Tag: Motley Fool Australia

If you’re a growth investor then you’re in luck. This is because the Australian share market is home to a large number of quality shares that have the potential to grow very strongly in the coming years.

Five top growth shares I would buy in FY 2021 are listed below:

Afterpay Ltd (ASX: APT) 

Due to the increasing popularity of the buy now pay later payment method with consumers and merchants, I believe this payments company could be a strong performer again in FY 2021. Especially given the incredible active customer growth it is experiencing in the United Kingdom and United States markets. It is also worth noting that Afterpay will launch into Canada this financial year and I wouldn’t be surprised to see further geographic expansion over the next 12 months.

Altium Limited (ASX: ALU)

Due to its key Altium Designer product and its exposure to the rapidly growing Internet of Things market, I believe this electronic design software company can continue to grow its revenue and earnings at solid rate in FY 2021. Looking further ahead, I feel confident that Altium is on a path to achieving its revenue target of US$500 million by FY 2025. This is thanks to increasing demand for Altium Designer and its other growing businesses such as NEXUS and Octopart.

Appen Ltd (ASX: APX)

Another top growth share to consider buying for FY 2021 is Appen. It is a fast-growing developer of high-quality, human-annotated training data for machine learning and artificial intelligence. Given how spending in these markets is expected to grow materially in the future, I believe Appen is well-placed to continue its impressive growth for many years to come.

Pushpay Holdings Group Ltd (ASX: PPH)

Pushpay is another growth share I would buy. It is a donor management platform provider for the faith sector. Pushpay has been growing at a rapid rate in recent years and looks well-placed to continue this trend in the coming years thanks to its leadership position in a niche but lucrative market. Management certainly believes this to be the case. It is aiming to win a 50% share of the medium to large church market in the future. This represents a US$1 billion revenue opportunity and compares very favourably to FY 2020’s revenue of US$127.5 million.

ResMed Inc. (ASX: RMD)

A final growth share to consider buying is ResMed. I think the sleep treatment-focused medical device company is well-placed for growth over the next decade thanks to its industry-leading products and sizeable market opportunity. Management estimates that there could be upwards of 1 billion people impacted by sleep apnoea worldwide. As more and more of these sufferers are diagnosed in the coming years, I expect demand for its products to increase.

More reading

• ResMed share price rockets to record highs
• Warren Buffett’s advice for managing uncertainty
• Why Afterpay, Ecofibre, Mesoblast, & Zip Co shares are racing higher
• ASX 200 jumps 1.15%: BHP Q4 update, tech shares rocket higher
• 3 tips for investing in ASX 200 shares for beginners

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 Altium and PUSHPAY FPO NZX. The Motley Fool Australia owns shares of AFTERPAY T FPO and Appen Ltd. The Motley Fool Australia has recommended PUSHPAY FPO NZX and ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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We are two thirds of the way through Dry July. Whether you are participating for health or charitable reasons, completing Dry July can be a challenge. Rewarding yourself for completing difficult tasks feels great and alcohol is expensive. So why not boost your ASX share portfolio with all of the extra cash you have saved instead! So, on that note, here are two food and beverage related ASX shares that can help you power through the rest of Dry July.

2 ASX shares to buy in Dry July

Treasury Wine Estates Ltd (ASX: TWE) – Why Dry July is so hard!

Treasury has been a great producer of wines and an even better ASX share to buy (unless you happened to buy right before the pandemic hit!). Over the last 5 years, the Treasury Wine share price has had a compound annual growth rate (CAGR) total return (including capital growth and dividends) of 18.85% per annum. Shares currently trade on a price-to-earnings (P/E ratio) of about 19.5x earnings and a dividend yield of 3.6%.

The share price is down 37% since 24 January, which could present a nice entry point for long-term investors. The company provided a business update on 9 July, which was the first for new CEO, Tim Ford, who commenced the role on 1 July 2020. Preliminary FY20 performance shows EBITS of between $530 and $540 million, representing a 21% decline against the prior year. Management were cautious in the short to medium term given social gathering restrictions internationally.

As a business directly impacted by COVID-19, with international diversification including Asia and the United States, the Treasury Wine share price could be volatile. But, it would be nice to crack open a bottle of wine in August and pay yourself at the same time! 

Rural Funds Group (ASX: RFF) – The agricultural land play

The Rural Funds share price has doubled over the last 5 years. Add in dividends and the stock has grown by a CAGR of 18.71% per annum over the half decade. Shares currently trade on a P/E ratio of about 15.4x earnings and a distribution yield of 4.1%. Rural Funds has guided for an FY21 distribution of 11.28 cents per unit, or an even better yield of 5.5%.

This ASX share is a great option for investors who need a secure dividend. The business currently has a weighted average lease expiry of 11.5 years.

Over the long term, the value of agricultural land should appreciate. As the Australian and worldwide population grows, and the middle class of developing countries like China and India boom, the need and desire for fresh produce will increase. Insider Michael Carroll believes in the business, with a recent acquisition of 124,862 shares at $2 per unit.

Foolish bottom line

Over the long term, high quality ASX shares should continue to be a life changing asset to own.

Congratulations to everyone doing Dry July. Treat yourself with some ASX shares now, don’t wait for a drink in August!

More reading

• Leading brokers name 3 ASX 200 shares to sell today
• How to buy US FAANG stocks on the ASX
• The worst performing ASX 200 oil stock is finally catching a break today
• What the latest economic data could mean for ASX 200 shares
• ASX 200 jumps 1.15%: BHP Q4 update, tech shares rocket higher

Motley Fool contributor Lloyd Prout has no position in any of the stocks mentioned and expresses his own opinions. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and Treasury Wine Estates Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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On Monday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below.

Here’s why these brokers are bearish on these ASX 200 shares:

Commonwealth Bank of Australia (ASX: CBA)

According to a note out of Goldman Sachs, its analysts have retained their sell rating and $65.00 price target on this banking giant’s shares. The broker expects Commonwealth Bank to deliver cash earnings from continued operations of $7,815 million in FY 2020. This will be an 8% decline on the prior corresponding period. The broker is also forecasting a 100 cents per share fully franked final dividend, down 56.7% on last year’s final dividend. In light of this, it believes its shares are overvalued at the current level. The Commonwealth Bank share price is trading at $73.21 this afternoon.

Netwealth Group Ltd (ASX: NWL)

Analysts at Ord Minnett have downgraded this investment platform provider’s shares to a sell rating with an improved price target of $9.55. Although the broker notes that its performance during the pandemic has been positive, it isn’t enough to stop it from downgrading its shares. It believes Netwealth shares are overvalued at the current level and sees a lot more value in rival Hub24 Ltd (ASX: HUB). The Netwealth share price is changing hands for $11.52 on Tuesday.

Rio Tinto Limited (ASX: RIO)

A note out of Credit Suisse reveals that its analysts have retained their underperform rating and $86.00 price target on this morning giant’s shares. Although the broker acknowledges that Rio Tinto had a very strong second quarter, it has concerns over iron ore prices in the near term. It suspects that softer seasonal demand and a recovery in Brazilian shipments could put pressure on the price of the steel making ingredient. The Rio Tinto share price is trading at $105.49 this afternoon.

More reading

• 2 ASX shares to buy during ‘Dry July’
• How to buy US FAANG stocks on the ASX
• The worst performing ASX 200 oil stock is finally catching a break today
• What the latest economic data could mean for ASX 200 shares
• ASX 200 jumps 1.15%: BHP Q4 update, tech shares rocket higher

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 Hub24 Ltd. The Motley Fool Australia owns shares of Netwealth. The Motley Fool Australia has recommended Hub24 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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FAANG stocks. They’re hot property right now and leading United States shares on a bullish run in 2020.

But it’s not easy for us Aussies to invest overseas. Not without a specialised broker and/or significant tax and currency headaches.

However, all that is starting to change thanks to a new exchange-traded fund (ETF). Which one? The ETFS FANG+ ETF (ASX: FANG).

What is ‘FAANG’?

FAANG is the acronym used for some of the biggest US tech stocks right now.

The members of FAANG are Facebook Inc. (NASDAQ: FB), Amazon.com Inc. (NASDAQ: AMZN), Apple Inc (NASDAQ: AAPL), Netflix Inc (NASDAQ: NFLX) and Alphabet Inc. (NASDAQ: GOOG) which is Google’s parent company.

For what it’s worth, Australia has created its own hot tech acronym. The ‘WAAAX’ tech shares include WiseTech Global Ltd (ASX: WTC), Afterpay Ltd (ASX: APT), Altium Limited (ASX: ALU), Appen Ltd (ASX: APX) and Xero Limited (ASX: XRO).

But enough with the acronyms, how do you actually buy FAANG stocks through the ASX?

How to invest in FAANG stocks on the ASX

The bad news is that you can’t technically buy the individual FAANG stocks through the ASX.

The good news is that you can get diversified exposure to the whole group and more in the one ETF.

The ETFS FANG+ ETF started trading on the ASX on 27 February this year. The fund seeks to track the NYSE®FANG+™ Index by investing in a portfolio of FAANG stocks and more.

It’s worth noting that the fund is not currency-hedged, which means you are exposed to currency risk through movements in the US-Australian dollar. The FANG+ ETF is rebalanced quarterly and has a management fee of 0.35%.

I’ve included a chart below of the fund’s top holdings by percentage weighting as at yesterday’s close.

As you can see, all the big FAANG stocks (and more) have significant weightings in the fund.

The ETF has climbed 31.5% higher since 2 March compared to a 4.8% decline in the S&P/ASX 200 Index (ASX: XJO).

That means if you’re looking for an easy way to get exposure to these shares in 2020, this ETFS FANG+ ETF could be for you.

What about the alternative ways to invest?

If this ETF doesn’t cut it, there are other ways to invest in US FAANG stocks. One is direct investment but you would need to find a broker that allows offshore investments.

You could also buy a diversified US ETF like iShares S&P 500 ETF (ASX: IVV). The FAANG stocks make up a significant portion of the S&P 500 by market capitalisation.

This iShares ETF has a management fee of just 0.04% compared to 0.35% for the ETFS FANG+ ETF. That could make it a good reason to buy for the long term and generate strong after-tax returns.

More reading

• 2 ASX shares to buy during ‘Dry July’
• Leading brokers name 3 ASX 200 shares to sell today
• The worst performing ASX 200 oil stock is finally catching a break today
• What the latest economic data could mean for ASX 200 shares
• ASX 200 jumps 1.15%: BHP Q4 update, tech shares rocket higher

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Ken Hall 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 Alphabet (C shares), Amazon, Apple, Facebook, and Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Altium and Xero and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia owns shares of AFTERPAY T FPO, Appen Ltd, and WiseTech Global. The Motley Fool Australia has recommended Alphabet (C shares), Amazon, Apple, Facebook, and Netflix. 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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Warren Buffett is the world’s most famous investor. At 89 years old, he’s weathered the GFC, the dot.com bubble, the early 1990s oil price shock, and stock market crashes in the 1970s and 1980s. He has faced uncertainty head on and turned it into a $72 billion fortune.

Uncertainty abounds right now as the struggle against coronavirus wears on the world economy. To help guide you through these uncertain times, we take a look at Warren Buffett’s advice for managing uncertainty. 

“If you aren’t thinking about owning a stock for 10 years, don’t even think about owning it for 10 minutes”

Current events will pass, but in the long term, quality businesses tend to survive. When you’re investing in the share market, you need to have a long-term time horizon. Share prices can fluctuate from day to day and month to month. Over the long term, companies that are able to deliver consistent and growing profits will tend to perform well. But that doesn’t mean there won’t be setbacks and hurdles to overcome. 

“Price is what you pay. Value is what you get”

Buffett is emphasising that price and value are not always the same thing. Usually they are linked, but sometimes price does not accurately reflect value. This can be the case when share markets are volatile – share prices may over or underestimate the value of the underlying business. Value investors like Buffett look for shares that are trading below their intrinsic value in the belief that the price will eventually revert to accurately reflect value. 

“Be fearful when others are greedy and greedy when others are fearful”

Buffett made some of his best investments during market downturns. Using his value investing philosophy, he pounced on opportunities when markets were in the red. With this quote, Buffett is warning against being caught up when markets are peaking, but to ensure your eyes are open to opportunity when markets fall. This makes good sense. After all, an investor who bought $10,000 worth of Afterpay Ltd (ASX: APT) shares at their March low of $8.90 would be sitting on $83,000 now. 

More reading

• Why Afterpay, Ecofibre, Mesoblast, & Zip Co shares are racing higher
• 3 tips for investing in ASX 200 shares for beginners
• Why I would buy Afterpay and these exciting ASX tech shares
• Top fund manager names favourite ASX growth shares
• Why the BlueScope share price is outperforming today

Motley Fool contributor Kate O’Brien 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.

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The Oil Search Limited (ASX: OSH) share price is outperforming today even as it suffered a big drop in quarterly revenue.

The Oil Search share price jumped 1.8% to $3.06 in morning trade when the S&P/ASX 200 Index (Index:^AXJO) gained 1.1%.

The rally in Oil Search puts it well ahead of its peers as well. The Beach Energy Ltd (ASX: BPT) share price fell 0.9%, the Santos Ltd (ASX: STO) share price added 0.8% and the Woodside Petroleum Limited (ASX: WPL) share price improved 1%.

Every dog gets its day

Oil Search’s stronger run today stands in contrast to its poor performance. The stock is the worst performer in the group as it crashed 54% over the past year. Shares in Santos and Beach shed around 23% while Woodside lost 40% over the same period.

The big slump in the crude oil price during the COVID-19 market turmoil is dragging on the energy sector, but Oil Search is hit harder due to governance and political challenges relating to its PNG project.

But these issues are brushed aside when Oil Search released its quarterly production update on Tuesday.

Strong production run

The group’s latest quarterly operated oil production jumped 14% over the previous quarter to its highest since the PNG earthquake in 2018.

While total production in the June quarter dipped 1% compared to the March quarter, the half-year figure of 14.66 million barrels of oil equivalent (mmboe) is 4% above 1HCY19.

However, while production is up, revenue in the three months to end June tumbled 26% to US$266.2 million compared to the first quarter of calendar year 2020.

On track to hit target

But the drop in revenue was expected given the well documented plunge in oil and gas prices, while the production figures were probably ahead of what many had feared.

“Despite the challenging COVID operating conditions and restrictions on personnel movement, our safety record for the quarter was excellent across all areas and our PNG oilfield operations performed above expectations,” said Oil Search’s managing director Keiran Wulff.

“Combined with continued strong production from the ExxonMobil-operated PNG LNG Project, Oil Search is on track to achieve its production targets in 2020.”

Other positives for Oil Search

The group also successfully completed its two-well Alaskan exploration program with new oil discoveries conveniently close to existing and proposed infrastructure.

Oil Search also looks well placed to survive the unpredictable trading environment as it raised around US$700 million in capital in May.

Is Oil Search share price a buy?

While the positive quarterly update gives the embattled energy company much needed relief, I don’t think it will be enough to trigger a re-rating in the stock.

There are still too many unanswered questions relating to Oil Search’s alleged role in a bribery scandal in PNG.

This means Oil Search will likely continue to trade at a discount to its peers until the governance issues are resolved.

More reading

• What the latest economic data could mean for ASX 200 shares
• ASX 200 jumps 1.15%: BHP Q4 update, tech shares rocket higher
• Mesoblast share price climbs 9% on FDA meeting
• What you need to know about Downer’s share price, $400m cap raise and acquisition
• 3 tips for investing in ASX 200 shares for beginners

Motley Fool contributor Brendon Lau 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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Data. That’s what many experienced investors are focused on amid all the noise on the S&P/ASX 200 Index (ASX: XJO) this week.

There are a lot of updates that are set to be released by the Australian Government in coming days. That kicks off today, with the Reserve Bank of Australia (RBA)’s meeting minutes. Reserve Bank Governor Philip Lowe will give a speech, while the government will give an update on JobKeeper and JobSeeker.

Investors are also eyeing a fiscal and economic update due on Thursday, which will give a more detailed look at those programs and a budget update.

So, what do all these different announcements and datasets mean for ASX 200 shares in 2020? Here’s a closer look at 3 major ASX sectors and how they could be impacted.

ASX 200 retail shares

I think a big one here is the JobKeeper updates today and Thursday. According to news reports, the payment programs will be extended beyond September, but with a change in eligibility.

Aussie retailers have been struggling in 2020 with coronavirus restrictions reducing in-store sales. I think extended government support would be good news for retailers. More government support means more money in the economy and higher employment. Another helpful impact could be more spending money in the pockets of everyday Aussies.

That has helped ASX retail shares like JB Hi-Fi Limited (ASX: JBH) and Super Retail Group Ltd (ASX: SUL) climb higher in 2020. Online sales channels have been the key as demand for particular items has soared. 

There’s also preliminary retail sales data for June that will be released by the Australian Bureau of Statistics (ABS) on Wednesday. That will give investors a good gauge of how sales are tracking and what to expect from the August earnings season.

ASX bank shares

Governor Philip Lowe’s speech is set to focus on COVID-19, the labour market and the government’s balance sheet.

I think ASX bank share investors will be watching the speech and RBA meeting minutes closely.

Major banks like Commonwealth Bank of Australia (ASX: CBA) are a key part of the government’s COVID-19 response plan. The banks are such a crucial part of the Aussie economy that I think we will see strong share price moves this week.

Support for employment would surely be welcomed by the Aussie banks and the economy as a whole. Any extension of JobKeeper would also reassure investors that the risk of mass defaults in September/October is low.

Fiscal and monetary stimulus is currently propping up the economy. An extension of that, and the form that extension takes, will impact on the banks’ ability to lend with confidence and maintain asset quality in 2020.

ASX REITs

I think the preliminary retail sales data on Wednesday will be the big one for retail REITs like Scentre Group (ASX: SCG). The JobKeeper and JobSeeker update today and Thursday will also be worth watching.

Looking further ahead, we’re also expecting an update on building permits from the ABS next Thursday. That is one to watch for investors in ASX 200 diversified REITs like Mirvac Group (ASX: MGR). The new data could provide an indication of new industry activity, competition and potential trends for pricing and supply in the short to medium-term.

More reading

• The worst performing ASX 200 oil stock is finally catching a break today
• ASX 200 jumps 1.15%: BHP Q4 update, tech shares rocket higher
• Mesoblast share price climbs 9% on FDA meeting
• What you need to know about Downer’s share price, $400m cap raise and acquisition
• 3 tips for investing in ASX 200 shares for beginners

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

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In early afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to record a very strong gain. At the time of writing the benchmark index is up a sizeable 1.35% to 6,082.2 points. This is thanks largely to strong gains in the tech sector.

Four shares that are climbing more than most today are listed below. Here’s why they are racing higher:

The Afterpay Ltd (ASX: APT) share price is up almost 8% to $74.89. Investors have been buying Afterpay and other tech shares on Tuesday after their U.S. counterparts stormed higher on the technology-focused Nasdaq index overnight. At the time of writing the S&P/ASX 200 Information Technology index is up an impressive 5.5%.

The Ecofibre Ltd (ASX: EOF) share price has jumped 10% to $2.49. Investors have been buying the hemp products company’s shares after the release of its profit guidance on Monday. Ecofibre is expecting to report a net profit after tax of ~$12.5 million in FY 2020. This will be more than double what it achieved in FY 2019. Its strong position in the U.S. market has driven the impressive profit growth.

The Mesoblast limited (ASX: MSB) share price has climbed almost 8% higher to $3.61. This follows the announcement of a review date for its remestemcel-L treatment by the U.S. FDA. The review will assess data supporting Mesoblast’s application for approval for remestemcel-L in the treatment of steroid-refractory acute graft versus host disease in children.

The Zip Co Ltd (ASX: Z1P) share price is up almost 9% to $6.57. As well as getting a lift from the rampant buying in the tech sector, Zip’s shares were given a boost from a broker note out of Ord Minnett this morning. Its analysts have put an accumulate rating and $6.45 price target on the buy now pay later provider’s shares.

More reading

• Mesoblast share price climbs 9% on FDA meeting
• 3 tips for investing in ASX 200 shares for beginners
• Why I would buy Afterpay and these exciting ASX tech shares
• Top fund manager names favourite ASX growth shares
• Why the BlueScope share price is outperforming today

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia 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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At lunch on Tuesday S&P/ASX 200 Index (ASX: XJO) is on course to record a very strong gain. The benchmark index is currently up 1.15% to 6,071.1 points.

Here’s what has been happening on the market today:

Big four banks push higher.

The big four banks are all pushing higher on Tuesday. The best performer in the group is the Commonwealth Bank of Australia (ASX: CBA) share price with a gain of 1.5%. Investors have been buying the banking giant’s shares despite analysts at Goldman Sachs rating them as a sell this morning.

Tech shares storm higher.

It has been a fantastic day for Australia’s leading tech shares. The likes of Altium Limited (ASX: ALU) and Nearmap Ltd (ASX: NEA) are storming notably higher. This has driven the S&P/ASX 200 Information Technology index 5.5% higher at lunch. The catalyst for this was a very positive night of trade on Wall Street’s technology-focused Nasdaq index. It jumped 2.5% thanks to strong gains by the likes of Amazon, Apple, Microsoft, and Google parent, Alphabet. Amazon was the star of the show with a gain of almost 8%.

BHP Q4 update

The BHP Group Ltd (ASX: BHP) share price is trading sideways on Tuesday following the release of its fourth quarter and full year update. BHP had a solid 12 months with production guidance met for iron ore, metallurgical coal, and operated copper and energy coal assets. Iron ore production was the highlight of FY 2020 with 248 Mt produced. BHP commanded an average realised price of US$77.36 a tonne for the steel making ingredient. This was up 16% year on year.

Best and worst ASX 200 shares.

The best performer on the ASX 200 on Tuesday has been the Nearmap share price with an impressive 10% gain. This follows strong buying in the tech sector today. The worst performer has been the Alumina Limited (ASX: AWC) share price with a 4% decline. This may be down to profit taking after some very strong gains last week.

More reading

• The worst performing ASX 200 oil stock is finally catching a break today
• What the latest economic data could mean for ASX 200 shares
• Mesoblast share price climbs 9% on FDA meeting
• Why AGL Energy, Alumina, BlueScope, & BWX shares are dropping lower
• What you need to know about Downer’s share price, $400m cap raise and acquisition

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 Altium and 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.

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The Mesoblast limited (ASX: MSB) share price has jumped 8.9% this morning after the healthcare company announced a review date for its remestemcel-L treatment has been granted by the FDA. The review will assess data supporting Mesoblast’s application for approval for remestemcel-L in the treatment of steroid-refractory acute graft versus host disease (SR-aGVHD) in children. 

SR-aGVHD is a potentially life threatening complication from bone marrow transplants for blood cancer. There are currently no FDA approved treatments in the United States for children under the age of 12 with SR-aGVHD. An advisory committee will review the data on 13 August and make a recommendation regarding approval to the FDA. 

What is remestemcel-L?

Remestemcel-L is a therapy utilising mesenchymal stem cells derived from bone marrow. It is administered via a series of intravenous infusions. The treatment is believed to counteract inflammatory processes and enable recruitment of naturally occurring anti-inflammatory cells to involved tissues. Remestemcel-L has gained significant publicity recently due to its use in the treatment of COVID-19 patients. 

Remestemcel-L is currently undergoing phase 3 trials to assess its use in treating adult COVID-19 patients with acute respiratory distress syndrome. The product is also available in the US for compassionate use for child COVID-19 patients with cardiovascular and other complications of multisystem inflammatory syndrome. 

How is the Mesoblast share price performing? 

During the nine months to 31 March 2020, Mesoblast reported revenues of US$31.5 million. This was a 113% increase on the prior corresponding period when US$14.8 million in revenue was reported. Loss after tax reduced to US$45.3 million for the first nine months of FY20, compared to a loss of US$69.1 million for the first nine months of FY19. 

The Mesoblast share price has gained 146% over the last year and 233% from its March low. Encouraging results from clinical trials of remestemcel-L have pushed the Mesoblast share price higher, as has its use in the treatment of coronavirus. Mesoblast’s increased share price saw it join the S&P/ASX 200 (ASX: XJO) in the most recent quarterly rebalance. 

What’s next for Mesoblast?

Mesoblast had cash on hand of $60.1 million at 31 March 2020. An additional $138 million of capital was raised in May which will be used to scale up manufacturing of remestemcel-L for the treatment of COVID-19 patients. The company is now well positioned to pursue this new imperative with clinical trials underway. 

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Motley Fool contributor Kate O’Brien 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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