Tag: Motley Fool

  • Why this ASX cybersecurity ETF is a buy today

    positive asx share price represented by lots of hands all making thumbs up gesture

    It doesn’t take too much mental effort to come to the conclusion that the cybersecurity space is a hot one in 2020. Each year, more and more individuals, businesses and governments move functions, relationships and processes online.

    This is great for productivity, and efficiency, but not always for security and anonymity. Unfortunately, there aren’t too many cybersecurity companies that list on the S&P/ASX 200 Index (ASX: XJO) or the All Ordinaries Index (ASX: XAO). But there is an exchange-traded fund (ETF) that covers this space. And, as it happens, this ETF is currently rated as a ‘buy’ by analysts at the Motley Fool.

    HACK away at cybersecurity

    The ETF in question is the BetaShares Global Cybersecurity ETF (ASX: HACK). That’s a killer ticker symbol if there ever was one. Like most ETFs, this fund holds a basket of shares; in HACK’s case all selected from the cybersecurity space.

    At the time of writing, it holds 41 different positions. These positions are weighted very heavily towards the United States (at 89.5%). This likely reflects the importance of the US markets in this space. However, it also holds companies from Israel, Britain, Japan, France and South Korea as well.

    Its top 6 holdings are as follows: Crowdstrike Holdings Inc, Okta Inc, Zscaler Inc, Accenture plc, Cisco Systems Inc, and Cloudflare Inc.

    So how does this ETF’s performance rate against the general (and simplistic) notion that ‘cybersecurity is a growth area’. Well, this ETF has delivered a performance of 16.28% over the past year alone. That includes a whopping 12.7% trailing 12-month distribution yield (as of 30 October).

    It’s also delivered an average of 18.33% per annum over the past 3 years. And an average of 16.82% since the funds’ inception in August 2016. Over the past 5 years, the index that the fund tracks (the Nasdaq Consumer Technology Association Cybersecutirty Index) has returned an average of 14.8% per annum.

    Note, HACK does charge a not-insignificant 0.57% per annum management fee – something to keep in mind.

    Is HACK a buy today?

    The BetaShares Global Cybersecurity ETF is currently rated as a ‘buy’ by the analysts at the Motley Fool’s Pro Investing service. Doc Mahanti, Ryan Newman and the team at Pro like (indeed, are excited about) this ETF’s basket of global companies which are all leaders in their spaces. They also like the exposure to the long term rise of cybersecurity spending that this ETF provides. As well as the raw growth this sector is experiencing.

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    Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETA CYBER ETF UNITS. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Envirosuite (ASX:EVS) share price soars 12% after AGM

    The Envirosuite Ltd (ASX: EVS) share price were sent flying today after the company held its annual general meeting (AGM). Shares in the small cap tech company soared by 12.5% today to 22 cents.

    The environment monitoring platform’s share price has been on a steady rise this year, lifting by an enormous 214% since hitting its lows in March.

    What Envirosuite does

    Envirosuite is an environmental management technology company that provides services through its software-as-a-service (SaaS) platform. The Envirosuite platform offers environmental monitoring, management and investigative capabilities. It is incorporated into a number of diverse operations from waste water treatment to large scale construction, open cut mines and port operations.

    The company hosts more than 500 customers worldwide. Envirosuite’s clients include organisations in China, airports, and companies such as Rio Tinto Limited (ASX: RIO).

    Why did the Envirosuite share price fly today?

    The Envirosuite share price soared by 12% today as the company held its 2020 AGM.

    Management was pleased with how the company has shown resilience by growing throughout the pandemic, saying:

    Our business has continued to grow through this challenging period with our recurring revenues expanding across almost every sector. It is only some unavoidable universal delays in new capital spend by some of our airport clients that has impacted our project or one-off revenue.

    It was also highlighted that there were a number of notable sales in recent months, with most new contracts being 5 years long. The contracts bring the company’s new annual recurring revenue funnel to a total of $26 million.

    What now

    The company also stated some of its goals for the coming year. Management outlined how the company aims to increase gross margin by increasing software sales and reducing focus on lower margin hardware sales.

    Furthermore, Envirosuite is aiming to transfer to the “more scalable and agile tech environment.” To this end, the company will be consolidating onto the cloud service AWS. It will also migrate its airport customers to a new cloud environment.

    Investors were clearly pleased with the news, sending the Environment share price up to 22 cents.

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

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  • ASX 200 drops on Friday

    ASX 200

    The S&P/ASX 200 Index (ASX: XJO) fell by around 0.5% to 6,601 points.

    Here are some of the highlights from the ASX today:

    Treasury Wine Estates Ltd (ASX: TWE)

    The Treasury Wine Estates share price fell by over 11% before going into a trading halt in response to China deciding to essentially put tariffs on Australian wine.

    The ASX wine company said that it needed a trading halt whilst it prepares and releases an announcement about the decision of the Chinese Ministry of Commerce to apply anti-dumping measures on Australian wine imports into Chinese.

    Treasury Wine Estates is reviewing the details of the provisional measures as a matter of urgency in order to update the market.

    According to reports in the media, such as the ABC, China has accused Australian producers of selling wine for below the cost of production.

    From tomorrow, importers of Australian wine into China will need to pay temporary anti dumping security deposits. The charge will be in a range of between 107% to more than 200%.

    The ABC quoted Trade Minister Simon Birmingham, who said: “It will render unviable for many businesses their wine trade with China and clearly we think it’s unjustified, without evidence to back it up.

    “It’s a tax on Chinese consumers, essentially, but by taxing the product at such enormous, impactful levels, it will likely see consumers turn away from that, and that is what has the devastating impact on Australian producers.”

    It was the worst performer in the ASX 200.

    MotorCycle Holdings Ltd (ASX: MTO)

    Motorcycle dealership business MotorCycle Holdings gave a profit update to the market today.

    The company expects to report underlying earnings before interest, tax, depreciation and amortisation (EBITDA) between $23 million to $25 million. Previous guidance had been in excess of $20 million of underlying EBITDA.

    This underlying EBITDA guidance includes interest and amortisation on leased properties as an expense to enable comparison to prior periods when the lease expense was included.

    However, the company said that given the exceptional trading circumstances due to COVID-19, care should be taken using this year’s results as a guidance for future performance.

    Bega Cheese Ltd (ASX: BGA)

    Bega Cheese shares went up around 7% after coming back to the market after the announcement of its acquisition of Lion Dairy and Drinks. It was the biggest positive mover in the ASX 200 today.

    It has successfully completed the underwritten institutional placement and the institutional component of its 1 to 4.5 pro rata accelerated non-renounceable entitlement offer. This raised approximately $284 million. The take up rate was around 96%.

    Bega Cheese executive Chair, Barry Irvin, said: “We are delighted with the support we receive for this company transforming acquisition. We have always enjoyed strong support from our shareholders and once again they embraced our vision of creating ‘The great Australian food company’.”

    Other movements

    Bega Cheese and Treasury Wine Estates were the biggest movers in the ASX 200 today.

    Looking at the positive movers, the Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price went up around 4%, the Perseus Mining Limited (ASX: PRU) share price rose 3.5%, the Deterra Royalties Ltd (ASX: DRR) share price rose 3.3% and the Platinum Asset Management Ltd (ASX: PTM) share price also went up 3.3%.

    At the red end of the ASX, the TechnologyOne Ltd (ASX: TNE) share price fell by around 4%, the Beach Energy Ltd (ASX: BPT) share price dropped 4%, the Oil Search Ltd (ASX: OSH) share price fell 3.7% and the Webjet Ltd (ASX: WEB) share price fell over 3%.

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

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  • Intelicare (ASX:ICR) share price slips despite positive announcement

    asx share price fall represented by lady in striped tshirt making sad face against orange background

    The Intelicare Holdings Ltd (ASX: ICR) share price is down 2% despite the technology company announcing a $410,611 research & development (R&D) tax refund. The Intelicare share price had earlier risen by as high as 12% to 28 cents before the mid-session break, but has since retreated in late afternoon trade.

    What did Intelicare say?

    InteliCare said the tax rebate, for the financial year 2019-2020, reflected InteliCare’s significant and ongoing investment in developing its proprietary internet of things (IOT) platform.

    The R&D tax incentive is an Australian government incentive scheme to assist businesses recover some of the costs of R&D. Under this program, companies receive cash refunds of 43.5% of eligible expenditure.

    The company says that it now has a cash balance of approximately $3.4 million, and is well funded to continue with its current business operations.

    What does Intelicare do?

    Intelicare is a relatively young Perth-based technology company focusing on software solutions for the aged care sector. The company was started in 2016 with a $500,000 grant from the Western Australian Government.

    The company’s flagship and first product was a patented home-monitoring solution that tracks movement patterns and provides access and data analysis for families and carers. 

    According to the company, COVID-19 has made its products more crucial than ever, allowing caregivers to reduce the level of face-to face interaction.

    Unlike home security systems which rely on cameras, Intelicare says its technology offers privacy as “people don’t like the feeling they’re being watched, and usually don’t want to use cameras”.  Intelicare says its sensors are passive – they’re just on or off and therefore “don’t cross that threshold of invading people’s privacy”.

    After booking its first sales in 2019, the company brought on board a new chief executive in August this year, with the aim to execute on the next phase of its expansion strategy. This recruitment follows the company’s listing on the ASX earlier in May, where it raised $5.5 million by issuing 27.5 million shares at a price of 20 cents each through an initial public offering (IPO).

    About the Intelicare share price since IPO

    Since listing in May at 20 cents, the Intelicare share price lifted as high as 48 cents back in late May, its highest ever price, before retreating to its current level of 25 cents.

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

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  • Why the New Century (ASX:NCZ) share price shot up today

    The New Century Resources Ltd (ASX: NCZ) share price rose today following the company announcing the completion of its retail entitlement offer. The Zinc miner announced its intention to raise money in early November. The New Century share price closed 4.55% higher on the news, reaching a price of 23 cents.

    The news comes on the back of a very strong month for the company. Since the start of November the New Century share price has gained an impressive 50%.

    Aside from its recent appreciation in price, it has not been a year to remember for shareholders however. with shares in the company declining by around 17% in the last year.

    What does New Century do?

    New Century is a Zinc miner located in Australia. The company’s primary mine is the Century mine in Queensland, which New Century is aiming to develop into one of the top 10 zinc producers in the world.

    New Century acquired the mine in 2016, and has since transformed it. The upgrade was completed in August 2018, when the mine successfully entered production. 

    Zinc is the fourth most consumed metal in the world after iron, aluminium and copper, according to geology.com. It can be used in cars, as an alloy and to galvanize metals among many other things.

    Why is the New Century Share price rising?

    The New Century share price is storming higher today after the company announced that it had completed its entitlement offer. It was announced that approximately 85% of shareholders took up their entitlements.

    The company reported that it experienced strong shareholder uptake of the offer and consequentially increased the offer amount to $14.4 million. This was still short of the total $18 million worth of new shares requested.

    The new shares will be issued on 1 December and are expected to commence trading on the ASX by the following day. It should be noted that the shares will rank equally with existing ordinary shares on issue.

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

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  • 2 ASX blue chip dividend shares with yields over 4% today

    dividend shares

    As my Fool colleague James Mickleboro pointed out this morning, the best you can expect from an Aussie bank term deposit right now is around 0.6% per annum. That kind of annual yield is, from a wealth-building perspective, pretty uninspiring. At that rate, your money is actually going backwards in real terms if you account for the effects of inflation and taxes.

    So what’s the alternative? Well, there are a number of ASX dividend shares offering yields that far exceed those of cash investments these days.

    Here are 2 such ASX blue chip income payers that offer fully franked yields of more than 4% on current prices.

    Wesfarmers Ltd (ASX: WES)

    Wesfarmers is one of the most diversified ASX shares on the market. It owns a staggering array of quality business. These range from the massive retailers in Bunnings, Target and Officeworks, to smaller brands like Kleenheat Gas, Workwear and CSBP.

    The company also still retains an approximate 5% stake in Coles Group Ltd (ASX: COL) (more on Coles later), which it used to own in its entirety before the 2018 spin-off.

    So, Wesfarmers is known for its diverse earnings base and sheer size (its current market capitalisation is close to $57 billion). But what of its dividends?

    Wesfarmers has paid out 95 cents per share in ordinary dividends in 2020, plus a special dividend of 18 cents per share, all fully franked. That gives Wesfarmers’ shares a trailing dividend yield of 3.03%, which grosses-up to 4.33% with full franking, or 4.84% if you include the special dividend as well.

    Coles Group Ltd (ASX: COL)

    This company probably needs little introduction as the second-largest supermarket/grocer in the country, with a market capitalisation of $23.92 billion on current pricing. However, the Coles Group doesn’t just own supermarkets. It also owns bottleshop chains like Liquorland, Vintage Cellars and First Choice liquor, as well as Coles Financial Services and an interest in the Flybuys loyalty program.

    Coles has had an interesting year, but one that has resulted in record sales. The company reported a healthy full-year revenue growth rate of 6.9% for FY2020 back in August. This enabled Coles to increase its final dividend for 2020 by 14.6% to 27.5 cents a share. That gives Coles shares a full-year dividend of 57.5 cents per share in 2020, which gives us a trailing yield of 3.21% on current prices. That’s 4.59% grossed-up with Coles’ full franking credits.

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

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  • Why did the IDP Education (ASX:IEL) rise by 20% in one month?

    row of white eggs with cartoon sad faces with one gold egg with happy face and crown representing high performing asx share

    The IDP Education Ltd (ASX: IEL) share price has been a top performer on the ASX this month, rising up 20%. At the time of writing, the IDP Education share price is trading down 1.58% at $24.88, amid a broader fall in the ASX index. Let’s take a look at why the company has done so well in the past month.

    What’s driving the IDP Education share price?

    The English language education company has benefited from the news that the COVID-19 vaccine might soon be available to the general public. The company’s main revenue source mostly comes from in-person English language testing, and the vaccine news has raised hopes that international students might soon be back in Australia.

    IDP Education qualified for JobKeeper, and in the year to 30 June, banked $4.5 million of that government subsidy. The company also reduced its employees’ salaries by 20% in the final quarter of FY20, saving it about $20 million. Those savings translated to an increase of 2.3% in net profit compared to FY19.

    Broker upgrade

    Earlier this month, broker Morgans upgraded IDP Education to an “Add” recommendation from a “Hold”. The broker said a COVID-19 vaccine would make it possible for international borders to reopen quicker than expected. This would bolster student placement and International English Language Testing System (IELTS) testing volumes – and hence earnings.

    The broker also believes that IDP Education will be materially better placed when normalised conditions prevail, as the company has been successful in moving some of its businesses to the digital platform during the pandemic. Morgans raised its new target share price for IDP Education to $25.09, up from $23.31.

    Potential risk for IDP Education

    A recent study conducted by the IDP Connect International Student Crossroads Research concluded that international students overwhelmingly showed positive perceptions of countries that have remained open during the pandemic, and that many students are willing to change destinations to access face-to-face learning.

    IDP Education chief executive Andrew Barkla commented on the finding, saying:

    The research is a reminder that by failing to communicate support for students, Australia is at risk of damaging its reputation as a leading study destination.

    We have confidence the sector can introduce travel corridors and quarantine programs that allow students to commence safely in Australia, which also enables the wider community to benefit from the many ways students enrich our towns and cities.

    More about the IDP Education share price

    The IDP Education share price has also done well for the year, up 44%. The share price is currently closing in on its 52-week high of $25.76. IDP Education shares were first floated on the ASX in 2015 at an initial public offering (IPO) price of $2.65. It was trading below $10 per share for most of the period prior to 2019.

    At the current price of $24.88, the company commands a market cap of $7 billion. 

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    Eddy Sunarto 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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Why the Dorsavi (ASX:DVL) share price is flying 22% higher today

    unstoppable asx share price represented by man in superman cape pointing skyward

    Wearable sensor technology company Dorsavi Ltd‘s (ASX: DVL) share price is up 22% in late afternoon trading after posting gains of more than 32% earlier in the afternoon. This follows on the company’s annual general meeting (AGM) results, released to the ASX this morning.

    Shares in the microcap stock are up 85% for the year. And investors brave enough to go bargain hunting following the post COVID market rout to buy shares on 23 March will be sitting on gains of 270%.

    By comparison the All Ordinaries Index (ASX: XAO) is up 49% since 23 March.

    What does Dorsavi do?

    Dorsavi provides wireless technology that’s designed to accurately and objectively measure and analyse the way people move. How? Via tiny instruments that measure how you bend, twist and step. These include accelerometers, magnetometers and gyroscopes which combine with Dorsavi’s patented algorithms.

    The company offer 2 types of sensors. The first monitors movement while the second monitors muscle activity.

    What did the AGM unveil to send Dorsavi’s share price rocketing?

    In his address to shareholders at today’s virtual AGM, Dorsavi’s Chairman Greg Tweedly revealed that the company had been highly resilient during the pandemic period, reducing costs as required and showing a level of growth in its recurring revenue.

    On the cost front, Tweedly stated the company managed to reduce its cash expenses from $7.7 million in the 2019 financial year to $5.6 million in the 2020 financial year.

    Dorsavi has also made progress on transitioning from consulting revenue to recurring revenue contracts. 74% of its FY2020 sales revenue was derived from recurring revenue. That’s up from 51% in FY2019 and 25% in FY2018. Overall sales revenue, impacted by the pandemic, was down 20% year-on year, falling to $2.0 million from $2.5 million.

    Additionally, Tweedly confirmed that Dorsavi has recently raised $2.15 million in capital at an issue price of 3.2 cents per share through a placement and entitlement offer. The company received $1.85 million from institutional and sophisticated investors via an oversubscribed placement and $300,000 from eligible shareholders via a 1-for-4 non-renounceable entitlement offer.

    Among other allocations, the company plans to use the new capital to accelerate its product development, drive its commercialisation activities in the United States and invest in sales and marketing initiatives.

    With the share price already up 85% in 2020, Dorsavi is one tiny ASX share that has seen big moves this year.

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

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  • Xtek (ASX:XTE) share price soars 7% on AGM update

    hand on touch screen lit up by a share price chart moving higher

    The Xtek Ltd (ASX: XTE) share price is soaring higher today. This comes after the company updated the market with its annual general meeting (AGM) presentation.

    The release has excited investors, sending the Xtek share price to 62 cents, up 7.8%. In comparison, the All Ordinaries Index (ASX: XAO) is down 0.5% to 6,811 points.

    What’s driving the Xtek share price higher?

    In its AGM presentation, Xtek spoke positively about its recent achievements and long-term future, including the successful acquisition of United States-based HighCom Armor, which will provide an introduction for XTek’s XTclave products to United States government and law enforcement customers. The company’s lightweight armoured plates are already being used in Australia and Finland.

    XTek noted that a new range of armour products has now been developed for the United States. This follows the United States Department of Defence order for testing and qualification purposes. Sales have seen substantial growth over the last 12 months, with the company focused on broadening its distribution channels.

    Management commented on the year-on-year growth that Xtek has experienced over the last four years. Revenue has jumped from $9 million in FY17 to a record $42.7 million in FY20, reflecting a 374% increase.

    The company has also shifted around its revenue mix during the year. Its proprietary products, and small unmanned aerial systems (SUAS) supply and support business have all risen in gross margin value.

    Outlook

    Looking ahead, Xtek is targeting opportunities in its United States recurring ballistic sales, currently worth $14 million per year. In addition, the recent Finnish $2 million XTclave order is expected to yield further contract awards. In total, Xtek sees up to $70 million in near-term prospects across its entire portfolio.

    The company also reports that its medium to long-term target is $100 million in revenue, which it plans to achieve through a number of activities including expanding its United States distribution and manufacturing base and establishing new networks for exports.

    About the Xtek share price

    The Xtek share price is down 17% since the beginning of the year. Although its shares are higher over the last month, up 10.7%, the company is 32% down from its 52-week high.

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    Returns as of 27th November

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    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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post Xtek (ASX:XTE) share price soars 7% on AGM update appeared first on Motley Fool Australia.

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  • 2 ASX blue chip shares tipped as buys

    blackboard drawing of hand pointing to the words buy now

    Are you looking to bolster your portfolio with the addition of a few quality blue chip shares?

    Then you’re in luck, here are two top blue chips that have recently been tipped as buys.

    Cochlear Limited (ASX: COH)

    Cochlear is a global leader in the design, manufacture, and selling of implantable hearing devices. It has been a consistently strong performer over the last decade thanks to the increasing demand for its products due to the ageing populations tailwind and its world-class product range.

    The latter has been underpinned by its high level of investment in research and development (R&D). In FY 2020, Cochlear spent $185 million or ~14% of revenue on R&D. This is expected to increase to between $190 million and $195 million in FY 2021 as management focuses on internet-connected devices.

    One broker that believes Cochlear is well-placed for growth is Macquarie. It recently retained its outperform rating and $241.00 price target on the company’s shares. Its industry research shows that Cochlear has been winning market share in the United States. Its products were also the most highly rated according to a survey undertaken with audiologists.

    Coles Group Ltd (ASX: COL)

    Another popular ASX blue chip share is Coles. It is of course one of Australia’s leading supermarket operators and most recognisable brands. It has been growing at a solid rate in recent years thanks to a combination of same store sales growth, store expansion, and its defensive qualities.

    Those qualities were on display for all to see this year when Coles’ sales surged during the pandemic. The good news for investors is that sales remain strong in FY 2021 and a bumper first half result is expected in February. In addition to this, the company’s refresh strategy, which is focusing on cost cutting, automation, and efficiencies, is aiming to underpin solid earnings growth over the 2020s.

    Analysts at Citi appear confident that Coles’ strong form can continue. The broker recently retained its buy rating and lifted the price target on the Coles share price to $21.20. It expects groceries demand to remain strong over the medium term. It also notes that margins are firming up thanks to rational competition in the industry.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of June 30th

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    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 Cochlear Ltd. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool Australia has recommended Cochlear Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post 2 ASX blue chip shares tipped as buys appeared first on Motley Fool Australia.

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