Tag: Motley Fool

Although the S&P/ASX 200 Index (ASX: XJO) has just climbed to an 11-month high, not all shares are faring as well.

The three ASX 200 shares listed below, for example, have fallen heavily in 2021. Here’s why they have been beaten down:

Altium Limited (ASX: ALU)

The Altium share price has fallen 12.5% since the start of 2021. Investors have been selling the electronic design software provider’s shares after it released its guidance for the first half. Altium is expecting to deliver revenue of around US$89.6 million for the half, which will be down 3% on the prior corresponding period. This soft performance has been caused by COVID-19 lockdowns, which have been impacting its sales in the United States and Europe. However, management is expecting its performance to bounce back in the second half. As a result, it has retained its full year guidance of revenue growth of 6% to 12%.

Link Administration Holdings Ltd (ASX: LNK)

The Link share price has dropped 12.2% so far in 2021. The decline has been driven by news that SS&C Technology has withdrawn its takeover offer. In December, the NASDAQ listed global provider of investment and financial software made a conditional offer of $5.65 per share to acquire 100% of Link. While management felt the offer undervalued the company, it granted SS&C Technology due diligence. After completing its due diligence, SS&C Technology revealed it has decided to withdraw its offer.

Polynovo Ltd (ASX: PNV)

The PolyNovo share price has been well and truly out of form and has lost 31.4% of its value since the start of the year. The medical device company’s shares were sold off following the release of a trading update. Although PolyNovo delivered a 31% increase in half year sales, this fell well short of expectations due to a weak second quarter. Bell Potter wasn’t impressed, commenting: “Polynovo announced a relatively disappointing trading update, with 1H FY21 sales growth of 31% vs the pcp well below our forecasts, consensus and management expectations.” The company may need a strong second half to win over investors and analysts again.

More reading

• 2 ASX 200 growth shares to buy
• 3 extraordinary ASX shares to buy right now
• Why the Link (ASX:LNK) share price is one to watch this morning
• ASX 200 rises 0.4%
• ASX 200 up 0.5%: BHP’s update, PolyNovo jumps, Ansell impresses

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 and recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Link Administration Holdings Ltd and POLYNOVO FPO. 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 These ASX 200 shares have been smashed in 2021 appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2Mogfsy

Regardless of where we sit on the political spectrum, we can all appreciate a good meme. The latest humorous trend comes from a cozy Senator Bernie Sanders donning a pair of homemade mittens at Joe Biden’s inauguration last week. The image of the former United States democratic presidential candidate resonated with people globally, as a ‘vibe’.

Sure enough, the candid image was translated to a meme phenomenon – with Bernie finding himself photoshopped into an endless number of locations, historical events, and just plain odd places – all for a bit of a well-needed laugh.

Where the memes flow, the money goes

It’s no surprise that the Bernie meme and his mittens have become merchandisable. The original mittens worn by Mr Sanders were made and gifted by a Vermont teacher, Jen Ellis, to the Senator. As reported in the New York Daily News, the gifted pair made from repurposed wool sweaters and recycled plastic bottles were one-of-a-kind.

A classic case of supply and demand ensued, and the market has delivered. Now there are plenty of options for various Bernie mitten merchandise available online to get your mitts on. A couple of such companies include Etsy Inc (NASDAQ: ETSY) and ASX-listed Redbubble Ltd (ASX: RBL).

Bernie meme merch up for grabs here

Redbubble Ltd (ASX: RBL)

Redbubble operates a handful of global online marketplaces, offering products embellished with creative designs by independent artists.

The main site, redbubble.com, ranges face masks, mugs, stationery, clothing, stickers, décor, and many other items. Consumers can search for a design they like and then select a type of medium they’d like it applied to before purchasing.

The Redbubble share price has grown a significant 591% over the last year, with the drastic increase in demand for face masks and inflated online shopping activity. For the first quarter FY21, Redbubble’s revenue grew by 114% year over year to $175.8 million.

Another interesting titbit is the astronomical 562% year over year growth in the ‘accessories’ segment of the business – this segment includes face masks, tote bags, socks etc.

The independent artists that provide the designs to the platform often jump on hot trends, and right now, Bernie Sanders is trending on Redbubble. So you can bet your bottom dollar that both artists and Redbubble are cashing in on those iconic mittens.

Just made this cute design of @SenSanders in his iconic mittens 💕 link to my #redbubble in my bio #BernieSandersMittens pic.twitter.com/Pwh87GM3J2

— Mkm (@H_V_Hart) January 21, 2021

https://platform.twitter.com/widgets.js

Etsy Inc (NASDAQ: ETSY)

Etsy is another e-commerce company that connects unique designs and creations to customers. Where Etsy differs from Redbubble however, is by solely operating the platform in which products are offered – whereas Redbubble produces the products with the artist’s designs. That means that Etsy has a much more diverse offering of products, and yes… that includes mittens. 

The US-listed company has also benefitted from the uptick in face mask sales, notching up US$264 million in gross merchandise volume for face masks alone in the quarter. However, as demonstrated in Etsy’s Q3 2020 results, the business has managed to outpace the e-commerce benchmark even without the inclusion of face masks by 48%. 

Following the trend, Etsy contributors have also jumped on the Bernie meme bandwagon. Everything from stickers, sweaters, and those warm mittens. Personally, my favourite is the crochet of Bernie and his mittens.

Crochet Bernie, this is not a drill pic.twitter.com/A15ByOM5l0

— Lily Bailey (@LilyBaileyUK) January 22, 2021

https://platform.twitter.com/widgets.js

Much like the Redbubble share price, Etsy is no slacker either, returning 333% in the last year. 

Foolish takeaway

It’s great to see some light-hearted fun come out of the inauguration and hopefully, the meme-inducing unity continues for Joe Biden’s term as US president. The main takeaway here though is that often where there’s a trend, there’s someone benefitting from it and money to be made. Although one Bernie meme likely won’t make or break a company, it draws focus to the new ways in which the world is monetising humour and creativity. 

But this also serves as a public service announcement for anyone still trying to find those elusive mittens. You’re welcome.

More reading

• 4 ASX ‘winners’ destined for growth: fundie
• 2 top ASX tech shares to buy that are growing rapidly
• 3 great ASX tech shares to buy
• 2 great ASX growth shares to buy for January
• Which 2 ASX shares have rocketed up more than 200% in 6 months?

Mitchell Lawler 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 Etsy. 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 Bernie meme, mittens and merch: 2 shares that are selling the trend appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3plk8gt

If your risk profile allows it, having a few small cap shares in a balanced portfolio could be worth considering. Especially given the potential returns on offer if you can find the next Afterpay Ltd (ASX: APT) or Altium Limited (ASX: ALU).

But which ASX small caps should you be looking at? Here are a couple of small cap ASX shares that have been tipped as buys:

Audinate Group Limited (ASX: AD8)

The first small cap share to look at is Audinate. It is a digital audio-visual networking technologies provider best known for its industry-leading Dante audio over IP networking solution.

This product is used widely across a number of industries and has begun to dominate its market. In fact, at the last count, the number of Dante enabled products manufactured by its customers had grown to 2,804. This is a massive eight times greater than its nearest rival, Cobranet.

One broker that is bullish on Audinate is Morgan Stanley. Earlier this month it put an overweight rating and $9.00 price target on the company’s shares. This compares to the latest Audinate share price of $7.64.

The broker notes that Audinate has had a record-breaking second quarter. Which is all the more impressive given how many of its customers are still struggling with significant COVID headwinds.

Serko Ltd (ASX: SKO)

Another small cap to look at is Serko. It is an online travel booking and expense management provider behind the Zeno Travel and Zeno Expense platforms. Combined, these products provide travel bookers and businesses with AI-powered end-to-end travel itineraries, cost control, travel policy compliance, expense administration, and fraud prevention.

The last 12 months have unsurprisingly been very tough for the company, but with travel markets starting to recover now, its transaction volumes have begun to improve. For example, in December a trading update  revealed that its November transaction volumes increased to 44% of pre-pandemic levels.

With domestic borders reopening, COVID-19 vaccines being rolled out, and its new Booking.com deal coming into effect, management appears optimistic that transaction volumes will continue to improve over the coming months.

Ord Minnett currently has a buy rating and $6.55 price target on the company’s shares. It appears particularly optimistic on the Booking.com deal driving long term growth.

More reading

• 3 exciting ASX tech shares to buy
• 3 compelling ASX growth shares to buy
• 2 very exciting small cap ASX shares to watch
• Brokers name 3 ASX shares to buy right now
• ASX 200 rises 0.1%

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 Appen Ltd, AUDINATEGL FPO, and Serko Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended AUDINATEGL FPO and Serko Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 stellar small cap ASX shares rated as buys appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3a5Fh7Y

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Years ago, when I bought one of my first stocks, its share price dropped several days later. As a newbie investor, I got spooked, so I unloaded those shares in an attempt to minimize my losses. A few days later, they were back up to the price I’d bought them at. A day or so after that, they rose even higher.

It’s easy to laugh at my rash decision and glaring mistake now. Thankfully, I didn’t lock in a particularly large loss at the time by selling hastily. But it did teach me a very important lesson: to not let panic or other emotions get in the way of my investing decisions.

In fact, giving in to emotions is one of the leading ways you can lose money in the stock market. If you’ve been a victim of emotion-driven investing before, here are some strategies to employ.

1. Take a buy-and-hold approach

When you think of investing in the stock market as a long-term game, you’ll be less likely to get thrown by individual events along the way. The stock market has a strong history of recovering from losses. If you take a buy-and-hold approach — load up on quality stocks now and hang onto them for decades — you’re less likely to get burned. You’re also less likely to give in to panic every time your portfolio value dips.

2. Use dollar-cost averaging to your advantage

Many people worry about losing money on stocks and therefore hesitate to buy at certain times, like when stock values are up or when there’s a recession at play. That’s why a better bet is to commit to buying stocks at regular intervals, regardless of the circumstances at hand.

It’s a strategy known as dollar-cost averaging, and it helps investors avoid falling down the counterproductive rabbit hole of attempting to time the market. With dollar-cost averaging, you might say you’ll put $100 into the stock market every week. You might even get more specific and say you’ll buy $100 worth of a particular stock. Dollar-cost averaging has been shown to help investors pay a lower average share price than timed purchases, and it’s a simple way to take emotions out of the equation. 

3. Diversify

Having a wide range of investments can buy you peace of mind during periods of stock market volatility and make it less likely that you’ll act irrationally. You can diversify by buying stocks from different segments of the market or by loading up on index funds. With index funds, your portfolio won’t outperform the broader market, but you will benefit from general market upswings. Index funds also let you diversify in an instant, so you don’t have to put in the time to research individual stocks or fret that you’ve chosen the wrong ones.

Most of us can’t just flip a switch and turn our emotions off, but there are steps you can take to be a less emotional investor. That could, in turn, spare you a world of losses in the course of your lifetime.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Experts want Big Tech to stop the spread of COVID-19 misinformation
• 3 reasons Aussies should love the ASX share market
• These ASX 200 shares are on fire in 2021
• COVID continues to thrash Australia’s tourism industry
• Will the blue sweep boost Tesla? Don’t count on it

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 This Is 1 of the Easiest Ways to Lose Money in the Stock Market appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from The Motley Fool Australia https://ift.tt/3pkK4J4

The Peter Doherty Institute for Infection and Immunity in Melbourne, along with a number of other healthcare organisations, are urging the Federal Government to push through new laws that will help combat COVID-19 misinformation ahead of the roll out of vaccines in Australia.

According to an open letter from Reset Australia and signed by the Doherty Institute, there are calls for new laws that will require social media giants like Facebook and Google to maintain a “live” list of the most viral COVID-19 material.

By doing so, healthcare organisations believe they will be better placed to identify and respond to the misinformation.

The letter comments: “A ‘Live List’ of the most popular Covid-related material being shared on social media can and should be generated – and updated in real time – by the major Big Tech platforms. Such a live list would help Australian medical experts identify and understand misinformation and to create community engagement responses.”

“As things stand, we are playing catch up with a misinformation machine that is two steps ahead of us. Australia’s Parliament should mandate transparency from the Big Tech platforms in the interest of public health and safety, and equip us with the data we need.”

“Supercharged conspiracy theories.”

Reset and the Docherty Institute hope to be able to put an end to conspiracy theories which are being supercharged on social media.

One example of those conspiracy theories is that 5G internet is spreading COVID-19. This gathered so much attention online that Telstra Corporation Ltd (ASX: TLS) had to respond to it with facts.

Reset Australia’s Executive Director, commented: “Rampant misinformation on social media is hampering Australia’s COVID-19 efforts and may deter widespread take up of the future vaccine. Social media has supercharged conspiracy theories and misinformation, pushing some people into echo chambers where false information is all they see.”

Kim Sampson from the Immunisation Coalition echoed this sentiment, noting that the extent of the problem is hidden from view, which hampers public education efforts.

Sampson explained: “Campaigns that educate and inform the public are a key part of this mission but the level of misinformation out there creates a huge barrier. Understanding who is being targeted and what kind of lies they’re being fed would help us relieve community concerns and fears.”

Catherine Hughes, from the Immunisation Foundation of Australia, added: “Vaccine misinformation costs lives. I’ve spoken with heartbroken parents who chose not to vaccinate their children after being scared by online misinformation, only to have their children die or suffer serious consequences from a vaccine-preventable disease.”

“This misinformation flourishes on social media, where fear translates quickly into clicks and shares. It is vital COVID misinformation is able to be tracked, and not hidden, so experts have a chance at countering some of the most dangerous myths being perpetuated.”

Biotech giant CSL Limited (ASX: CSL) is currently manufacturing the AstraZeneca-Oxford University COVID-19 vaccine. It is expected to be rolled out, pending approval, in the coming months. Reset Australia will no doubt be hoping laws are changed before then.

More reading

• Better buy: Amazon.com vs. Google
• Amazon’s ad business will dominate the 2020s
• Pfizer COVID-19 vaccine given green light for use in Australia
• ASX 200 Weekly Wrap: Change in America spurs ASX 200 higher
• 2 blue chip ASX dividend shares to buy next week

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. 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 and recommends Alphabet (C shares) and Facebook. 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 Telstra Limited. The Motley Fool Australia has recommended Alphabet (C shares) and Facebook. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Experts want Big Tech to stop the spread of COVID-19 misinformation appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3sY7lCQ

Since our national day is just around the corner, I think this represents a good opportunity to discuss the merits of our national share market. The ASX is often disparaged and negatively contrasted with other share markets, like those in the United States.

Some of this criticism is justified. For instance, we don’t have the kinds of ‘world-changing’ companies the US does. Think of Amazon.com Inc (NASDAQ: AMZN), for example.

But that doesn’t mean we shouldn’t appreciate what we have, all the same. Especially this week. The ASX has a few unique features which make it special. Here are three of them:

3 reasons Aussies should be grateful for the ASX

A relatively good ESG scorecard

Ethical investing has certainly grown in importance for many ASX investors over the past few years. Luckily, in my view, the ASX is one of the better global sharemarkets on this count.

Yes, we do have a large concentration of mining and energy companies, which I know many ESG investors wouldn’t be too impressed with. One of our largest (and oldest) companies, BHP Group Ltd (ASX: BHP), has large operations in coal and oil extraction. But arguably these types of sectors are where our ESG sins end.

Take the US markets, on the other hand. They have miners and drillers to be sure (some of the largest in the world in fact). But they also have several tobacco companies like Philip Morris International Inc, as well as weapons manufacturer Lockheed Martin Corporation.

The British share market also boasts British American Tobacco, as well as global alcohol giant Diageo as large constituents. The ASX does not host these kinds of companies, ‘sin stocks’ if you will. That’s something to be grateful for in my view.

The ASX has a transparent regulatory structure

The ASX is well-known for having some of the most stringent rules and transparency regulations in the world. Insider trading is illegal and policed, and companies can be fined (or de-listed) for misleading investors.

This gives our share market a solid reputation around the world as a safe and prosperous place to invest. I also enjoy the fact that dual-class listings are not permitted in Australia, ensuring a democratic system of one-share, one-vote that doesn’t exist on other markets like those in the US.

On another issue, a few years ago, Australia banned the Chinese company Huawei from operating telecommunications infrastructure here. Other countries like Britain, the US and Canada have made similar moves. And over in the US, there are ongoing discussions regarding the merits of investing in Chinese companies.

Reporting from the Australian Financial Review (AFR) earlier this month also discussed how Chinese tech giants like Tencent Holdings and Alibaba Group Holding Ltd have been accused of assisting the Chinese government with covert espionage. Whether or not this is true, the fact it is being discussed at all is significant. That’s not something ASX companies are routinely accused of doing, which is something we should be grateful for.

Franking

Last, but certainly not least, is our unique system of dividend imputation, also called franking. When a company pays a shareholder a fully franked dividend in Australia, the dividend comes with a receipt of the corporate tax the company has already paid (the franking credit). The shareholder can then use that to offset their own income for tax purposes (or claim a cash refund if they don’t earn taxable income).

No other sharemarket offers that kind of benefit to dividend investors, at least not on the scale we do. Over in the US for instance, dividends are effectively taxed twice given that shareholders don’t get a refund on the corporate tax their company pays. So next time you get a fully franked dividend, be grateful you live in Australia!

More reading

• These ASX 200 shares are on fire in 2021
• COVID continues to thrash Australia’s tourism industry
• Will the blue sweep boost Tesla? Don’t count on it
• 2 ASX 200 shares to buy for dividends
• 2 fantastic ASX dividend shares with attractive yields

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 Philip Morris International. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alibaba Group Holding Ltd. and Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Diageo and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 3 reasons Aussies should love the ASX share market appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/39f6UfM

While the S&P/ASX 200 Index (ASX: XJO) has been on form in 2021 and is charging higher, a number of shares are performing even better.

Here’s why these ASX 200 shares have been rocketing higher this year:

Afterpay Ltd (ASX: APT)

The Afterpay share price has stormed 21.6% since the start of the year. There have been a number of catalysts for this impressive form. One of those was a broker note out of Morgan Stanley, which revealed that its analysts had retained their overweight rating and lifted the price target on the payments company’s shares to $136.00. It made the move after looking at app downloads. The broker believes these have been very strong in the key US and UK markets. So much so, it is expecting Afterpay to report 13.6 million active customers for the first half of FY 2021. This will be a 37.4% increase from 9.9 million active customers at the end of FY 2020. Also giving its shares a lift was the highly successful IPO of rival Affirm in the US.

Pro Medicus Limited (ASX: PME)

The Pro Medicus share price has started 2021 very strongly and is up 20.4% year to date. Investors have been fighting to get hold of the health imaging software company’s shares after it announced another major new contract win. Pro Medicus revealed that it has signed a seven-year contract worth $40 million with Salt Lake City based Intermountain Healthcare. According to the release, the deal will see its Visage 7 Viewer and Visage 7 Open Archive products implemented across all of Intermountain’s radiology and subspecialty imaging departments. This was the company’s fifth major contract win in the space of just six months.

Zip Co Ltd (ASX: Z1P)

The Zip share price has been on fire and is up 40.3% since the start of 2021. The catalyst for this was the release of the buy now pay later provider’s second quarter update. For the three months ended 31 December, Zip delivered a 103% increase in transaction volume to a record $1.6 billion. A key driver of this growth was Zip’s US-based QuadPay business, which recorded a 217% increase in transaction volume to $673.1 million. QuadPay also reported a 180% lift in customer numbers to 3.2 million and a 655% jump in merchants to 8,400.

More reading

• ASX 200 up 0.35%: Afterpay & Appen push higher, big four banks rising
• ASX 200 Weekly Wrap: Change in America spurs ASX 200 higher
• 5 things to watch on the ASX 200 on Monday
• These were the best performing ASX 200 shares last week
• Why Afterpay, Cleanaway, Mosaic Brands, & Perpetual shares are dropping lower

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 and recommends Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Pro Medicus Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post These ASX 200 shares are on fire in 2021 appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3qM0H0w

Last week I wrote about how everyone was cheering over the latest jobs data. The December 2020 jobless rate slid slightly lower, hitting 6.6% compared to November 2020’s rate of 6.8%.

Furthermore, The Australian Financial Review (AFR) reported Thursday that, nationwide, “More than 90% of jobs lost in the COVID-19 crisis have been regained at a pace faster than economists expected…”

Things like the improving jobs numbers and record breaking iron ore prices are positive economic indicators for Australia. However, as the country continues to march through the pandemic, many parts of the tourism industry are still getting annihilated.

The COVID hit copped by the Aussie tourism industry

Tourism Research Australia’s State of the Industry 2018-2019 report (released in March 2020) shed some light on the significance of the tourism industry in Australia. It noted that, during the time period covered in the report, domestic travellers spent over $100 billion for the first time. International visitors to Australia dished out $44.6 billion.

Regarding COVID, the report noted that, “The coronavirus creates ongoing risks to international tourism,” and “With travel restrictions now imposed, the breadth of the event is yet to be seen.”

AFR also reported last week that, according to modelling carried out by the Tourism & Transport Forum, up to one in five businesses that contribute to Australia’s previously thriving tourism industry could go bust in 2021. AFR further highlighted that Australia’s national tourism workforce is presently 55% of it’s pre-coronavirus size and that the “worst case scenario” could see this number to drop as low as 35% by September.

What’s being done?

Even as COVID restrictions continue to ease and holiday makers return to popular tourist spots throughout Australia, this is of little help to local economies if many businesses remain closed due to a lack of staff. 

In an effort to help support their struggling hospitality industries, many Australian communities are relying on innovative measures. For example, as reported by the Clarence Valley Independent, Clarence Valley Council in Northern New South Wales plans on offering affordable accommodation for local hospitality staff to attract desperately needed workers to the area. 

The council has advised it has just been granted a 2-year extension to continue using the Yamba Business Park for low-cost, temporary accommodation. The facility, once used to house Pacific Motorway construction workers, will now house hospitality workers for the next two years. The idea is that affordable housing will attract the staff needed by local shops for them to remain open.

This action, initiated via a Ministerial Order, is being brought forward as a number of restaurants and cafes struggle with insufficient staffing availability. Some eateries are currently attempting to deal with this problem by restricting their daily opening hours. Others are closing for entire days because they are unable to find staff to work.

Foolish takeaway

Whilst we are now seeing some positive economic indicators and many sectors are enjoying post-COVID recoveries, the Australian tourism industry is still continuing to experience significant hardship. Rather than waiting for COVID to miraculously subside, some communities (such as Clarence Valley) are taking their own actions locally to help keep their hospitality businesses afloat. 

More reading

• Will the blue sweep boost Tesla? Don’t count on it
• 2 ASX 200 shares to buy for dividends
• 2 fantastic ASX dividend shares with attractive yields
• Will Joe Biden’s election help an Australia-China reset?
• Wellness and finance: An interview with Dr Deepak Chopra

The post COVID continues to thrash Australia’s tourism industry appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/39fnZ9a

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Tesla Inc (NASDAQ: TSLA) stock has rallied wildly over the past year, gaining more than 700%. Solid growth in vehicle deliveries and margin expansion have both contributed to the stock’s surge. Tesla’s inclusion in the S&P 500 Index (SP: .INX) index also helped.

Still, these factors can’t fully explain Tesla’s incredible rise. Tesla stock has doubled just since the middle of November, even though it hasn’t reported earnings. It has risen 20% in the first three weeks of 2021, adding about $150 billion to its fully diluted market capitalisation.

Tesla stock performance data by YCharts.

Investor optimism about a “blue sweep” — Democratic control of the presidency, the Senate, and the House of Representatives — seems to have provided extra juice to Tesla’s rally in recent months. Many investors and pundits expect stronger government support for the electric vehicle industry with Democrats in control. However, the blue sweep could hurt Tesla just as easily as it could help the EV pioneer. Let’s take a look.

Democrats take control

President Joe Biden officially took office at noon EST last Wednesday. Newly elected Vice President Kamala Harris swore in new Democratic senators Jon Ossoff, Alex Padilla, and Raphael Warnock later the same day. That officially gave Democrats control of the presidency and the Senate, in addition to the House of Representatives, where they’ve had a majority since 2019.

Democrats tend to support aggressive efforts to combat climate change, including measures to boost EV sales. Most notably, the 2009 American Recovery and Reinvestment Act created a tax credit worth up to $7,500 for buyers of EVs and plug-in hybrids.

Those credits begin to phase out once an automaker sells 200,000 qualifying EVs or plug-in hybrids in the US. Tesla and General Motors both hit that milestone a couple of years ago, and the credits have phased out entirely for their vehicles. No other automaker has reached the 200,000-unit mark yet, and none are likely to get there until 2022 and beyond. Some investors hope that the government will restore Tesla’s eligibility for EV tax credits or help it in other ways now that the Democrats control the presidency and both houses of Congress.

Assessing EV industry stimulus plans

At first glance, these hopes don’t seem outlandish. During his campaign and during the transition period, President Biden expressed support for removing the sales cap for the EV tax credit program. Furthermore, most experts agree that tax credits accelerate EV adoption.

However, the Democrats hold razor-thin margins in both the House and the Senate. Biden will need to win the support of moderates to pass legislation. Expanding eligibility for the plug-in EV credit will only benefit Tesla and GM right now. That could make the measure controversial, particularly because Tesla is doing just fine without the credits.

Biden has spent more energy promoting a plan to install 500,000 public EV chargers by 2030. The goal is to support EV adoption by making fast chargers as ubiquitous as gas stations. That proposal stands a much greater chance of being implemented. Senator Joe Manchin of West Virginia — a key swing vote — has expressed firm support for infrastructure spending. Moreover, installing all of those chargers could create hundreds of thousands of jobs spread all across the country.

Whereas lifting the cap on the EV tax credit would boost demand for Teslas, a big investment in public charging infrastructure will mainly help its competitors. After all, Tesla drivers already have ample access to fast charging for road trips thanks to the company’s Supercharger network. There are fewer fast-charging options for buyers of other automakers’ EVs. Thus, Biden’s charging station plan could level the playing field by fixing one significant problem for buyers of non-Tesla EVs.

What it all means

Tesla’s popularity is growing for many reasons. Customers like its vehicles’ styling, performance, and in-car technology, as well as the brand’s overall image. The Supercharger network certainly represents a competitive advantage today, but losing that advantage won’t cause Tesla’s growth to stop.

That said, if the Biden Administration removes charging worries as a barrier to the purchase of non-Tesla EVs, it will help other brands sell significantly more EVs. Over time, that could make those brands seem like legitimate competitors to Tesla in the EV market.

If Tesla stock were still trading at its early 2020 valuation, this wouldn’t be a big deal. But with a fully diluted market cap approaching $1 trillion, Tesla is pricing in a level of market share that would be unprecedented. The more help other automakers get in transitioning to EVs, the lower the likelihood of Tesla capturing a 20%-plus share of the global auto market over the next 10 to 15 years (as Elon Musk hopes). That makes the blue sweep potentially bad news for Tesla.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• These 2 Nasdaq Giants Are at All-Time Record Highs — and They’re Not Slowing Down
• The Tesla (NASDAQ:TSLA) earnings announcement is on the way
• Why Tesla (NASDAQ:TSLA) shares were last year’s worst short bet
• Why the Ioneer (ASX:INR) share price is up 16% this week
• 2 reasons to avoid Tesla stock right now

Adam Levine-Weinberg owns shares of General Motors. 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.

The post Will the blue sweep boost Tesla? Don’t count on it appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from The Motley Fool Australia https://ift.tt/3cct9oy

There are some S&P/ASX 200 Index (ASX: XJO) shares that have dividend yields that are much higher than bank savings interest rates.

The Reserve Bank of Australia (RBA) official interest rate is now just 0.25%.

Here are two ASX 200 dividend shares that may be worth considering for income:

Brickworks Limited (ASX: BKW)

Brickworks is one of the largest building products businesses on the ASX. According to the ASX, it has a market capitalisation of $2.75 billion.

The business manufactures and sells a variety of products in Australia. It offers clay bricks and pavers, masonry and stone, roofing, specialised building systems, precast and cement.

These products are sold through various brands like Austral Bricks and Bristle Roofing.

Brickworks also has a sizeable presence in the US after making the acquisitions, including Glen Gery. Brickworks is actually the market leader in the north east of the US.

Across the business it has 2,500 staff, 45 manufacturing plants, 54 design studies, displays and masonry supply centres, 17 brands and more than 2,000 products.

The company is currently seeing a recovery in the Australian building products market after a difficult 2020. In a trading update it said that it has made a strong start to FY21, with first quarter earnings well ahead of the prior corresponding period. However, the US segment is still suffering from COVID-19 impacts.

The ASX 200 dividend share is currently investing to build its competitive position in key markets. It’s constructing a $75 million Austral Masonry plant in Sydney, which is on track for completion in 2021. At Horsley Park, it has demolished the old brick kiln and associated equipment at plant 2, paving the way for the construction of a new $125 million face brick plant. Brickworks said this was the most advanced brick plant ever build when complete.

Brickworks’ other segments assist paying the dividend. It owns a large amount of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares, which pays a growing dividend up to Brickworks. Soul Patts has a diversified portfolio of assets which pays good cashflow.

The company also owns a 50% share of an industrial property trust with Goodman Group (ASX: GMG) which continues to generate higher rental profit and that gets paid to Brickworks. The property trust is currently building two high-tech warehouses for Amazon and Coles Group Ltd (ASX: COL).

Brickworks has hasn’t cut its dividend for over forty years and at the current Brickworks share price it has a grossed-up dividend yield of 4.5%.

Tassal Group Limited (ASX: TGR)

Tassal is one of the largest fish businesses in Australia. It has large salmon and prawn operations.

Despite the effects of COVID-19, in FY20 it was able to grow revenue by 0.3%, operating earnings before interest and tax (EBIT) by 12.7% and operating net profit after tax (NPAT) grew by 13.3%.

It was this result that allowed the business to maintain the half-year dividend at 9 cents per share whilst the total dividend was maintained at 18 cents per share.

The ASX 200 dividend share made a prawn farm acquisition, 1,300 hectare property called Billy Creek, it’s a neighbouring property to the company’s existing Proserpine prawn farm. The combination of the two properties provides an opportunity for an additional 350 hectares of ponds, supporting a total of around 800 hectares of ponds across the wider precinct.

At the current Tassal share price it has a partially franked dividend yield of 5.3%.

More reading

• Will Joe Biden’s election help an Australia-China reset?
• ASX 200 rises 0.4%
• Why ASX travel shares like Webjet (ASX:WEB) fell lower on Monday
• 2 ASX 200 growth shares to buy
• ASX 200 up 0.35%: Afterpay & Appen push higher, big four banks rising

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company 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 ASX 200 shares to buy for dividends appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2Mp29aw