, which deserves a full article dedicated to it some other day.

The key takeaway here is that being patient – or investing ‘time in the market’ – does not mean that you never look to sell. It means that you wait for the right reasons to sell, and not just because you’re trying to time the market and get out before a crash.

More reading

• Is the Harvey Norman share price good value?
• Got $10,000 to invest? I would buy these ASX shares
• Why the Zip share price is a better buy than Afterpay
• Why Audinate, Nearmap, Resolute, & TechnologyOne shares are tumbling lower
• ASX 200 up 0.4%: Banks lower, Newcrest impresses, Coca-Cola Amatil jumps

Motley Fool contributor Arpan Ranka 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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At present the Westpac Banking Corp (ASX: WBC) economic team is continuing to forecast the cash rate staying on hold at the record low of 0.25% until at least 2022.

I think there is a strong probability that this forecast will prove accurate, which means we will all have to brace for ultra-low rates staying around for some time to come.

In light of this, if you have $10,000 sitting in savings accounts and no immediate use for it, I would suggest you consider looking for superior returns in the share market.

But where should you invest these funds? Here are two top ASX shares that I would buy:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

I think investors ought to consider putting $10,000 into the BetaShares Asia Technology Tigers ETF. This exchange trade fund gives investors access to 50 of the most exciting technology companies in the Asian market (excluding Japan). These include search engine company Baidu, dominant ecommerce companies Alibaba and JD.com, electronics giant Samsung, and WeChat owner Tencent Holdings. The latter is also a major Afterpay Ltd (ASX: APT) shareholder.

As these companies are revolutionising the lives of billions of people in the region, I believe they are exceptionally well-placed for growth in the 2020s. In light of this, I feel very confident the BetaShares Asia Technology Tigers ETF will outperform the ASX 200 index for the foreseeable future.

Nearmap Ltd (ASX: NEA)

Another top option for a $10,000 investment could be Nearmap. It is a leading aerial imagery technology and location data company. In May the company released a market update which revealed that its annualised contract value (ACV) had hit $102 million financial year to date. This means it is on course to comfortably achieve its FY 2020 ACV guidance of $103 million to $107 million. 

The good news is that this is still only scratching at the surface of its current market opportunity. Management estimates this to be worth $2.9 billion per year at present. Given the quality of its technology and the highly fragmented market that it operates in, I believe it is well-placed to capture a big slice of this market. This could put the Nearmap share price in a position to generate strong returns for investors over the 2020s.

More reading

• Why Audinate, Nearmap, Resolute, & TechnologyOne shares are tumbling lower
• ASX 200 up 0.4%: Banks lower, Newcrest impresses, Coca-Cola Amatil jumps
• 3 quality ETFs I would be adding to my ASX portfolio
• Why Nearmap and 2 other ASX tech shares are surging higher today
• ASX 200 jumps 1.15%: BHP Q4 update, tech shares rocket higher

James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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.

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Investors have recently watched the Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) share prices soar to the moon. For many investors, they want to be a part of such compelling growth stories and potential capital gains. When trying to compare Afterpay and Zip, it can be challenging to differentiate the two companies with both having similar business models, products and reporting metrics. As the buy now, pay later (BNPL) sector continues to heat up, here is why I believe the Zip share price represents a better opportunity than Afterpay. 

Why I believe the Zip share price is a good buy

1. Zip metrics not that far behind Afterpay

Afterpay boasts a market capitalisation of $20 billion. This makes it as valuable as companies such as Coles Group Ltd (ASX: COL), Woodside Petroleum Limited (ASX: WPL) and Brambles Limited (ASX: BXB). On the flip side, Zip Co has a market capitalisation of just $2.6 billion. 

Despite Afterpay being valued at nearly eight times more than Zip, Zip does not trail eight times behind its larger rival in terms of financial and operational performance. In Zip’s Q4 update, the company processed $570.7 million of sales with 2.1 million active customers and 24,500 active merchants. For the same time period, Afterpay delivered $3.8 billion in sales with 9.9 million active customers and 55,400 merchants.

Whilst these figures might suggest quite a contrast between the two BNPL rivals, it’s worth noting that Zip’s current reporting only takes into consideration its performance in Australia and New Zealand. Post completion of its acquisition of QuadPay, Zip will emerge as a global BNPL player, operating across five key markets in Australia, New Zealand, the United States, the United Kingdom and South Africa. This will bolster its performance metrics with pro-forma annualised transaction volume of $3.2 billion, annualised revenue of $252 million and more than 3.9 million customers. 

2. Transformational acquisition to level playing field  

The biggest market for all BNPL players is the giant $5 trillion US retail market. QuadPay represents an invaluable acquisition that provides Zip with much needed exposure to the US market. QuadPay has already demonstrated accelerating growth with more than 1.5 million customers on its platform and 3,500 merchants. This acquisition also brought about a unique, shop anywhere app which enables customers to pay in instalments in store or online at any merchant. 

QuadPay continues to deliver significant growth, processing over 1.4 million transactions in Q4, an increase of 982% on the same period in FY19. This delivered a total transaction value of US$163 million for the quarter, up 9% QoQ and up 800% YoY.

Foolish takeaway

I believe the Zip share price represents a better buy than Afterpay given its valuation and value proposition. The Afterpay share price has also had a significant run up which makes it challenging to buy from a risk/reward perspective. While both companies are arguably the most exciting recent growth stories in the Australian sharemarket, my money would be with the Zip share price. 

More reading

• Warning: Investors are betting against these 3 ASX shares
• Are ASX tech shares in a bubble?
• Kanye West – ASX shares for his US presidential campaign
• ASX 200 drops 1.1%: Big four banks fall, Resolute rockets, Afterpay tumbles
• Why Afterpay, BHP, Cann, & Mesoblast shares are tumbling lower

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 ZIPCOLTD FPO. 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.

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In early afternoon trade the S&P/ASX 200 Index (ASX: XJO) has followed the lead of U.S. markets and is pushing higher. At the time of writing the benchmark index is up 0.25% to 6,091 points.

Four shares that have failed to follow the market higher today are listed below. Here’s why they are tumbling lower:

The Audinate Group Ltd (ASX: AD8) share price is down 6% to $5.35. This follows the completion of its institutional placement this morning which raised $28 million. These funds were raised at $5.15 per share, representing a 9.5% discount to its last close price. These funds will strengthen its balance sheet and allow for increased investment in engineering, R&D capabilities, and business infrastructure. This is expected to extend Audinate’s market leading position in the audio networking space.

The Nearmap Ltd (ASX: NEA) share price is down almost 3% to $2.42 despite there being no news out of the aerial imagery technology and location data company. This decline may be due to profit taking after some strong gains earlier this week. For example, prior to today, Nearmap’s shares were up over 11% since the start of the week.

The Resolute Mining Limited (ASX: RSG) share price has fallen 2% to $1.37. The gold miner’s shares have tumbled lower today despite being upgraded by analysts at Macquarie. The broker has slapped an outperform rating on its shares and lifted the price target on them to $1.60.

The TechnologyOne Ltd (ASX: TNE) share price has fallen 1% to $8.57. This enterprise software company’s shares have been reasonably volatile in recent weeks after being the subject of a scathing research report. Hong Kong research firm GMT Research alleges that it is using accounting tricks to pull forward revenue and profits. TechnologyOne responded by advising that the claims GMT Research has made are false and misleading.

More reading

• Got $10,000 to invest? I would buy these ASX shares
• ASX 200 up 0.4%: Banks lower, Newcrest impresses, Coca-Cola Amatil jumps
• ASX 200 drops 1.3%, Resolute Mining soars
• Why Baby Bunting, Beach Energy, QBE, & Resolute shares are pushing higher
• ASX 200 drops 1.1%: Big four banks fall, Resolute rockets, Afterpay tumbles

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 AUDINATEGL FPO and Nearmap Ltd. The Motley Fool Australia has recommended AUDINATEGL FPO and 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.

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At lunch on Thursday the S&P/ASX 200 Index (ASX: XJO) has fought back from an early decline and surged higher. The benchmark index is currently up 0.4% to 6,097.4 points.

Here’s what is happening on the market today:

Bank shares drag on the market.

The big four banks are all dropping lower on Thursday and are acting as a drag on the market. The worst performer in the group is the Commonwealth Bank of Australia (ASX: CBA) share price with a 0.5% decline. One fund manager believes this share price weakness is a buying opportunity.

Newcrest impresses.

The Newcrest Mining Limited (ASX: NCM) share price is pushing higher on Thursday after delivering a stronger than expected fourth quarter update. For the three months ended 30 June 2020, Newcrest achieved group gold production of 573,000 ounces. This was a 7% increase on the prior quarter and above the consensus estimate of 542,000 ounces. The gold miner achieved this with a better than expected quarterly all-in sustaining cost (AISC) of US$878 per ounce.

Coca-Cola Amatil update.

The Coca-Cola Amatil Ltd (ASX: CCL) share price is storming higher today after investors responded very positively to the release of a trading update. According to the update, the beverage giant’s performance improved greatly during the month of June after COVID-19 restrictions eased. Coca-Cola Amatil revealed that monthly trading volumes across the group were down approximately 9% compared to June 2019. This was a big improvement on the previous months and resulted in a second quarter volume decline of approximately 23%.

Best and worst ASX 200 shares.

The best performer on the ASX 200 on Thursday has been the AP Eagers Ltd (ASX: APE) share price with a 6% gain. This is despite there being no news out of the auto retailer today. Going the other way, the worst performer is the Nearmap Ltd (ASX: NEA) share price with a 2.5% decline. This may be due to profit taking after some strong gains earlier this week.

More reading

• Got $10,000 to invest? I would buy these ASX shares
• Why Audinate, Nearmap, Resolute, & TechnologyOne shares are tumbling lower
• Why Coca-Cola Amatil, Newcrest, QBE, & Tabcorp shares are pushing higher
• Coca-Cola Amatil share price pushes higher on trading update
• Why this leading fundie thinks ASX bank shares are undervalued

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 Nearmap Ltd. 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 ASX 200 up 0.4%: Banks lower, Newcrest impresses, Coca-Cola Amatil jumps appeared first on Motley Fool Australia.

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