Tag: Motley Fool

Exchange-traded funds (ETFs) can be a great way to add easy and simple diversification to one’s ASX share portfolio. Whilst market-wide index ETFs like the Vanguard Australian Shares Index ETF (ASX: VAS) remain popular choices for ASX investors, there are a number of quality thematic ETFs to consider as well. One such ETF is the iShares Global Consumer Staples ETF (ASX: IXI).

How does this ASX consumer staples ETF work?

This ETF aims to hold a basket of global companies that, according to iShares, provide “exposure to companies that produce essential products, including food, tobacco and household items”. These ‘consumer staples’ producing companies can be useful in a portfolio, as their ‘essential’ nature can prove defensive against external factors that can harm spending in other areas of the economy. As a case in point, many of the companies in this ETF have done exceptionally well in 2020 amidst the coronavirus-induced global recession.

What kind of companies does it hold?

So what kinds of companies appear in this fund? At the current time, IXI holds 92 stocks. The United States has the heaviest weighting (with 53.21% of the holdings). However, it is also exposed to the United Kingdom (10.26%), Switzerland (9.9%), Japan (6.79%) and France (4.84%).

Its largest holdings are as follows: Procter & Gamble Co (NYSE: PG), Nestle SA, Costco Wholesale Corporation (NASDAQ: COST), Walmart Inc (NYSE: WMT), PepsiCo Inc (NASDAQ: PEP), Coca-Cola Co (NYSE: KO), Philip Morris International Inc (NYSE: PM), Unilever PLC (LON: ULVR), L’Oreal SA and Diageo PLC (NYSE: DEO).

So you can see it’s rather a mixed bag here. Procter & Gamble is known for its Gillette razors and Oral-B toothpaste. Nestle, for coffee, infant formula and a massive range of snack foods. Costco and Walmart are American grocery chains, whereas Coca-Cola and Pepsi are drink and snack manufacturers. Next up, we have Diageo and Philip Morris, your classic ‘sin stocks’. They make alcoholic beverages and tobacco products respectively. We even have makeup titan L’Oreal in the mix. Interestingly, our own Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW) are also present in this fund, as is Treasury Wine Estates Ltd (ASX: TWE).

IXI charges a management fee of 0.47% per annum, and has returned an average of 11.7% per annum over the past 10 years. It also offers a current trailing dividend yield of 2.05%.

What’s to like with this ETF?

The iShares Global Consumer Staples ETF is a current ‘Buy’ recommendation of the Motley Fool’s Pro service. The Pro team thinks this fund has what it takes to be market-beating over the next decade, and like the stability, global diversification and volatility-dampening characteristics that IXI brings to the table. 

More reading

• 2 defensive ASX ETFs to add to a well-balanced portfolio
• 3 ETFs every ASX investor should consider today

Sebastian Bowen owns shares of Coca-Cola, PepsiCo, Philip Morris International, and Procter & Gamble. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Costco Wholesale. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Diageo, Diageo, and Unilever. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET, iShares Global Consumer Staples ETF, and Woolworths 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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The Vitalharvest Freehold Trust (ASX: VTH) share price has been one of the best performers on the Australian share market on Tuesday.

Which really is saying something given the strong gains that are being made across the board today.

In afternoon trade the agriculture-focused real estate investment trust’s shares are up a massive 23% to 96.5 cents.

Why is the Vitalharvest share price rocketing higher?

Investors have been scrambling to buy the company’s shares today after it confirmed that Macquarie Infrastructure and Real Assets (MIRA) has made a takeover offer.

According to the release, the trust’s responsible entity has received a conditional proposal from an agricultural fund managed by MIRA to acquire all of the issued units in the trust for $1.00 per unit by way of a trust scheme. This represents a 27.4% premium to its last close price.

In addition to this, if the trust scheme fails to gain approval, MIRA has proposed to purchase the assets of the trust for a cash consideration of $300 million.

The proposal is conditional on (among other things) the responsible entity agreeing with MIRA a scheme implementation agreement. This agreement would require the responsible entity to recommend both components of the MIRA proposal – the trust scheme and the asset purchase – to unitholders.

What now?

The trust’s responsible entity will carefully consider the proposal to determine whether it is in the best interests of unitholders and whether it is prepared to recommend it.

This will include seeking input from Primewest Agrichain Management in its capacity as manager of the trust.

At this point, it has advised that unitholders do not need to take any action in relation to the proposal. They have also been warned that there is no certainty that the proposal will result in any transaction.

In the meantime, the responsible entity will make a further announcement in connection with the proposal in due course and will keep unitholders informed in accordance with its continuous disclosure obligations.

One of its tenants, Costa Group Holdings Ltd (ASX: CGC), spoke about the proposal on Monday.

It said: “Costa supports any outcome that provides ongoing certainty in relation to the farms Costa leases from Vitalharvest and would be comfortable in the event that MIRA’s bid was successful.”

More reading

• Why Fletcher Building, Santos, Vitalharvest, & Webjet shares are storming higher
• 3 small cap ASX shares with large dividends
• Extreme levels of demand AND future growth prospects. Are you invested in these niche ASX shares?
• 2 high yield ASX dividend shares for income investors to buy today
• Invest your Suncorp dividends in these ASX shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. 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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Shares in ASX cloud technology company Readytech Holdings Ltd (ASX:RDY) have performed strongly in recent months. Since bottoming out at 96 cents at the end of March, the Readytech share price has rallied more than 100% to $1.98 at the time of writing. That puts it up over 10% this calendar year, despite the volatility and commercial headwinds caused by COVID-19.

The share price has been buoyed by strong FY20 financial results. Revenues jumped 19% year-on-year to $39.3 million, while underlying earnings before interest, tax, depreciation and amortisation expenses were up 21.5% to $15.6 million, and statutory net profit after tax skyrocketed over 360% to $3.9 million. The fact that growth in earnings outpaced top line revenue growth sends a positive signal to investors, proving the scalability of the company’s business model.

So, what does Readytech actually do?

Readytech operates a software-as-a-service (SaaS) business model, targeting the tertiary education and employment sectors. Its flagship product JR Plus helps tertiary education institutions with student acquisition and management. Its client list already includes the University of Queensland, Monash College and Bendigo TAFE, among others.

Readytech’s JR Plus platform also helps large corporations support their staff in their professional development. The software can analyse a company’s workforce and identify where skills shortages exist, and can then support targeted learning programs. Readytech has notched up an impressive client list here as well, including mining giants BHP Group Ltd (ASX:BHP) and Rio Tinto Limited (ASX:RIO).

In addition to JR Plus, Readytech has also developed a suite of software called HR3 that helps small businesses (of up to 10,000 employees) manage their payroll, HR admin and workplace health and safety requirements. Readytech also develops software to assist disability employment services providers manage their clients and deliver better employment outcomes.

Readytech now plans to also enter the government sector through the proposed acquisition of software company Open Office and McGirr. Open Office operates a similar SaaS model to Readytech, but develops case management software for local and state governments, as well as the justice sector.

The proposed acquisition is still to be approved by shareholders, but Readytech has already successfully secured the funding through a $25 million institutional placement. If the acquisition does not go ahead, Readytech plans to use the cash injection to fund other growth opportunities and potential M&A activity.

Should you invest?

Our analysts at Motley certainly think so. Motley Fool’s Hidden Gem service added Readytech to its investment scorecard back in August, when the company’s share price was hovering around $1.52. Our Foolish analysts liked the company’s large potential market opportunity, as well as its high rates of customer and revenue retention.

Since Motley’s recommendation, Readytech’s share price has climbed 30% higher.

More reading

• The Incitec Pivot (ASX:IPL) share price is lower today on full year results
• ASX 200 hits 8-month high. Here’s why we could go higher from here
• Why Alcidion, Avita, BHP, & REA Group shares are storming higher
• ASX 200 jumps 1.7%: REA Group surges to record high, bank shares push higher
• Why Platinum, ReadyTech, Tabcorp, & Whitehaven shares are dropping lower

Rhys Brock has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Readytech Holdings Ltd. The Motley Fool Australia has recommended Readytech Holdings 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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The Oil Search Limited (ASX: OSH) share price rocketed higher on the opening bell today and is currently up more than 17% in early afternoon trading.

That compares to a 2% gain for the wider S&P/ASX 200 Index (ASX: XJO).

Today’s gains continue what’s proven to be an excellent month for Oil Search. So far in November, the Oil Search share price is up nearly 29%. Though it still has a long way to go before recouping the losses it suffered following the COVID-19 induced panic selling earlier this year.

Year to date, Oil Search shares remain down 53%.

What does Oil Search do?

Oil Search was established in Papua New Guinea in 1929 and began trading on the ASX in 1999. The company operates all of PNG’s oil fields. It owns 29% of the Exxon Mobil Corporation (NYSE: XOM) operated PNG LNG Project, a major exporter to Asian markets. The company also holds interests in the Elk-Antelope and P’nyang gas fields.

Oil Search counts some of the most successful oil and gas operators in the world as its joint venture partners. With PNG’s world class fossil fuel assets, the company is well-positioned to expand its LNG capacity.

Why is the Oil Search share price shooting higher?

As with all energy shares, the Oil Search share price doesn’t solely rest on how efficiently the company is operating. It’s also reliant on the price of oil and gas, and on investors’ estimate of how future demand will impact that price.

Today, Oil Search is getting a boost on both fronts.

The announcement from Pfizer Inc. (NYSE: PFE) and BioNTech SE (NASDAQ: BNTX) that their vaccine proved 90% effective at preventing symptomatic coronavirus infections lit the fuse under energy prices.

Brent crude oil prices are up 7.5% in past 24 hours, to US$42.40 per barrel.

And with investors hopeful that the new vaccine will reopen global economies, the outlook for future energy demand paints a stronger potential picture for the price of oil and gas going forward.

Addressing the news of a possible vaccine on energy markets, Stewart Glickman, energy equity analyst at CFRA Research said (quoted by Bloomberg):

This changes everything on the demand side. Assuming it can be produced commercially, it makes it very viable for people to take more risks knowing they have a vaccine.

Michael Tran, a commodity strategist at RBC Capital Markets LLC adds:

At a minimum, what today’s news has done is put a floor into the oil market, pushing short sellers away. This is a significant step in the right direction, but there’s still headwinds at play … the duration between now and when demand actually returns is still an open-ended question.

As we get a better idea on the reality and timing of rolling out an effective COVID vaccine, the Oil Search share price will be one to watch.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 finished 2% higher on Tuesday
• Why Laybuy, Oil Search, PointsBet, & Webjet shares are racing higher

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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Life is inherently uncertain.

That’s true for you and me as individuals. And it’s inescapable when you take all 7.8 billion of us together.

If we needed any reminding, 2020 did the trick.

But November looks like it may go a long way to putting 3 of the great uncertainties that have been roiling share markets to bed.

First Brexit. (Remember when that was our greatest worry as investors?)

The European Union and the United Kingdom have set 15 November as the deadline to ink a new trade deal. While that agreement has yet to be reached, European Commission President Ursula von der Leyen and UK Prime Minister Boris Johnson spoke by phone over the weekend to hammer out remaining obstacles, like fishing rights.

Whether the Brexit woes fade comfortably into the rear-view mirror in November remains to be seen. But sooner or later, they will.

Second, one of the most hotly contested elections in United States history. (And, like it or not, what happens in the world’s biggest economy matters to Australia and our share markets.)

The world won’t know for certain whether Democrats or Republicans hold the balance of power in the Senate until after the runoff election in January. But it is increasingly likely that Joe Biden will move into the White House. And with that certainty, markets can move forward.

Third, the cursed coronavirus. If anything has unleashed mass uncertainty onto the world and global share markets it’s the global pandemic.

Yesterday I shared a quote in this article from Chris Gaffney, taken from Bloomberg. He’s the president of world markets at TIAA Bank. Here’s what Gaffney said:

The biggest factor investors have to be aware of and the biggest thing that’s going to determine returns in the short-term is COVID. It’s not going to be who’s in the White House, it’s not going to be if we get a stimulus package or not. It’s all about COVID right now.

This morning, a look at the global share markets has proven Gaffney 100% correct regarding short-term returns.

Is this the beginning of the end for COVID-19’s economic death grip?

You’ve probably heard the, hopefully, great news. (Fingers crossed!)

Pfizer Inc (NYSE: PFE) and BioNTech SE (NASDAQ: BNTX) announced that their experimental vaccine effectively prevented more than 90% of symptomatic infections in a major trial.

While the results still need approval from the US Food and Drug Administration, the companies hope millions of initial doses could be rolled out within months. And none too soon for Europe, the US and the rest of the world where the virus is spreading at a record pace.

As you’d expect, investors celebrated the news, driving markets to new highs.

Well, some of the markets.

Vaccine share market winners

European markets all closed strongly higher, with Germany’s DAX PERFORMANCE-INDEX (INDEXDB: DAX) up 4.9%.

The Dow Jones Industrial Average (INDEXDJX: .DJI) and S&P 500 Index (INDEXSP: .INX) also closed well into the green, both hitting new all-time highs during the day.

And the S&P/ASX 200 Index (ASX: XJO) is enjoying its own bullish session, up 1.4% in late morning trade.

Travel and leisure shares are among the biggest gainers on the ASX 200. The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price, as one example of many, is up 10.1% in intraday trading.

Addressing the vaccine news, Citi Private Bank investment strategist Jeffery Sacks said (quoted by the AFR): “More than any fiscal spending package or central bank lending program, a healthcare solution to COVID has the greatest potential to restore economic activity to its full potential.”

And Torsten Slok, chief economist at private-equity firm Apollo Global Management Inc stated (quoted by Bloomberg): “This is a game changer, this is what we’ve been waiting for since March. Overall, this will turn all forecast spreadsheets upside down.”

Though not every analyst was equally ebullient. Nigel Green, CEO of financial advisory firm deVere Group, urged caution: “I suspect the markets, which are already in a bullish mood due to the incoming Biden Administration, are overthinking the positive vaccine news. They are being premature in their buoyancy.”

They may also be premature with the current selloff we’re seeing in yesterday’s tech share darlings.

Vaccine share market losers

While travel and leisure share prices are largely rocketing, tech shares that have enjoyed huge tailwinds from the shift to people working, shopping and socialising from home are widely under pressure.

Overnight the NASDAQ-100 (INDEXNASDAQ: NDX) closed 2.2% lower. The Netflix Inc (NASDAQ: NFLX) share price dropped 8.6% yesterday. Most of the other big tech names sold off as well.

And here in Australia, the S&P/ASX All Technology Index (ASX: XTX) is down 4.3%.

ASX 200 online retailer Kogan.com Ltd‘s (ASX: KGN) share price is down 9.3% today.

Even the JB Hi-Fi Limited (ASX: JBH) share price is falling hard, down 5.3%.

So, does this spell the end of the tech share rally?

Not according to Bloomberg Intelligence analyst Mandeep Singh:

I don’t think the trend around e-commerce, video collaboration or shift-to-cloud will change as a result of the vaccine. The valuations look rich for some of these names, but some of these are multiyear growth stories. This is just normal volatility as investors look to rotate into sectors that have been depressed due to the pandemic such as travel, casinos and hospitality.

Foolish takeaway

For our Foolish takeaway, we turn to Scott Phillips. Here’s an excerpt from yesterday’s Take Stock, the free e-letter he pens:

As an investor… you have to take the world as it is, not the way you wish it was.

And remember, the future is inherently unknowable. All you can do is find an investing process that tends to work more often than it doesn’t, and for which the average gains are greater than the average losses.

Leave irrational belief and hope for the football field — and for next year’s Bledisloe Cup!

Scott’s own investing process has proven valuable for members of his paid advisory service, Share Advisor, who followed his advice.

Since May 2011, the average returns for Scott’s ASX recommendations are 58.5%. That beats the benchmark returns by 26.4%.

The US-listed recommendations in Share Advisor have performed even better, with an average return of 210.9% since May 2011. That outpaces the benchmark by 172.3%.

So, please, celebrate the great news of a potentially effective vaccine in the pipeline. But as Scott says, “Remember, the future is inherently unknowable.”

More reading

• ASX 200 to surge higher after Pfizer COVID-19 vaccine success
• Pfizer and BioNTech coronavirus vaccine accepted for rolling review in Canada
• 3 reasons Pfizer and BioNTech will have coronavirus vaccine data before Moderna

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 Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com ltd and Netflix. 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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The REA Group Ltd (ASX: REA) share price hit an all-time record high of $142.28 this morning. This follows the company’s upbeat first quarter FY21 result and surge in the broader ASX 200. The REA share price has since retreated, however, dropping 2.82% to $135.56 at the time of writing.

Value higher but growth lower 

Trading on the ASX today has witnessed cyclical and more value-orientated sectors such as energy, industrials, financials, travel and real estate push higher. While growth-related industries such as information technology, e-commerce and consumer discretionary have been sold down quite significantly so far.

The REA share price increased almost 20% in the last 5 trading sessions from trough to peak. But its rapid share price appreciation combined with today’s broad growth sector sell-off point to a likely close in the red. 

A look at REA’s quarterly results 

The REA quarterly delivered flat operational and financial metrics at face value. In the September quarter, revenues slipped 3% to $195.7 million while earnings before interest, tax, depreciation and amortisation (EBITDA) increased 8% to $123.8 million. The quarter reflected diverging impacts of the coronavirus pandemic with overall national residential listings declining 2%.

The second wave of COVID-19 restrictions in Melbourne caused a significant decline in listings with volumes declining 44% for the quarter. In contrast, NSW showed signs of continued market recovery with a 23% increase in listings for the quarter. 

In October, national residential listings were down 1% with increases in Melbourne and Sydney of 14% and 2% respectively, offset by declines in other markets. While there have been positive signs of real estate market recovery more broadly speaking, the company remains uncertain over the longer term impacts of COVID-19, especially on areas such as consumer confidence, unemployment and the economy. 

What did the big brokers think? 

Big brokers shrugged off the element of uncertainty with a series of REA share price upgrades. This follows the general census that the quarterly performance was better than expected, costs were well managed and longer term growth opportunities remain intact.

Credit Suisse upgraded its price target from $109.00 to $123.50 and UBS raised its price target from $107.00 to $130.00. Broker target prices currently represent a 5-10% discount to REA’s current price of $135.56.

More reading

• ASX 200 hits 8-month high. Here’s why we could go higher from here
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 jumps 1.75% on Monday
• Why the REA Group (ASX:REA) share price jumped 10% to a record high
• Why Alcidion, Avita, BHP, & REA Group shares are storming higher

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group 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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Every week, Commonwealth Bank of Australia‘s (ASX: CBA) CommSec brokering platform tells us the international shares that its customers have been buying lately. As CommSec is one of the largest online brokers in the country, this data can be indicative of general investing trends in our market. This week’s data covers 2-6 November.

So here are the top 10 United States shares that CommSec customers were buying last week:

Most traded US shares on the ASX

The five most traded international shares last week were the following:

1. Nio Inc (NYSE: NIO) — representing 6.4% of total trades with an 84%/16% buy-to-sell ratio.
2. Tesla Inc (NASDAQ: TSLA) — representing 5.8% of total trades with a 72%/28% buy-to-sell ratio.
3. Apple Inc (NASDAQ: AAPL) — representing 4.2% of total trades with a 73%/27% buy-to-sell ratio.
4. Alibaba Group Holding Ltd (NYSE: BABA) — representing 2.9% of total trades with an 84%/16% buy-to-sell ratio.
5. Amazon.com Inc (NASDAQ: AMZN) — representing 2.4% of total trades with a 75%/25% buy-to-sell ratio.

The next five most traded shares were these:

      6. Microsoft Corporation (NASDAQ: MSFT)

      7. Xpeng Inc (NYSE: XPEV)

      8. Advanced Micro Devices, Inc (NASDAQ: AMD)

      9. Square Inc (NYSE: SQ)

      10. Facebook Inc (NASDAQ: FB)

What can we learn from these trades?

It’s a very interesting report this week, especially when we compare it to previous weeks’ patterns. For example, we see significantly more selling pressure evident in these numbers. Our coverage of the US shares ASX investors were buying from 19-23 October shows none of the top 5 US shares having a buy-sell ratio of less than 80%/20%, yet 4 out of 5 of the top shares this week are below this ratio.

Further, this is the first week in a while that electric vehicle and battery manufacturer, Tesla, isn’t at the top of the totem pole. It’s been usurped by Nio this week, another electric vehicle manufacturer. My Fool colleague, Tony Yoo, discusses why Nio is driving investors wild right now here.

The data also showcases the popularity of Chinese shares for Aussies right now as well. Nio, Alibaba and Xpeng are all popular Chinese (though US-listed) companies. Alibaba is an e-commerce giant often described as the ‘Amazon of China’, whereas Xpeng is yet another electric vehicle manufacturer that has been causing quite a stir on the US markets. Xpeng shares are up more than 70% in the past month, and up 59% in the past week.

However, the US ‘big tech’/FAANG companies like Apple, Amazon, and Facebook remain as popular as ever, as does Microsoft. Fintech company, Square, and high-flying chip maker AMD are also regular guests on this list, so no surprises seeing these names pop up as well.

More reading

• Aussies going crazy for electric car maker, but it’s not Tesla
• Don’t fall in love with a charismatic CEO, says fundie
• Why big brokers are bullish about the Woolworths (ASX: WOW) share price 
• Why the CBA (ASX:CBA) share price and these ASX stocks could get a $100bn boost
• ASX 200 Weekly Wrap: US election special

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, 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. Sebastian Bowen owns shares of Facebook and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alibaba Group Holding Ltd., Amazon, Apple, Facebook, Microsoft, Square, and Tesla and recommends the following options: long January 2021 $85 calls on Microsoft, short January 2021 $115 calls on Microsoft, short January 2022 $1940 calls on Amazon, and long January 2022 $1920 calls on Amazon. The Motley Fool Australia has recommended Amazon, Apple, and Facebook. 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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The Immutep Ltd (ASX: IMM) share price went flying up this morning as the company announced encouraging results in its phase II trials. The company’s share price was trading up 5% at 31 cents in early trade. However, it has since retreated and is trading flat at 30 cents at the time of writing.

While hard hit by the COVID-19 pandemic, shares in the biotech company have rebounded strongly since the end of March. The Immutep share price is up 170% since its lows, outpacing the All Ordinaries Index (ASX: XAO) rise of 44.5% during the same period.

Encouraging Phase II trial results

This morning, Immutep announced positive results in its ongoing phase II trials. The overall response rates in both the trials continue to be favourable, with 5 patients demonstrating a complete disappearance of all lesions.

Immutep CMO Dr Frederic Triebel was pleased, saying:

The results from this trial, and our other trials, continue to support our hypothesis that the combination of our lead product candidiate, eftilagimod alpha, with a PD-1 inhibtor such as pembrolizumab should result in a meaningful benefit to patients across various cancers. These results are supportive of further late stage clinical development.

About the Immutep share price

Immutep is a biotechnology company that develops new immunotherapy treatments for cancer and autoimmune diseases. The company boasts partnerships with some of the world’s largest pharmaceutical companies. This includes the first COVID-19 vaccine candidate, Pfizer Inc. (NYSE: PFE).

Immutep’s main product is eftilagimod alpha (IMP321), a soluble fusion protein, which is in clinical development for the treatment of cancer. The company has two other clinical candidates (IMP701 and IMP731) that are fully licensed to major pharmaceutical partners, and a fourth candidate (IMP761) which is in pre-clinical development.

The Immutep share price has traded strongly during 2020, gaining 15% since the start of the year. In comparison, the S&P/ASX 200 Index (ASX: XJO) is down 4% so far this year.

More reading

• 2 fast-growth ASX tech shares that are being sold off
• ASX 200 up 1.6%: COVID-19 vaccine news sends Flight Centre, NAB, & Qantas surging higher
• ASX stock of the day: Nine (ASX:NEC) share price surges on sporting venture
• The OFX (ASX:OFX) share price slumps with ASX tech stocks after posting its results
• Markets volatile on US presidential election results

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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In afternoon trade on Tuesday the S&P/ASX 200 Index (ASX: XJO) is on course to record another strong gain. At the time of writing the benchmark index is up a sizeable 1.55% to 6,397.3 points.

Four shares that have climbed more than most today are listed below. Here’s why they are storming higher:

Fletcher Building Limited (ASX: FBU)

The Fletcher Building share price has jumped 16% higher to $4.85. Investors have been buying the building products company’s shares after the release of a trading update. That update reveals that Fletcher Building has started FY 2021 strongly. For the first four months of the financial year, its earnings before interest and tax (EBIT) before significant items is up NZ$80 million or 54.4% to NZ$227 million.

Santos Ltd (ASX: STO)

The Santos share price has surged almost 11.5% higher to $5.58. The catalyst for this strong rise has been a jump in oil prices overnight following news of a potentially effective COVID-19 vaccine. There are hopes that this vaccine will bring life back to normal quicker than expected and underpin a recovery in demand for oil.

Vitalharvest Freehold Trust (ASX: VTH)

The Vitalharvest share price has rocketed a massive 22.5% higher to 96.2 cents. This morning the company confirmed that Macquarie Infrastructure and Real Assets (MIRA) has offered to acquire the company for $1.00 per unit by way of a trust scheme. This represents an attractive 27.3% premium to its last close price.

Webjet Limited (ASX: WEB)

The Webjet share price has jumped over 14% higher to $4.89. The catalyst for this was of course the COVID-19 vaccine news. With Pfizer suggesting it could start rolling out the vaccine before the end of the year, investors are optimistic that the travel market could recover quicker than expected. A number of other travel stocks are recording exceptionally strong gains on Tuesday.

More reading

• Flight Centre (ASX:FLT) and Webjet (ASX:WEB) shares surge higher on vaccine news
• Why the Fletcher Building (ASX:FBU) share price could rocket higher today
• ASX 200 to surge higher after Pfizer COVID-19 vaccine success
• 5 things to watch on the ASX 200 on Tuesday
• 5 ASX 200 shares that rose by more than 15% last week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended 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.

The post Why Fletcher Building, Santos, Vitalharvest, & Webjet shares are storming higher appeared first on Motley Fool Australia.

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Some of the ASX’s fastest-growing tech shares are seeing their share prices fall in response to the COVID-19 vaccine update.

COVID-19 news

Global news media is reporting that a vaccine being produced by Pfizer could be 90% effective at stopping COVID-19. Around 44,000 people had been given a trial of the vaccine, and the results are promising when looking at the 94 people who have been infected by COVID-19, according to early results.

This vaccine is actually one of the ones that Australia has signed an agreement about. Federal Health Minister Greg Hunt said: “The data on our vaccine candidates continues to be positive. We will examine the evidence carefully but the latest results are heartening news.”

ASX tech shares being sold off

There are plenty of ASX shares that have risen in response to this news.

For example, in the S&P/ASX 200 Index (ASX: XJO) there are some ASX shares that have gone up more than 15%. The Unibail-Rodamco-Westfield (ASX: URW) share price is up 23%, the Corporate Travel Management Ltd (ASX: CTD) share price is up 18% and the Idp Education Ltd (ASX: IEL) share price is up 19.1%.

But there are market commentators that think there are some ASX tech shares that are on the wrong side of the vaccine trade which have been beneficiaries of the pandemic. Marcus Padley said:

“We are making changes to our funds today. What a week – Trump gone and now this. As they say in Top Gun – “Its doesn’t get to look any better than this”.  This is not the day to look for something to worry about. This is a time to run with the Bulls in the pandemic recovery stocks – until they stop running of course – but that’s the stock market and you can deal with that when it happens.”

These are two of the shares that have fallen today:

Pushpay Holdings Ltd (ASX: PPH)

The Pushpay share price is currently down 5.3%. Pushpay is an ASX tech share that facilitates digital donations, particularly for the US large and medium church sector. It has benefited from the increased adoption of electronic giving.

It has a long-term goal of reaching US$1 billion revenue from the US faith sector. Pushpay management say that its new offering called ChurchStaq – which is the combined offering of Pushpay and Church Community Builder – is proving very popular with users.

Pushpay is still rated as a buy by the Motley Fool Pro team who believed Pushpay was a long-term opportunity before COVID-19 came along.

Redbubble Ltd (ASX: RBL)

The Redbubble share price is down 17.5%. It’s an e-commerce site for artists to sell goods like masks, wall art, phone cases and clothes.

Fund manager Joseph Kim recently outlined that Redbubble’s growth may not be limited to just the COVID-19 period:

“The opportunity set for Redbubble is compelling. The business already has a global presence with its main markets being North America and Europe. Should the company build a recognisable brand, the potential to be a global e-commerce marketplace for aspiring artists presents significant upside. Recent interest in both social and mainstream media point to growing brand awareness, which helps perpetuate the flywheel effects.

“While RBL has clearly been a “stay-at-home” trade, we believe the business has the opportunity to emerge a longer-term structural winner from COVID-19 should it capitalise in the recent spike in user and customer interest as a result of recent lockdown measures.”

More reading

• ASX 200 up 1.6%: COVID-19 vaccine news sends Flight Centre, NAB, & Qantas surging higher
• ASX stock of the day: Nine (ASX:NEC) share price surges on sporting venture
• Why the Redbubble (ASX:RBL) share price has crashed 20% lower today
• The OFX (ASX:OFX) share price slumps with ASX tech stocks after posting its results
• Pushpay (ASX:PPH) investor day presentation: any updates to recover its share price?

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 Idp Education Pty Ltd and PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool Australia has recommended PUSHPAY FPO NZX. 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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