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There are a good number of blue chip ASX shares for investors to choose from on the Australian share market.

In order to narrow things down, I have picked out two that are rated as buys. Here’s what you need to know about them:

CSL Limited (ASX: CSL)

CSL is one of the world’s leading biotechnology companies. It manufactures and develops a portfolio of leading therapies and vaccines. This includes flu vaccines, immunoglobulins, and countless other plasma-based products.

Given its reliance on plasma for many of its products, the company has built a wide-reaching plasma collection network. And while this network is currently experiencing difficulties because of COVID-19, collections are expected to rebound strongly once the pandemic passes.

In light of this, the weakness in the CSL share price due to concerns about its collections appears to be a buying opportunity.

That’s the view of analysts at Morgans and Citi. This week both brokers have upgraded CSL’s shares to the equivalent of buy ratings. Morgans has a $301.10 price target and Citi has a $310.00 price target. This compares very favourably to the latest CSL share price of $253.90.

Goodman Group (ASX: GMG)

Another blue chip ASX share to look at is Goodman Group. It is an integrated commercial and industrial property group that owns, develops, and manages industrial real estate across the world.

It has been a strong performer over the last few years thanks to its expertly curated portfolio of properties. This includes properties with exposure to in-demand sectors such as e-commerce and data centres.

This led to Goodman recently releasing a strong half year result. For the six months ended 31 December, it reported a 16% increase in operating profit to $614.9 million. This was driven by a combination of new developments, strong demand, and like-for-like net property income growth.

One broker that was pleased with its result was Macquarie. In response to the release, it upgraded Goodman’s shares to an outperform rating with an improved price target of $20.39. This compares to the latest Goodman share price of $16.44.

More reading

• Top brokers name 3 ASX shares to buy today
• Could the CSL (ASX:CSL) share price get back on track in 2021?
• CSL (ASX:CSL) share price green on CEO’s Summit address
• IOUpay and Zip were among the most traded ASX shares last week
• How the CSL (ASX:CSL) share price weakness exposes its dividend strength

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 CSL Ltd. 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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S&P/ASX 200 Index (ASX: XJO) copper shares will be among those to enjoy a healthy tailwind as the growth of global electric vehicle (EV) adoption picks up pace.

That’s because copper, thanks to its high conductivity, is one of the key metals used in the batteries that give EVs their power. As EV numbers balloon, so too should the demand for copper.

Living in Australia, it’s easy to overlook the reality that EVs are set to replace combustion engine vehicles over the next few decades. Australia, to date, has amongst the lowest levels of EVs on the road per capita of any developed nation.

Part of Aussies’ reluctance to give up their good old petrol motors is range anxiety. It’s a big country, and you don’t want to have to be stopping every 200 kilometres for a lengthy recharge.

Another big hurdle, both in Australia and elsewhere, is the higher price tag EVs demand.

Many companies are busy working to provide longer battery life and more rapid charging technology. And now the price of EVs is plummeting in China.

EV sales to skyrocket

As Bloomberg reports, Chinese EV company Hozon Auto is selling cars that run on electric motors and batteries for US$10,000 (AU$13,000). And that hugely reduced price tag is likely to see a rapid uptake in the Middle Kingdom.

Bloomberg NEF analyst Siyi Mi says, “These ultracheap EVs are reaching a new customer in China, as they likely will in other markets as prices come down.”

According the BNEF:

EV prices are on track to reach parity with fossil fuel-powered cars in the next four to six years, at which point annual sales will start to skyrocket, reaching 25 million in 2030, up from about 2 million a year currently.

And these super cheap EVs are already outpacing some Tesla Inc (NASDAQ: TSLA) sales numbers.

Bloomberg notes that:

In the month after the Hongguang Mini EV made its debut in July it was the top-selling new-energy vehicle in China, with 15,000 units sold. In September its sales hit more than 20,000, almost double that of Tesla Inc.’s Model 3 that month.

ASX 200 copper shares

Among the heavy hitters in Australian copper companies is ASX 200 copper share Oz Minerals Ltd (ASX: OZL), with a market cap of $7.2 billion.

At the current $21.43 per share, Oz Minerals shares are trading near 13 year highs. That milestone was first achieved on 18 February when the copper producer reported a 30% increase in net profit for the full 2020 financial year.

Over the past 12 months the Oz Minerals share price is up 190%. By comparison the ASX 200 has gained 27% in that same time.

More reading

• Could the Tesla (NASDAQ:TSLA) camera hack lift ASX cybersecurity shares?
• 5 things to watch on the ASX 200 on Thursday
• Tesla stock soars 20%: Is now a good time to buy?
• Here are the US shares ASX investors have been buying
• The tech-heavy Nasdaq is now in a correction!

Bernd Struben 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 Tesla. 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 S&P/ASX 200 Index (ASX: XJO) was essentially flat today, it fell a tiny bit to 6,714 points.

One of the main pieces of news today was the government’s announced a plan to continue to help the airline sector, whilst also indirectly boosting other parts of the country and economy.

Here are some of the highlights from the ASX today:

Flight Centre Travel Group Ltd (ASX: FLT) and other ASX travel shares

The Flight Centre share price has gone up more than 10% today as the market reacted to the news that the travel industry was going to get more government support.

As reported by the ABC and all other major media, the government is going to support low airline tickets. There will be approximately 800,000 half-price airline tickets in a package worth more than $1 billion.

The idea is to help destinations that are losing out due to the lack of international travellers.

Some of the places that will benefit from cheaper tickets include the Gold Coast, Cairns, the Whitsundays and the Mackay region, Alice Springs and Uluru, Launceston and Broome.

The discounts will be based on the average air fare based on February 2021 prices and the airlines have said they won’t put up prices.

Deputy Prime Minister Michael McCormack said:

I’ve had long discussions with both Alan Joyce and Jane Hrdlicka from Qantas and Virgin respectively, they’re not going to do that. Of course the ACCC (Australian Competition and Consumer Commission) has been monitoring air prices right throughout the pandemic and making sure that it is as what it should be.

However, the catch for the states is that border closures should be kept open apart from a last resort.

Plenty of other ASX 200 travel shares went up – the Qantas Airways Limited (ASX: QAN) share price grew 2%, the Sydney Airport Holdings Pty Ltd (ASX: SYD) share price rose 2%, the Webjet Limited (ASX: WEB) share price climbed 3% and the Corporate Travel Management Ltd (ASX: CTD) share price grew 3.3%.

The smaller listed travel agent business called Helloworld Travel Ltd (ASX: HLO) also benefited, with the share price climbing by around 4%.

Vitalharvest Freehold Trust (ASX: VTH)

The Vitalharvest share price grew by another 2% as the business benefited from an increased takeover offer.

It announced today that Macquarie Agricultural Funds Management Limited – as trustee of Macquarie Agricultural Fund – Crop Australia 2 (MAFM) – has agreed to buy all of the issued units of Vitalharvest Freehold Trust for $1.08 per unit.

MAFM has also agreed to extend the waiver it granted previously to permit the payment of a distribution to unitholders of 2.5 cents per Vitalharvest unit from rent received for the half year ended 31 December 2020, subject to certain conditions.

The board recommended that unitholders vote in favour of this deal because it’s likely to provide an equivalent or superior outcome for Vitalharvest unitholders compared to the Roc Private Equity offer. However, it’s still possible that an alternative superior proposal could come about.

Afterpay Ltd (ASX: APT) share price sold down further

The Afterpay share price was one of the worst performers in the ASX 200. It dropped by over 5% today as it continued its decline.

Over the last month the Afterpay share price has fallen by almost 30%.

Other buy now, pay later businesses also dropped today including the Sezzle Inc (ASX: SZL) share price which fell 1.8%, the Zip Co Ltd (ASX: Z1P) share price which dropped 0.4% and the Splitit Ltd (ASX: SPT) share price which fell 1.5%. The Ioupay Ltd (ASX: IOU) share price fell 8.6%.

More reading

• 3 blue chip ASX shares with dividend yields over 5% today
• Top brokers name 3 ASX shares to sell today
• Will the Afterpay (ASX:APT) share price bounce back?
• The Zip (ASX:Z1P) share price just keeps on falling
• Should the JobKeeper payment be replaced with discounted airfares?

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 ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and Webjet Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Sezzle Inc. 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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As if the cyber attacks launched by China last week and by Russia 3 months ago weren’t enough for governments, businesses and households to contend with, now a collective of private hackers is targeting CCTV cameras around the globe.

(You can find more details on the Chinese and Russian sponsored hacking attacks here.)

While the latest private cyber infiltration is another headache for the targeted organisations and companies, including Tesla Inc (NASDAQ: TSLA), it could provide another tailwind for ASX cybersecurity shares as their services come under increasing demand.

What did the hackers target this time?

As Bloomberg reports, “an international hacker collective” is responsible for the most recent large-scale cyber breach. The group wanted to demonstrate the widespread use of CCTV across the world, and how easily those videos could be accessed by outside sources.

Their target was Silicon Valley-based Verkada Inc, in the US state of California. And they accessed “live feeds of 150,000 surveillance cameras inside hospitals, companies, police departments, prisons and schools.” The cyber criminals also reported they have access to Verkada customers’ entire video archives.

The video access obtained within prisons, schools and hospitals is likely the most sensitive from a privacy standpoint. But the biggest name target was Elon Musk’s own Tesla. According to Bloomberg: “Another video, shot inside a Tesla warehouse in Shanghai, shows workers on an assembly line. The hackers said they obtained access to 222 cameras in Tesla factories and warehouses.”

With the explosive growth of CCTV cameras (just look up the next time you’re at the servo, grocery store or aboard public transport) it’s no longer just Big Brother watching us. These hackers look to have a front-row seat as well.

ASX cybersecurity ETF share snapshot

ASX investors looking for exposure to a basket of 40 international cybersecurity shares may want to investigate the Betashares Global Cybersecurity ETF (ASX: HACK).

The exchange traded fund (ETF) doesn’t hold any ASX listed cybersecurity shares, as those are all microcap shares… for now. Instead, it holds industry heavyweights like Crowdstrike Holding Inc (NASDAQ: CRWD) as its largest holding. Crowdstrike has a market cap of US$43 billion (A$56 billion).

The HACK share price, down 0.1% today, is up 21.9% over the past 12 months.

More reading

• Chinese and Russian hack attacks put ASX cybersecurity shares in spotlight
• Tesla stock soars 20%: Is now a good time to buy?
• Here are the US shares ASX investors have been buying
• The tech-heavy Nasdaq is now in a correction!
• Why Tesla Stock Fell Further on Monday

Bernd Struben 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 CrowdStrike Holdings, Inc. and Tesla. The Motley Fool Australia owns shares of BETA CYBER ETF UNITS. 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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Warren Buffett – chair and CEO of the giant conglomerate Berkshire Hathaway Inc (NYSE: BRK.A) (NYSE: BRK.B) has been known for decades as one of the world’s richest people. He even spent quite a stint as the richest person in the world some years ago.

In recent years, Buffett has been taken over in net worth terms by some of the younger tech investors we have all come to know, such as Amazon.com Inc (NASDAQ: AMZN) founder Jeff Bezos.

But Buffett is far from a spent force – in fact, his wealth is on the move up again. According to a report from the Australian Financial Review (AFR) today, Mr Buffett’s fortune has surged above the US$100 billion mark in recent weeks.

The primary catalyst for this move is the share price of Berkshire Hathaway rising steadily over that time. As the AFR pointed out, last night (our time) saw the monumentally expensive Berkshire Class A shares surge above US$400,000 for the first time ever (no, that’s not a typo) during intra-day trading in the United States.

Buffett reportedly owns a handy 248,734 of these Class A shares. If you’re wondering how a share could be so expensive, it’s because Berkshire has never initiated a stock split since Buffett took the helm in the mid-1960s. That’s the power of compound interest, folks!

Luckily for the vast majority of us who can’t afford to fork out 400k on a single share, Berkshire’s Class B shares trade at the far more accessible price of US$263.99 at the most recent close. But I digress.

Berkshire’s monster portfolio

Berkshire is a conglomerate. As such, the value of the company as a whole is largely determined by the sum of its parts. And many of the companies Berkshire has a major stake in have been performing very well in recent weeks (sometimes it pays not to own too much tech). These companies include Apple Inc (NASDAQ: AAPL), Coca-Cola Co (NYSE: KO), American Express Company (NSE: AXP) and Bank of America Corp (NYSE: BAC). Berkshire’s market capitalisation is now approximately US$608.16 billion.

Berkshire also owns a vast portfolio of entire and/or unlisted businesses like GEICO, Duracell, Dairy Queen and BNSF Railroad Company.

But while Buffett’s star has been on the rise, another top billionaire’s has been (slightly) dimming. Elon Musk spent a few weeks over the past few months as titleholder of the ‘world’s richest person’. Musk is the famous (or infamous, depending on your view) CEO of electric vehicle and battery manufacturer Tesla Inc (NASDAQ: TSLA).

But according to Forbes’ Billionaires List, Musk is firmly back in second place today behind Jeff Bezos. His fortune is currently estimated at US$165.1 billion against Mr Bezos’s US$179.6 billion. First world problems!

More reading

• Warren Buffett’s share portfolio revealed!
• Here’s why Warren Buffett prefers buybacks to dividends
• Warren Buffett just told us to stay away from this asset class
• 3 key takeaways from Warren Buffett’s latest letter to shareholders
• Robinhood fires back at Berkshire Hathaway’s Charlie Munger over criticism

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of American Express, Coca-Cola, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon, Apple, Berkshire Hathaway (B shares), and Tesla and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2023 $130 calls on Apple, short March 2021 $225 calls on Berkshire Hathaway (B shares), long January 2022 $1920 calls on Amazon, long March 2023 $120 calls on Apple, short January 2022 $1940 calls on Amazon, and long January 2023 $200 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Amazon, Apple, and Berkshire Hathaway (B shares). 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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When it comes to the S&P/ASX 200 Index (ASX: XJO) our collective love of dividends dictates that our blue chip shares are normally committed dividend payers. That stands in stark contrast to the United States, where many of the biggest companies don’t even pay a dividend.

But in this post-COVID world, choosing quality dividend shares has never been more nuanced. A few years ago, it would have been unthinkable to most investors that the ASX banks would have trailing dividend yields under 2%. Yet today, Westpac Banking Corp (ASX: WBC) shares offer a trailing yield of just 1.27% on current pricing.

So here are 3 ASX dividend shares that offer a whole lot more. Each of these has a grossed-up trailing yield of 5% or greater today:

3 blue chip ASX dividend shares with yields over 5% today

Telstra Corporation Ltd (ASX: TLS)

Telstra has long been a favourite of the ASX dividend investor. And 2020 proved its worth in that regard. Unlike many ASX 200 shares, Telstra did not cut its dividend last year, holding its payouts steady at 16 cents per share. And since Telstra’s share price has been steadily falling over the past month or so, the yield of this dividend has been growing. At today’s share price (at the time of writing) of $3.04, Telstra is offering a dividend yield of 5.26%, or 7.51% grossed-up with Telstra’s full franking. The company’s management has committed to once again pay out 16 cents per share in dividends in 2021 as well.

Coles Group Ltd (ASX: COL)

Coles was one of the ASX companies that arguably benefitted from the pandemic last year. We all know about the infamous panic hoarding that went on in 2020, after all. Coles’ robust results in 2020 allowed this supermarket company to actually increase its dividend last year, and again just last month. Like Telstra, Coles shares have also been falling over the past month or so. That gives Coles’ dividend a yield worth 3.93% on current pricing, or 5.61% grossed-up with full franking.

BHP Group Ltd (ASX: BHP)

BHP has had a pretty good run over the past few months and has recently just broken its all-time high share price. Not bad for an ASX 200 company that was founded in 1851!

BHP has been benefitting enormously from rising commodity prices. Three of its four ‘pillar commodities’ in iron ore, oil and copper have all seen healthy price rises in recent months. And if BHP is selling its commodities for higher prices, naturally there is more cash around for dividends. On the current BHP share price, the ‘Big Australian’ has a trailing dividend yield of 4.42%, which grosses-up to 6.31% with full franking.

More reading

• Peter Costello thinks this will spark the next ASX market crash
• Is it ok to buy ASX 200 shares at a 52-week high?
• ASX 200 down 0.9%: Flight Centre & Webjet jump, Afterpay sinks
• 5 things to watch on the ASX 200 on Thursday
• Early Yallourn power station closure sets the pace for ASX energy sector shakeup

Motley Fool contributor Sebastian Bowen owns shares of Telstra Limited. 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.

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One area of the market which is filled with a number of quality options for growth investors is the mid cap space.

But as there are so many to choose from, I thought I would narrow things down by picking out one highly rated mid cap share. It is Bravura Solutions Ltd (ASX: BVS).

Why Bravura Solutions?

Bravura is a financial technology company with a growing portfolio of software solutions. This includes the popular Sonata wealth management platform and the Midwinter financial planning software platform.

In addition to this, its FinoComp business builds unique, registry-agnostic and highly flexible software that supports the UK wealth market and its Delta Financial Systems business provides technology to power complex pensions administration in the UK market.

Unfortunately, FY 2021 has been a very difficult year for Bravura because of the pandemic and Brexit. In light of this, a weak full year result is expected from the company this year.

However, analysts at Goldman Sachs believe this is a short term headwind and are expecting its performance to rebound in FY 2022. As a result, it recently held firm with its buy rating and put a $3.70 price target on Bravura’s shares.

Based on the latest Bravura share price of $2.68, this implies potential upside of 38% over the next 12 months.

Why does Goldman think the Bravura share price can go higher?

There are four key reasons why Goldman Sachs is positive on the company and expects the Bravura share price to push meaningfully higher. It explained:

“We believe BVS is well positioned due to: 1) its strong market position in existing product offering, with a high degree of recurring revenues (1H21 86%), 2) the emerging microservices ecosystem strategy will help transform the business to subscription-based model and should increase BVS’s scope and velocity of sales, 3) a net cash position provides BVS with a buffer in the current environment, but also gives the company flexibility to invest in the new microservices ecosystem and pursue acquisitions, and 4) the valuation looks undemanding, with the stock trading at the bottom of its historical relative P/E and EV/EBITDA range.”

In addition to this, Bravura could be an option for income investors to consider.

Goldman estimates that its shares offer a 3.9% FY 2022 dividend yield. This is materially more than anything you’ll find with term deposits right now.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• The Bravura (ASX:BVS) share price is rocketing after its latest results
• ASX 200 Weekly Wrap: ASX cools on earnings reality check
• These were the worst performing ASX 200 shares last week

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 Bravura Solutions Ltd. The Motley Fool Australia has recommended Bravura Solutions Ltd. 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 Little Green Pharma Ltd (ASX: LGP) share price climbed higher today after the company announced it has delivered its first French shipment. By the close of trade, the medicinal cannabis company’s shares had moved up by 5.47% to an intraday high 67.5 cents.

What did Little Green Pharma announce?

The Little Green Pharma share price trekked upwards after the company provided investors with the positive news.

According to its release, Little Green Pharma has completed the first shipment of its medicinal cannabis oils to the French national trial.

Authorities will test the first batch of the 4,800 units which will be made available to trial patients sometime this month. The company hopes that having a first-mover advantage in the country could set it up for potential blockbuster growth.

Little Green Pharma is only one of four international cannabis companies that were appointed as primary trial suppliers. The company partnered up with leading French pharmaceutical distributor, Intsel Chimos, to assist in delivering the medicinal cannabis oils.

The French national study is seeking to look at efficacy and safety for patients being treated with medicinal cannabis products. The program is expected to comprise up to 3,000 people and will run for a period of two years.

At the moment, the study represents the only pathway for medicinal cannabis to be supplied to the French market. The trial complements Little Green Pharma’s European strategy which has already seen it enter the United Kingdom and Germany.

Little Green Pharma estimates that the legalised medicinal cannabis sector in France could potentially be worth 4 billion euros (AUD$6.3 billion) annually.

How has the company been performing?

In the six months ending 31 December 2020, Little Green Pharma achieved strong growth with significant unit sales and revenue.

In Australia, the company sold over 21,000 units which represented an increase of 340% on the prior corresponding period. It also exported its first commercial shipment of 2,400 units to Germany 

Total revenue for the first half came to $3.7 million, accelerating 420% from the same time last year.

As a result, Little Green Pharma’s bottom line saw net profit after tax (NPAT) just shy of $0.5 million. This is a massive turnaround for the company which posted a loss of $5.5 million in the prior period.

At the end of the calendar year, the company recorded $4.4 million in cash and equivalents.

Little Green Pharma share price review

Over the past 12 months, the Little Green Pharma share price has gone gangbusters, rising by 125%. Year to date, the company’s shares have gained just over 20%.

Based on the current share price, Little Green Pharma has a market capitalisation of around $81 million.

More reading

• Here’s why the IDP Education (ASX:IEL) share price sank 6% today
• Aussie Broadband (ASX:ABB) share price hits all-time high
• AMP (ASX:AMP) selling assets too cheaply warns Macquarie
• Woolworths (ASX:WOW) share price down as it savours potential Oakridge Wines purchase
• The Pro Medicus (ASX:PME) share price is up 23% in 2021: Can it go higher?

Motley Fool contributor Aaron Teboneras 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 IDP Education Ltd (ASX: IEL) share price came under pressure on Thursday afternoon and sank notably lower.

The student placement and language testing company’s shares ended the day almost 6% lower at $22.86.

Why did the IDP Education share price tumble lower?

Investors were hitting the sell button this afternoon after the company released an update on the Education Australia shareholding.

According to the release, following a period of consultation, the Board of Education Australia has entered into an agreement with The British Council and the University of Cambridge regarding a restructure of its shareholding in IDP Education.

Under the restructure, Education Australia will deal with its 40% shareholding in IDP Education by making an in specie distribution of a 25% shareholding to all of its 38 University shareholders. This will mean those shareholders each become the direct owner of 1,831,159 shares in IDP Education.

The remaining 15% stake will be divested via a market selldown, which will occur no later than 11 December 2021.

The company notes that the restructure will not impact IDP Education’s operations or strategy. Furthermore, IDP Education has agreed to not propose or recommend any amendments to the Director Majority Requirement in its Constitution.

It explained: “In broad terms, the ‘Director Majority Requirement’ requires that a majority of IDP directors be (a) where Education Australia has voting power in IDP of at least 10% – either independent or a representative of Education Australia, or (b) in all other circumstances – independent.”

Why is Education Australia doing this?

In Education Australia’s media release, it explained that it was doing this to allow its 38 Australian University shareholders to decide whether or not they wanted to continue holding IDP Education shares.

Education Australia had previously advised that COVID-19 has presented its shareholders with material financial challenges, and that their investment in the company represents a potential source of capital.

It remains unclear just how many of the 38 universities are wanting to cash in their shares. But, given that a number of brokers have buy ratings and price targets of ~$30.00 on its shares, I doubt those wanting to sell will be short of willing buyers.

More reading

• The worst performing ASX 200 shares last week
• 5 ASX shares to buy in a market crash
• ASX 200 Weekly Wrap: ASX finishes higher, despite tech selloff
• These were the worst performing ASX 200 shares last week
• 5 things to watch on the ASX 200 on Thursday

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 Idp Education Pty Ltd. 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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Aussie Broadband Ltd (ASX: ABB) shares have cruised to a record all-time high of $2.97 on Thursday. The Aussie Broadband share price has surged by 10% this week despite no market-sensitive news from the company. The last significant announcement from Aussie Broadband was its half-year results on 17 February. 

Let’s take a closer look at what’s been happening for the Aussie telco.

Aussie Broadband share price ignoring the noise

The Aussie Broadband share price is ignoring the recent market volatility, including the sharp selloff of tech shares amid fears over rising bond yields. Its shares have pushed higher on Thursday to retest previous record highs set on 27 January. 

Aussie Broadband shares are up there as one of the best performing initial public offerings (IPOs) of 2020. The company had an IPO offer price of $1.00 per share with an indicative market capitalisation of approximately $190 million. 

Aussie Broadband is a licensed carrier that provides NBN subscription plans and bundles to residential homes, small businesses, not-for-profits, corporate and managed services providers.

Despite there being 189 direct and indirect NBN service providers as at June 2020, 92% of market share is concentrated among four main companies, Telstra Corporation Ltd (ASX: TLS), TPG Telecom Ltd (ASX: TPG), Optus and Vocus Group Ltd (ASX: VOC).

While there might be somewhat of an oligopoly in the Australian telecommunications market, Aussie Broadband has managed to grow its NBN market share from 1.09% in June 2017 to 3.51% as at June 2020. 

The company aims to continue growing its market share by leveraging its customer loyalty to deliver new products and pursuing initiatives to acquire more customers. 

Solid half-year results 

Aussie Broadband delivered an impressive half-year result with revenues up 89% to $157.4 million and earnings before interest, taxes, depreciation, and amortisation (EBITDA) up 87% to $7.3 million. The company cited strong organic growth across both its residential and business segments. Its strong results translated to an improvement in market share to 4.2%. 

The company is currently still loss-making, with its half-year results delivering a net loss after tax of $1.4 million. This represents a significant improvement against the $10.5 million loss from the prior corresponding period. Aussie Broadband’s prospectus forecast that FY21 results should deliver a maiden profit of ~$529,000. 

One of few successful IPOs from 2020 

The Aussie Broadband share price represents one of the few IPO success stories (excluding mining exploration companies) from 2020.  

IPOs that hit the ground running last year included Douugh Ltd (ASX: DOU), COSOL Ltd (ASX: COS), Credit Clear Ltd (ASX: CCR) and Dusk Group Limited (ASX: DSK) which have delivered respective returns of around 550%, 220%, 95% and 50%. 

Meanwhile, the likes of Youfoodz Holdings Limited (ASX: YFZ), Plenti Group Ltd (ASX: PLT), Payright Ltd (ASX: PYR), DUG Technology Ltd (ASX: DUG), Adore Beauty Group Ltd (ASX: ABY), and Zebit Inc (ASX: ZBT) have yet to deliver any value to shareholders who participated in their IPOs. 

More reading

• Why is the Macquarie Telecom (ASX:MAQ) share price down today?
• Aussie Broadband (ASX:ABB) share price surges 8% on record revenue

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 Aussie Broadband Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended Aussie Broadband 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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