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The Credit Clear Pty Ltd (ASX: CCR) share price has been a very strong performer since listing on the ASX boards earlier this week.

The Australian receivables management solution provider’s shares landed on the ASX on Tuesday after raising $15 million at a price of 35 cents per share.

Since then, the Credit Clear share price has gained a remarkable 133% and is now changing hands for 81.5 cents.

What is Credit Clear?

Credit Clear is a receivables management solution provider which has developed a proprietary digital billing and communication technology platform.

This platform allows organisations to manage communications and payment arrangements with their customers through an interactive digital and mobile interface as part of a full-service receivables suite of services.

Management notes that this achieves better customer engagement and insight, faster payment reconciliations, improved cash flows, and lower collection costs when compared to traditional methods.

At present, Credit Clear manages over 250,000 active customer accounts across a range of industries. This includes transport, financial services, government, utilities, and other sectors.

It also operates in a highly fragmented industry, with nearly 600 collection and receivables management businesses operating nationally. Management feels this makes the industry ripe for disruption by new technology-powered services.

In FY 2020, Credit Clear reported pro forma revenue of $11.2 million, gross profit of $9.6 million, and a loss before tax of $1.8 million.

Who is management?

The company is led by Chairman Gerd Schenkel and CEO Brenton Glaister.

Mr Schenkel is a former executive of National Australia Bank Ltd (ASX: NAB), Telstra Corporation Ltd (ASX: TLS), and Tyro Payments Ltd (ASX: TYR). Whereas Mr Glaister is a 35-year industry veteran and the founder of Credit Solutions. This is a business acquired by Credit Clear in November 2019.

Mr Schenkel commented: “Given the economic impact of COVID-19 on the economy, we feel the timing is right to grow the business by expanding our receivables technology platform. This will help our clients improve cash flow cost effectively, which is critical right now.”

“Prior to the listing on the ASX, Credit Clear was funded by some of Australia’s most successful technology investors, including Thorney, Ellerston Capital, Little Group and Regal, with these shareholders participating also in the IPO. We thank all of our existing shareholders and are pleased to welcome new shareholders on the Credit Clear journey,” he added.

Trading update.

Immediately after listing, the company released a trading update which revealed that its business has continued to grow rapidly.

According to the release, its messaging volume has increased over three-fold in the past twelve months to reach over 2.6 million messages in the September quarter.

This led to revenue for the September quarter increasing 22% compared to the previous quarter.

More reading

• Hayne Commission continues to haunt the Big Four banks
• Beat low interest rates with these 2 ASX dividend shares
• How ASX shares like Afterpay (ASX:APT) push for explosive growth
• Tyro Payments (ASX:TYR) share price tumbles lower following AGM update
• Leading brokers name 3 ASX shares to sell today

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 Tyro Payments. The Motley Fool Australia owns shares of and has recommended Telstra 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 Bellevue Gold Ltd (ASX: BGL) share price is trading lower after the company announced both its quarterly cash flow report and activities report. Shares in the miner have been soaring this year thanks to elevated gold prices. At the time of writing today, though, the Bellevue share price is trading 3.36% lower at $1.15. However, it is likely that the sharp drop in the All Ordinaries Index (ASX: XAO) is contributing to its decline.

Quarterly report

The Bellevue share price is falling today as the company announced its quarterly report. Despite announcing strong exploration and project development reports, shareholders were left wanting by poor financials.

Bellevue Managing Director, Steve Parsons, said

It was a pivotal quarter for Bellevue as we continued to demonstrate the huge exploration upside, both near the mine and regionally, while at the same time progressing our development pathway at the Bellevue Gold Mine. I have no doubt that our Resources will continue to grow as we develop the project and prepare for production.

In terms of the company’s financials, Bellevue maintained a strong cash position of $149.4 million at the end of September. This follows on from its fully underwritten placement that raised a total of $135 million. For the quarter, the company reported a net loss of $677,000, largely due to exploration costs.

This trend appears likely to continue as the company is set to invest $35 million in exploration and resource definition. The investment, over the next 15 months, will continue Bellevue’s aggressive exploration strategy in parallel with its project development.

About the Bellevue share price

Bellevue is an ASX listed company which boasts one of the highest-grade, under-developed gold discoveries in the world at the historic Bellevue Gold Mine in Western Australia.

As mentioned, the Bellevue share price has soared this year, gaining more than 110% as the company looks to reopen the historic mine. The Bellevue share price reached a 52-week high of $1.32 earlier this month. 

More reading

• Bellevue (ASX:BGL) share price surges 5% on positive mining 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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I believe that market crashes can be very useful times to buy ASX dividend shares.

What’s going on with share markets?

At the moment the S&P/ASX 200 Index (ASX: XJO) is down more than 1% and the NASDAQ Composite fell by 3.7% overnight.

There is a resurgence of COVID-19 cases across both the USA and Europe. France has just gone into a second national lockdown until at least the end of November where French people can only leave their home for very limited reasons.

Investors are obviously concerned that businesses are going to suffer a second period of disruption to profits (which is what share prices are largely based on).

There aren’t many ASX shares that are currently in the green, but there are plenty in the red such as gold miners like Westgold Resources Ltd (ASX: WGX), Ramelius Resources Limited (ASX: RMS) and Saracen Mineral Holdings Limited (ASX: SAR).

Why market crashes are a good time to buy ASX dividend shares

I think that market declines are really good opportunities to buy ASX dividend shares.

When a quality share like Xero Limited (ASX: XRO) falls, we get the opportunity to buy shares at a cheaper price. You (hopefully) benefit as the share price recovers.

But not only does the share price of an ASX dividend share fall when markets decline, but the prospective dividend yield increases as share prices decline.

For example, if business offers a dividend yield of 5% and then the share price drops 10% it will mean the trailing dividend yield will be 5.5%.

But a key question is whether the dividend (and the profit) of the business is going to be affected.

Think about an ASX dividend share like APA Group (ASX: APA). Its profit isn’t going to be significantly affected by many issues, including COVID-19 in the US and Europe.

Meanwhile, a business like private hospital operator like Ramsay Health Care Limited (ASX: RHC) could be materially impacted again. Private operations, which is where Ramsay makes a lot of its profit, were already disrupted in Europe earlier in the year. Europe’s second wave could see more disruption for Ramsay.

So, I don’t think that every business is a buy just because it’s gone down in price. Sometimes a business can decline and be expensive, whereas something could rise and be cheap.

Some ASX dividend shares worth considering

I think the ones worth thinking about are ASX dividend shares that are likely to maintain or grow the dividend even in difficult market conditions.

Some of the shares that increased their dividend earlier in the year are some of my top candidates. For example:

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) offers a grossed-up dividend yield of 3.5%.

Brickworks Limited (ASX: BKW) has a grossed-up dividend yield of 4.8%.

Rural Funds Group (ASX: RFF) has a projected FY21 distribution yield of 4.6%.

APA Group has a distribution yield of 4.7%.

WAM Leaders Ltd (ASX: WLE) has a forward grossed-up dividend yield of 8.2%.

Future Generation Investment Company Ltd (ASX: FGX) has a grossed-up dividend yield of 6.5%.

Foolish takeaway

I think each of the above ASX dividend shares offer strong income reliability over the next 12 months, even if there’s a lot of volatility over the rest of the year.

There are plenty of businesses that I think look better value today compared to yesterday or a couple of weeks ago. At today’s share prices I think I’m most attracted to Brickworks. It has a solid starting dividend yield and it’s exposed to the recovery of the Australian construction industry whilst the dividend is backed by its defensive assets.

More reading

• The Seek Ltd (ASX:SEK) share price under attack by offshore shorter
• ASX 200 down 1.1%: ANZ cash earnings down 42%, SEEK slammed, HUB24 jumps
• 5 things to watch on the ASX 200 on Thursday
• Today was mixed for the ASX 200, ending 0.1% higher
• These could be the next ASX stocks to unlock value by selling assets

Tristan Harrison owns shares of FUTURE GEN FPO, RURALFUNDS STAPLED, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of and has recommended Brickworks, RURALFUNDS STAPLED, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of APA Group. The Motley Fool Australia has recommended Ramsay Health Care 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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Shares in discount consumer electronics retailer JB Hi-Fi Limited (ASX: JBH) have dropped more than 5% today after the company concluded its annual general meeting (AGM) this morning.

The JB Hi-Fi share price is down 5.29% to $47.83 at the time of writing amidst a broader equity markets selloff across the world.

Major highlights from today’s AGM

• Total sales of $7.9 billion, up 11.6% on the prior year for the group. This includes sales from its Good Guys brand and e-commerce platform.

• Earnings Before Interest and Taxes (EBIT) was up 30.5% to $486.5 million.

• Net Profit After Taxes (NPAT) was up 33.2% to $332.7 million.

• Total dividends for FY20 were up 33.1% to 189 cents per share.

• In FY20 the company launched a new e-commerce platform for JB HI-FI in Australia and 3 new home delivery centres. Online sales grew 155%  and represents 7.6% of the company’s total sales.

• The FY21 trading update also shows some strong numbers in Australia where total sales grew by 30%. This represents the July 2020 – September 2020 trading period.

JB Hi-Fi’s business model

JB Hi-Fi is one of Australia’s largest discount retailers in home entertainment. Its brand also includes The Good Guys franchise, which it purchased in 2016. Its main competitor, Dick Smith Electronics, folded in 2016.

JB Hi-Fi’s competitive advantage is in its low-cost business model, where stores typically break even within one year. The company doesn’t have warehouses, and stocks its inventory on site in each outlet, minimising costs. Its business model thus relies on high volume and turnover.  

JB Hi-Fi has cemented itself as the category killer in electronics, similar to Bunnings in hardware, which is owned by Wesfarmers Ltd (ASX: WES). It has a network of 320 stores across Australia and New Zealand, and an online platform.

Opportunities and challenges ahead

Consumer electronics, including mobile phones, are more becoming commoditised products. JB Hi-Fi’s management has in the past lamented about the need to offer incentives continuously to attract mobile-phone customers, for example.

Management has also said that consumer electronic margins will be affected by price reductions resulting from high competition, especially with the arrival of Amazon.com Inc (NASDAQ: AMZN) in Australia in 2017. 

However, JB Hi-Fi’s well-known brand image in the eyes of the Australian consumer has attracted loyal customers and should be able to stave off competition in the short to medium term.

About the JB Hi-Fi share price this year

JB Hi-Fi’s share price has been a runaway tear this year. It began the year with the share price at $38 before dipping to $23.16 in March. It has since recovered to today’s level at $47.83 which represents a gain of 26% YTD.

This compares with a flat YTD return on S&P/ASX 200 Consumer Discretionary Sector (ASX: XDJ)index.

More reading

• Why ANZ Bank, JB Hi-Fi, Northern Star, & SEEK shares are dropping lower
• How did ASX retail shares perform in the latest quarter?
• Is Temple & Webster Group Ltd (ASX:TPW) still a buy?
• 5 major ASX 200 events this week
• The best time to invest may feel uncomfortable

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. dsunarto 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 Amazon and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended Amazon. 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 The JB Hi-Fi Limited (ASX: JBH) share price has fallen 5% today appeared first on Motley Fool Australia.

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In early afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. At the time of writing the benchmark index is down a sizeable 1.3% to 5,978.7 points.

Four shares that have fallen more than most today are listed below. Here’s why they are dropping lower:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

The ANZ Bank share price is down 2.5% to $18.72 following the release of its full year results. For the 12 months ended 30 September, the bank reported a 42% decline in cash earnings from continuing operations to $3.76 billion. A final fully franked 35 cents per share dividend was also declared. Both metrics fell a touch short of the market’s expectations.

JB Hi-Fi Limited (ASX: JBH)

The JB Hi-Fi share price is down 5.5% to $47.79. This follows the release of the retail giant’s first quarter update this morning. Although JB Hi-Fi delivered very strong sales growth during the quarter, its result implies a major slowdown in its growth during August and September.

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price is down over 5% to $14.93. Investors have been selling Northern Star’s shares on Thursday after the price of the precious metal dropped lower despite the market selloff. It isn’t just Northern Star that is under pressure. The S&P/ASX All Ordinaries Gold index is down over 4% this afternoon.

SEEK Limited (ASX: SEK)

The SEEK share price has fallen 6% to $21.51 after being the latest ASX share to be targeted by offshore short sellers. Analysts at Blue Orca claim that SEEK’s China-based Zhaopin business is full of fake listings and is paying students to make fake resumes. It feels this raises questions over the validity of Zhaopin’s reported revenues. The short seller values the job listings company’s shares at a lowly $7.20.

More reading

• The Seek Ltd (ASX:SEK) share price under attack by offshore shorter
• ASX 200 down 1.1%: ANZ cash earnings down 42%, SEEK slammed, HUB24 jumps
• ANZ (ASX:ANZ) share price on watch after FY 2020 results release
• 5 things to watch on the ASX 200 on Thursday
• Hayne Commission continues to haunt the Big Four banks

Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia has recommended SEEK 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 Why ANZ Bank, JB Hi-Fi, Northern Star, & SEEK shares are dropping lower appeared first on Motley Fool Australia.

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The Helloworld Travel Ltd (ASX: HLO) share price is wobbly today following the release of a trading update.

The Helloworld share price stumbled on opening this morning, dropping down to $1.69. However, shares in the travel company rallied back up to $1.75 in midday trade, down 2.78% at the time of writing.

Let’s look at how Helloworld performed in the September quarter.

Business update

Helloworld reported a poor result for the period ending 30 September, as COVID-19 continued to severely impact the travel industry.

Total transaction value (TTV) plummeted to $176.8 million, representing a 90.6% decline on the previous corresponding period (pcp). However, the company highlighted a small recovery, which saw TTV increase from $51 million in July and August to $74.4 million in September.

Revenue sank to $12.4 million, an 86.8% fall from the same time from last year. The halt in travel booking effectively put a large number of its agency network in hibernation mode.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) saw a loss of $4.1 million. This was a slight improvement on the $6 million loss forecast by the business.

Helloworld recorded a cash balance of $105 million at the end of the quarter. However, a bank debt was prepaid for $20 million, reducing its free cash to $85 million. The repayment decreased the company’s interest expenditure by $0.4 million per annum.

COVID-19 response

As international air travel dropped by 98% between March and October, Helloworld expects average TTV and revenues to remain low. The company has predicted that these levels will be around 10% to 15% below previous amounts until early 2021.

By responding quickly to the evolving COVID-19 crisis, Helloworld reduced personnel costs up to 75%, saving $9 million per month.

In addition, the company cut other key costs such as technology and communications, advertising and marketing, occupancy and non-personnel overheads.

Retail networks

Retail networks across Australia and New Zealand have been forced to adapt the fallout of travel bookings. A number of outlets have moved their operations to home or shared a premise with other agencies. The company said the liquidity runway for agents was getting shorter, especially without any specific federal government assistance.

Outlook for the Helloworld share price

With the re-opening of interstate borders, Helloworld is anticipating a recovery in the Australian domestic travel market. Furthermore, safe travel corridors established with COVID safe countries is scheduled to commence throughout 2021.

Based on current projections, Helloworld estimates an EBITDA loss of $1.5 million to $2 million per month until March 2021. In the latter of the year, the company advised it will move into a break-even position, conditional on travel bubbles.

Helloworld stated that it has enough liquidity to maintain operations until late 2022, and possibly longer from its current cash burn rate.

More reading

• Why ANZ Bank, JB Hi-Fi, Northern Star, & SEEK shares are dropping lower
• The Seek Ltd (ASX:SEK) share price under attack by offshore shorter
• ASX 200 down 1.1%: ANZ cash earnings down 42%, SEEK slammed, HUB24 jumps
• Why Coles, HUB24, Mesoblast, & Temple & Webster shares are pushing higher
• Yikes: World will owe 265% of GDP this year

Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Helloworld Limited. The Motley Fool Australia has recommended Helloworld 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 Helloworld (ASX:HLO) share price dips on weak business update appeared first on Motley Fool Australia.

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The Seek Limited (ASX: SEK) share price has followed the struggling S&P/ASX 200 Index (ASX: XJO) to slump more than 6% on Thursday. Adding further insult to injury, Seek has come under strong scrutiny from an offshore shorter, Blue Orca Capital. Blue Orca published a 39-page report that values the Seek share price at just $7.20. Here is the rundown of the report. 

The Seek business 

Seek has a portfolio of employment, education and volunteer businesses which span across Australia, New Zealand, China, South East Asia, Brazil, Mexica, Africa and Bangladesh. The company is regarded as a tech company as it creates product technology solutions to address the needs of job seekers and hirers. It then facilitates the matching between job seekers and hirers across its online employment marketplaces. 

Blue Orca’s short report 

Blue Orca critiques Seek’s legacy platform in Australia as stagnating in growth. But the report mainly target’s Seek’s China business. Its Chinese online recruiting platform Zhaopin has been cited by Seek as China’s #1 player and growing rapidly. In FY20, Zhaopin accounted for 48% of the company’s consolidated revenues and was Seek’s only segment which reportedly grew revenues and profits. Blue Orca points to Seek’s Chinese business as a driving factor for why the company is able to trade at 404 times forward earnings. 

However, Blue Orca’s due diligence has revealed that “Zhaopin’s platform is inundated with fake postings by companies which were deregistered, in liquidation or flagged as abnormal operations” by Chinese authorities. Companies that Blue Orca had called out about their job postings on the website “stated directly that the postings were fraudulent”.

Blue Orca has described the Zhaopin platform as “rotten” and “devastating for Seek’s prospects”. It also takes a jab at the company’s financials, stating that Seek’s dividends give the false impression that its business produces healthy profits and cash flows, but these payments have “largely been funded by debt”. 

Rather than valuing Seek as a fast-growing online recruiting platform, Blue Orca describes the business as one that is “a slow or no-growth platform whose core business is shrinking and which carries a dangerous amount of debt”. As a result, it values Seek’s business at a “generous 20.5 times EV/adjusted EBITDA” and value’s the Seek share price at just $7.20 per share. 

Foolish takeaway 

Whether these statements are true or not, this situation is very similar to the short attack on WiseTech Global Ltd (ASX: WTC). J Capital made similar, seemingly outrageous statements such as Wisetech delivering overstated profit, suspect European growth and underperforming acquisitions. The repeated back and forth between J Capital and Wisetech was devastating for the Wisetech share price and sentiment. However, the company has since made a significant recovery from its previous lows. 

More reading

• ASX 200 down 1.1%: ANZ cash earnings down 42%, SEEK slammed, HUB24 jumps
• 5 things to watch on the ASX 200 on Thursday
• Today was mixed for the ASX 200, ending 0.1% higher
• These could be the next ASX stocks to unlock value by selling assets
• After sliding 3% this week, is Sydney Airport’s (ASX:SYD) share price a buy?

Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of WiseTech Global. The Motley Fool Australia has recommended SEEK 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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At lunch on Thursday the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline due to COVID-19 concerns. The benchmark index is currently down 1.1% to 5,989.3 points.

Here’s what is happening on the market today:

SEEK shares slammed.

The SEEK Limited (ASX: SEK) share price is crashing lower today after the job listings company was targeted by a short seller. According to a note out of Blue Orca, it believes SEEK’s China-based business is full of fake listings. It also alleges that the company is paying students to make fake resumes. The short seller believes SEEK’s shares are worth only $7.20.

ANZ full year results.

The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price is trading lower today following the release of its full year results. ANZ reported an unaudited statutory profit after tax of $3.58 billion. This was down 40% on the prior corresponding period. Its cash profit from continuing operations fell 42% $3.76 billion. A final fully franked 35 cents per share dividend was declared.

HUB24 shares surge higher.

The HUB24 Ltd (ASX: HUB) share price is surging higher on Thursday after returning from its trading halt. The investment platform provider’s shares were halted whilst it undertook a $50 million institutional placement. This placement has now been complete and will be used to acquire investment platform provider Xplore Wealth Ltd (ASX: XPL) and Ord Minnett’s non-custody Portfolio Administration and Reporting Service. The company also intends to increase its investment in integrated accounting and wealth solutions provider Easton Investments Ltd (ASX: EAS) to up to 40%.

Best and worst ASX 200 performers.

The best performer on the ASX 200 today has been the HUB24 share price with a sizeable 7% gain. Investors have responded positively to its acquisition plans. The worst performer has been the Westgold Resources Ltd (ASX: WGX) share price with a 9% decline. A number of gold miners are falling heavily today after a pullback in the gold price.

More reading

• The Seek Ltd (ASX:SEK) share price under attack by offshore shorter
• Why Coles, HUB24, Mesoblast, & Temple & Webster shares are pushing higher
• Why the HUB24 (ASX:HUB) share price is storming higher despite the market selloff
• ANZ (ASX:ANZ) share price on watch after FY 2020 results release
• 5 things to watch on the ASX 200 on Thursday

James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd. The Motley Fool Australia has recommended Hub24 Ltd and SEEK 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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In late morning trade the S&P/ASX 200 Index (ASX: XJO) has followed the lead of international markets and is sinking notably lower. The benchmark index is down 1.25% to 5,982.2 points.

Four shares that have not let that hold them back are listed below. Here’s why they are pushing higher:

Coles Group Ltd (ASX: COL)

The Coles share price is up a further 1% to $17.84. Investors have been buying the supermarket giant’s shares after brokers responded very positively to its first quarter update on Wednesday. One broker that was impressed was Morgans. It has upgraded Coles’ shares to an add rating with an improved price target of $19.40.

HUB24 Ltd (ASX: HUB)

The HUB24 share price has jumped almost 7% higher to $22.38. This morning the investment platform provider successfully completed its $50 million institutional placement. These funds will be used to acquire investment platform provider Xplore Wealth Ltd (ASX: XPL) and Ord Minnett’s non-custody Portfolio Administration and Reporting Service. In addition, HUB24 will increase its investment in integrated accounting and wealth solutions provider Easton Investments Ltd (ASX: EAS).

Mesoblast limited (ASX: MSB)

The Mesoblast share price has risen almost 1% to $3.13. This follows the release of its first quarter update this morning. This release included an update on the potential pathway to marketing approval for its lead product candidate remestemcel-L. Management continues to believe the immunomodulatory properties of remestemcel-L position this potential therapy at the forefront of treatment for severe and life-threatening inflammatory conditions. This includes COVID-19 acute respiratory distress syndrome (ARDS) and steroid-refractory acute graft versus host disease (SR-aGVHD).

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price is up 2.5% to $10.91 despite there being no news out of the online furniture and homewares retailer. However, its shares have been very volatile this week, with the bulls and bears seemingly battling for control.

More reading

• Why the HUB24 (ASX:HUB) share price is storming higher despite the market selloff
• Today was mixed for the ASX 200, ending 0.1% higher
• These could be the next ASX stocks to unlock value by selling assets
• Beat low interest rates with these 2 ASX dividend shares
• Why Redbubble, Kogan, Marley Spoon and 1 other ASX share are surging

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 Hub24 Ltd and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool Australia has recommended Hub24 Ltd 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.

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Governments, businesses and citizens all over the globe have had to borrow money to survive the COVID-19 pandemic. 

But exactly how much?

Credit rating agency S&P Global Ratings has calculated that the world will owe a stunning 265% of gross domestic product by the end of the year.

That’s almost quadruple the amount of goods and services the entire planet produces.

“Since COVID-19 took hold, higher leverage, together with a challenging operating environment, has led us to lower the ratings on 22% of corporate and sovereign issuers globally,” said S&P Global Ratings senior research fellow Terry Chan.

“We project global debt to rise 10% to a massive US$200 trillion in 2020.”

The level of debt in Australia is comparable to the global rate.

According to AustralianDebtClock.com.au, all government, household and private credit in Australia currently total about $7.6 trillion.

The 2019 GDP for the nation was just under $2 trillion, according to the World Bank.

So total debt in Australia is at about 280% of GDP.

Don’t panic though, it’ll be okay

As scary as those numbers are, a debt crisis is unlikely in the short term, according to S&P Global Ratings head of research Alexandra Dimitrijevic.

“This is based on our assumption of a continuing, albeit choppy, global economic recovery,” she said.

“The recovery, in turn, is predicated on the wide availability of a COVID-19 vaccine by mid-2021, continuing accommodative financing conditions supported by monetary policies from major central banks, and the return of private-sector demand.”

Governments don’t have any choice but to borrow to prop up economies. If they don’t, a recovery will not come and unemployed citizens will struggle even more to pay off their debts.

“While governments globally are doing the heavy lifting supporting businesses and individuals, two-thirds of this year’s build-up is concentrated among G-7 sovereigns, which have strong financial markets and monetary flexibility,” Dimitrijevic said.

Business debt is indeed a worry, especially for sectors hit hard by lockdowns and other health restrictions.

“We see rising insolvency risk, with defaults likely to rise to levels not seen since the 2009 financial crisis,” said Chan. 

A saving grace for all borrowers is that interest rates are forecast to stay at historic lows well into 2023.

But a lot of known unknowns and unknown unknowns still remain.

“Our expectation that a global economic rebound will pick up speed next year is not without risks. Additional waves of COVID-19, or a delayed vaccine, could alter the trajectory to a W-shaped rebound – as could rising interest rates and a sustained dramatic widening of credit spreads, or a rebound in demand that falls short of our expectations,” Dimitrijevic said. 

“In many cases, debt-to-GDP ratios will only flatten as a result of a GDP recovery rather than debt actually declining.”

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Motley Fool contributor Tony Yoo 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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