Tag: Motley Fool

Respected fund manager Wilson Asset Management (WAM) has recently identified two ASX shares that it owns in its portfolio.

WAM operates several listed investment companies (LICs). Some focus on larger companies like WAM Leaders Ltd (ASX: WLE) and WAM Research Limited (ASX: WAX).

There’s also one called WAM Capital Limited (ASX: WAM) which targets “the most compelling undervalued growth opportunities in the Australian market.”

The WAM Capital portfolio has delivered an investment return of 16.4% per annum since inception in August 1999, before fees, expenses and taxes. This gross return outperformed the S&P/ASX All Ordinaries Accumulation Index return of 8.4% per annum over the same timeframe.

These are the two ASX shares that WAM Capital outlined in its most recent monthly update:

Link Administration Holdings Ltd (ASX: LNK)

The fund manager explained that Link provides technology-enabled outsourced services for superannuation funds administration and corporation markets, including shareholder management, analytics and share registry services across 11 countries.

It has an underlying stakeholder base of approximately 10 million superannuation account holders and over 30 million individual shareholders globally.

WAM thinks there’s good upside in its 44% stake in Property Exchange Australia Limited (PEXA), it’s Australia’s leading electronic property settlement provider.

The fund manager noted that it has previously announced its intention to maximise value for its shareholders by divesting its holding PEXA.

In the recent half year FY21 result, investors learned that PEXA transaction volumes grew 28% on the previous corresponding period and contributed $18.7 million to the ASX share’s operating net profit after tax and amortisation. PEXA has a market share of over 75% in conveyancing in Australia.

The LIC’s investment team believe that PEXA can expand its technology globally.  

Airtasker Ltd (ASX: ART)

Airtasker isn’t even 10 years old yet, but it listed on the ASX last month and has become Australia’s leading online marketplace for local services with more than 4.3 million registered users according to WAM.

How it works is that the online marketplace connects customers who require a particular task to be completed with those willing to complete a task for payment. There have been approximately 950,000 customers having purchased services on the company’s end to end e-commerce platform from inception to December 2020.

WAM pointed out that Airtasker reported that its unique paying customers had grown from approximately 18,000 in FY15 to approximately 367,000 in FY20, with the average task value increasing from $97 to $159 over that same timeframe.

Thanks to the initial public offering (IPO), the ASX share raised $83.7 million with shares issued at $0.65 per share.

Due to a high level of demand, where the IPO was oversubscribed by five times, the Airtasker share price increased significantly to $1.43 in the first week of trading. However, it has since fallen back to $1.28.

More reading

• Wilson Asset Management to launch new LIC
• 5 things to watch on the ASX 200 on Friday
• 88 Energy and Airtasker were among the most traded ASX shares last week
• Is Canva coming to the ASX?
• The Airtasker (ASX:ART) share price finished 77% higher in March

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

The post Wilson Asset Management (WAM) thinks these 2 ASX shares are a buy appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3g7UzOl

If you’re wanting to add a few dividend shares to your portfolio, then you may want to check out the ones listed below.

Here’s why these ASX dividend shares come be worth a closer look:

BWP Trust (ASX: BWP)

BWP is a real estate investment trust with a focus on commercial properties. These properties are predominantly warehouses that are leased to hardware giant Bunnings Warehouse. In fact, BWP is the largest owner of Bunnings Warehouse properties, with a total of 68 properties in its portfolio.

This focus has proven to be highly successful for BWP during the pandemic. Thanks to the strong performance of Bunnings, BWP has been able to collect rent largely as normal. This led to BWP reporting a decent 6% increase in first half profit to $144 million.

In light of its solid form, BWP intends to pay a full year distribution of ~18.3 cents per share. Based on the current BWP share price, this represents a generous 4.5% dividend yield for income investors.

Wesfarmers Ltd (ASX: WES)

Another quality option for income investors to consider is Wesfarmers. It is of course the owner of the aforementioned Bunnings business. It also owns a sizeable stake in BWP.

While Bunnings was the star performer for Wesfarmers during the first half of FY 2021, its other businesses also performed very positively. Combined, this underpinned a 16.6% increase in revenue to $17,774 million and a 25.5% increase in net profit after tax to $1,414 million.

One broker that believes Wesfarmers is well-placed to continue its positive form is Goldman Sachs. It currently has a buy rating and $59.70 price target on its shares.

The broker is also forecasting a fully franked dividend of $1.88 per share in FY 2021 . Based on the latest Wesfarmers share price, this equates to an attractive 3.4% yield.

More reading

• Is Wesfarmers (ASX:WBC) a great blue chip share buy?
• ASX 200 Weekly Wrap: ASX sees 7,000 points once more
• 2 blue chip ASX dividend shares to buy
• 2 ASX dividend shares with generous yields to buy now
• How are these ASX 200 retail shares tracking after JobKeeper’s end?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 high quality ASX dividend shares for income investors appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3siCejS

Can Vanguard MSCI Index International Shares ETF (ASX: VGS) be a really great investment idea for diversification purposes?

Firstly, let’s look at why Vanguard is an attractive fund provider. Its aim is to provide leading, low-cost investment products. Vanguard’s ownership structure aligns its interests with investors. The investors are the owners of the business, profits are ‘shared’ in the shape of lower management fees. It’s why Vanguard has some of the lowest management fees in the world.

What’s the Vanguard MSCI Index International Shares ETF?

In Vanguard’s words, the exchange-traded fund (ETF) seeks to track the return of the MSCI World Ex-Australia Index. It provides exposure to many of the world’s largest companies listed in major developed countries.

Strong diversification

There are few investments on the ASX that offer the level of global diversification that this ETF does.

It gives more than 1% exposure to ten countries. As you might expect, the largest country weightings are the US (67.6%), Japan (7.9%), the UK (4.4%), France (3.5%), Canada (3.2%), Switzerland (2.9%) and Germany (2.9%).

But that’s just where the business is listed. Apple and Microsoft might be classified as US businesses, however they generate revenue from most of the world. You can make that point about most of the top ten holdings in the ETF’s portfolio:

Apple, Microsoft, Amazon.com, Alphabet, Facebook, Tesla, JPMorgan Chase, Johnson & Johnson, Visa and Walt Disney. Those positions amount to 17.3% of the total portfolio.

But there’s more to the portfolio than just those 10 names. It actually had 1,530 holdings spread across those major developed countries. There are plenty of large non-US shares in there such as Nestle, ASML, Roche, Novartis, LVMH, Toyota, AIA, SoftBank and Shopify.

Looking at the sector allocations, information technology has the largest position with a 22.3% weighting. Financials (13.1%), health care (12.6%), consumer discretionary (12.2%) and industrials (10.6%) are the other sectors with weightings of more than 10%.

Low fees

The Vanguard MSCI Index International Shares ETF has a low management fee of 0.18%, which is a lot cheaper than most active fund managers that you’d find based in Australia, particularly ones that invest in global shares.

Returns

The ETF’s inception date was November 2014. Since then it has delivered a net return of 11.9% per annum. Its other long-term performance returns have also been double digits. Over the last three years it has delivered an average return of 11.2% per annum and over the last five years it has delivered an average return of 12.4% per annum.

Investment statistics

Vanguard MSCI Index International Shares ETF had a price/earnings ratio of 25.6x at 28 February 2021, with a earnings growth rate of 11.8%. The dividend yield had reduced to 1.8%.

However, it also had a return on equity (ROE) ratio of 15.9%.

More reading

• 3 high quality ETFs for ASX investors to buy
• Is Vanguard International Shares ETF (ASX:VGS) the best on the ASX?
• 2 of the top ETFs for diversification
• 2 quality international ETFs for ASX investors to buy
• 2 excellent ETFs for ASX investors to buy now

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Is Vanguard MSCI Index International Shares ETF (ASX:VGS) a strong investment idea for diversification? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3tlFw7c

On Wednesday the S&P/ASX 200 Index (ASX: XJO) was on form and charged higher. The benchmark index rose 0.65% to 7,023.1 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 futures pointing lower

The Australian share market looks set to give back a lot of yesterday’s gain this morning. According to the latest SPI futures, the ASX 200 is poised to open the day 40 points or 0.6% lower. This follows a disappointing night of trade on Wall Street, which saw the Dow Jones rise 0.15%, but the S&P 500 drop 0.4% and the Nasdaq tumble 1% lower.

Zip capital raising

The Zip Co Ltd (ASX: Z1P) share price could return from its trading halt today after announcing the details of its capital raising. The buy now pay later provider is aiming to raise A$400 million via senior unsecured convertible notes due in 2028. The additional capital from the offering will be used to support the active pursuit of both core and international growth opportunities.

Oil prices jump

Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a strong day today after oil prices jumped. According to Bloomberg, the WTI crude oil price is up 4.6% to US$62.94 a barrel and the Brent crude oil price has stormed 4.3% higher to US$66.41 a barrel. Increasing demand and a decline in inventories helped drive prices higher.

Gold price falls

Gold miners Newcrest Mining Ltd (ASX: NCM) and Resolute Mining Limited (ASX: RSG) could trade lower today after the gold price softened. According to CNBC, the spot gold price is down 0.6% to US$1,736.90 an ounce. Firmer bond yields have been weighing on the safe haven asset.

Bank of Queensland half year results

The Bank of Queensland Limited (ASX: BOQ) share price will be on watch today when it hands in its half year results. According to a note out of Goldman Sachs, its analysts are expecting the bank to report cash earnings of $164 million. This will be an increase of 9% over the prior corresponding period. The broker expects this to allow the Bank of Queensland board to declare a fully franked interim dividend of 17 cents per share.

More reading

• ASX 200 rises above 7,000, Resolute Mining soars, Galaxy jumps
• 2 outstanding ASX growth shares to buy now
• Could the Galaxy (ASX:GXY) share price be next to raise capital after Zip (ASX:Z1P)?
• Why the Zip (ASX:Z1P) share price is in a trading halt
• 3 latest ASX shares that top brokers have upgraded to “buy” 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 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.

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3g5D1SW

Are you planing to add some more ASX shares to your portfolio?

Three ASX shares that could be worth considering this month are listed below. Here’s what you need to know about them:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The first ASX share to look at is Domino’s. The pizza chain operator could be a good option for investors due to its strong long term growth outlook. At the end of the first half, Domino’s had a network of 2,800 stores. But it isn’t settling for this and is now aiming to grow its network organically to 5,500 stores by 2033. Management is also looking for possible acquisitions, which would increase its footprint even further. Combined with its same store sales growth target, Domino’s looks well-placed for growth over the long term.

Morgans currently has an add rating and $119.00 price target on the company’s shares.

Kogan.com Ltd (ASX: KGN)

Kogan is another option to consider. The leading ecommerce company has been growing very strongly due to the shift to online shopping. For example, during the first half of FY 2021, Kogan delivered a 97.4% increase in gross sales to $638.2 million and a 250.2% jump in adjusted net profit after tax to $36.5 million. While its growth will inevitably moderate once the pandemic passes, its long term outlook remains very favourable.

Credit Suisse has an outperform rating and $20.85 price target on its shares.

Nearmap Ltd (ASX: NEA)

Another option to consider is Nearmap. It is a growing aerial imagery technology and location data company. It provides businesses in the ANZ and North American markets with instant access to high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools. Management is confident in its growth trajectory and is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term.

Goldman Sachs currently has a buy rating and $2.95 price target on Nearmap’s shares.

More reading

• This could be boosting the Kogan (ASX:KGN) share price today
• The stock that I’d hold for the next 5 years: fundie
• 2 rapidly growing ASX shares to buy
• 2 outstanding ASX tech shares to buy
• Got money to invest for income? Here are 2 ASX dividend shares

James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended Nanosonics Limited and Nearmap Ltd. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 3 top ASX shares to buy this week appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3tcAqdz

If you’re wanting to build your wealth over the long term, then you’ll no doubt be on the lookout for some quality buy and hold options.

If that is the case, then you might want to look at the ASX shares listed below. Here’s why they could be excellent buy and hold investments:

Nanosonics Ltd (ASX: NAN)

Nanosonics could be a good buy and hold option for investors. This is due to the strength of the infection control specialist’s core business and its bold growth plans.

At present, Nanosonics is a one-trick pony. It derives all of its revenue from the sale of its industry-leading trophon EPR disinfection system for ultrasound probes and the consumable products the system requires.

While this is a lucrative operation and has been generating significant revenue, it does have its limitations. The good news is that Nanosonics has been busy over the last few years working on several new technologies that are targeting unmet needs. These are believed to have similar addressable markets to the trophon product.

Although progress has been very slow (management has promised new product launches for years and not delivered), the first launch appears to be finally on the horizon now. If this, and the other launches prove successful, they could underpin strong revenue growth for the next decade and beyond. Especially given the increasing importance of infection control following the pandemic.

Analysts at UBS are positive on the company. They currently have a buy rating and $7.20 price target on its shares. UBS believes Nanosonics is a high-quality structural growth story, particularly in a post-COVID world.

ResMed Inc. (ASX: RMD)

Another buy and hold option to consider is ResMed. It is a sleep treatment focused medical device company that has been growing at a consistently strong rate over the last decade.

Pleasingly, the company looks well-placed to continue this strong form long into the future. This is thanks to its world-class products, its growing cloud business, and its large addressable market. 

With education around sleep disorders increasing, more and more sufferers are seeking treatment options. This puts ResMed in a great position to benefit. As does the structural shift to home healthcare, according to Credit Suisse.

Its analysts believe the company’s increased investment in its out-of-hospital platforms leaves it uniquely placed to benefit from consumers’ pandemic-driven shift to home healthcare.

Credit Suisse currently has an outperform rating and $29.50 price target on its shares.

More reading

• 2 brilliant blue chip ASX 200 shares to buy
• Aussie dollar tipped to weaken and this ASX share stands to gain the most
• 2 beaten down ASX tech shares to buy this week
• 3 five-star ASX shares to buy in April
• 3 outstanding ASX shares to buy and hold

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 Nanosonics Limited. The Motley Fool Australia has recommended Nanosonics Limited and ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 quality ASX shares to buy and hold for a very long time appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3tgTFTb

The Origin Energy Ltd (ASX: ORG) share price ended Wednesday’s session higher. The upward tick comes as the company announced a new collaboration on a green hydrogen project.

At close of trade today, shares in the energy supplier were changing hands at $4.69 – up 0.64%. Similarly, the S&P/ASX 200 Index (ASX: XJO) finished the day 0.66% higher.

Let’s take a closer look at today’s announcement.

Origin share price in the green

The Origin share price increased at a slightly lower rate than the general market today. That’s despite today’s news that Origin and Kawasaki Heavy Industries Ltd have signed a memorandum of understanding (MoU) with the Queensland Government-owned Port of Townsville.

The MoU covers a “300MW early export project that would produce 36,500 tonnes per annum of green liquid hydrogen using renewable energy and sustainable water”. In the statement, Origin said it expects the first liquified hydrogen exports from the port to begin in the mid-2020s.

Work will now commence on accommodating Kawasaki’s semi-commercial scale liquid hydrogen carriers at the port. As well, the statement advised the three parties are considering ways of sharing infrastructure with other users at the Port of Townsville.

What is green hydrogen?

Green hydrogen is the process that separates hydrogen molecules from water. This is achieved using a process known as electrolysis. Electrolysis is when a strong jolt of electricity (generated with solar panels) is zapped into a tank of water, separating the hydrogen molecules from the oxygen ones. The hydrogen is then liquified for export and use in power generation.

The process involves zero emissions, hence the ‘green’ moniker. Many ASX shares involved with greener energy production, such as lithium miners, have boomed over the past year as the world transitions to less reliance on fossil fuels. Shareholders will no doubt be hoping the company’s continued involvement with green hydrogen will bode well for the Origin share price.

Management commentary

Origin Future Fuels general manager Felicity Underhill said of today’s news:

Townsville is ideally placed to develop a liquid hydrogen facility due to its deep-water port, industrial-zoned land, availability of skilled workers and nearby renewable energy and sustainable water resources.

There will be significant export demand for green hydrogen coming from Asia in the 2030s and even sooner from Japan in the mid-2020s and our proximity to these markets and abundance of clean renewable resources puts Australia in pole position to be a global leader in hydrogen.

This is one of the most advanced commercial scale green liquid hydrogen projects in the world, and we and our partners are looking forward to commencing front end engineering and design (FEED) this calendar year.

Origin share price snapshot

Over the past year, the Origin share price has depreciated by almost 10% and has fallen by 1.47% since the beginning of this year. Competitor AGL Energy Ltd (ASX: AGL) has seen its value fall by 47% over the last 12 months. 

Origin Energy has a market capitalisation of $8.2 billion and, based on the current share price, offers a dividend yield of 4.8%.

More reading

• Buru Energy (ASX:BRU) share price jumps 6% on Canning Basin project
• Top brokers name 3 ASX shares to sell next week
• Top brokers name 3 ASX shares to sell today
• Why AGL, Bubs, Harvey Norman, & Openpay are tumbling lower
• 7 reasons the AGL (ASX:AGL) demerger might be bad for its share price

Motley Fool contributor Marc Sidarous 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.

The post Origin (ASX:ORG) share price edges higher after hydrogen update appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/32d0sS6

The S&P/ASX 200 Index (ASX: XJO) went above 7,000 points today, rising by 0.66% to 7,023 points.

Here are some of the main highlights from the ASX:

Resolute Mining Limited (ASX: RSG)

The strongest performer within the ASX 200 today was the share price of Resolute Mining after making an announcement regarding the Bibiani mining lease. It went up by around 15%.

Ghana’s Minister for Lands and Natural Resources, Samuel Jinapor, notified the company that the mining lease for the Bibiani Gold Mine has been restored.

He made this decision having regard to Ghana’s standing as the largest gold producer in Africa and among the top seven producers in the world, and the need to maintain investor confidence globally and in particular maintain Ghana’s reputation as the preferred destination for mining investment in Africa.

However, Resolute Mining must agree to a number of conditions for the mining lease to be restored.

The miner noted that one of the things the Ghanaian government said was that it objects to the purported sale or transfer to Chifeng and the creation of any interest in the mine to Chifeng or any third party will be deemed invalid without the express prior approval of the government.

Resolute said that it intends to comply with the conditions imposed by the Minister.

The interim CEO of Resolute Mining, Mr Stuart Gale, said:

We are very pleased to have come back to a quick and amicable resolution which provides clarity and confirmation of Mensin Gold Bibiani Limited (MGBL)’s mining lease at the Bibiani Gold Mine. I would like to thank the Minister for his leadership and co-operation on this matter and we look forward to working with him and the Minerals Commission to identify a development option at Bibiani which sees the mine resuming production as quickly as possible for the benefit of all stakeholders.

Vitalharvest Freehold Trust (ASX: VTH)

The Vitalharvest share price went up again today as the bidding war to buy it continued.

After the latest proposal from Roc to buy the units of Vitalharvest at $1.16 per share, or the assets for $329.6 million, Macquarie Group Ltd’s (ASX: MQG) Agricultural Funds Management (as trustee of the Macquarie Agriculture Fund – Crop Australia 2) decided to increase its offer from $1.12 per unit to $1.16 per unit, or the assets for $329.6 million.

The board will now yet again assess whether the Macquarie offer is the same or better than the improved Roc offer.

Galaxy Resources Limited (ASX: GXY)

The Galaxy Resources share price rose 8.3% today after giving a Sal de Vida resource and reserve update.

It has carried out an assessment of hydrogeological data from the drilling of two production wells leads, which has resulted in an increase in the resources and reserves.

The lithium miner announced a revised brine resource of 6.2 million tonnes of lithium carbonate equivalent (LCE), a 27% increase from the prior estimate.

Galaxy Resources said the revised reserve estimate was 1.3 million tonnes of recoverable LCE, a 13% increase.

The materials business said that higher grade brine was recovered in both wells.

The company said that production drilling will continue to test the aquifer at depth and a further update to the resource and reserve is expected in the third quarter of 2021.

More reading

• Could the Galaxy (ASX:GXY) share price be next to raise capital after Zip (ASX:Z1P)?
• Why the Vitalharvest (ASX:VTH) share price is up 21% in 2021
• 3 latest ASX shares that top brokers have upgraded to “buy” today
• Why BrainChip, Dubber, Galaxy, & Resolute shares are charging higher
• This could be boosting the Kogan (ASX:KGN) share price today

Motley Fool contributor Tristan Harrison 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.

The post ASX 200 rises above 7,000, Resolute Mining soars, Galaxy jumps appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3dhnk9y

The Cash Converters International Ltd (ASX: CCV) share price has laid flat for most of the day. The lack of movement follows the second-hand retailer and personal loan provider releasing its latest trading update for the third quarter. Coincidentally, Wisr Ltd (ASX: WZR) released its own quarterly update this morning which seems to have outshined Cash Converters results.

At the time of writing, the Cash Converters share price is 4.44% higher at 24 cents a share. Meanwhile, the Wisr share price is 6.7% higher to 24 cents a share. 

Cash Converters third-quarter update

Continued momentum in the rebounding economy has been music to the lender’s ears. Improved consumer confidence typically correlates with an increase in taking on various forms of debt. Whether that’s home loans, vehicles, or personal loans. This is evident in Cashies’ latest update, with Cash Converters managing director, Sam Budiselik commenting:

As observed in our H1 FY 2021 results our core business segments have continued to recover in-line with Australia’s ongoing economic recovery. Our secured vehicle finance and pawnbroking products, alongside our unsecured personal loan products, continue to meet the credit demand among the millions of Australians excluded from the mainstream financial system. Meanwhile, our unique secondhand retail offering continues to appeal to value and environmentally conscious consumers.

The company reported momentum across all loan products, except for its vehicle financing business. This was due to an intentional decision to reposition the vehicle financing business. The impact on loan originations is expected to be short-lived. Following a refresh, the vehicle financing unit began recovering towards the end of the quarter. 

On a positive note, the combined loan book experienced an 8% lift from the previous quarter. Medium amount credit contracts (MACCs) contributed substantially to the company’s loan book growth, with a 26% increase to $38 million in value. Additionally, small amount credit contracts (SACCs) grew a further 10% to $63.1 million. Cash Converters noted a deliberate shift away from SACCs being its biggest segment of loans, at 39% of the entire loan book. This is due to the ongoing review of legislation surrounding SACC. As a result, the company plans to continue decreasing its reliance on the SACC book. 

Wisr steals the share price excitement

The lack of movement in Cash Converters could be attributed to Wisr releasing more impressive growth figures. The non-bank lender expanded its loan book significantly in the last quarter, increasing 17% to a total of $488.3 million. This compares to Cashies’ increase of 8% to a total loan book value of $163.1 million. 

In addition, Wisr really pushed the point that its grown loan originations for 19 quarters consecutively. Comparatively, Cash Converters has been on a bumpier ride. The company’s loan book actually fell in value for the prior three quarters. That’s right, Cash Converters broke a losing streak today — while Wisr extended a lengthy winning streak. 

A bit of extra salt in the wound for Cash Converters… While its vehicle financing business is in decline, Wisr’s vehicle product delivered growth ahead of expectations. In fact, Wisr added $21.9 million in secured vehicle loans, while Cashies lost $2.9 million. 

Comparing performance

Both of these non-bank lenders have delivered outperformance compared to the S&P/ASX 200 Index (ASX: XJO) over the past year. However, Wisr takes the trophy — adding 81.5% to the Wisr share price in that timeframe. Lagging behind, Cash Converters delivered a 53.3% share price increase in the past 12 months. 

More reading

• Why the Wisr (ASX:WZR) share price is on the move
• Why the Wisr (ASX:WZR) share price is on watch
• Small and mid cap ASX shares going ex-dividend this week
• Wisr (ASX:WZR) share price jumps on strong trading update

Motley Fool contributor Mitchell Lawler 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.

The post Wisr outshines Cash Converters (ASX:CCV) share price on loan book updates appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3thlhrf

If you want to build a balanced portfolio, having a few blue chip ASX shares would be a smart move.

But with so many to choose from, it can be hard to decide which ones to buy. To narrow things down for you, I have picked out two ASX blue chip shares that are highly rated:

Goodman Group (ASX: GMG)

Goodman Group is a leading integrated commercial and industrial property company with operations across the world. Among its portfolio are warehouses, large scale logistics facilities, and business and office parks. 

At the last count, Goodman had $51.8 billion of total assets under management globally, 369 properties under management, and over 1,600 customers. Among the latter are the likes of Amazon, Coles Group Ltd (ASX: COL), DHL, Showpo, and Walmart.

Pleasingly, it has been growing at a strong rate over the last decade and even during the pandemic. This is thanks to its focus on investing in and developing high quality industrial properties in strategic locations.

It chooses locations that are close to large urban populations and in and around major gateway cities globally. This is where demand is strong and transformational changes are driving significant opportunities. This strategy has been delivering consistently strong returns, much to delight of shareholders.

Morgan Stanley appears confident the positive form can continue. It has an overweight rating and $20.90 price target on its shares.

Telstra Corporation Ltd (ASX: TLS)

A second blue chip ASX share to look at is Telstra. It could be a blue chip to buy thanks to its attractive valuation and the positive progress it is making with its T22 strategy.

Telstra’s T22 strategy is creating a much leaner business and one which is expected to return to growth in the not so distant future. In fact, the company’s CEO, Andy Penn, is targeting mid to high single digit operating earnings growth next year.

In February he commented: “I am confident the many initiatives we have taken under our T22 program, particularly in simplifying the business and the digitisation program, will further improve customer experience. To get the real benefits from all the effort we’ve already made, Telstra needs to be bold. I’ve set an aspiration for mid to high single-digit growth in underlying EBITDA in FY22 and $7.5 to $8.5 billion of underlying EBITDA in FY23. I am confident we can deliver this if we remain focused.”

Another positive is that Telstra is looking to unlock value by monetising assets and splitting into three separate entities.

Ord Minnett is a fan of the plan and believes the Telstra share price is in the buy zone. It currently has a buy rating and $4.05 price target on its shares.

More reading

• 4 reliable ASX dividend shares to buy for income
• Why focus could soon shift to dividend upgrades for the Telstra (ASX:TLS) share price
• Telstra (ASX:TLS) share price hits new 8-month high
• How this ASX ETF is battling the biggest threat to Australian business growth
• ASX 200 Weekly Wrap: ASX sees 7,000 points once more

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 fantastic blue chip ASX shares to buy in April appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3spwWmZ