Tag: Motley Fool

The Marley Spoon AG (ASX: MMM) share price has returned from its trading halt on Monday and is crashing lower.

In early trade the subscription-based meal kit provider’s shares are down 17.5% to $2.88.

Why was the Marley Spoon share price in a trading halt?

Marley Spoon requested a trading halt at the end of last week whilst it launched a fully underwritten placement to institutional investors.

This morning the company revealed that it has successfully completed its placement, raising $56 million at a price of $3.22 per share. This represents a discount of 7.7% to its last close price.

According to the release, the placement was oversubscribed with strong support from domestic and international institutional investors. This includes both existing securityholders and new investors.

Marley Spoon raised the funds to accelerate its global growth strategy with a strong balance sheet.

Proceeds from the placement will also be used to fund investments into infrastructure to service growth, invest into the growth of the customer base at attractive unit economics, and increase working capital.

Management commented: “Given the continued traction in online meal kit adoption and strong recent business performance, Marley Spoon considers it appropriate to improve its balance sheet and access additional growth capital. With additional balance sheet flexibility, Marley Spoon will be well positioned to accelerate its global growth strategy and capitalise on the opportunities available in its core markets.”

How is Marley Spoon performing?

This placement was announced in conjunction with its third quarter update last week. That update revealed that Marley Spoon achieved revenue of 69.3 million euros for the three months ended 30 September. This was up 109% on the prior corresponding period.

The key driver of its growth was its US operations. They reported revenue of 34.2 million euros, up 163% in constant currency terms. Supporting its growth were its Australia and Europe businesses. Australian revenue rose 84% to 25.3 million euros and European revenue jumped 83% to 9.8 million euros.

At the end of the period, Marley Spoon had a total of 362,000 active customers, up 86% year on year.

While this is strong year on year growth, it is actually only up 3% quarter on quarter. I suspect investors may be concerned that its growth is close to peaking. This could be the reason why its shares are under significant pressure today.

More reading

• Marley Spoon (ASX:MMM) share price in a trading halt after explosive Q3 growth
• Up 900% this year, can the Marley Spoon (ASX:MMM) share price continue to climb?

Motley Fool contributor James Mickleboro 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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Victoria has this morning announced zero new daily coronavirus cases for the first time since June. Here’s what that could mean for ASX 200 shares and the S&P/ASX 200 Index (ASX: XJO) as we kick off the trading week.

What did Victoria announce?

Victoria’s Department of Health and Human Services (DHHS) confirmed no new COVID-19 cases were recorded in the past 24 hours. This comes after Victorian Premier Daniel Andrews put a “pause” on the easing of restrictions despite the 14-day daily moving average falling below the 5 cases milestone set for Melbourne.

Premier Andrews paused a planned easing of restrictions to investigate two clusters in northern Melbourne. That means investors will be eagerly anticipating today’s press conference following this morning’s case numbers.

That could be good news for ASX 200 shares given Victoria’s ongoing restrictions have weighed on some top stocks.

What does that mean for ASX 200 shares?

Easing restrictions is good news for the Victorian and Australian economies. Victoria has ~25 per cent of Australia’s population and is a major cog in the Australian economy across a variety of industries.

Australia’s 2019 Gross Domestic Product (GDP) totalled $1.89 trillion, while Victoria contributed $454.59 million of that or 24% of the country’s total economic output.

That means easing restrictions should be good news for ASX 200 shares this morning, particularly in hard-hit industries. That includes retail, hospitality and leisure which continue to advocate for eased restrictions across the state.

ASX futures are pointing up 0.3% to 6,179 points which could mean a strong start to the session. That would be welcome news for investors after the benchmark Aussie index edged lower last week.

Foolish takeaway

All eyes will be on some of the biggest ASX 200 shares on the market in early trade in anticipation of eased restrictions.. Big retailers like Wesfarmers Ltd (ASX: WES) have been pushing hard for eased restrictions and could be worth watching today.

More reading

• ASX 200 Weekly Wrap: ASX snaps winning streak… just
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 next week
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week

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

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Emerge Gaming Ltd (ASX: EM1) is a small cap share with a market capitalisation of $96 million. It is developing a mobile eSports platform with real cash prizes on offer for players. During Friday’s trading, the Emerge share price shot up by 36.36%. Moreover, the company’s shares have skyrocketed since last Monday, soaring more than 136% over the week’s trading. 

What’s moving the Emerge share price?

The company’s ‘Miggster’ mobile gaming and eSports platform is due for release in 15 countries in November. This product builds on the company’s existing tournament platform technology with an increased focus on community competition. Moreover, the platform will provide reward pools worth approximately US$500,000 (around A$700,000).

Last Monday, the company revealed it had achieved 3 million pre-registrations for the platform within one week. Furthermore, each subscription starts at US$8.50 per month providing much needed cash flow for the fledgling technology platform. However, the company will receive only 64.5% due to its go-to-market strategy.

Emerge already operates an online eSports platform it launched with South African company, MTN. In addition, the company has already achieved 25,000 subscribers of which Emerge pockets 40% of fees. MTN pays for marketing and cash prizes. 

The go-to-market plan

Possibly the key point in last week’s movement of the Emerge share price was its go-to-market strategy. The company has entered into an affiliate marketing agreement with Impact Crowd Technology, a company seeking to mobilise a community salesforce. The current number of pre-registrations, 3 million, make it increasingly likely the Miggster platform will achieve the 100,000 subscriber guarantee in the agreement. 

At 100,000 subscribers, Emerge will generate gross revenues of $850,000 per month. Accounting for the 64.5% of revenues as per the agreement, this translates to $548,000.

Johan Staël von Holstein, CEO of Impact Crowd Technology parent company Tecnología de Impacto Multiple S.L. (TIM), commented:

I truly believe that online gaming on mobile devices will be a great success for everyone involved. And we could not have asked for a better business partner than Emerge Gaming in this promising joint venture. We have the most ambitious and fastest growing sales force in the world while Emerge Gaming delivers outstanding technology solutions and content.

Gregory Stevens, CEO of Emerge Gaming, commented:

The ability of Emerge to market its eSports and Gaming products through an established and successful affiliate sales network delivers rapid growth and scale whilst targeting a key strategic growth market of high lifetime value users. We are excited to be partnering with TIM, leveraging their 10 million affiliate member network as both users and advocates to market our tournament platform technology and support our objective of building the world’s biggest gaming community.

Foolish takeaway

The rapid growth in the Emerge share price underscores the effectiveness of affiliate marketing for this product. Within the first 68 hours, the company had over 1 million pre-registrations, leading to 3 million within the first week. A second takeaway for this product is the introduction of community level cash prizes. Moreover, the company points out that the addressable market is US$90 billion in mobile gaming revenue. 

With the product launch due in November, and the affiliate marketing approach still in full swing, it will be very interesting to see the percentage of registrations the company is able to convert to paying subscriptions.

More reading

• AMP (ASX:AMP) asset sales part of wealth sector transformation
• Coca-Cola Amatil (ASX:CCL) in $10 billion takeover bid
• These are the 10 most shorted shares on the ASX
• Where to invest $20,000 into ASX shares right now
• Westpac (ASX:WBC) share price on watch after cash earnings update

Motley Fool contributor Daryl Mather 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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When AMP Limited (ASX: AMP) appointed a new chair, Debra Hazelton, she kicked off an asset portfolio review. This came on the heels of the company completing a $3 billion sale of its life insurance assets in July. AMP has made it clear that it is considering further asset sales after receiving many unsolicited bids. At the time of writing, many private equity firms are rumoured to be running the ruler over the troubled $4.6 billion company. In some cases they are considering specific parts of the business, like AMP Capital.

The AMP share price fell 5.2% over last week’s trading. This was largely due to the company reporting net cash outflows of $1.95 billion from its Australian wealth management arm during the September quarter. Over year-to-date trading, AMP has seen $6.35 billion in outflows. 

Which companies are in the asset sale race?

A column in The Australian has placed private equity firm, Kohlberg Kravis Roberts (KKR) squarely in the frame, with the company believed to be working on a buyout proposal. What’s more, the private equity firm is currently completing the purchase of 55% of Colonial First State wealth management from Commonwealth Bank of Australia (ASX: CBA). Any potential acquisition would need to integrate with these assets in some manner. 

Coincidentally, AMP’s problems have occurred at the same time the large banks are retreating from the wealth management businesses.  Elsewhere in the sector, IOOF Holdings Limited (ASX: IFL) purchased MLC from National Australia Bank Ltd (ASX: NAB) for $1.44 billion. Nonetheless, KKR was also a potential suitor at the time. As a result, Westpac Banking Corp (ASX: WBC) remains the last large bank to sell its wealth management business.

Ms Hazelton committed to providing an update on the portfolio review by the end of the year. However, a real estate asset sale may occur sooner than that due to buyer interest. Recently, Vicinity Centres (ASX: VCX) was rumoured to have joined the fray in the hunt for the AMP real estate portfolio. DEXUS Property Group (ASX: DXS), Lendlease Group (ASX: LLC) and Charter Hall Group (ASX: CHC) are among other companies mentioned. 

Foolish takeaway

While there are many rumours at play, it is uncertain exactly which way the management of AMP will proceed. Subsequently, there has been a lot of speculation about the asset sale of the company’s real estate portfolio. Yet, there remain persistent reports of approaches for either the AMP Capital assets, or for the entire company. 

Moreover, the Australian Competition and Consumer Commission (ACCC) has remained silent on the potential for consolidation. 

More reading

• Westpac (ASX:WBC) share price on watch after cash earnings update
• ASX 200 Weekly Wrap: ASX snaps winning streak… just
• Top brokers name 3 ASX shares to sell next week
• 3 important rules to help you build wealth
• The ASX 200 was mixed today, it finished down 0.1%

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

The post AMP (ASX:AMP) asset sales part of wealth sector transformation appeared first on Motley Fool Australia.

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News broke on Bloomberg on Sunday that Coca-Cola Amatil Ltd (ASX: CCL) may be the subject of a $10 billion takeover bid by Coca-Cola European Partners PLC (NYSE: CCEP), the largest independent bottler of Coke. Discussions are rumoured to be in an advanced stage, to the point where an announcement is possible as early as today. The proposed deal would include a $1.73 billion net debt as at 30 June.

M&A speculation

On Thursday last week, the Coca-Cola Amatil share price jumped on the back of speculation the company was looking at a significant capital raising. The beverage producer then called a trading halt on Friday, ahead of a “potential material transaction”.

Two groups of assets were included in this speculation. The first is a range of brands Japanese brewer, Asahi, has to divest of. This is to satisfy the ACCC after its acquisition of Carlton Breweries. Moreover, Coca-Cola had been in negotiations to buy high profile beer brands from Asahi some time ago.

The second is the Lion Dairy & Drinks business. Apparently, Bega Cheese Ltd (ASX: BGA) and Coca-Cola Amatil are frontrunners in the deal. However, there has been a plot twist over the weekend. Even if these deals are still on the cards, the potential $10 billion plus deal dwarves them. 

Why Coca-Cola Amatil?

According to its website, Coca-Cola Amatil has 32 production facilities in Australia, New Zealand, Fiji, Indonesia and Papua New Guinea. This makes it one of the largest bottlers and distributors of ready-to-drink beverages in the Asia Pacific region. In addition, the Asia Pacific region is less impacted than Europe by the pandemic. 

Moreover, Bloomberg has pointed out that soft drink bottlers are under pressure to consolidate due to a reduction in popularity of sugary drinks. In addition, Coca-Cola European Partners decided early this year to halt its buyback program and defer a dividend to preserve cash. This was directly due to the impact of coronavirus on European markets. Bloomberg has also stated this will be the largest merger involving an Australian company this year.

The company hasn’t disclosed the deal structure. However, it may cover an acquisition or merger, a majority stake, or even sales of Coca-Cola Amatil assets within the region. 

More reading

• 5 things to watch on the ASX 200 on Monday
• Coca-Cola Amatil (ASX:CCL) share price jumps on M&A speculation
• 5 things to watch on the ASX 200 next week
• 3 ASX stocks the rally left behind that brokers are urging you to buy today
• Here’s why this broker has a buy rating on Coca-Cola Amatil (ASX:CCL) shares

Motley Fool contributor Daryl Mather 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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Every Monday I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Webjet Limited (ASX: WEB) remains the most shorted share on the Australian share market with short interest of 14.7%. Last week the online travel agent released a trading update which revealed that bookings are still down materially because of the pandemic.
• Speedcast International Ltd (ASX: SDA) has short interest of 10.6%. This communications satellite technology provider’s shares have been suspended since February. This was done in order to undertake a recapitalisation. It has now filed its restructuring plan and expects to emerge in the first quarter of 2021.
• InvoCare Limited (ASX: IVC) has short interest of 10%, which is up slightly week on week. Social distancing restrictions have been weighing on the funerals company’s performance this year.
• Myer Holdings Ltd (ASX: MYR) has seen its short interest fall again to 9.4%. Short sellers have been going after Myer this year due to the belief that its department stores will be left behind by the shift to online shopping.
• Mesoblast Limited (ASX: MSB) has seen its short interest rise again to 9.1%. Short interest has been building after the US FDA didn’t approve its remestemcel-L application for steroid-refractory acute graft versus host disease (SR-aGVHD). The company has also been hit with a class action this month.
• Inghams Group Ltd (ASX: ING) has 8.6% of its shares held short, which is down slightly week on week. This poultry company reported a 68.2% drop in net profit to $40.1 million for FY 2020. Unfavourable changes in its sales mix and higher input costs weighed on its performance.
• Galaxy Resources Limited (ASX: GXY) has seen its short interest fall to 8.5%. Concerns that an oversupply of lithium may keep prices of the battery making ingredient lower for longer could be behind this high level of short interest.
• Flight Centre Travel Group Ltd (ASX: FLT) has recorded a small rise in short interest to 8%. Rising COVID-19 cases globally are expected to delay the recovery of the global travel markets.
• CLINUVEL Pharmaceuticals Limited (ASX: CUV) has seen its short interest rise slightly to 7.6%. The biopharmaceutical company’s shares trade on sky high multiples. It appears as though short sellers don’t believe its growth justifies the premium.
• Metcash Limited (ASX: MTS) has entered the top ten with short interest of 7.4%. Given the positive trading conditions it is experiencing in the Food and Hardware markets, this high level of short interest is a bit of a mystery. Furthermore, analysts at Macquarie upgraded its shares to an outperform rating last week.

More reading

• ASX 200 Weekly Wrap: ASX snaps winning streak… just
• Brokers name 3 ASX shares to buy right now
• ASX 200 down 0.3%: NAB announces provisions, BlueScope impresses, Webjet higher
• Why Adore Beauty, BlueScope, Qantas, & Webjet shares are charging higher
• 1 ASX 200 share to buy before an effective COVID vaccine announcement

Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and InvoCare 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 the weekend I had a look at how $20,000 investments in a number of popular ASX shares over the last 10 years have fared. You can read about those here.

But that was then and this is now. Which shares will produce the goods over the next decade?

Here are two ASX shares which I think could provide market-beating returns for investors over the 2020s:

Appen Ltd (ASX: APX)

One megatrend that I think investors should have exposure to is artificial intelligence. It is revolutionising technology and the lives of billions of people around the world. There are a number of companies on the Australian share market with exposure to this megatrend, but few with such direct exposure as Appen.

It is in a fantastic position to benefit from the rapid growth of this market due to it being a leading developer of high-quality, human-annotated training data for machine learning and artificial intelligence. This is a vital part of the process, as without quality data, artificial intelligence models will never reach their potential. Appen has helped tech giants such as Apple, Facebook, and Microsoft, to name just three, with their models.

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

I’m very bullish on the Asian economy over the coming decade and expect it to outpace most developed economies. In addition to this, I’m also very positive on the technology sector and believe it would be a great place to put funds. As a result, I think the BetaShares Asia Technology Tigers ETF would be a great place to invest $20,000 with a long term view.

The ETF is invested in some of the fastest growing tech companies in the Asia market. This includes ecommerce giant Alibaba, search engine company Baidu, and tech behemoth, Tencent. The latter has over 1 billion active users of its WeChat app globally.

More reading

• The 10 ASX stocks worst hit by a Biden US presidential election win
• Are these shares the next Afterpay (ASX:APT) and Appen (ASX:APX)?
• ASX 200 flat: Big four banks push higher, Afterpay drops, Megaport sinks 10%
• Brainchip (ASX:BRN) share price jumps on quarterly update
• Got a spare $10,000 to invest? Smart investors should buy these ASX shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia owns shares of Appen 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 Westpac Banking Corp (ASX: WBC) share price will be one to watch this morning following the release of an update on its upcoming second half results.

What did Westpac announce?

Westpac has announced that its cash earnings in the second half will be reduced by $1,220 million after tax due to a number of notable items.

According to the release, the notable items include new items of $816 million after tax, combined with the previously announced additional $404 million provision after tax for AUSTRAC matters. This is expected to reduce the banking giant’s CET1 capital ratio by 24 basis points.

What are the notable items?

The notable items include a $568 million after tax write-down of goodwill and intangibles associated with Westpac Life Insurance Services and Auto Finance businesses, along with a write-down of capitalised software.

It also includes an increase in the provision and costs associated with the AUSTRAC proceedings of $415 million after tax. This includes the previously announced $404 million in provisions associated with the court approved civil penalty and AUSTRAC’s legal costs.

Also included is an increase in provisions for customer refunds, repayments, associated costs, and litigation provisions of $182 million after tax and asset sales and revaluations which reduces cash earnings by $55 million after tax.

The latter includes the revaluation of Life insurance liabilities and a loss on the agreed sale of its vendor finance business. These items, which totalled $267 million after tax, were partly offset by a benefit after tax of $212 million from a revaluation of its holding in Zip Co Limited (ASX: Z1P).

Reporting changes.

In addition to the above, Westpac has advised of changes to its divisional structure.

This includes the creation of the Specialist Businesses division, which will see businesses from the Consumer, Business and WIB divisions moved and the reallocation of certain centrally managed costs across divisions.

It will also see the movement of certain SME and Business products from the Business division to the Consumer division. It feels this better reflects its new Lines of Business operating structure.

The changes will have no impact on its cash earnings, reported net profit, or balance sheet in prior periods. However, they do impact divisional cash earnings (and individual line items) and balance sheet items in prior periods.

More reading

• ASX 200 Weekly Wrap: ASX snaps winning streak… just
• 3 important rules to help you build wealth
• ASX 200 recovered throughout today, but finished 0.3% lower
• Why Domino’s, Oil Search, Resolute, & Zip shares are dropping lower
• ASX 200 down 0.75%: Big four banks drop, Healius hits record high, Zip slides lower

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.

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The S&P/ASX 200 Index (ASX: XJO) has snapped its 2-week winning streak (if you can call that a streak) and has recorded a week-to-week loss of 0.1% last week. Even so, the ASX 200 finished up on Friday at 6,167 points – which is a high level relative to the past 7 months. It was a week of extremes. The ASX 200 started off on Monday very strong, building on the performance and momentum of the past 2 weeks, even hitting a new post-March high of 6,243 points on Monday afternoon. As for the rest of the week, it was all downhill. But more on that later!

Last week was a week of fairly tame news and developments. We saw Afterpay Ltd (ASX: APT) once again make a new all-time high, passing $100 per share for the first time on Tuesday before going as high as $105.80 later that day. This was triggered by an announcement that the buy now, pay later pioneer would be partnering up with Westpac Banking Corp (ASX: WBC) to provide savings accounts and other ‘traditional’ banking services. The Afterpay share price ended the week slightly lower at a still-respectable $102.13.

In a completely different industry, we also saw REA Group Limited (ASX: REA) make a new all-time record. This time, it was at the end of the week, when the REA share price hit $127.06 for the first time on Friday.

ASX travel shares also had a good week, bucking the trend of the broader ASX 200. This was probably catalysed by Qantas Airways Limited (ASX: QAN) holding its annual general meeting (AGM) during the week. Qantas chair, Richard Goyder, had this to say on the prospects for travel in 2021:

By early next year, we may find that Korea, Taiwan and various islands in the Pacific are top Qantas destinations while we wait for our core international markets like the US and UK to re-open. We’re already doing this domestically – adding new destinations that suddenly make sense.

That was music to the ears of investors in the travel sector. The Qantas share price was up 8.1% over the week, with Flight Centre Travel Group Ltd (ASX: FLT) and Webjet Limited (ASX: WEB) also rising.

How did the markets end the week?

As we flagged earlier, it was a rather topsy-turvy week for ASX 200 shares. Monday started strong with a 0.9% rise. But Tuesday began the falls with a 0.7% drop. This was minimally reversed with a 0.1% gain on Wednesday, which was wiped out by Thursday’s 0.3% fall. Friday sealed the deal with another 0.11% fall.

Meanwhile, the All Ordinaries Index (ASX: XAO) had a very flat week, starting out at 6,385 points on Monday and finishing up at 6,373.7 points on Friday for an overall loss of 0.07%.

Which ASX 200 shares were the biggest winners and losers?

Ok, it’s time to get salacious with our Foolish answer to the gossip pages. So brew some tea while we start with last week’s ASX 200 losers!

Worst ASX 200 losers	% loss for the week
Iluka Resources Limited (ASX: ILU)	(47.16%)
Resolute Mining Limited (ASX: RSG)	(11.46%)
Megaport Ltd (ASX: MP1)	(11.19%)
GrainCorp Ltd (ASX: GNC)	(10.02%)

Last week’s wooden spoon went to Iluka Resources, with an apparently devastating 47.2% drop in value. However, it’s nowhere near as bad as it looks for Iluka shareholders. This drop is largely a result of a demerger that happened during the week, with Iluka spinning off Deterra Royalties (ASX: DRR). Existing Iluka shareholders were eligible to receive one Deterra share for every one Iluka share owned.

However, there was no such excuse for gold miner, Resolute. Resolute delivered a quarterly update during the week, which flagged lower production volumes and higher costs – not normally a recipe for happy shareholders.

It was a similar story with tech provider Megaport, which issued a rather negative update of its own last week.

Finally, we had Graincorp, which fell 10% last week despite no major news coming out of the agribusiness. These things just happen sometimes.

Now with the losers out of the way, let’s check out last weeks winners:

Best ASX 200 gainers	% gain for the week
Pro Medicus Limited (ASX: PME)	12.03%
BlueScope Steel Limited (ASX: BSL)	9.19%
Qantas Airways Limited (ASX: QAN)	8.08%
Challenger Ltd (ASX: CGF)	7.85%

Taking out the silver spoon last week was medical wunderkind Pro Medicus. Pro Medicus inked a lucrative $10 million contract with German company, LMU Klinikum, a few weeks ago, which evidently is still winning stamps of approval from investors.

Next up we had steel company, BlueScope. BlueScope reported some guidance for the FY2021’s first half last week, which flagged a 12.4% year-on-year increase in underlying earnings. A share price rise is fair enough, I’d say!

Qantas was next up with an 8.1% increase for the week – a rise that seems to have been driven by its previously-discussed AGM, as well as general positive sentiment towards the travel sector’s outlook in light of the low levels of coronavirus cases around the country in recent weeks.

Finally, annuity provider Challenger also made the list with a 7.9% appreciation. Challenger also gave investors a quarterly update, which reconfirmed its previously-issued profit guidance. Challenger is a business that is heavily affected by interest rates. With all the talk of further cuts, it seems investors were relieved at some certainty for the company.

What does this week look like for the ASX 200?

There’ll be a few events of significance to keep an eye on this week. I’ll be very interested to see what Australia and New Zealand Banking Group (ASX: ANZ) has up its sleeve on Thursday, particularly in the dividend department, when the big four bank releases its full-year earnings. Also hitting the markets with a quarterly update on Wednesday is Coles Group Ltd (ASX: COL). Again, it will be interesting to see how Coles’ sales are holding up after a bumper start to the year, courtesy of the pandemic.

Finally, expect increasing volatility coming out of the United States as its presidential election campaign draws to a close. With Americans voting on 3 November, the market-moving potential for events like shifts in polling trends, major policy announcements or outrageous behaviour is only increasing.

So before we go, here’s a look at how the major ASX 200 blue chips are shaping up as we start the week:

More reading

• Westpac (ASX:WBC) share price on watch after cash earnings update
• 5 things to watch on the ASX 200 on Monday
• Buy these blue chip ASX shares for generous dividends in 2021
• Top brokers name 3 ASX shares to buy next week
• 3 important rules to help you build wealth

Sebastian Bowen owns shares of National Australia Bank Limited, Newcrest Mining Limited, and Telstra Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Challenger Limited, Macquarie Group Limited, Pro Medicus Ltd., Telstra Limited, and Webjet Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO, COLESGROUP DEF SET, Transurban Group, Wesfarmers Limited, and Woolworths Limited. The Motley Fool Australia has recommended Flight Centre Travel Group Limited, MEGAPORT FPO, and 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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There are some star ASX shares that I’d buy for the rest of 2020. Markets may prove to be volatile over the next few weeks with the US election.

Here are my three picks:

Pushpay Holdings Ltd (ASX: PPH)

I think Pushpay could continue to be a great ASX share to own for the rest of the year.

The Pushpay share price has already risen by 117% over the past six months.

Before COVID-19 came along, Pushpay was generating solid growth with the technological improvements that its technology offers. The ASX offers an app to allow large and medium churches to stay connected with their congregations. For example, it offers a livestream service.

The app also allows people to donate to their church. That’s where the money is made by Pushpay. It takes a clip of each donation. As donations through Pushpay rise, its revenue and profit goes up.

Its profit margins are rapidly rising as the business scales. In FY20 the ASX share’s gross profit margin went up from 60% to 65%.

COVID-19 cases are rocketing in the US again. At the end of last week it reached a record daily number increase of 83,000 on Friday. This may see more people decide to physically distance and/or more restrictions come into place to halt COVID-19’s growth again – particularly if Joe Biden wins the presidency. Those types of conditions may accelerate Pushpay’s growth.

Tyro Payments Ltd (ASX: TYR)

Tyro is a payments ASX share that facilitates payments to merchants through a Tyro terminal. One (or more) of your local cafes probably has a Tyro terminal to accept payment. One benefit of Tyro, besides having a wide array of payment options, is that it links with accounting software such as Xero Limited (ASX: XRO). 

There has obviously been a reduction in economic activity for Tyro because of the COVID-19 hit with closures, restrictions and some customers avoiding public places.

I think Tyro could be a good ‘COVID recovery’ idea, particularly once Melbourne’s restrictions start to loosen. I also like the recent alliance between Tyro and Bendigo and Adelaide Bank Ltd (ASX: BEN) which will see Tyro take over Bendigo Bank’s terminal network.

Despite being compared to pre-COVID-19 times, Tyro has reported that its October year to date (YTD) transaction value has grown by 5%. In October (to 16 October) it had seen transaction growth of 11%. I think this could accelerate over the rest of the year, which would be good for the ASX share.

Betashares Ftse 100 ETF (ASX: F100)

The UK share market has been heavily affected by what has happened with COVID-19. Brexit continues to cause investors to worry about what’s going to be in the final agreement (or not) with the EU.

The London Stock Exchange has a number of high-quality businesses. The exchange-traded fund (ETF) owns the biggest 100 businesses listed in the UK including: Astrazeneca, GlaxoSmithKline, HSBC, Diageo, British American Tobacco, Unilever, Rio Tinto, Reckitt Benckiser, BP and Royal Dutch Shell.

I think the ETF could recover if Brexit can be sorted before the end of the year.

The UK share market would also benefit heavily from some positive vaccine news considering the UK is currently going through a second wave of COVID-19 infections and restrictions.

I think the best time to buy (ASX) shares is when there is a lot of negativity and fear across the entire market. I believe there are plenty of reasons to be positive about the UK’s long-term future, so this could be an opportunistic time to buy a portfolio of quality UK businesses which should be good dividend payers in the future too.

More reading

• I’d buy these 2 ETFs for dividends and growth
• 5 top ASX shares to buy with $5,000
• Got $1,000? You should buy one of these 8 ASX shares
• Here’s my top ASX share to buy and hold through the 2020s
• Why you should pay attention when management buy (or sell) ASX shares

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 PUSHPAY FPO NZX, Tyro Payments, and Xero. 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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