Tag: Motley Fool

Considering the interest rates on offer with many savings accounts are just 0.05% per annum at present, I would sooner invest in the share market than keep it in one of these accounts.

After all, with a rate as low as that, if you had $10,000 in one of these savings accounts, you would earn interest of just $50 a year.

I believe significant better returns can be found on the share market if you invest wisely.

But which ASX shares should you invest $10,000 into? Here are three that I would buy today:

a2 Milk Company Ltd (ASX: A2M)

The first option to consider investing $10,000 into is a2 Milk Company. It is a New Zealand-based infant formula and fresh milk company with a focus on a2-only products. The a2 protein is believed to be easier to digest than the a1 protein, giving the company’s products a unique selling point. And while other companies have tried to copy its products, this has only reinforced its strong brand. This is particularly the case with Chinese consumers, who are buying its products in increasing numbers. Pleasingly, despite its strong sales growth in the country, a2 Milk Company still only has a modest market share. This gives it a long runway for growth over the next decade.

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

Another option for investors to consider buying is the BetaShares Asia Technology Tigers ETF. I think this exchange traded fund could provide strong returns for investors in the future due to its exposure to a large number of the fastest growing tech companies in the Asia market. These companies are revolutionising the lives of billions of people in the region and look very well-positioned for growth. Among the companies in the fund you will find the likes of ecommerce giant Alibaba, search engine company Baidu, and WeChat owner, Tencent.

NEXTDC Ltd (ASX: NXT)

A final option to consider investing $10,000 into is NEXTDC. It is the region’s most innovative Data Centre-as-a-Service provider and busy building the infrastructure platform for the digital economy. This puts NEXTDC in a strong position to benefit from the cloud computing boom which continues to accelerate. It was because of this boom that NEXTDC was able to deliver a 23% increase in underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to $104.6 million in FY 2020. More of the same is expected in FY 2021, with management guiding to EBITDA of $125 million to $130 million.

More reading

• 3 great ASX blue chip shares I’d buy
• Could these microcap ASX shares be the next A2 Milk (ASX:A2M)? 
• Why I would buy CBA (ASX:CBA) and this beaten down ASX share
• Got $3,000? Buy these exciting ASX growth shares
• Up 79% this year, is the NextDC (ASX:NXT) share price the next Afterpay (ASX:APT)?

Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia owns shares of A2 Milk. 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 invest $10,000 into ASX shares right now appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3kGZ15z

It’s no secret that interest rates are already at rock-bottom levels. Ever since the Reserve Bank of Australia (RBA) started cutting rates from the last peak of 4.75% we saw back in 2011, savers and retirees have been punished with an avalanche of interest rate cuts to ever lower ‘record lows’. Those were only exacerbated in 2020. The RBA quickly lowered the cash rate in response to the coronavirus pandemic. We had 1.5% back in February (which was the then-record low). But today, we sit at 0.25%, our new record low.

We as Australians have never before seen or invested in this kind of brave new world. An interest rate of 0.25% has translated into term deposits and savings accounts yielding interest rates not much better than inflation.

But according to reporting in the Australian Financial Review (AFR), things could be about to get a whole lot worse for savers.

Down, down for interest rates and the RBA

According to the AFR, Westpac Banking Corp (ASX: WBC) chief economist Bill Evans is now predicting that the RBA will cut the cash rate to yet another record low of 0.1% when it meets on the first Tuesday of next month. Westpac is also predicting that the RBA will continue to target government bond yields at the new 0.1% rate.

Mr Evans explained Westpac’s prediction with the following:

It is the medium term projection that the unemployment rate is still likely to be around 7 per cent by the end of 2022 – the [RBA] Deputy Governor refers to a “slow grind” – and that the shortfall in demand will be a significant break on the recovery… That outlook is unlikely to change in the November forecast revisions, hence no real case can be made to ‘wait’.

So basically Mr Evans is saying that the economy is unlikely to recover to ‘full-employment levels’ by the end of 2022 (using the RBa’s own projections). As such, there’s no reason for the RBA to wait in cutting rates.

What would 0.1% mean for savers and investors?

A cash rate of just 0.1% would mean real (inflation-adjusted) interest rate returns you could expect from cash investments like bonds and savings accounts would likely be negative. Even today, Westpac itself is offering an interest rate of 0.8% per annum on a 2-year term deposit. If inflation managed just 1% over the next 2 years, your money will actually be going backwards, even today.

So if rates do head to 0.1%, these kinds of yields will get even worse. It’s not good news for savers, retirees, or anyone else who likes the certainties that a cash investment can bring.

In contrast, ASX share investors will likely be cheering a move to 0.1%. Lower interest rates tend to support share markets, partly because it reduces the appeal of other asset classes (like cash). This phenomenon has come to be decribed as TINA – There Is No Alternative.

Whatever happens, this discussion is just another reminder that we are living in strange times indeed.

More reading

• CBA, Macquarie face new $167m dirty cash allegations
• Macquarie says ASX value shares will outperform growth stocks from here
• ASX 200 Weekly Wrap: ASX 200 snaps 4 week losing streak… just
• Negative rates may be coming to a big four ASX bank near you
• 3 retirement myths you can’t afford to believe

Motley Fool contributor Sebastian Bowen 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 More pain ahead for savers and retirees as Westpac forecasts an October interest rate slash to just 0.1% appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3cqhYX6

The S&P/ASX 100 (INDEXASX: XTO) has a number of quality ASX blue chip shares within its ranks.

The largest businesses in the ASX 100 are generally powerhouses of their industries and very hard to dislodge by competitors. Blue chips are seen as strong and worth investing in for the long-term.

However, I don’t think some blue chips are worth investing in like banks when you can just go for an exchange-traded fund (ETF) with more diversification and growth on offer. 

There are some ASX blue chips worth buying for the long-term in my opinion, including these three:

A2 Milk Company Ltd (ASX: A2M)

A2 Milk could be the best ASX blue chip share to buy right now in my opinion. There are few ASX 100 shares that have as much growth potential as A2 Milk. The ones that do have a lot of growth potential are priced very highly.

At the current A2 Milk share price it’s priced at 28x FY22’s estimated earnings.

The company is increasing its reach in the US and Asia with its rising distribution network of stores across those two large markets. Revenue grew by around a third in FY20 and management are expecting another year of strong growth in FY21.

I like that the ASX blue chip share is looking to maintain an earnings before interest, tax, depreciation and amortisation (EBITDA) margin of around 30%. This balances the need to invest for growth whilst ensuring good ongoing profitability.

It still has a long growth runway in China and the US alone. Expanding in Canada, the rest of Asia and Europe could turn A2 Milk into a much bigger business.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

I really like Soul Patts as an ASX share. The fact it has been listed since 1903 shows that the investment house isn’t just another business. It’s built to last and is defensively positioned. It’s invested in many ‘essentials’ of the Australian way of life like telecommunications, swimming schools, agriculture and building products.

Soul Patts invests with a contrarian style and that has helped it outperform the ASX 100 over the long-term.

I think the current investments of TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW) and Clover Corporation Limited (ASX: CLV) are well positioned to outperform. New investments like regional data centres could be a very good move with its long-term style.

The investment conglomerate is about to report its FY20 result which is likely to show some COVID-19 disruption. But I think the ASX blue chip share could be a solid long-term idea no matter what happens next.  

Magellan Financial Group Ltd (ASX: MFG)

I’ve been impressed with how Magellan has developed the business over the years since the GFC.

Magellan has managed to grow its funds under management (FUM) back to above $100 billion. I think that’s a really good effort by the fund manager considering all of the disruption recently with COVID-19.

I think the news of the investment into Barrenjoey could turn out to be a really smart move if it turns out well. The investment bank seems to have a great initial team and could attract quality clients. Barrenjoey could be a very profitable investment for Magellan.

I’m also looking forward to seeing what the retirement product is. The ASX blue chip has been working on the product for quite a while.

The Magellan share price is currently trading at 20x FY22’s estimated earnings. It also offers a partially franked dividend yield of 3.8%.

Foolish takeaway

I think each of these ASX 100 blue chip shares have the ability to beat the returns of the index over the long-term. I think A2 Milk could be the best performer of the three over the next five years with its international aspirations, though Soul Patts is a nice idea for an ultra-long-term buy.

More reading

• Where to invest $10,000 into ASX shares right now
• Top brokers name 3 ASX shares to buy today
• 4 ASX shares rated as strong buys by brokers
• Could these microcap ASX shares be the next A2 Milk (ASX:A2M)? 
• Why I would buy CBA (ASX:CBA) and this beaten down ASX share

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of A2 Milk. 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 great ASX blue chip shares I’d buy appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3mLRi8g

The Atomo Diagnostics Ltd (ASX: AT1) share price is up after a deal was announced to distribute its COVID-19 test kit in India. The news has sent the Atomo share price rocketing 10% higher to 38 cents at the time of writing.

What does Atomo do?

Atomo Diagnostics is an Australian medical device company that supplies rapid diagnostics tests (RDTs) and devices to the global diagnostics market. Atomo’s devices are intended to simplify testing procedures and usability for professional and untrained users.

The company has supply agreements in place for tests targeting a range of infectious diseases. These include HIV, COVID-19, and viral vs bacterial differentiation.

New sales agreement

Atomo announced a deal with DIVOC Laboratories, an Indian specialist diagnostic company, to launch its AtomoRapid COVID-19 antibody test in India.

Under the agreement, Atomo will provide 77,000 antibody test kits upon DIVOC obtaining product registration approval for professional use. DIVOC is expected to receive approval in Q2 FY21.

DIVOC will distribute the test kits on a non-exclusive basis to government, corporate, and India’s established home-visit network.

The agreement will be terminated should DIVOC fail to order one million units in the 12 months following regulatory approval. In return, Atomo will receive a fixed transfer price per unit and a percentage of revenues on final product sales.

The non-exclusive sale of its COVID-19 rapid test in India is a further expansion of its agreement with NG Biotech.

Atomo co-founder and managing director John Kelly was pleased with Atomo’s global reach. He said:

We are delighted to be able to offer our antibody rapid test in another large international market. Rapid testing forms a significant pillar of India’s response to managing the COVID-19 pandemic with the numbers of daily rapid tests increasing significantly in recent months.

Our Indian partner is a high-quality provider of diagnostic services, being one of the few laboratories in India that has been able to secure NABL accreditation. We are confident of their ability to roll out the AtomoRapid COVID-19 antibody testing across a number of high value channels in India in the coming months.

Is the Atomo share price good value?

I think Atomo has seized an opportunity that could expand its revenue significantly in the coming months. India has a high ranking for daily COVID-19 infections, hitting more than 90,000 cases in a day this month, and 5.65 million cases in total.

The new agreement is another milestone for the company which listed on the ASX in April this year. At a market capitalisation of $213 million, the Atomo share price has moved little since its Q4 update in June. But that could change in future depending on the success of its agreements.

I would encourgae investors to add Atomo to their watchlist and monitor its ongoing developments.

More reading

• Why the Flight Centre (ASX:FLT) share price and Webjet (ASX:WEB) share price are taking off
• Where to invest $10,000 into ASX shares right now
• More pain ahead for savers and retirees as Westpac forecasts an October interest rate slash to just 0.1%
• 3 great ASX blue chip shares I’d buy
• ASX investors were buying Tesla (NASDAQ:TSLA) and Snowflake (NYSE:SNOW) shares last week

Motley Fool contributor Aaron Teboneras 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 Atomo (ASX:AT1) share price rockets 10% on new agreement appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3cl76dk

It’s always interesting to see which shares Aussie investors are currently chasing. Yesterday, we looked at the ASX shares that have been popping up on investors’ radars. So today, we’re going to check out the international shares (which are almost always US shares) Aussies have been loading up on. The data is provided by Commonwealth Bank of Australia‘s (ASX: CBA) CommSec platform, which covers 14-18 September.

Most traded international shares on the ASX

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

1. Tesla Inc (NASDAQ: TSLA) — representing 11.3% of total trades with an 83%/17% buy-to-sell ratio.
2. Apple Inc. (NASDAQ: AAPL) — representing 7.6% of total trades with an 89%/11% buy-to-sell ratio.
3. Microsoft Corporation (NASDAQ: MSFT) — representing 2.7% of total trades with an 81%/19% buy-to-sell ratio.
4. Amazon.com, Inc (NASDAQ: AMZN) — representing 2.7% of total trades with an 86%/14% buy-to-sell ratio.
5. NVIDIA Corporation (NASDAQ: NVDA) — representing 2% of total trades with an 83%/17% buy-to-sell ratio.

The next five most traded shares were these:

      6.  Snowflake Inc (NYSE: SNOW)

      7. Nio Inc (NYSE: NIO)

      8. Nikola Corporation (NASDAQ: NKLA)

      9. Facebook, Inc. (NASDAQ: FB)

      10. Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL)

What can we learn from these trades?

As with prior weeks, a collection of big tech names, together with a basket of what I would describe as ‘speculative stocks’ make up the lion’s share of the most traded international shares for Aussie investors last week.

The FAANG stocks, Tesla and Microsoft maintain their positions at the forefront of ASX investors’ attention (as usual), alongside the high-flying tech company NVIDIA, shares in which are up more than 100% in 2020 so far.

However, it’s Tesla that continues to dominate the list, with trading volumes almost twice as high as the next company (Apple in this case). Aussie investors still can’t seem to get enough of Elon Musk’s pride and joy, even though the extraordinary rally in Tesla shares we saw earlier in the year appears to have come off the boil.

Meanwhile, Snowflake had a much talked about initial public offering (IPO) last week, which saw the shares more than double the IPO price of US$120. Thus, it’s no real surprise to see it pop up on this list.

It’s also interesting to see would-be Tesla rivals Nio and Nikola make the list as well. Notably, Nikola was the only stock that even got close to having an even buy/sell spread, with buys coming in at 52% and sells at 48%. This is understandable, as Nikola shares are down more than 26% over the past month on the back of the company’s chair, Trevor Milton, leaving the business in a less-than-glorious fashion.

More reading

• Should ASX investors follow Buffett and bet on oil shares?
• Apple stock will jump to $125, according to this analyst
• Understand this quote, and you’ll understand the ASX share market
• Tesla Weighs on Nasdaq — Will Investors Believe Musk This Time?
• Warren Buffett’s 3 best-performing stocks so far this year: Are they buys now?

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares), Facebook, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Facebook, Microsoft, NVIDIA, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Snowflake Inc and recommends the following options: long January 2021 $85 calls on Microsoft, short January 2021 $115 calls on Microsoft, short January 2022 $1940 calls on Amazon, and long January 2022 $1920 calls on Amazon. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Facebook, and NVIDIA. 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 investors were buying Tesla (NASDAQ:TSLA) and Snowflake (NYSE:SNOW) shares last week appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2FXTw3w

The Novonix Ltd (ASX: NVX) share price has been a positive performer on Wednesday.

In afternoon trade the shares of the integrated developer and supplier of high-performance materials, equipment, and services for the global lithium-ion battery industry are up 3% to $1.75.

Why is the Novonix share price pushing higher today?

Investors have been buying the company’s shares amid growing interest in the lithium sector following Tesla’s Battery Day event overnight.

This afternoon Novonix released an announcement in response to some of key the topics discussed at the event.

According to the release, the electric vehicle company touched on all aspects of cell manufacturing through to vehicle integration to outline a roadmap for a potential 56% cost reduction in the final battery pack in a vehicle.

The event also focused significantly on Tesla’s internal project to develop cell manufacturing technology of its own. This is something which has been rumoured about since the acquisitions of companies such as Maxwell Technologies and Hibar Systems.

Novonix’s CEO Dr. Chris Burns, notes that this event was of great significance to the company and the entire battery market.

He said: “It was very exciting to listen to Elon [Musk] and Drew [Baglino} discuss the advancements in TESLA’s battery program. Their approach to rethinking battery cell manufacturing exactly aligns with NOVONIX’s approach to rethinking battery materials manufacturing.”

Dr Burns notes that cost reductions are a focus for Tesla and he feel Novonix can assist with these goals.

The CEO explained: “Today’s battery chemistry has proven itself for vehicles and energy storage systems, it just needs to be more affordable. The cost of production of cells and materials has been stuck on existing technology and there is opportunity to disrupt these sectors through re-engineered solutions.”

“NOVONIX’s anode material processing technology is one example of delivering lower cost, high performance graphite to support long cycle life applications, and Dry Particle Microgranulation (DPMG) is another as a process to eliminate waste water and use simpler metal inputs to reduce cathode manufacturing cost or improve yield in anode manufacturing,” he added.

What now for Novonix?

Management appears very optimistic on the future and intends to focus on delivering lower cost materials to the electric vehicles sector.

It concluded: “The NOVONIX team and proprietary technologies complements the amazing work by TESLA and we look forward to continuing to participate in the advancement of the state of lithium-ion battery technology. NOVONIX continues to work on delivering lower cost materials to support million-mile (or more) vehicle battery and 20+ year grid storage technologies to decrease the total cost of ownership of batteries over their lifecycle.”

More reading

• ASX All Technology Index swells with new additions

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 Novonix (ASX:NVX) share price pushes higher after Tesla’s Battery Day event appeared first on Motley Fool Australia.

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

The Tesla Inc (NASDAQ: TSLA) share price was down 5.60% overnight in US trading to US$424.23. This, however, was prior to Tesla’s ‘Battery Day’ event at which CEO, Elon Musk, announced positive news to shareholders. Despite the upbeat announcements, the Tesla share price continued to fall in after hours trading sessions, dropping nearly 7% in only a couple of hours. It will be interesting to see what effect the announcements continue to have on Tesla shares when US markets open late tonight (Australian time).

What was announced?

Tesla will work to start producing a car that costs $US25,000 as it aims to bring down the cost of its production. The company has a goal to bring the cost of Tesla vehicles closer to the cost of cars running on conventional fuels. 

The electric car maker is taking a range of initiatives aimed at bringing down the cost of batteries including introducing ‘tabless’ batteries. The new batteries will be produced in house and increase the power of Tesla’s vehicles while bringing down costs. The range of Tesla’s vehicles will be increased by 16% using the new batteries.

Tesla will also start to produce cathodes, a key component of electric vehicle batteries, in house in the future. Additionally, it is making improvements to its processes which will make cathodes 76% cheaper whilst producing zero waste water. Tesla’s cathode production will also eliminate cobalt, which is often unethically sourced, and reduce the volume of nickel required, which is in short supply.

According to Tesla, it will soon release another car model named the Model S ‘Plaid’. This will become Tesla’s highest powered car and will be able to go from 0-60 miles per hour in 2 seconds with a maximum speed of 200 miles per hour. The vehicle will be able to travel 520 miles between charges. It will also cost more than Tesla’s current offerings at US$139,990. 

About the Tesla share price

Tesla is a manufacturer of electric cars, batteries and renewable energy technology. It has been listed on the Nasdaq since 2010.

In August, Tesla stock was split 5-for-1, meaning shareholders now hold 5 Tesla shares for every 1 share they originally held.

In the second quarter of 2020, Tesla had US$104 million in net income according to generally accepted accounting principles (GAAP) and US$451 million non-GAAP income. It had cash and cash equivalents of US$8.6 billion at the end of the second quarter.

The Tesla share price is up 871.44% since its 52-week low of $43.67, it has increased 393% since the beginning of the year. The Tesla share price is up 779.23% since this time last year.

More reading

• Novonix (ASX:NVX) share price pushes higher after Tesla’s Battery Day event
• Plenti (ASX:PLT) share price crashes lower after its IPO
• 3 ASX dividend shares rated as buys by brokers
• Why have ASX tech founders been unloading shares?
• Why the Service Stream (ASX:SSM) share price is surging 14% higher today

Chris Chitty does not own shares in Tesla.

The post Tesla (NASDAQ:TSLA) share price falls following ‘Battery Day’ updates appeared first on Motley Fool Australia.

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

It hasn’t been a very positive first day of trade on the Australian share market for the Plenti Group Limited (ASX: PLT) share price.

Earlier today the technology-led consumer lending and investment company’s shares were trading 25% lower than their initial public offering (IPO) price at $1.25.

At the time of writing the Plenti share price has recovered slightly and is up to $1.34.

What is Plenti?

Plenti is a growing technology-led consumer lending and investment business which provides borrowers with efficient, simple, and competitive loans. These are delivered via simple digital experiences.

In addition to this, Plenti seeks to provide investors with attractive and stable returns via investing in consumer loans.

The company has funded approximately $870 million in loans to over 55,000 borrowers since its launch in 2014, providing loan products to creditworthy borrowers in the automotive, renewable energy, and personal lending verticals.

Why did Plenti list on the ASX?

Plenti has listed on the ASX following the successful completion of its IPO, raising $55 million at $1.66 per share. This gave the company an implied market capitalisation of $280 million at the time.

The proceeds from the IPO will be used to drive future lending growth across the automotive, renewable energy, and personal lending verticals. Management notes that this represents a $45 billion+ annual lending opportunity.

In addition to this, the proceeds will support the expansion of its warehouse and other wholesale funding activities.

Plenti CEO and co-founder Daniel Foggo said: “This is an extremely exciting day for Plenti and its shareholders and I am incredibly proud of the effort of the whole team in getting the business to this important milestone.”

“However, this is also just the beginning of the next stage in the evolution of our business and I am very optimistic about the opportunities ahead of us given the capabilities of our technology platform and team, which the funds from the IPO will help us capture,” he concluded.

More reading

• Why have ASX tech founders been unloading shares?
• The biggest mistakes investors are making in today’s share markets
• Why the Nufarm (ASX:NUF) share price has rocketed today
• ASX 200 up 1.9%: Afterpay storms higher, Nufarm jumps, big four banks rise
• Why the Xero (ASX:XRO) share price can hit $100 again in 2020

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 Plenti (ASX:PLT) share price crashes lower after its IPO appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2ZVNiZ1

It can be an interesting insight to know what brokers think of an ASX dividend share. The problem is that a single broker can be wrong or biased.

If you can get a consensus among brokers about which shares are best, then that may give a clue about what to buy and what to avoid.

Every so often MarketIndex collates the broker recommendations of 150 ASX shares and totals the buys, holds and sells for those shares. The higher or lower the average score the more of a strong buy, buy, hold, sell or strong sell that share is.

The below ideas have dividend yields above 5% and a market capitalisation above $1 billion. However, a high dividend yield can indicate a falling share price or limited growth prospects.

Here are three of the ASX dividend shares that fit the bill:

Pendal Group Ltd (ASX: PDL)

Pendal is a global fund manager with a variety of different investment strategies and it has offices in Australia and places like London, Singapore and New York.

The Pendal share price is down 38% since the start of the COVID-19 crash. The ASX share has recovered to $5.48 at the time of writing, it was as low as $3.44 during March 2020.

Market movements can be a doubled edged sword for fund managers. When things are going well the funds under management (FUM) organically rises from capital growth and it may also see pleasing levels of fund inflows. However, market crashes can cause the FUM to plummet and people may also take their money out of the fund manager.

The Pendal FUM update for the quarter ending 30 June 2020 showed an attractive 4% increase in FUM to $89.4 billion, however that was largely due to market movements because the ASX share actually suffered a $2.5 billion net outflow of funds.

Pendal may seem cheap on a trailing basis with a trailing grossed-up dividend yield of 10.4%. However, I don’t think the next 12 months of dividends will be that good. But the Pendal share price could recover nicely if FUM can rise in the shorter-term.

Aurizon Holdings Ltd (ASX: AZJ)

Railroad business Aurizon is an interesting dividend idea. It obviously benefits from the large amount of resources that are transported around Australia.

The Aurizon share price has fallen 29% over the past year and it’s down 21% since the start of the COVID-19 crash.

Thankfully, the FY20 result from the ASX share was actually fairly good. Revenue rose by 5% to $3 billion, underlying net profit grew 12% to $531 million and statutory net profit rose 28% to $605 million.

For income investors, Aurizon grew its total FY20 dividend by 15% to 27.4 cents per share. That equates to a current partially franked dividend yield of 6.35%.

Expectations of lower earnings in FY21 has probably dampened investor demand for Aurizon shares.

Origin Energy Ltd (ASX: ORG)

Energy businesses have gone through a tough time in recent months because of COVID-19.

The Origin share price is down 42% since the COVID-19 crash and it has actually fallen 19% since the end of August 2020.

The fall in the share price has helped boost the trailing dividend yield to 5.5%.

Excluding impairments, the FY20 profit of the ASX share was actually flat whilst free cashflow improved by about $100 million.

Origin seemed to indicate lower profit in FY21 when it provided its guidance for this financial year.

I’m not sure if Origin’s board will decide to maintain the annual dividend payment at $0.25 per share, or reduce it to $0.20 after the $0.10 final FY20 dividend.

Foolish takeaway

I don’t think the dividends of Origin or Pendal are safe, whilst Aurizon’s link to commodities makes me a little uneasy because I don’t like investing in resources. Of the three, I’d probably go for Aurizon.

For a commodity-type income play I think something like Vitalharvest Freehold Trust (ASX: VTH) could be a better option as its distribution floor seems to be a current yield of 6% with growth potential.

More reading

• 3 reasons I like the AGL Energy (ASX:AGL) share price today
• 4 dividend kings to buy now and hold forever
• 5 ASX shares to avoid in October
• These were the worst performing ASX 200 shares last week
• 3 ASX shares that are trading at bargain prices

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Aurizon Holdings 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 3 ASX dividend shares rated as buys by brokers appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/32S2xnu

ASX tech shares like Afterpay Ltd (ASX: APT), Xero Limited (ASX: XRO) and Kogan.com Ltd (ASX: KGN) have been the undisputed champions of the S&P/ASX 200 Index (ASX: XJO) over the past 6 or so months.

In a market battered and bruised by the share market crash we saw in March, it was ASX tech shares leading the recovery. Since 23 March, the Afterpay share price has appreciated almost 800% on today’s prices. Xero shares are up 66% and Kogan shares by more than 400%.

This mirrors a trend we have seen over in the United States as well. US tech shares have also been the stars of the American market recovery. Shares like Apple Inc (NASDAQ: AAPL) and Amazon.com Inc. (NASDAQ: AMZN) are up around 100% and 65% respectively since 23 March. And electric car maker Tesla Inc (NASDAQ: TSLA) raised some eyebrows when it shot up nearly 600% between 18 March and 31 August.

ASX tech share sell-off

But according to reporting from Business Insider, many founder/owners of these ASX tech companies have been using this extraordinary rally to offload their own shares.

Business Insider claims that $750 million worth of insider selling has occurred within just 5 ASX tech shares in 2020 so far.

This insider selling was lead by the co-founders of Afterpay – Nick Molnar and Anthony Eisen. Between the two of them, $250 million worth of Afterpay shares were reportedly unloaded in July this year.

This was echoed over at Xero, with founder Rod Drury offloading $198 million worth of Xero shares earlier this month.

Kogan founders Ruslan Kogan and David Shafer have also cashed in, reportedly selling a combined $157.6 million worth of Kogan shares in August.

Also cashing in has been WiseTech Global Ltd (ASX: WTC) founder Richard White, who has sold more than $65 million worth of his company’s stock since June.

Finally, Business Insider reports that management at the cloud company Whispir Ltd (ASX: WSP) have been selling out of their shares as well, with $77 million worth of sales from “major investors” executed since the company’s shares were released from a 1-year post-IPO escrow.

What does the heavy insider selling tell us?

Well, I’m never too worried about the odd dash of insider selling, particularly if the share price in question has been exploding higher. Remember, the company’s founders and managers are investors too, that’s why they are running companies. And any good investor understands the dangers of having too many eggs in one basket. If I was an ASX tech billionaire sitting on an asset base that consisted of 90% Afterpay shares, dang right I would want to diversify. And if my company’s share price had risen by 800% in just a few months, I think I would be looking to cash in as well.

However, I would be concerned if say a founder was obviously selling off the vast bulk of their shareholdings. That would imply the founder is protecting his or her wealth by selling out of their own company – not a good sign. That being said, I don’t think any of these moves described above fit these criteria. So keep things in some perspective when you see insider selling. Most of the time, those sellers are just being prudent investors.

More reading

• The biggest mistakes investors are making in today’s share markets
• Why the Nufarm (ASX:NUF) share price has rocketed today
• Why Afterpay, Nufarm, PolyNovo, & Sezzle shares are racing higher today
• ASX 200 up 1.9%: Afterpay storms higher, Nufarm jumps, big four banks rise
• Where next for the Zip (ASX:Z1P) share price?

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon, Apple, Tesla, and Whispir Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd and Xero 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 AFTERPAY T FPO and WiseTech Global. The Motley Fool Australia has recommended Amazon, Apple, Kogan.com ltd, and Whispir Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why have ASX tech founders been unloading shares? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2RP2qD9