Tag: Motley Fool

The Aeris Environmental Ltd (ASX: AEI) share price rose today after the company announced a new partnership. The Aeris share price closed the day 6.93% higher at a price of 54 cents per share.

What Aeris does

Aeris is an Australian company that develops and manufactures environmentally friendly technology in order to save energy, increase efficiency and keep workplaces and equipment clean. The company has seen large demand for its product thanks to the global coronavirus pandemic.

Aeris offers a management tool called AerisVIEW that is uniquely scalable across a range of climate controlled environments such as buildings and vehicles.

What happened

Aeris announced that it has entered into a partnership with SABCO, which specialises in cleaning and garden products. SABCO is wholly owned by American company Libman. It is estimated that Libman has 27% of the United States market share for cleaning tools. The connection may excite Aeris shareholders as it points to increased market opportunity.

The partnership relates to SABCO’s ‘Ultrashield Pro, Powered by Aeris’ product. It is set to be launched nationwide and stocked in over 250 Bunnings locations around Australia. Aeris has received an opening order worth $415,000 for the product.

Aeris’ Chief Executive Officer, Peter Bush, said of the partnership:

We are proud to have partnered with SABCO, the leading Australian consumer brand in the category. This opportunity allows us to grow a core range of Aeris’ product portfolio into the Australian retail channel. SABCO’s relationship with The Libman Group creates leverage into North America and beyond, with a strong partner that has over a century of experience in the field.

About the Aeris share price

The Aeris share price has risen on the news, closing almost 7% up for the day. This is one share that has enjoyed real tailwinds from COVID-19, posting a remarkable 91% increase since the start of the year.

More reading

• Is your ASX share portfolio too diversified?
• 3 ASX shares I want to buy in October
• Why the Mesoblast (ASX:MSB) share price is in a trading halt
• Where to now for the Flight Centre (ASX:FLT) share price?
• ASX 200 rises 1%, Reliance Worldwide (ASX:RWC) climbs 11%

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.

The post Aeris (ASX:AEI) share price charges 6% higher on partnership deal appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2Gn0C1x

Well, October is here, and we are now officially in the last quarter of 2020 — a year that many more of us than usual are probably looking forward to seeing the back of. Small milestones like this occasion are always a good opportunity for us to take stock and have a think about where our portfolios are standing and where we’d like to see them go. So in this spirit, here are 3 ASX shares that I’m looking to buy or top up on this month.

3 ASX shares to buy this October

1) WAM Research Limited (ASX: WAX)

WAM Research is a listed investment company (LIC) that I already own. Even so, this LIC has such a high and robust dividend that I would love to add some more funds at the right price. On current pricing, WAM Research’s annual dividend of 9.8 cents per share is yielding a whopping fully franked 6.45%. Since the company told us last month that there are 34.9 cents per share left in WAM Research’s profit reserves, this dividend looks well-funded and sustainable to me. Unfortunately, at the current price of $1.52 a share, this company is trading at quite a premium to its underlying net tangible assets of $1.09 per share (as of 20 August). If this gap narrows in October, I’ll be topping up my holdings of this company.

2) Cochlear Limited (ASX: COH)

Cochlear was my Foolish stock pick of the month, so it would be remiss of me to neglect this company here. As I pointed out, Cochlear is a global leader in the healthcare space and dominates the market for hearing aids and assistance. For its customers, dealing with Cochlear is pretty much a necessity rather than a choice, which is great for this company’s bottom line. The impact of the pandemic is still well-and-truly priced into Cochlear shares right now, but I think the company will return to its pre-COVID form in FY21 and beyond. As such, this is a company I’m strongly considering adding to my portfolio in October.

3) Magellan Financial Group Ltd (ASX: MFG)

Magellan is the third ASX share I’m looking at this October. This company is the best funds management business in the country, in my view. It has grown enormously over the past few years, partly through both the stellar reputation of the company and of its chief investment officer, billionaire Hamish Douglass, and partly through an innovative line of new products. I’ve been impressed with the launch of the new Magellan High Conviction Trust (ASX: MHH) last year, which already has more than $980 million in funds under management. The new venture with Barrenjoey Capital is also a good move, in my view. I think Magellan will continue to grow at a very healthy pace over the next decade (especially with interest rates at near-zero), and so this company would be another ASX share I would love to add this October.

More reading

• 2 strong ASX shares I’d buy today for growth and income
• How to generate $50k a year from ASX dividends
• Top ASX Stock Picks for October 2020
• 3 ASX 200 passive investing shares to buy today
• Is the WAM Capital (ASX:WAM) 10% dividend yield sustainable?

Sebastian Bowen owns shares of Magellan High Conviction Trust and WAM Research Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post 3 ASX shares I want to buy in October appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2SgTAhs

The Mesoblast limited (ASX: MSB) share price was out of action on Thursday and missed out on the S&P/ASX 200 Index (ASX: XJO) rebound following a trading halt request prior to the market open.

Why is the Mesoblast share price in a trading halt?

This morning the biotech company requested a trading halt pending the release of an announcement.

That announcement relates to the United States Food and Drug Administration’s review of its Biologics License Application for RYONCIL (remestemcel-L). Mesoblast is seeking approval for its use in treating paediatric patients with steroid-refractory acute graft versus host disease (SR-aGvHD).

The United States Food and Drug Administration gave its priority review date of 30 September but appears to be either behind schedule or taking its time with the review.

Priority reviews are given to drugs treating serious conditions with the potential to provide significant improvements in safety or effectiveness over existing therapies. They traditionally cut the time in which the administration aims to take action on a drug’s application from ten months to six.

What are the chances of success?

Going into the review, Mesoblast was well-placed to gain approval thanks to its meeting with the Oncologic Drugs Advisory Committee of the Food and Drug Administration in August.

At the meeting, the Committee voted overwhelmingly (9 to 1) in favour that the available data supports the efficacy of remestemcel-L in paediatric patients with SR-aGvHD.

This was a big win the company, as the ODAC plays a key role in whether certain drugs get approval or not. Failure to gain the support of the ODAC would make it almost impossible to then gain FDA approval.

What now?

Mesoblast requested that the trading halt continues until it makes its announcement. This is expected to be on Monday 5 October 2020.

This could be an indication that it expects the Food and Drug Administration to make its decision on Friday night (Australian time).

More reading

• ASX 200 up 1.6%: CBA higher on COVID-19 loan deferrals update, Reliance rockets
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 ends the day flat, BOQ (ASX:BOQ) shares drop on impairments
• Why a2 Milk, Bank of Queensland, Mesoblast, & Northern Star are dropping lower today
• Is the Mesoblast (ASX: MSB) share price still good value?

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.

The post Why the Mesoblast (ASX:MSB) share price is in a trading halt appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/33ilBf9

It has been a whirlwind for Flight Centre Travel Group Ltd (ASX: FLT) and its shareholders during 2020. The travel agency has effectively come to a standstill with the Flight Centre share price heavily affected due to COVID-19 restrictions. 

Flight Centre shares closed Thursday’s session 2.91% higher at $14.16. This is a far cry from its highs of around $40 reached at the start of the year.

Let’s take a closer look at the business and try to gauge whether the Flight Centre share price can make a recovery any time in the not too distant future.

Financial impact

Flight Centre is facing the most challenging year in its history. Revenue has plummeted from widespread travel restrictions that were applied in March. The company reported a 99.4% decrease in Australian outbound travel during Q4 FY20.

In addition, Flight Centre recorded a high cost base of $230 million per month in its FY20 result. The travel agency raised $900 million in April via a $700 million capital raise and $200 million increase in debt facilities. Despite having more than $1.1 billion in liquidity, plans have been implemented to reduce costs by 70% and preserve cash.

On a positive note, the company’s corporate segment is recovering at a more rapid pace than the leisure sector. This is due to customers meeting the ‘essential services’ criteria, which are related to mining/resources, health/pharma and government industries.

The business sector recorded a profit of $74 million over the last 12 months, highlighting resilience in corporate travel.

Store closures

With continuing uncertainty around when and how the government’s travel restrictions will be lifted, Flight Centre has been closing down its stores. Just yesterday, the company announced it will shut down another 91 stores across Australia. This brings a total of 408 stores closed since the pandemic began, leaving 332 stores to face an uncertain future.

Flight Centre said it simply cannot afford to operate at the scale it has been in the past. The company’s Australian managing director, James Kavanagh, commented, “We are taking steps to preserve as many roles as possible for the future, while building a smaller but stronger overall network.”

Furthermore, CEO Graham Turner said, “The company has used the latest cost-cutting measures to argue that Australia’s economic health demands that borders are opened.”

Mr Turner also said, “We need the Australian borders open, we need the New Zealand trans-Tasman bubble up and running as soon as possible.”

Can the Flight Centre share price recover?

Flight Centre looks set to continue hibernating much of its business for the foreseeable future as global travel activity has been significantly reduced. While I think the company will again become profitable as a whole, I can’t see this happening in the near term.

In my opinion, the Flight Centre share price is accurately reflective of where the business currently stands. The travel agency is cashed up but still faces a high cash-burn rate in a zero-revenue environment.

For now, I will be staying away from investing in Flight Centre until I can see a meaningful road to recovery.

More reading

• Why Flight Centre, MoneyMe, Paradigm, & Zip shares are pushing higher today
• Are ASX travel shares like Webjet (ASX:WEB) set to soar?
• ASX 200 up 0.1%: a2 Milk crashes lower, Flight Centre and Webjet surge higher
• Why Flight Centre, OneVue, Paradigm, & PointsBet shares are charging higher
• These are the 10 most shorted ASX shares

Motley Fool contributor Aaron Teboneras 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 Where to now for the Flight Centre (ASX:FLT) share price? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3jmR5Gy

The S&P/ASX 200 Index (ASX: XJO) went up by 1% today to 5,873 points.

Here are some of the highlights from the ASX 200:

Reliance Worldwide Corporation Ltd (ASX: RWC)

The Reliance Worldwide share price jumped 11% after releasing a first quarter trading update to 25 September 2020 as part of an investor day presentation.

The plumbing business said that, overall, the sales performance in each of its three regions has continued to track in line (in constant currency terms) with what was reported when it announced its FY20 result.

The Americas region showed sales growth of 22% in July, 15% in August and 29% in September.

APAC has seen sales growth of 5% in July, a decline of 2% in August and growth of 4% in September.

The EMEA region saw a sales decline of 4% in July, growth of 5% in August and growth of 24% in September.

Reliance Worldwide’s CEO Heath Sharp said that FY21 has started well for the ASX 200 share, but forward visibility remains limited in most markets due to the ongoing impacts of COVID-19:

“The first quarter of the 2021 financial year has been particularly strong from a sales perspective. Looking ahead, we remain cautious. The US has been boosted by the surge in DIY activity and the return of construction activity to pre-COVID levels, but without further government stimulus measures this growth is likely to slow. We expect some softening in the Australian market as the reduction in new housing construction approvals leads to lower building activity.

“In the UK we are uncertain as to where underlying demand levels will settle once the pent-up demand for products and plumbing services has been satisfied. We are also watchful as to the impact the recent rise in COVID-19 case numbers may have on demand and plumbing activities there. Given the continuing uncertainties in all our markets as a result of COVID-19 we would caution against extrapolating the first quarter’s sales performance for the full year.”

Lynas Corporation Ltd (ASX: LYC)

The Lynas share price went up more than 5% after investors sensed the ASX 200 share was a beneficiary of an announcement from the US.

According to reporting by media, such as the Australian Financial Review, President Trump has used government power to allow direct state investments into ‘critical minerals’ projects in Australia to reduce the reliance of the US on Chinese supplies. This could be helpful for the ASX 200 share.

As one of the world’s biggest non-Chinese rare earth miners, Lynas is positioned to benefit. It’s already got a contract to build a processing facility in Texas.

The business could also benefit from Australia’s own plan to invest in its manufacturing capabilities. 

Commonwealth Bank of Australia (ASX: CBA)

CBA announced its August data for loan repayment deferrals today. The CBA share price went up almost 1%. 

The ASX 200 bank said that the amount of loan deferrals that expired or were exited in August was $5.7 billion.

CBA revealed that the number of home loans still being deferred in August 2020 was 7.4% of the portfolio, down from 7.6% in July and 8.2% in June.

New approved or extended loan deferrals was $2.3 billion in August, with $1.7 billion of this was an extension by the ASX 200 bank of an existing deferral.

CBA CEO Matt Comyn said: “Since the onset of the pandemic, our priority has been to do what we can to assist our customers in managing the challenges of COVID-19, including providing temporary loan repayment deferrals on approximately 250,000 home, personal and business loans. As we approach the end of the initial deferral periods, we have been contacting all customers with deferred loans to talk with them about their options, including returning to full or part payment, or converting their loans to interest only. Many of those contacted will be able to recommence their repayments. For customers who are facing financial hardship, we are reaching out to offer solutions tailored to their individual needs.”

More reading

• ASX big bank profits haunted by zombie mortgages
• Lynas (ASX: LYC) share price boosted 5% by PM’s budget plan
• ASX 200 up 1.6%: CBA higher on COVID-19 loan deferrals update, Reliance rockets
• Why BHP, Paradigm, Reliance, & SeaLink shares are charging higher today
• Investors push for 40% women in ASX 200 exec roles

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 Reliance Worldwide Limited. The Motley Fool Australia has recommended Reliance Worldwide 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 ASX 200 rises 1%, Reliance Worldwide (ASX:RWC) climbs 11% appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3cO7z7P

If you’re struggling with the low interest rates on term deposits, then you might want to look to the share market.

The Australian share market is home to a large number of shares that are providing investors with superior yields.

But which ASX dividend shares should you buy today? Two that I’m a big fan of are listed below:

Telstra Corporation Ltd (ASX: TLS)

The first dividend share to buy is Telstra. I’ve been very impressed with the progress it is making with its T22 strategy and firmly believe that it has positioned it for a return to growth in the near future. Especially now the NBN headwind is easing and 5G internet has arrived. The latter looks likely to give its key mobile revenues a boost over the coming years. Combined with its rampant cost cutting and the simplification of its business, things are looking increasingly positive.

In addition to this, I’m optimistic that Telstra can avoid a dividend cut in FY 2021. This could be achieved if it switches its dividend policy to be based on its free cash flow rather than accounting earnings. If the company does make the switch, based on the current Telstra share price, it would offer investors a very generous 5.7% yield.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Another option for income investors to consider buying is an exchange traded fund. The Vanguard Australian Shares High Yield ETF is invested in a total of 66 high yield shares. This means income investors are able to diversify their portfolio significantly through just a single investment. This is a big positive in my eyes. After all, diversity has proven to be very important during the pandemic due to dividend deferrals and suspensions.

Among its holdings you will find the big four banks, BHP Group Ltd (ASX: BHP), and Telstra. Based on the current Vanguard Australian Shares High Yield ETF share price, I estimate that it offers a FY 2021 dividend yield in the region of 4% to 5%.

More reading

• 3 ASX shares for growth, income, and value investors to buy in October
• New $190 million tech share listing on ASX
• Telstra (ASX:TLS) launches new 5G NBN alternative
• Is the TPG (ASX:TPG) share price a buy today?
• Are these high yield ASX dividend shares worth buying?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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.

The post 2 high yield ASX dividend shares to solve your income needs appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2EOFReT

ASX big bank stocks could soon be facing a new challenge after a recent survey found that more than half of borrowers on deferred mortgages are suffering from poor financial health.

What’s more, the banks may not be fully aware of how much financial pain these distressed borrowers are suffering, according to UBS who undertook its sixth mortgage survey.

This is the same broker that warned about “liar loans” in past surveys, where borrowers overstated their income and understated their liabilities in order to secure a home loan.

Are ASX banks underestimating the number of zombies?

Lenders have allowed customers to defer loan repayments till end of September due to COVID-19. The banks are contacting these mortgagees to see if they are able to resume regular loan repayments.

There could be more “zombie mortgages” out there than the market believes. These are loans that are kept alive only because of the temporary goodwill shown by the banks and government support payments.

The problem is made worse by liar loans. UBS anonymously surveyed 904 borrowers from late July to September who took out a new loan in the past year.

Liar loans remain an ongoing issue

“Once again, we found 37% of the sample stated their mortgage application was not ‘completely factual and accurate, a level consistent with the previous five vintages,” said UBS.

“Of more concern, the credit quality of customers who misstated their mortgage were significantly weaker than truthful customers.”

Majority of distressed borrowers still in trouble

The latest survey found that 53% of those on deferred loans did not intend to return to normal payments, while 32% intend to switch to Interest Only (IO) and 21% intended to ask to extend deferral.

“However, the credit quality of customers intending to ask their bank to extend their deferral is concerning,” warned the broker.

Of these borrowers, 40% had overstated their income by an average of 21% in their mortgage application. UBS also found that 15% understated other debts, 67% are on JobKeeper and 25% are on JobSeeker.

Threat to ASX bank profits

This group also reported a 19% drop in average income due to COVID-19, and this is on top of the overstated income on their loan application!

“Unfortunately, we found the financial position of those asking to move to IO is only marginally better,” added UBS.

“We believe the banks need to undertake significant due diligence before extending deferrals or moving deferred customers to IO, as a large number of these borrowers are likely to be under more stress than the banks perceive.”

No turnaround for ASX bank stock share prices

Bank stocks have underperformed the S&P/ASX 200 Index (Index:^AXJO). The Commonwealth Bank of Australia (ASX: CBA) share price, National Australia Bank Ltd. (ASX: NAB) share price, Westpac Banking Corp (ASX: WBC) share price and Australia and New Zealand Banking Group (ASX: ANZ) share price have fallen between 20% and 30% in 2020.

In contrast, the ASX 200 lost around 12% over the same period.

More reading

• ASX 200 rises 1%, Reliance Worldwide (ASX:RWC) climbs 11%
• ASX 200 up 1.6%: CBA higher on COVID-19 loan deferrals update, Reliance rockets
• Investors push for 40% women in ASX 200 exec roles
• Commonwealth Bank (ASX:CBA) share price higher on COVID-19 loan deferral update
• Potential ASX winners from government’s $1.5bn manufacturing blueprint

Motley Fool contributor Brendon Lau owns shares of Australia & New Zealand Banking Group Limited, Commonwealth Bank of Australia, National Australia Bank Limited, and Westpac Banking. Connect with me on Twitter @brenlau.

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 ASX big bank profits haunted by zombie mortgages appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2Gt0Q7y

The OceanaGold Corp (ASX: OGC) share price returned from its trading halt with a thud on Thursday.

The gold miner’s shares crashed as much as 10% lower to $2.12 at one stage today before ending the day down 9% at $2.15.

Why did the OceanaGold share price sink lower?

Investors have been selling OceanaGold’s shares after it announced a C$150 million (A$157.1 million) equity raising.

According to the release, the company has entered into an agreement with a syndicate of underwriters, led by Scotiabank and BMO Capital Markets. They have agreed to purchase, on a bought deal basis, 73 million shares at a price of C$2.06 per new share.

This represents a discount of almost 9% to the last close price of its Canada-listed shares.

In addition to this, OceanaGold has granted the underwriters the option to purchase up to an additional 10.95 million shares at the offer price. These options are exercisable in whole or in part until and including 30 days following the closing date of 30 October.

Why is OceanaGold raising funds?

The company advised that the net proceeds from the equity raising will be used to fund organic growth projects.

This includes the Haile underground development in the United States and ongoing exploration and development of its mineral properties in New Zealand.

In addition to this, some of the proceeds will be used for working capital and general corporate purposes.

What about Australian retail investors?

Unfortunately for local retail investors, the company doesn’t have plans to offer them the chance to pick up shares at the same price through a share purchase plan.

Though, given the weakness in its share price on Thursday, investors would have been buying in at roughly the same level as these institutional investors if they picked up shares earlier today.

More reading

• Why EOS, Jumbo, Nearmap, & OceanaGold shares are dropping lower today

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.

The post Why the OceanaGold (ASX:OGC) share price sank 10% lower today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/34hXMmZ

Is silver a good investment in 2020?

In the department of precious metals, it’s normally gold that gets the attention as an attractive asset class to invest in. Gold has been the foundation of the world’s monetary system practically until the 1970s. So it makes sense that investors are still attracted to its use as a store of value.

In 2020 so far, gold has indeed attracted a lot of attention, helped of course by surging demand. Over the course of the year to date, the gold price has appreciated from US$1,520 an ounce to a high of US$2,061 an ounce that we saw back in early August. This broke the previous all-time high of US$1,921 an ounce that was set back in 2011. Today, gold has cooled somewhat at the current price of US$,1898. But it’s still a popular choice for portfolio diversification and hedging against economic, monetary and geopolitical uncertainty.

Silver as an investment

But what has been less prevalent (or at least obvious) in 2020 is the fortune of another precious metal: silver. Although not as conspicuous as gold, silver also has a history of monetary use. Coins used to be minted in silver after all, and there have been instances in history where it was also used as a monetary foundation for currencies. Silver functions a little differently to gold in reality though. Unlike its yellow cousin, silver has a myriad of industrial uses. Perhaps the most pertinent in our modern age is silver’s status as a key ingredient in rechargeable batteries and solar panels. This tends to translate into a more volatile price for silver. As an example, in 2020 so far, silver has fluctuated between US$12 and US$29 an ounce.

But what of silver as an investment?

It’s certainly offered and available today as such a vehicle. Physical silver bullion is always an option. And alongside gold, there are exchange-traded funds (ETFs) on the ASX that allow access to silver. A primary example is the ETFS Physical Silver ETF (ASX: ETPMAG). So the question now is not ‘can you buy silver as an investment?’ but ‘why should you?’

Is silver a good idea for an ASX portfolio?

Many of the reasons that attract investors to gold as an investment can also be applied to silver. It is a scarce and precious metal with intrinsic value. In this way, it demonstrates some of the similar perceived ‘inflation/deflation’ protections that gold offers. And unlike currencies these days, silver cannot be ‘printed’ on-demand, which is another factor that some investors appreciate.

However, as I mentioned earlier, silver is also far more volatile than gold, which provokes some scepticism for its use as an effective store of wealth. I think ordinary investors will probably find little use for silver as an investment because of this. There is nothing that silver can offer against gold as a better alternative apart from the more potential upside fuelled by its volatility, in my view.

Foolish takeaway

If you are interested in pursuing silver as an investment, I would recommend using a ‘rebalancing strategy’ for a small and predetermined allocation in your portfolio, say 5%. This strategy might have the potential to lend some diversification from an asset not correlated with your ASX shares. But otherwise, I think silver is set to remain a fringe option for most ASX investors. Thus, I wouldn’t bother with silver as an investment unless you really want to.

More reading

• Where to now for the Flight Centre (ASX:FLT) share price?
• ASX 200 rises 1%, Reliance Worldwide (ASX:RWC) climbs 11%
• 2 high yield ASX dividend shares to solve your income needs
• ASX big bank profits haunted by zombie mortgages
• Why the OceanaGold (ASX:OGC) share price sank 10% lower today

Motley Fool contributor Sebastian Bowen owns shares of ETFS Physical Silver ETF. 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 Should ASX investors look to silver as an investment in 2020? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2Se7yRl

The ClearVue Technologies Ltd (ASX: CPV) share price is currently trading higher after the company announced it has received a large order for 500sq m of its product. As a result of the news, the ClearVue share price has surged 10.71% higher to 31 cents at the time of writing.

What ClearVue does

ClearVue is an Aussie tech company focused on the integration of solar technology into building surfaces, specifically glass and building facades, to provide renewable energy. It has developed advanced glass technology that aims to preserve the transparency  and aesthetics of the glass whilst generating electricity at the same time. ClearVue worked closely with experts from Edith Cowan University in Perth, Western Australia to develop the technology, which has been used across the building, construction and agricultural industries. 

ClearVue share price rising on record order

The ClearVue share price is surging as the company announced it has received its first order out of South America from local company, AMB Brasil. AMB Brasil has been appointed the exclusive ClearVue distributor in Brazil.

This first order is for 500sq m of ClearVue product, worth approximately $278,700. The order represents ClearVue’s largest order to date and reinforces proof of product for the company’s technology.

Product to fulfil the order will be produced through ClearVue’s manufacturers in China and will ship in early 2021 for installation into a number of projects being undertaken by AMB Brasil. The first of these projects is a commercial office tower, which will use roughly 250sq m of the product.

Commenting on ClearVue’s first South American order and the appointment of its new Brazilian distributor, ClearVue CEO, Ken Jagger, said:

AMB Brasil’s upcoming high-rise deployments of ClearVue technology is a perfect fit for our target market. A very near-term showcase retrofit, two commercial towers and further deployment opportunities within the wider AMB Brasil development site(s) represents a sensational example of environmentally focused high-rise construction globally. We are very much looking forward to a successful future with AMB Brasil as ClearVue’s Brazilian sales partner in this key South American territory.

What now for the ClearVue share price?

With the appointment of AMB Brasil as a ClearVue distributor, the Aussie tech company adds to a growing list of global distributors and manufacturers of its technology. Shareholders will be encouraged by the fact the company is continuing to expand its reach abroad.

The ClearVue share price is currently trading a huge 63% higher so far this year.

More reading

• Where to now for the Flight Centre (ASX:FLT) share price?
• ASX 200 rises 1%, Reliance Worldwide (ASX:RWC) climbs 11%
• 2 high yield ASX dividend shares to solve your income needs
• ASX big bank profits haunted by zombie mortgages
• Why the OceanaGold (ASX:OGC) share price sank 10% lower today

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.

The post Why the ClearVue (ASX:CPV) share price is up 11% today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/33j1MnH