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The Oil Search Ltd (ASX: OSH) share price is down amid reports the company’s interim CEO wants “more carats in the diamond ring” from Santos Ltd (ASX: STO).

It’s the latest broadside in the merger and acquisition saga involving the two oil companies.

Right now, the Oil Search share price is $3.96, 0.63% lower than its previous closing price.

Interim CEO Peter Fredricson reportedly told The Australian the company saw merit in Santos’ takeover offer, posed to the company late last month, but rejected it as the payout was too small.

Let’s take a closer look.

Quick refresher

Santos submitted a $23 billion confidential takeover offer to Oil Search late last month.

The takeover attempt was made public last week when Oil Search announced it had rejected the proposal.

Santos had offered a $4.25 scrip consideration for each of Oil Search’s shares. That represented a 12.3% premium on the Oil Search share price as of 24 June 2021.

If Santos’ proposal was accepted, Oil Search would have held 37% of the resulting entity.

Oil Search said Santos’ proposal undervalued its shares. The Oil Search share price gained 6.2% after the annoucement it had rejected the offer.

Today’s news of Oil Search

The Oil Search share price is off the pace in early trade with Santos’ rejected proposal in the headlines again.

The Australian has reported Oil Search is willing to discuss a merger between it and Santos if the latter can offer the right price. Fredricson was quoted as saying:

It’s a little bit like someone wants to gets engaged and give you a diamond ring but we gave the diamond ring back and said no thanks. They need to come back with a couple more carats in the diamond ring.

Fredricson also said “the vast majority” of the company’s shareholders want to go ahead with the merger, but Oil Search is holding out for a better deal:

An alignment putting Oil Search and Santos together has huge industrial logic to it. But you’ve got to get an appropriate value allocation because we’ve got shareholders that aren’t shareholders of Santos. And we’ve got to look after their rights.

Fredricson was given the top job at Oil Search last week after Keiran Wulff stepped down unexpectedly. Fredricson told The Australian he wants to keep the company’s biggest office permanently, despite having little experience in gas and oil. He was quoted as saying:

So long as you’ve got the oil and gas expertise within your team, I see no reason why I couldn’t be the long-term CEO of this business.

Oil Search share price snapshot

2021 has been a good year so far for the Oil Search share price.

It is currently 7.55% higher year to date. It has also gained 27% since this time last year.

The company has a market capitalisation of around $8.3 billion, with approximately 2 billion shares outstanding.

The post Oil Search (ASX:OSH)share price falls as boss demands more ‘carats’ appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Santos (ASX:STO) share price down amid concerns over bidding war
• Oil Search (ASX:OSH) share price on watch — board tipped to fight merger
• 5 things to watch on the ASX 200 on Friday
• Santos (ASX:STO) share price jumps on record quarterly sales

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Cann Group Ltd (ASX: CAN) share price is crashing lower on Monday morning. This follows the announcement of yet another capital raising by the cannabis company.

At the time of writing, the Cann share price is down 14% to 32.5 cents.

What did Cann announce?

This morning Cann announced an institutional placement and a share purchase plan aiming to raise a total of $20 million.

This comprises a $10 million institutional placement and a $10 million share purchase plan, with the funds being raised at 27.5 cents per new share. This represents a 27.6% discount to the Cann share price prior to its trading halt.

According to the release, the proceeds from the capital raising will be used to invest in initiatives which are expected to deliver substantial cost savings as Cann moves to large scale production with the commissioning of its new manufacturing facility near Mildura.

Furthermore, the funding will be used to expedite and strengthen Cann’s in-house extraction, laboratory and manufacturing capabilities. This is expected to de-risk the company’s supply chain and lower costs by reducing its reliance on third party manufacturers and service providers.

How many capital raisings?

Should the company complete this capital raising successfully, it will mean it has raised $138.2 million from investors since listing.

This comprises a $78 million capital raising in 2017 at $2.50 per new share, a $40.2 million capital raising in August 2020 at 40 cents per new share, and now $20 million at 27.5 cents per new share.

And despite raising $138.2 million from investors, the company’s market capitalisation is just $105.6 million (prior to today’s movements).

Clearly, the funds raised have not created value for shareholders. In fact, if you invested $10,000 in the 2017 capital raising, your investment would be worth just $1,520 today. So rather than creating value, Cann shareholders have seen significant wealth go up in smoke.

The Cann share price is down 46% in 2021.

The post Cann (ASX:CAN) share price crashes 14% after announcing another capital raising appeared first on The Motley Fool Australia.

More reading

• Blazing it? How the top ASX cannabis shares performed in FY21

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Dubber Corporation Ltd (ASX: DUB) share price won’t be going anywhere on Monday after the company requested a trading halt.

Dubber provides cloud-based call recording and voice data solutions. The company’s technology is used by many large household service providers such as AT&T, Optus and Telstra Corporation Ltd (ASX: TLS).

What’s the trading halt for?

The Dubber share price is halted on the basis of an institutional placement capital raising.

The company is looking to raise approximately $110 million at $2.95 per new share.

This represents a 7.8% discount to its last closing price of $3.20.

The trading halt is expected to last until Tuesday, 27 July 2021.

According to the capital raising presentation, the company plans to use the proceeds for M&A opportunities to broaden and accelerate new product development, increase headcount, establish new foundation partners and marketing.

June quarter results

Coinciding with the trading halt announcement, Dubber also released its June quarterly activities report.

Unfortunately, the Dubber share price won’t be able to react to today’s solid results.

Dubber delivered quarterly revenues of $7.4 million, a 189% increase on the prior corresponding period (pcp) and up 12% quarter-on-quarter (QoQ).

Dubber users now exceed 420,000, a 118% increase on pcp and 10.5% increase QoQ.

The company said that user numbers grew at a record rate for Dubber’s SaaS monthly subscriptions, underpinned by the launch of its Foundation Partner Program.

The program will embed Dubber’s services a standard feature for its partners.

According to the quarterly, Cisco’s Webex Calling and UCM Cloud platforms have joined as the first partners.

In terms of the company’s balance sheet, Dubber advised that it had in excess of $32 million cash at bank.

A stellar year for the Dubber share price

Dubber shares briefly opened 5.61% higher last Friday, to a record high of $3.39 before a weak close, down 0.31% to $3.20.

A major catalyst behind Dubber’s 92% year-to-date performance was its record March quarter update.

The announcement saw an 18.60% surge in Dubber shares on the day to $2.55.

The post Why the Dubber (ASX:DUB) share price won’t be moving on Monday appeared first on The Motley Fool Australia.

More reading

• 2 exciting mid cap ASX growth shares to watch
• Dubber Corp (ASX:DUB) share price hits 52 week high today
• 2 highly rated ASX tech shares tipped for strong long term growth

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Dubber Corporation. The Motley Fool Australia owns shares of and has recommended Dubber Corporation and Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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It hasn’t been a great year so far for Woodside Petroleum Limited (ASX: WPL) shares.

Since the start of the year, the energy producer’s shares are down 3%. This compares to a 10.6% gain by the S&P/ASX 200 Index (ASX: XJO) over the same period.

Where next for the Woodside share price?

Where Woodside shares goes from here could depend largely on the strength of its half year results next month.

According to a recent note out of Goldman Sachs, it is expecting a solid set of results from Woodside.

This follows the release of its second quarter update earlier this month which revealed first half production of 46.3mmboe. While this was down 7.5% on the prior corresponding period and short of Goldman’s expectations, its sales revenue surprised to the upside.

It increased 30.5% over the prior corresponding period to US$2,406 million. This was driven by a 42.4% jump in realised pricing, which was 4.8% greater than the broker was anticipating and offset the weaker production.

What about earnings?

One thing not included in the company’s second quarter update was its earnings expectations.

Goldman is forecasting earnings before interest, tax, depreciation and amortisation (EBITDA) to come in at US$1,679 million. This will be an increase of 18.2% over the same period last year.

And on the bottom line, an underlying net profit after tax of US$485 million is expected. This represents a sizeable 60% increase over FY 2020’s underlying first half profit after tax of US$303 million.

From this, Goldman has pencilled in a 40 US cents per share interim dividend, up from 26 US cents a year earlier.

Are Woodside shares in the buy zone?

Goldman Sachs believes Woodside shares are trading at a very attractive level.

Its analysts have a buy rating and lofty $34.00 price target on its shares. Based on the current Woodside share price of $22.34, this implies potential upside of 52% over the next 12 months.

The post Own Woodside Petroleum (ASX:WPL)shares? Here’s what to look for during reporting season appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Woodside (ASX:WPL) share price struggles following rig dumping proposal
• 5 things to watch on the ASX 200 on Friday
• Santos (ASX:STO) share price jumps on record quarterly sales
• What’s happening with ASX 200 oil shares this week?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Lynas Rare Earths Ltd (ASX: LYC) share price will be in investor’s sights today.

This comes after the rare earths producer released its June quarterly report. At the time of writing, the Lynas share price is sitting at $6.43.

Why is the Lynas share price in focus?

The Lynas Rare Earths share price could be one to watch today following the company’s release of its quarterly activities report.

According to the release, both sales revenue and receipts were record setters for Lynas. During the quarter the company recorded $185.9 million in sales revenue and $192 million in sales receipts. For comparison, Lynas reported $38 million in sales revenue in the 2020 June quarter.

The uptick in revenue and receipts came from increased production of rare earth oxides (REO) of 46.5% on the prior corresponding period to 3,778 tonnes. Meanwhile, neodymium and praseodymium (NdPr) production came in at 1,393 tonnes – representing a 79.7% increase on the prior corresponding period. These high rates of growth will likely draw attention to the Lynas share price today.

Also aiding the company’s increased sales was a higher average selling price for the rare earths. The average price per kilogram almost doubled over the year, from $20.20 per kilo in Q4 FY20 to $39.10 per kilo in Q4 FY21.

Furthermore, Lynas’ cash balance closed at $680.8 million for the quarter – an increase of 19.7% on its balance at the end of the previous quarter.

Further progress

During the quarter the company progressed its Lynas 2025 projects. These include its rare earths processing facility in Kalgoorlie and the proposed integrated United States processing facility. Currently, the US Department of Defense is reviewing detailed work submissions.

In addition to this, preparation for the next mining campaign at its Mt Weld site is underway.

Last week the company also received a $14.8 million grant from the Australian government’s Modern Manufacturing Initiative.

A look at share price performance

The Lynas Rare Earths share price has been one of the best in the S&P/ASX 200 Index (ASX: XJO) over the past year. Any shareholder that has held onto the company’s shares has been rewarded a 200% rise in the past 12 months.

However, due to the rocketing share price outpacing Lynas’ earnings, the company’s price-to-earnings (P/E) ratio has jumped to 417 times. Comparatively, the Australian metals and mining industry average P/E ratio is 13.1 times.

The post Here’s why the Lynas (ASX:LYC) share price is on watch today appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Here’s why the Lynas (ASX:LYC) share price is soaring 8% today
• ASX 200 rises, Zip drops, Northern Star rises
• What these 5 outperforming ASX shares have in common
• Australian Strategic Materials (ASX:ASM) share price stilled by trading halt

Motley Fool contributor Mitchell Lawler owns shares of Lynas Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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AMP Ltd (ASX: AMP) shares appear to be under the pump right now. Shares in the Aussie financial services group are down 30.1% year-to-date and 81.2% in the last 5 years.

But if there is one thing investors love, it’s dividends. On October 1 2020, AMP paid a A$0.10 per share fully franked dividend. That was a special dividend after the sale of AMP Life in June 2020 for A$3 billion. In the group’s March 2021 update, however, the board resolved to not declare a final full-year 2020 dividend.

That has left many wondering what AMP shares will be paying out to investors this time around.

How do AMP shares compare to the financial sector on dividends?

At present, the Motley Fool website is tracking AMP shares’ dividend at $0.14 per share, franked to 90%. Given the financial services group’s recent struggles, that is based on the most recent interim and final dividends available. As the figure below shows, AMP’s dividend has been in decline in recent years.

Figure 1. AMP dividend payments by year

Using $0.14 per share as the basis for analysis, AMP would currently have a dividend yield of 3.07%. So, how does that stack up against other financial services shares on the ASX?

An obvious comparison would be the Aussie banks. The major banks’ dividend yields as at 26 July 2021 are listed in the table below:

Company (Ticker)	Dividend Yield as at 26 July 2021
Commonwealth Bank of Australia (ASX: CBA)	2.50%
Westpac Banking Corp (ASX: WBC)	3.60%
National Australia Bank Ltd. (ASX: NAB)	3.46%
Australia and New Zealand Banking Group Limited (ASX: ANZ)	3.79%
Macquarie Group Ltd (ASX: MQG)	2.98%
Group Average	3.27%

It’s clear that the major banks (including Macquarie) have dividend yields between 2.50% and 3.79%. That would mean a 3.07% dividend yield on AMP shares wouldn’t be too far away from par for the course in the Financials sector.

However, the big if here is whether or not AMP will declare a dividend for 2021. That is far from a certainty given the significant change being undergone and a restructure of the broader AMP umbrella group of businesses.

If AMP could manage a $0.14 per share full-year dividend, that 3.07% dividend yield looks to be roughly in line with many of the large financial services institutions. However, at present, there’s no guarantee of any payment from the Aussie wealth group.

Foolish takeaway

AMP shares have been under pressure for quite some time. Scandals, leadership changes and the 2018 Financial Services Royal Commission have combined to create a challenging environment for the Aussie wealth group.

Investors will be waiting to see what dividend, if any, will be declared by the board. That will then provide a better idea of how AMP measures up against many of its Financials sector peers on the ASX.

The post How does the dividend for AMP (ASX:AMP) shares compare to the financial services sector? appeared first on The Motley Fool Australia.

More reading

• Why the AMP (ASX:AMP) share price will be one to watch today
• The AMP (ASX: AMP) share price is trailing the ASX 200 by 60% over the past year
• AMP (ASX:AMP) share price slides as ASIC ends criminal proceedings
• Here’s why the AMP (ASX:AMP) share price is down 10% in the last month
• AMP (ASX:AMP) share price struggles amid management fee cuts

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The BHP Group Ltd (ASX: BHP) share price has rallied 8.5% in the last month to a close of $51.27 on Friday.

Shareholders in the iron ore major have their eyes set on the previous record high of $51.91, recorded on Friday 16 July.

Why the BHP share price continues to test record highs

The bullish performance of BHP shares has been supported by record-setting movements from the broader equity markets.

Last Friday, the S&P/ASX 200 Index (ASX: XJO) and major US indices, the Dow Jones Industrial Average, S&P 500 and Nasdaq all closed at record highs.

In addition, iron ore spot prices have remained elevated, trading at US$216.03, according to Market Index.

Meanwhile, the Australian Bureau of Statistics has also released preliminary estimates of international merchandise trade, reporting a record $20.49 billion from metalliferous ores.

More specifically, the ABS states: “This is the fourth consecutive record month for metalliferous ores. Driving the increase was iron ore, up $1,043m (6%) to $17,553m. The iron ore increase was primarily price-driven despite recent pressure to reduce prices.”

Iron ore spot prices higher, but Chinese futures lower

While current iron ore spot prices bode well for the BHP share price, futures contracts aren’t looking too rosy.

Iron ore futures contracts on China’s Dalian Commodity Exchange experienced their steepest weekly fall in 17 months last week.

According to Mining.com, “The most active September contract on China’s Dalian Commodity Exchange has fallen roughly 10% from last week, its biggest weekly drop since February 2020.”

“Iron ore’s most-traded August contract on the Singapore Exchange dipped 0.2% to $197.25 a tonne.”

Mining.com reported that China is looking to drive its steel output lower, with authorities asking “steel mills to ensure their output this year will be no more than 2020 volumes, after first-half production rose roughly 12% from the same period last year”.

Foolish Takeaway

While iron ore spot prices have remained higher, China continues to tamper with domestic consumption and supply.

Between May and June this year, China announced plans to increase domestic iron ore production, improve domestic management of commodities and release state reserves to stabilise prices.

During this time, the BHP share price tumbled from highs of $51.74 on 11 May to lows of $45.82 by 21 June.

The post Here’s why the BHP (ASX:BHP) share price is up almost 10% in a month appeared first on The Motley Fool Australia.

More reading

• ASX 200 Weekly Wrap: Just like that… ASX back to record highs
• Zip share price falls, Pilbara Minerals flies. And the BHP share price gets a Tesla bounce. Scott Phillips on Nine’s Late News
• 5 things to watch on the ASX 200 on Friday
• Why BHP, Damstra, Galaxy, & Piedmont Lithium shares are racing higher
• The BHP (ASX:BHP) share price up 3% on Thursday

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Westpac Banking Corp (ASX: WBC) share price is relishing a good year on the ASX.

It’s currently 25.88% higher than it was at the start of 2021 with the company’s shares closing at $24.71 apiece on Friday.

The performance of Westpac shares this year is significantly better than some of its peers on the S&P/ASX 200 Financials Index (ASX: XFJ). Year to date, the financials index has gained 16.49%.

The banking giant is the top performing big bank in 2021 so far. However, Westpac isn’t the top dog of the ASX 200 financials sector.

ASX 200 financial shares in 2021

The ASX 200 financials sector is currently led by Virgin Money UK CDI (ASX: VUK), which has gained 48.94% in 2021.

AUB Group Ltd (ASX: AUB), Janus Henderson Group CDI (ASX: JHG), and Zip Co Ltd (ASX: Z1P) aren’t far off Virgin’s tail, having gained 40.36%, 28.38%, and 26.83% respectively.

The sector’s heaviest weight is AMP Ltd (ASX: AMP), which has fallen 30.13% year to date.

Let’s take a look at what’s been driving the Westpac share price to be one of the five top performing ASX 200 financial stocks of 2021 so far.

Westpac’s year so far

The Westpac share price hasn’t fared well in the past month or so.

Recently, Westpac decided not to demerge its New Zealand banking business, offloaded its life insurance products, copped an $87 million fine, and found potential fraud within its leasing portfolio.

However, prior to these events, it was tracking well.

As The Motley Fool reported last month, Westpac’s 58 cent dividend and $3.44 billion cash profit, reported in its half year results, are likely why the market’s been excited by Westpac.

Additionally, some brokers believe Westpac shares have further to go. On 9 July, Morgans analysts retained their $29.50 price target for Westpac shares.

Westpac share price snapshot

Westpac’s shares have fallen 4.3% in the last month.

Luckily for its shareholders, they’re still 39.45% higher than they were this time last year.

The post How is the Westpac (ASX:WBC) share price performing against the financial services sector? appeared first on The Motley Fool Australia.

More reading

• ASX 200 Weekly Wrap: Just like that… ASX back to record highs
• Westpac (ASX:WBC) share price up despite potential $254 million loss
• Should you buy Westpac (ASX:WBC) shares in July for the dividend yield?
• ANZ’s (ASX:ANZ) $1.5bn buyback puts other ASX 200 banks under capital return spotlight
• Do ASX 200 banks share same BNPL ambitions as Westpac (ASX: WBC)?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended ZIPCOLTD FPO. The Motley Fool Australia has recommended Austbrokers Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Motley Fool Australia Chief Investment Officer Scott Phillips joined Nine’s Late News on Sunday night to explain why JobKeeper (and JobSeeker) should be restored, plus looked ahead to this week’s inflation numbers, and the outlook for unemployment with half of the country in lockdown.

The post Why we should restore JobKeeper, plus inflation and unemployment in focus. Scott Phillips on Nine’s Late News appeared first on The Motley Fool Australia.

More reading

• 6 ASX shares to rocket when COVID Delta passes
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• ASX 200 Weekly Wrap: Just like that… ASX back to record highs
• 2 exciting mid cap ASX growth shares to watch

Motley Fool contributor Scott Phillips has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Delta variant of COVID-19 is reminding all Australians that the pandemic has not passed yet.

With half the nation in lockdown, it sure feels like 2020 all over again.

But for investors, this is the time to pounce on some undervalued ASX shares, according to one expert.

“I generally like to buy and tip quality companies that the market is beating up on,” finance commentator Peter Switzer said on his website.

“And because I’m a long-term investor, I wait for short-term sets against good companies and buy them when others are selling.”

Go for the ‘unpopular’ ASX shares

Sure, there are the evergreen quality names like Wesfarmers Ltd (ASX: WES), Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP). 

But they’re not the ones Switzer would target right now.

“While I think they will go up in price over the next year, I want to now buy the companies that are unpopular because of the coronavirus and the lockdowns.”

Here are half-a-dozen ASX shares that Switzer wants to snap up:

• Qantas Airways Limited (ASX: QAN)
• Webjet Limited (ASX: WEB)
• Appen Ltd (ASX: APX)
• Tyro Payments Ltd (ASX: TYR)
• Zip Co Ltd (ASX: Z1P)
• CSL Limited (ASX: CSL)

The appeal of Qantas to Switzer is obvious.

“It’s badly affected by the virus, the slow vaccinations, the lockdowns and the uncertainty of when life gets back to normal,” he said.

“It’s now priced at $4.53 but the expert company analysts (who get paid to guess future profits and prices of businesses) think Qantas will be a $5.79 stock in the future, which is 27.9% higher!”

Webjet is in a similar position, with Switzer calculating a 16.4% upside among analysts.

“Webjet isn’t one of my blue chip quality companies. It’s a more speculative stock,” he said.

“However, if it can survive these current headwinds, it could become a quality performer.”

Appen is also a bit of a punt, but Switzer reckons there’s money to be made even in the bottom-side scenario.

“The experts think there’s 67% upside! Now these guys could be wrong about this speech data company, but even if they’re only 33% right, that would suggest a 20% upside,” he said.

“The company was a $26 stock before the coronavirus crash, so at $12.50, it could easily see an improved share price as normalcy comes to town.”

Tyro’s payment terminals are highly dependent on physical retail activity, and that can only go up from here.

“As hospitality gets back to normal, Tyro should benefit,” said Switzer.

“Before the crash, Tyro was a $4.38 stock. It’s now $3.40. The analysts see it heading towards $4.04, which suggests there’s a potential 18.5% upside.”

‘Businesses of the future’

Switzer labelled Zip as a “potentially good performer”, while acknowledging the increased competition from giants like the CBA, Paypal Holdings Inc (NASDAQ: PYPL) and Apple Inc (NASDAQ: AAPL).

“I think these are businesses of the future.”

CSL is one of Australia’s “best businesses”, according to Switzer, but has been pummeled by the COVID-19 pandemic.

“Stock price is now at $290. Before the virus, [it] was a $336 stock! If CSL comes back next year, that would be a 16% gain. 

“The company’s biggest profit-maker is collecting plasma in the US, and the virus concerns scared off a lot of its donors who get paid to give blood. As normalcy comes back, demand for blood will rise, and that will be good for CSL’s bottom line.”

Switzer himself put his money where his mouth is, revealing that he has bought all 6 stocks.

“They’re not without their risks but I suspect they’ll be pretty good performers over the next 12 months.”

The post 6 ASX shares to rocket when COVID Delta passes appeared first on The Motley Fool Australia.

More reading

• ASX 200 Weekly Wrap: Just like that… ASX back to record highs
• Why Zip (ASX:Z1P) and this explosive ASX growth share could be buys
• Top brokers name 3 ASX shares to buy next week
• Top brokers name 3 ASX shares to sell next week
• 3 reasons why the CSL (ASX:CSL) share price could be one to look at

Motley Fool contributor Tony Yoo owns shares of Appen Ltd, CSL Ltd., PayPal Holdings, Qantas Airways Limited, and Webjet Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Appen Ltd, Apple, CSL Ltd., PayPal Holdings, Tyro Payments, and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $75 calls on PayPal Holdings, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple. The Motley Fool Australia owns shares of and has recommended Appen Ltd, Webjet Ltd., and Wesfarmers Limited. The Motley Fool Australia has recommended Apple and PayPal Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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