Tag: Motley Fool

On Monday morning all eyes will be on the Westpac Banking Corp (ASX: WBC) share price when it hands in its full year results for FY 2020.

Ahead of the release, I thought I would take a look to see what is expected from the banking giant.

What is the market expecting from Westpac in FY 2020?

First things first, the market is expecting some hefty notable items for the second half of FY 2020.

Last week the company revealed that its second half cash earnings will be reduced by $1,220 million after tax due to notable items.

These include $568 million of goodwill and intangible write-downs related to its Westpac Life Insurance Services and Auto Finance businesses, along with a write-down of capitalised software.

In addition, the company revealed $415 million from additional provisioning for AUSTRAC related matters and an additional $182 million in provisions for customer refunds, the implementation of the remediation program, and litigation costs.

Finally, a $55 million notable item comes from asset sales and revaluations. This has been driven by losses on insurance liabilities and expenses from discontinued products (totalling $267 million after tax), which were offset by gains on the revaluation of its Zip Co Ltd (ASX: Z1P) holding ($212 million).

What does this mean for its earnings and dividend?

According to a note out of Goldman Sachs, its analysts expect this to lead to cash earnings of $2,535 million for FY 2020. This represents a 63% decline on the prior corresponding.

From these earnings, the broker expects Westpac to pay a final fully franked dividend of 25 cents per share. And given that there was no interim dividend, that amount will be the same for its full year dividend and represents an 85.6% year on year reduction.

Other key metrics of note to look out for are its CET1 ratio and return on equity.

Goldman expects a 704-basis points reduction in its return on equity to 3.7% and a CET1 ratio of 11.1%. This will be up 41 basis points year on year.

Incidentally, the broker has a buy rating and $20.65 price target on Westpac’s shares. This implies potential upside of 15% over the next 12 months excluding dividends.

More reading

• 5 things to watch on the ASX 200 next week
• Reserve Bank tipped to cut rates to record lows next week
• RBA will cut rates Tuesday, say 67% of experts
• How did the WAAAX shares perform in the last quarter?
• Why I think now’s the time to buy bank stocks after ANZ Bank’s (ASX:ANZ) shock results

James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. 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 What to expect from the Westpac (ASX:WBC) FY 2020 result appeared first on Motley Fool Australia.

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We asked our Foolish writers to pick their favourite ASX shares to buy in November. 

Here is what the team have come up with…

Chris Chitty: Lynas Corporation Ltd (ASX: LYC)

Both the Australian Prime Minister and the United States President have recently spoken about the importance of critical minerals. Owning one of the highest quality rare earth mines in the world, I believe Lynas is in a great position for growth. This ASX share is already the second largest producer of separated rare earth materials worldwide and has plans to build additional separation facilities in Australia and the US, both of which have attracted government support.

With rare earths in short supply and government subsidies available, I feel Lynas has an enormous opportunity to grow value for its shareholders. I think today’s Lynas share price offers a great opportunity to investors.

Motley Fool contributor Chris Chitty does not own shares of Lynas Corporation Ltd.

Daniel Ewing: Catapult Group International Ltd (ASX: CAT)

Catapult is a global sports analytics company that provides some of the best sporting teams around the world with its diagnostic technology. You may have seen its products worn by superstars from FC Bayern Munich or closer to home, the Fremantle Dockers.

In recent times, the company has seen impressive earnings before interest, taxes, depreciation and amortisation (EBITDA) growth as its subscription revenue has skyrocketed 21%. Furthermore, as of its FY20 results, the company is cash flow positive. This is important for Catapult to be able to drive growth organically through its impressive research and development team.

Motley Fool contributor Daniel Ewing owns shares of Catapult Group International Ltd.

Tristan Harrison: City Chic Collective Ltd (ASX: CCX)

At the time of writing the City Chic share price is $2.77, which puts it at 21x FY22’s estimated earnings.

There’s no doubt that COVID-19 has impacted City Chic’s growth. But the company has shown it has strong e-commerce credentials. It reported 65% of total sales were online in FY20. It also said that 42% of global sales were in the northern hemisphere.

I think City Chic is an exciting ASX share because of its global growth aspirations. Higher online sales should also help margins over time and the company may soon be able to acquire another US retailer with its excess capital.

Motley Fool contributor Tristan Harrison does not own shares of City Chic Collective Ltd.

Ken Hall: Woodside Petroleum Limited (ASX: WPL)

I think the Woodside share price could be a speculative buy in November. ASX shares in the energy sector have been smashed in 2020 as the COVID-19 restrictions have caused demand for energy in key industries such as travel and manufacturing to plummet.

However, things are looking up on the domestic front. Border restrictions appear set to ease in the coming months and we could see demand start to follow shortly. Globally, challenges remain with significant coronavirus case numbers in the US, Europe and elsewhere.

The Woodside share price is down nearly 50% in 2020 and I think November could represent an opportunity to buy in at a good price.

Motley Fool contributor Ken Hall does not own shares of Woodside Petroleum Limited.

Aaron Teboneras: CSL Limited (ASX: CSL)

I believe biotherapeutics giant, CSL, is one of the highest quality ASX shares you can buy. Its Behring business treats rare and serious diseases, while its Seqirus business provides influenza vaccines.

The global leader expects strong growth in FY21 with increased disease awareness and improved diagnostics. Despite plasma collections being slightly impacted by COVID-19, CSL projects revenue to increase between 6% and 10%.

In addition, the alliance with the University of Queensland and the Coalition for Epidemic Preparedness Innovations (CEPI) is aiming to have a COVID-19 vaccine available in 2021.

Motley Fool contributor Aaron Teboneras owns shares of CSL Limited.

Sebastian Bowen: Telstra Corporation Ltd (ASX: TLS)

For this month’s ASX share pick, I just couldn’t go past Telstra. The Telstra share price is near both its 52-week and all-time lows right now. Whilst that might be distressing for existing shareholders, it also means that the company’s 16 cents per share dividend is reaching an extremely high yield of close to 6% (or 8.5% grossed-up).

Some investors are worried that this dividend is an endangered species, but the company recently confirmed at its annual general meeting that it intends to keep it steady in FY2021 and hopefully beyond. As such, I think Telstra is a great buy today for any investor, but especially those who value hefty dividend income.

Motley Fool contributor Sebastian Bowen owns shares of Telstra Corporation Ltd.

Bernd Struben: Rural Funds Group (ASX: RFF)

More reading

• How La Nina will create unexpected ASX stock winners and losers
• Where to invest $100,000 into ASX shares in November
• Reserve Bank tipped to cut rates to record lows next week
• 3 ASX 200 shares that every investor should own
• How ASX investors can capture these ‘billionaire trends’

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Catapult Group International Ltd., CSL Limited and Austal Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited and Rural Funds Group. The Motley Fool Australia has recommended Catapult Group International 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 Top ASX shares to buy in November 2020 appeared first on Motley Fool Australia.

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Last week saw a large number of broker notes hitting the wires once again. Three buy ratings that caught my eye are summarised below.

Here’s why brokers think investors ought to buy them next week:

Afterpay Ltd (ASX: APT)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $115.00 price target on this payments company’s shares. This follows the release of a first quarter update which came in ahead of the broker’s expectations. Morgan Stanley notes that this was driven by its ANZ business, which offset slightly softer than expected US customer growth. Though, the latter should be boosted by new merchant additions in the second quarter. I agree with the broker on Afterpay and believe it would be a great long term option.

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and lifted the price target on this banking giant’s shares to $20.00. According to the note, ANZ’s full year result came in ahead of its expectations after adjusting for its large notable items. This was driven by a better than expected performance from its markets business. Outside this, the broker likes ANZ for its credit quality outlook and dividend prospects. I think Macquarie is spot on and ANZ could be a good option for investors.

Coles Group Ltd (ASX: COL)

Analysts at Credit Suisse have retained their outperform rating and lifted the price target on this supermarket operator’s shares to $21.04. According to the note, the broker expects Coles to deliver a robust half year result following its positive start to FY 2021 and the prospect of a strong holiday season. The latter is expected to be underpinned by consumers holding more celebrations at home this year. I agree with Credit Suisse and would be a buyer of Coles’ shares.

More reading

• Reserve Bank tipped to cut rates to record lows next week
• Is the Coles (ASX:COL) share price in the buy zone?
• RBA will cut rates Tuesday, say 67% of experts
• How did the WAAAX shares perform in the last quarter?
• The next ASX 200 stock that can pay a special dividend in the near-term

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO and COLESGROUP DEF SET. 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 Top brokers name 3 ASX shares to buy next week appeared first on Motley Fool Australia.

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Not even a terrible finish to the month could stop the S&P/ASX 200 Index (ASX: XJO) from pushing higher in October. The benchmark index gained 1.9% to finish at 5,927.6 points.

Not all shares were able to climb higher with the market today. Here’s why these were the worst performers on the ASX 200 in October:

Iluka Resources Limited (ASX: ILU)

The Iluka Resources share price was the worst performer on the ASX 200 in October with a 43.5% decline. However, this decline was nothing to do with the performance of the mineral sands company. It was due to the spin-off of its Deterra Royalties Ltd (ASX: DRR) business. Eligible shareholders received 1 Deterra Royalties share for every Iluka share they owned.

Mesoblast limited (ASX: MSB)

The Mesoblast share price wasn’t far behind and crashed 39.8% lower last month. This disappointing decline came after the biotechnology company revealed that the US FDA has not approved its remestemcel-L (RYONCIL) treatment for paediatric patients with steroid-refractory acute graft versus host disease (SR-aGVHD). The regulator has asked Mesoblast to undertake at least one more randomised, controlled study in adults and/or children. This is to provide further evidence of the effectiveness of remestemcel-L for SR-aGVHD. The company was also hit with a class action from disgruntled shareholders.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price was a poor performer and dropped 20.5% in October. This sizeable decline appears to have been driven by a broker note out of Credit Suisse and escalating COVID-19 cases globally. In respect to the note, Credit Suisse downgraded the travel agency’s shares to a neutral rating with a $15.31 price target after pushing back its travel bookings recovery forecast by six months. This was to reflect a surge in COVID-19 cases in the northern hemisphere.

Regis Resources Limited (ASX: RRL)

The Regis Resources share price was out of form and sank 17.8% lower last month. Investors were selling this gold miner’s shares following a pullback in the price of the precious metal and an underwhelming quarterly update. The latter led to analysts at Macquarie reaffirming their underperform rating and slashing the price target on its shares down to $4.50. And while the Regis share price has since dropped below this target price, Macquarie has warned that the second quarter could also be weak.

More reading

• Is it time to buy ASX gold shares?
• These were the best performing shares on the ASX 200 in October
• 5 things to watch on the ASX 200 next week
• How La Nina will create unexpected ASX stock winners and losers
• These were the worst performing shares on the ASX 200 last week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel 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.

The post These were the worst performing shares on the ASX 200 in October appeared first on Motley Fool Australia.

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Gold has been an interesting space to watch this year. We have seen the gold price break it’s 9-year all-time high, and subsequently watched it go above US$2,000 an ounce for the first time in history. We’ve also seen it retreat considerably, falling more than 8% since early August to today’s price of US$1,877 an ounce. Even so, gold remains more than 23% higher than it was at the start of the year, considerably outperforming both the S&P/ASX 200 Index (ASX: XJO) and the popular US share market benchmark, the S&P 500.

This movement in the gold price has been reflected in the ASX 200’s gold mining companies. Newcrest Mining Limited (ASX: NCM), the ASX’s largest gold miner, is down another 1.04% today to $29.12 after falling nearly 20% since early August. It’s a similar story with other ASX gold miners like Evolution Mining Limited (ASX: EVN) and Northern Star Resources Limited (ASX: NST). Likewise with the ETFS Physical Gold ETF (ASX: GOLD), which is also down around 8% since early August.

So we are unquestionably seeing a pullback in gold and gold-backed companies and funds. Since the golden rule (or one of them) in investing is ‘buy low, sell high’, perhaps we should be taking notice. So is this the time to buy gold, ASX gold miners, or gold investments?

Is it time to go gold panning on the ASX?

Gold is not an investment class for everyone. Many investors, including the famous Warren Buffett, have called gold a poor investment in the past, with good reason. There have been decades at a time in the past where gold has gone either nowhere or backward. At the end of the day, it is an ‘unproductive asset’, which actually costs you money to hold, in contrast with an ASX dividend share, which pays you to hold it.

However, I think this might actually be a compelling time to buy gold if it holds a certain lustre with you. Gold is an asset that typically acts as a ‘safe haven’ in times of economic stress. That’s why we have seen gold appreciate so enthusiastically in 2020 for obvious reasons. Equally, the retreat of gold over the past few months has coincided with rising share markets, across both Australia and the USA.

However, let’s look at the future. Straight up, we have a highly contentious US presidential election coming up in under a week. If the result of the election is disputed, or not immediately obvious, we could well see massive volatility in the markets. Gold will probably shine if that comes to pass. But looking beyond that, we have governments around the world, including the USA, in unprecedented levels of debt. Many commentators, including the influential Ray Dalio, predict this could lead to massive currency devaluation in the future as those countries struggle to bear that debt burden. Gold would also be an outperforming asset in that environment, due to its scarcity compared with ‘printed money’ from quantitative easing programs.

Foolish takeaway

Overall, I think today is a good opportunity to buy gold if it’s qualities appeal to your investing style. It’s certainly not an asset for everyone, but we are in unprecedented times.

More reading

• These were the best performing shares on the ASX 200 in October
• 5 things to watch on the ASX 200 next week
• How La Nina will create unexpected ASX stock winners and losers
• These were the worst performing shares on the ASX 200 last week
• These were the best performing shares on the ASX 200 last week

Motley Fool contributor Sebastian Bowen owns shares of Newcrest Mining Limited. 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 Is it time to buy ASX gold shares? appeared first on Motley Fool Australia.

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My best investment in my relatively short time investing has been Altium Limited (ASX: ALU) where I’m up 10 times my money.

Perhaps I was lucky to invest in Altium, but there were a few things I looked out for with Altium that helped me choose it several years ago.

A growth theme that makes sense

I think any business that you invest in needs to have a growth story that makes sense. I like finding a theme where you can see long-term growth and also find a business that has the potential to be a national, regional or global market leader.

With Altium, I was a big believer in the growth of the internet of things where there will be more devices requiring more complex engineering and software to enable them to do what their makers want them to do. That trend has continued to develop since I invested in Altium and it looks like that’ll keep happening over the next decade (and beyond?).  

There’s an obvious growth trend towards data moving to data centres with huge providers like AWS, Azure and Google Cloud. That’s the growth trend that Nextdc Ltd (ASX: NXT) and Megaport Ltd (ASX: MP1) are building on.

Goodman Group (ASX: GMG) is benefiting from the large shift to e-commerce and major investments in logistics. There are also plenty of smaller ASX shares that are benefiting from a continuing shift to e-commerce including Redbubble Ltd (ASX: RBL), Kogan.com Ltd (ASX: KGN) and Temple & Webster Group Ltd (ASX: TPW).

Rising profit margins

It’s good to be able to see a path for growing revenue for a business. But for me, what turns a business into a true long-term performer is the ability to keep growing profit margins over time so that profit can rise even faster than revenue.

During the 2010s, Altium displayed great scalability and it has increased its earnings before interest, tax, depreciation and amortisation (EBITDA) margin to around 40% now.

I think further profit margin growth will be possible in FY22 and onwards as Altium grows towards clear market leadership and keeps winning new subscribers.

There are several other ASX shares with rising profit margins that I think are definitely worth watching like Redbubble, Pushpay Holdings Ltd (ASX: PPH), Xero Limited (ASX: XRO), REA Group Limited (ASX: REA) and CSL Limited (ASX: CSL).

The profitability of a business is ultimately what will (or should) determine the share price of a business like Altium, or any other business.

A commitment to returns for shareholders

The reason any investor should be interested in a public company is the potential returns. That can mean the capital growth of the share price as well as cash returns paid to shareholders.

Altium could easily be a business that just holds onto all of its cash to re-invest it. And that would be okay because it’d be re-investing into high-returning activities. We’ve seen businesses like Berkshire Hathaway, Amazon, Xero and A2 Milk Company Ltd (ASX: A2M) do great great things by re-investing profits and cashflow back into their business. The commitment to shareholders here is by incrementally growing the business and not making any dangerous moves with debt or risky acquisitions that could permanently destroy shareholder capital.

But I think it’s great just receiving a tangible return from your investment each year in the form of a dividend. Share prices are constantly changing, but dividends can provide certain returns.

Altium has been growing its dividend consecutively for several years. It has a stated goal of growing the dividend. There are plenty of other businesses with a good commitment to shareholder returns like Wesfarmers Ltd (ASX: WES), Brickworks Limited (ASX: BKW) and Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).

Foolish takeaway

This combination of being a quality business, with a good growth theme and being committed to doing the best by shareholders can lead to very good returns over the long-term. That’s why Altium has turned out so well for my portfolio so far. I’m keeping my eye out for other investments that could also deliver really good returns.

More reading

• I plan to invest heavily in ASX shares next week
• 3 ASX 200 shares that every investor should own
• How did the WAAAX shares perform in the last quarter?
• 3 outstanding ASX growth shares to buy after the market selloff
• 3 sublime ASX growth shares to buy this month

Tristan Harrison owns shares of Altium and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium and MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd., Kogan.com ltd, PUSHPAY FPO NZX, Temple & Webster Group Ltd, and Xero. The Motley Fool Australia owns shares of and has recommended A2 Milk, Brickworks, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended Kogan.com ltd, MEGAPORT FPO, PUSHPAY FPO NZX, REA Group Limited, and Temple & Webster Group 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 3 rules that helped me 10x my money with Altium (ASX:ALU) shares appeared first on Motley Fool Australia.

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The S&P/ASX 200 Index (ASX: XJO) may have fallen heavily last week, but that wasn’t enough to stop the benchmark index from recording a 1.9% gain in October.

While a good number of shares recorded gains over the month, some climbed more than most. Here’s why these were the best performers on the ASX 200 last month:

Coca-Cola Amatil Ltd (ASX: CCL)

The Coca-Cola Amatil share price was the best performer on the ASX 200 in October with a sizeable 30.3% gain. Investors were buying this beverage company’s shares last month after it received a takeover approach from the largest independent bottler of soft drinks, Coca-Cola European Partners. An offer of $12.75 cash per share was made, which values Coca-Cola Amatil at $9,282 million. While due diligence has been granted, some shareholders have labelled the offer opportunistic.

Link Administration Holdings Ltd (ASX: LNK)

The Link share price wasn’t far behind with a 27.5% gain last month. This was also driven by news of a takeover approach. The administration services company received an offer from a consortium comprising Pacific Equity Partners, Carlyle Group, and their affiliates. While the first offer was rejected, the consortium’s revised offer of $5.40 per share has been enough to grant it due diligence. However, the Link board still does not believe the updated proposal represents compelling value for shareholders. It feels further work is required to determine the viability and attractiveness of the separation of the PEXA and Link (ex PEXA) assets.

Challenger Ltd (ASX: CGF)

The Challenger share price was a strong performer and stormed 24.9% higher over the month. Investors were buying the annuities company’s shares after the release of its first quarter update. That update revealed that Challenger’s performance has been improving. It reported a 4% increase in assets under management to $89 billion. This was driven by a 4% lift in Life investment assets, which benefited from positive investment experience and a 46% increase in annuity sales compared to the prior corresponding period to $1,233 million. Challenger also reaffirmed its guidance for FY 2021. It continues to expect normalised net profit before tax in the range of $390 million and $440 million.

Virgin Money UK PLC (ASX: VUK)

The Virgin Money UK share price bounced back strongly and recorded a 24.2% gain in October. As well as benefiting from improving sentiment in the banking sector, investors were buying the UK-based bank’s shares following an operational update. Virgin Money UK revealed that it plans to cut up to 400 jobs after abandoning its restructuring plans.

More reading

• 5 things to watch on the ASX 200 next week
• How La Nina will create unexpected ASX stock winners and losers
• These were the worst performing shares on the ASX 200 last week
• These were the best performing shares on the ASX 200 last week
• 3 ASX 200 shares that every investor should own

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 Link Administration Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Challenger Limited. The Motley Fool Australia has recommended Link Administration 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.

The post These were the best performing shares on the ASX 200 in October appeared first on Motley Fool Australia.

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The S&P/ASX 200 Index (ASX: XJO) may have fallen heavily last week, but that wasn’t enough to stop the benchmark index from recording a 1.9% gain in October.

While a good number of shares recorded gains over the month, some climbed more than most. Here’s why these were the best performers on the ASX 200 last month:

Coca-Cola Amatil Ltd (ASX: CCL)

The Coca-Cola Amatil share price was the best performer on the ASX 200 in October with a sizeable 30.3% gain. Investors were buying this beverage company’s shares last month after it received a takeover approach from the largest independent bottler of soft drinks, Coca-Cola European Partners. An offer of $12.75 cash per share was made, which values Coca-Cola Amatil at $9,282 million. While due diligence has been granted, some shareholders have labelled the offer opportunistic.

Link Administration Holdings Ltd (ASX: LNK)

The Link share price wasn’t far behind with a 27.5% gain last month. This was also driven by news of a takeover approach. The administration services company received an offer from a consortium comprising Pacific Equity Partners, Carlyle Group, and their affiliates. While the first offer was rejected, the consortium’s revised offer of $5.40 per share has been enough to grant it due diligence. However, the Link board still does not believe the updated proposal represents compelling value for shareholders. It feels further work is required to determine the viability and attractiveness of the separation of the PEXA and Link (ex PEXA) assets.

Challenger Ltd (ASX: CGF)

The Challenger share price was a strong performer and stormed 24.9% higher over the month. Investors were buying the annuities company’s shares after the release of its first quarter update. That update revealed that Challenger’s performance has been improving. It reported a 4% increase in assets under management to $89 billion. This was driven by a 4% lift in Life investment assets, which benefited from positive investment experience and a 46% increase in annuity sales compared to the prior corresponding period to $1,233 million. Challenger also reaffirmed its guidance for FY 2021. It continues to expect normalised net profit before tax in the range of $390 million and $440 million.

Virgin Money UK PLC (ASX: VUK)

The Virgin Money UK share price bounced back strongly and recorded a 24.2% gain in October. As well as benefiting from improving sentiment in the banking sector, investors were buying the UK-based bank’s shares following an operational update. Virgin Money UK revealed that it plans to cut up to 400 jobs after abandoning its restructuring plans.

More reading

• 5 things to watch on the ASX 200 next week
• How La Nina will create unexpected ASX stock winners and losers
• These were the worst performing shares on the ASX 200 last week
• These were the best performing shares on the ASX 200 last week
• 3 ASX 200 shares that every investor should own

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 Link Administration Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Challenger Limited. The Motley Fool Australia has recommended Link Administration 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.

The post These were the best performing shares on the ASX 200 in October appeared first on Motley Fool Australia.

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Last week was a disappointing one for Australian investors. Rising COVID-19 cases globally spooked global markets and sent the S&P/ASX 200 Index (ASX: XJO) tumbling 3.9% lower to finish at 5,927.6 points.

Next week promises to be another eventful one, with plenty for investors to focus on. Here are five things to watch:

U.S. election.

The U.S. election looks set to dominate the headlines next week. A result is expected to be declared during the trading day on Wednesday. This could make it a volatile day of trade, as investors position their portfolios for a particular result. At present, Joe Biden is tipped to oust Donald Trump from the top job. However, as we have seen previously, it would be foolish to rule out a Trump victory. The current President is unlikely to go down without a fight and may challenge an unfavourable outcome. As for Monday, the latest SPI futures are pointing to the ASX 200 opening the day 52 points higher.

Westpac full year results.

The Westpac Banking Corp (ASX: WBC) share price will be in focus on Monday when it releases its full year results. A note out of Goldman Sachs reveals that it expects the big four bank to post cash earnings before one-offs of $2,535 million. This will be a sizeable 63% decline on the prior corresponding period. The broker has also pencilled in a final dividend of 25 cents per share.

Reserve Bank meeting.

The Reserve Bank is due to meet on Tuesday to discuss the cash rate. The central bank is widely expected to cut rates at this meeting. The economics team at Westpac has forecast a cut down to 0.1%. It believes this will be part of another stimulus package to boost the Australian economy. Elsewhere, the latest cash rate futures are pricing in an 84% probability of a cut to zero.

NAB full year results.

On Thursday all eyes will be on the National Australia Bank Ltd (ASX: NAB) share price when it hands in its full year results. According to another note out of Goldman Sachs, it is expecting the banking giant to post cash earnings before one-offs of $3,988 million. This will be a 31.9% decline on the prior corresponding period. Goldman has forecast a fully franked final dividend of 30 cents per share, which will bring its full year dividend to 60 cents.

SEEK to return from trading halt.

On Monday the SEEK Limited (ASX: SEK) share price is scheduled to return from its trading halt. SEEK requested a trading halt late last week while it prepared a response to a short seller report issued by Blue Orca Capital. The offshore short seller has alleged that SEEK’s China business is full of fake listings and resumes. It believes SEEK’s shares are worth just $7.20. This compares to its last close price of $21.51.

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The La Nina weather phenomenon will create several winners on the S&P/ASX 200 Index (Index:^AXJO). Some of these ASX stocks may not be what you expect.

La Nina will bring cooler than average temperatures to the east coast of Australia and is expected to last till March 2021.

This means we can expect summer to be a wetter than normal season. This is welcomed relief for shareholders of drought-stricken agri-stocks.

Unexpected ASX stocks affected by La Nina

But these aren’t the only ASX stocks affected from the La Nina weather phenomenon. Macquarie Group Ltd (ASX: MQG) identified 49 ASX stocks that will be impacted in both a good and negative way.

“Cooler than average temperatures are also typical across most of mainland Australia south of the tropics between Jul-Dec,” the broker.

“South East Asia also typically experiences higher than average rainfall. Conversely, drier than normal weather can be experienced in Argentina and southeastern China.

“La Niña can also bring drier and warmer conditions to the southern tier of the United States.”

The ASX miners that may benefit from La Nina tailwind

Among the winners outside of the agriculture sector include the BHP Group Ltd (ASX: BHP) share price and Rio Tinto Limited (ASX: RIO) share price.

This is because La Nina will bring heavier rainfall to Brazil and that could impede production at iron ore miner Vale SA. The Brazilian miner is already struggling to meet production targets due to COVID‐19, much to the benefit of Australia miners.

Our iron ore majors operate on the west coast of Australia, which won’t be affected by the wetter conditions.

If Vale’s operations are further impacted by La Nina, it won’t only be BHP’s and Rio Tinto’s shareholders that will be smiling. The Fortescue Metals Group Limited (ASX: FMG) share price and Mount Gibson Iron Limited (ASX: MGX) share price are also set to benefit.

Cold weather beneficiaries

We can also expect to see winners emerge in the ASX energy sector, according to Macquarie. Of course, this assumes their operations aren’t affected by floods.

“A colder winter will increase North Asia LNG demand,” explained the broker.

“And a cooler Aussie summer means less work for heat exchangers and therefore tends to drive higher efficiency rates in LNG liquefaction facilities.”

The winners in this instance include the Oil Search Limited (ASX: OSH) share price, Santos Ltd (ASX: STO) share price and Woodside Petroleum Limited (ASX: WPL) share price.

Washed up by La Nina

However, La Nina may also create losers on our market. One group are companies that supply or sell beverages here as cooler weather lowers demand for soft drinks and bottled water.

On that front, the Coca-Cola Amatil Ltd (ASX: CCL) share price, the Orora Ltd (ASX: ORA) share price and Ampol Ltd (ASX: ALD) share price could suffer.

Luckily for CCL shareholders, the takeover offer for the group will negate this risk (assuming the deal goes through).

More reading

• These were the worst performing shares on the ASX 200 last week
• These were the best performing shares on the ASX 200 last week
• 3 ASX 200 shares that every investor should own
• Why the Unibail (ASX:URW) share price gained 5% today
• ASX 200 ends down 0.6%, AMP (ASX:AMP) share price jumps 20%

Motley Fool contributor Brendon Lau owns shares of BHP Billiton Limited and Rio Tinto 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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