Tag: Motley Fool

I think October is going to be a very volatile month for ASX shares. We are racing so fast towards the fiscal cliff that all of us can see it coming now. Specifically, we will see JobSeeker and JobKeeper payments reduced on 1 October .

Also, banks will start to renegotiate loans and call in bad debts. Meanwhile, the government’s Commercial Tenancy Code of Conduct has not been extended in Queensland or New South Wales at this stage. Outside of our own domestic economy, some companies are also at the mercy of large-scale trends and patterns that have been working against them all year. 

Here are 3 ASX shares that I would avoid buying between now and the end of October at least.

Shopping centre REITs

I really feel sorry for the two giant shopping centre real estate investment trusts (REITs). Scentre Group (ASX: SCG), the owner of the Westfield centres, and Vicinity Centres (ASX: VCX) are well managed ASX shares with solid balance sheets. Unfortunately, they have carried more than their fair share of the burden of the pandemic restrictions. The commercial tenancy code prohibits them from evicting tenants who have been unable to pay rent. At the same time, they must provide either rent deferment or cancellation of between 50% and 100%.

Both of these REITs have dutifully complied, and have in fact gone above and beyond what has been asked of them. It is bad enough that these companies face the extended lockdown restrictions in Victoria. However, Western Australia, South Australia and Victoria have also extended the tenancy code of conduct for 6 months or longer.

ASX shares in LNG

The oil price is under sustained pressure and struggling to remain above US$40 per barrel. Demand is still very low and will be until lockdowns are over and full scale international travel recommences. The world still has a glut of oil and Saudi Arabia has recently moved to sell at below the benchmark price. 

In the LNG space, PetroChina is forcing suppliers to reduce prices in the wake of years of large-scale losses. Many ASX shares in LNG are going to be struggling with this for several years to come. However, I believe Oil Search Limited (ASX: OSH) is the most exposed.

A producer of both oil and gas, the company has seen  a sharp decline in realised prices for its products. It is working hard to reposition itself and has slashed production costs. Nonetheless, the company is faced with a number of difficult issues for new project approvals, and has slashed growth capital. 

Fast fashion

Delloite Access Economics has modelled the reduction in the JobSeeker allowance and found it could lead to an additional 145,000 people unemployed. The key takeaway here is that consumers will have less money, so will spend less, and the resulting contraction will cause further unemployment. For me, this indicates bad times ahead for discretionary retail. Not only companies like Officeworks in the Wesfarmers Ltd (ASX: WES) group, but also retailers in the fashion sector.

As people try to cut discretionary spending, I think sales from companies like Lovisa Holdings Ltd (ASX: LOV) will be hardest hit. Moreover, I think prestige retailers such as jeweller Michael Hill International Ltd (ASX: MHJ) will see a sharp downturn in sales volumes. Personally, I like both these companies, but the lack of discretionary income will mean more spent on food and less spent on fun. 

More reading

• Coronavirus: Why the Scentre (ASX:SCG) share price can benefit from eased restrictions
• ASX 200 falls slightly, miners surge higher
• These were the worst performing ASX 200 shares last week
• 2 ASX shares that could rocket from viral cash hoarding
• Why retirees should add these solid ASX dividend shares to their portfolios

Motley Fool contributor Daryl Mather 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.

The post 5 ASX shares to avoid in October appeared first on Motley Fool Australia.

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I believe there are a number of ASX shares that can provide an attractive mix of income and growth for investors.

Some shares offer growth but not much income like Altium Limited (ASX: ALU). Other ASX shares give investors plenty of income but not much capital growth like Telstra Corporation Ltd (ASX: TLS).

I think there are some ASX shares that offer the right mix of both:

WCM Global Growth Ltd (ASX: WQG)

This ASX share is a listed investment company (LIC). The job of a LIC is to invest in other businesses on behalf of shareholders. This particular LIC is run by California based asset management outfit WCM which was founded in 1976. The majority of WCM is owned by employees and it manages over $85.6 billion of assets.

There are two key criteria for any business to make it into the WCM portfolio. A business must have a rising competitive advantage (or expanding moat) and a corporate culture that supports the expansion of this moat. WCM believes the direction of a company’s economic moat is more important than its absolute width or size.

WCM focuses on businesses with a positive moat trajectory as measured by a rising return on invested capital (ROIC) compared to those with a large but static or declining moat. The LIC believes that corporate culture is a key determining factor for a business’ ability to achieve a consistently growing moat. I think it’s a great strategy. 

ASX shares aren’t targeted by WCM Global Growth, it’s an ex-Australia fund. The businesses that make up its largest holdings include Shopify, West Pharmaceuticals, MercadoLibre, Visa, Stryker, Taiwan Semiconductor, Tencent, Lululemon Athletica, Thermo Fisher Scientific and Ansys.

It has been a very strong performer. Over the past three years its portfolio return (before expenses but after management fees) has been 22% per annum. That shows the investment strategy really works.

At the current WCM Global Growth share price it’s trading at a 15% discount to the pre-tax net at 31 August 2020. It currently offers a partially franked dividend yield of 3%.  

Pacific Current Group Ltd (ASX: PAC)

Pacific describes itself as a boutique asset manager that applies its strategic resources, including capital, institutional distribution capabilities and operational expertise to help investment manager partners. It has 15 boutique asset managers across the world.

In terms of the dividend, Pacific is a very attractive ASX dividend share. The company grew its dividend by 40% to $0.35 per share in FY20. Not many businesses managed to report such a large increase to their FY20 dividend.

Pacific was able to achieve that large increase thanks to a big increase in the funds under management (FUM). In FY20 FUM, excluding acquisitions and sales, grew by 52% to $93.3 billion.

The ASX share reported that its underlying earnings per share (EPS) rose by 18% to $0.44 when excluding impairments of various assets. Pacific said that asset gathering efforts were impacted in this result due to the pandemic, so growth could be even better once COVID-19 subsides.

I’m not expecting huge capital growth from this investment idea, but steady high single digit or low double digit growth of underlying EPS could see the share price and dividend grow at an attractive rate too. The dividend doesn’t need to grow 40% per year for it to be a solid income idea at today’s prices.

Indeed, at today’s Pacific share price it offers a grossed-up dividend yield of 8.4%. The dividend has grown each year after the FY17 dividends. It’s valued at 11x FY21’s estimated earnings.

Foolish takeaway

Each of these ASX shares offer a good starting yield and could also generate pleasing capital growth as long as their underlying investments continue to perform well. If you’re looking for growth then I think WCM Global Growth is the better pick, but Pacific could be a really good option for dividends for at least the next few years.

More reading

• 5 quality ASX shares to buy in September
• 3 ASX dividend shares I’d buy with $3,000 today
• Buy Afterpay (ASX:APT) and these ASX shares before the tech rebound
• ASX shares to buy if there’s another crash
• 4 of the best ASX 200 shares to buy in September

Tristan Harrison owns shares of Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. 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 2 top ASX shares to buy for income and growth appeared first on Motley Fool Australia.

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ASX tech shares have been rocketing in 2020 thanks to the likes of Afterpay Ltd (ASX: APT). The Afterpay share price has surged 144.9% higher but I think the tide is starting to turn. In my mind, biotech shares like Polynovo Ltd (ASX: PNV) are shaping up as the hot new buys in the market.

Why ASX biotech shares can outperform in 2020

The coronavirus pandemic has thrown a real spanner in the works. Dividends have been slashed, forcing many investors to look for growth instead.

That has seen tech shares like Afterpay continue to surge higher. Software-as-a-service (SaaS) businesses have managed to maintain revenue and keep costs low in 2020.

However, I think ASX biotech shares like Polynovo are looking like the next big thing.

To be clear, the fact that Polynovo has strong growth prospects is not a new idea. The Polynovo share price is up 21.0% this year alone and has a market capitalisation of $1.5 billion.

But COVID-19 has shown that the biotechnology sector has a lot of innovation ahead of it with some seriously strong research and development prospects.

The reason I like Polynovo is because of its strong track record and defined future strategy. The group’s NovoSorb BTM product has seen resounding success across the world in the dermal scaffolding market.

Now Polynovo is seeking to reach out even further. At the top of the list are the lucrative hernia and breast augmentation markets which could see Polynovo earnings soar.

It’s not just Polynovo that I like amongst the ASX biotech shares. I’m quietly bullish on the Mesoblast limited (ASX: MSB) share price after its recent success with the United States Oncologic Drugs Advisory Committee approving its remestemcel-L treatment for acute graft versus host disease.

Foolish takeaway

There’s no doubt that ASX tech shares like Afterpay have outperformed in 2020. However, I think it’s worth avoiding the trap of chasing gains that may have already gone and not buying in at the absolute top of the market.

ASX biotech shares could be on the rise with growing addressable markets and a solid track record. That’s why I think the Polynovo share price could be good value at $2.25 per share.

More reading

• Forget Afterpay (ASX:APT) shares, buy these 3 growth shares
• Is value investing dead?
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 falls slightly, miners surge higher
• BNPL shares like Afterpay (ASX:APT) and Zip (ASX:Z1P) are soaring today. Here’s why

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of POLYNOVO FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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 Are biotech shares like Polynovo (ASX:PNV) a better buy than Afterpay? appeared first on Motley Fool Australia.

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The A2 Milk Company Ltd (ASX: A2M) share price is something of an enigma. Shares in the Kiwi dairy group have rocketed an eye-watering 2,485% higher in the last 5 years.

In contrast, the S&P/ASX 200 Index (ASX: XJO) is down 11.9% for the year and up 14.0% in the last 5 years, excluding dividends.

So, the best time to buy a2 Milk shares was 5 years ago, but is the next best time today?

Why the a2 Milk share price can outperform next year

One of the big factors behind the company’s success has been an effective market dominance strategy. The a2 Milk brand is highly recognisable and has gradually grown earnings across a variety of products and markets.

In fact, I think the increasingly targeted branding and growing brand recognition is a key reason to like the a2 Milk share price right now.

That brand strength looks set to continue with the Kiwi dairy group eyeing an expansion into Canada. a2 will be taking on the likes of Canadian dairy giant Saputo Inc. but I think it is up for the challenge.

a2’s full-year earnings result showed just how robust the company’s earnings profile is, which is underpinning its international expansion. The company posted a 34% increase in net profit after tax to NZ$385.8 million as earnings surged.

I think investors can have comfort that a cash cow company in its core markets provides the security to look further abroad for growth. The a2 Milk share price could also benefit from inorganic growth as it continues to acquire larger stakes in companies like Synlait Milk Ltd (ASX: SM1).

One reason for the strong earnings has been a clearly defined supply chain. Supermarket sales have surged in 2020 as coronavirus panic buying took hold and a2 Milk as a downstream supplier has been a major beneficiary.

Some investors have been put off by a less than stellar outlook for FY21. However, I think the company’s FY20 return on equity of 34% shows that it can still be profitable for investors.

Foolish takeaway

The a2 Milk share price is down 17.5% from its all-time high which could mean now is a good time to buy in at a reasonable price.

More reading

• 5 quality ASX shares to buy in September
• 3 warning signs for the a2 Milk (ASX:A2M) share price
• I’d buy A2 Milk (ASX:A2M) shares this week
• 3 ASX 200 shares I’d buy right now
• 3 ASX shares for beginners to buy

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. 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 Why the A2 Milk (ASX:A2M) share price can outperform in 2021 appeared first on Motley Fool Australia.

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If you’re looking to add a bit of exposure to the small side of the market, then you might want to take a look at the small cap ASX shares listed below.

Here’s why I think they could be destined for big things in the future:

Bigtincan Holdings Ltd (ASX: BTH)

Bigtincan is a fast-growing provider of enterprise mobility software. This software allows sales and service organisations to increase their sales win rates, reduce expenditures, and improve customer satisfaction through improved mobile worker productivity. It has been a strong performer over the last couple of years and continued this positive form in FY 2020 despite the pandemic.

For the 12 months ended 30 June 2020, Bigtincan reported revenue growth of 56% to $31 million and annualised recurring revenue (ARR) growth of 53% to $35.8 million. Pleasingly, more of the same is expected in FY 2021. Management provided ARR growth guidance of 36.9% to 48% year on year. This is still only a fraction of its overall market opportunity.

ELMO Software Ltd (ASX: ELO)

Another small cap ASX share to look at is ELMO Software. It is a fast-growing cloud-based human resources and payroll software company. It provides businesses with a unified software platform, which allows them to streamline a range of key processes. This includes everything from onboarding, training, payroll, and performance management.

I like ELMO due to its sizeable opportunity in the ANZ market and its option to expand internationally in the future. The latter is thanks to its jurisdiction agnostic platform. Another positive is that ELMO undertook a capital raising this year to fuel its future growth. Management intends to use the majority of its sizeable cash balance (~$140 million) to acquire complementary businesses. But even without these acquisitions, the company is forecasting further strong organic growth in FY 2021. It has provided guidance for ARR of $65 million to $70 million, which represents year on year growth of 18% to 27%.

More reading

• Could these exciting small cap tech shares be the next Afterpay (ASX:APT) and Altium (ASX:ALU)?
• 3 very exciting small cap ASX shares to watch
• 3 small cap ASX growth shares I’d buy with $1,000
• Top ASX growth shares to buy in September 2020
• New to investing? More ASX growth shares to buy now

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends BIGTINCAN FPO and Elmo Software. The Motley Fool Australia has recommended BIGTINCAN FPO and Elmo Software. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post These exciting small cap ASX shares could be stars of the future appeared first on Motley Fool Australia.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

I’m not going to bury the lede. Another stock market crash is going to happen.

I know this not because stocks are overvalued (although they probably are) or because COVID cases have continued spiking, or because the federal government seems unlikely to compromise on more financial relief, or for one of almost a dozen other reasons. 

I know it because stock market crashes always come. In fact, just in my lifetime alone, I’ve lived through:

• The crash of 1987, when the S&P 500 lost more than 30% of its value in just under 40 days
• The bursting of the DotCom bubble, when the S&P fell more than 44.7% over two years in the early 2000s
• The 2008 financial crisis, when the market shed over 50% of its value in under a year and a half
• The coronavirus crash

And I’m only in my late 30s. 

But despite the fact I’m 100% confident the market is going to crash again, I’m not worried about my investments or planning to reduce the amount I’m putting into the market. And, if you’ve done the right things, you shouldn’t be either. Here’s why. 

You can’t predict a market crash, but you can be ready for one

Although no one ever knows when a market crash is going to happen, everyone should know one could occur any day.

In fact, crashes often come as a result of burst bubbles, so everything may look like it’s going really well with the stock market (or real estate) — before all of a sudden… it isn’t. 

Since you can’t predict when a crash will happen, you should be prepared for one at all times. That doesn’t mean keeping your money out of the market, as you need to invest in stocks to build wealth. Instead, it means:

• Not investing money you’ll need in the near term. Some recoveries are very quick (including the most recent one). Others can take years. If you have money invested that you’ll need within the next two to five years, you may not have time to wait for the market to rebound and you could be forced to sell at a loss. You don’t want to do that. 
• Not trying to time the market. Since knowing what’s going to happen is impossible, don’t try to buy at rock bottom or sell at the peak. Instead, invest for the long term and consider using dollar-cost averaging to acquire your positions. That means investing the same amount in similar assets at regular intervals, so chances are good you’ll buy some shares at a high price and others at a low one, and things will even out. 
• Paying attention to your risk exposure. Over-investing in equities is a risky endeavor, as it ups the chances you’ll suffer outsized losses during a market crash. At the same time, not investing enough in stocks is also risky because you’ll miss out on the chance to earn reasonable returns. Take the time to think about what balance is right for you. 
• Not chasing short-term gains. If you want to be prepared for a market crash at all times, your portfolio can’t include any investments you’d be unhappy holding for years — just in case you happen to own them when a crash happens and you need to keep them until the recovery to avoid locking in losses. 
• Assessing what kind of investor you are. It’s hard to consistently beat the stock market — especially during times of turbulence. While it was easy for most people to make money during the 2010s when market volatility was low, these are much more uncertain times. If you’re a nervous investor likely to react in fear or you don’t have a sound investment thesis, investing in index funds may be a better bet than picking individual stocks. At no time would an investment held consistently in an S&P index fund have been a losing investment if you owned it for at least 20 years — so you’re taking much less risk in case of a crash if you opt for one, since it’s all but certain your investment will recover any losses over time.  

If you take these five steps, you can join me in knowing that you’re 100% ready for a market crash whether it happens today, tomorrow, or in five years’ time. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why you should always invest in ASX shares when interest rates are low
• ASX 200 falls slightly, miners surge higher
• Rhinomed (ASX:RNO) share price tries following Starpharma’s path to COVID glory
• The Mesoblast (ASX:MSB) share price surges on award win

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 Will another market crash happen? appeared first on Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Scentre Group (ASX: SCG) shares have been smashed in 2020. The Scentre share price is down 42.6% in 2020 despite surging 5.2% higher in yesterday’s trade.

However, I think the Aussie real estate investment trust (REIT) is one of the best-placed shares for an easing of coronavirus restrictions. Here are a few reasons to consider watching the Scentre share price in 2020.

The Scentre share price is cheap

Shares in the Westfield owner and operator look cheap right now. Of course, ASX shares don’t fall for no reason and investors are expecting lower future earnings.

COVID-19 restrictions have hit shopping centres hard in 2020 with tenants and landlords battling to maintain profitability. That’s seen the Scentre share price slump lower but I think that creates a buying opportunity.

It’s hard to price in coronavirus impacts

One of the hardest aspects of stock picking is working out what is already priced into a company’s valuation. For instance, the ASX banks have been hammered and investors are worried about further economic deterioration. However, that deterioration is largely expected by the market and ASX bank valuations have been falling accordingly.

COVID-19 is something of a unique beast. No one knows when or how current restrictions will be eased or even re-introduced. That makes pricing in expected loss of earnings for retail REITs very hard right now.

Market dislocation is a good thing for value-minded investors. I think the Scentre share price could rocket higher if we see restrictions ease quicker than expected.

Scentre is backed by prime real estate assets

On top of the above, Scentre is fundamentally backed by a huge portfolio of real estate. And that’s not just any real estate, some of these are huge blocks of prime real estate in major cities.

That means even if earnings remain depressed in the short to medium term, I think a strong asset backing is worth considering at a certain price.

Foolish takeaway

The Scentre share price has been under pressure in 2020 but I still think there’s a lot to like at a 42.6% discount.

More reading

• 5 ASX shares to avoid in October
• 2 ASX shares that could rocket from viral cash hoarding
• ASX 200 rises 1%, CSL (ASX:CSL) leads the way
• ASX 200 up 0.95%: Big four banks rise, Scentre collections improve, Nufarm jumps
• Why Magellan, Nufarm, Opticomm, & Scentre shares are storming higher

Motley Fool contributor Ken Hall 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 Coronavirus: Why the Scentre (ASX:SCG) share price can benefit from eased restrictions appeared first on Motley Fool Australia.

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The Afterpay Ltd (ASX: APT) share price has risen by 742.81% since its low point on 23 March. The company has had an astonishing run and has become the figurehead of an entirely new way of providing consumer debt. Moreover, at its closing price on Tuesday, Afterpay shares had a market capitalisation of $21.32 billion.

Can Afterpay shares continue to grow?

Whether Afterpay shares deserve their current valuation is not the point. The question for growth investors is “can I at least double my initial investment?” Personally, I doubt it. To further illustrate the size of this company, it is currently worth more than Woodside Petroleum Limited (ASX: WPL). In addition, it is no longer alone in a wide blue ocean. 

Australia has already created a slew of buy now, pay later (BNPL) competitors with many different approaches. Moreover, both Commonwealth Bank of Australia (ASX: CBA) and National Australia Bank Ltd. (ASX: NAB) have entered the market directly with their own interest-free credit cards. CommBank also has a native BNPL product called Klarna. Lastly, the payments giant Paypal Holdings Inc (NASDAQ: PYPL) has also entered the market with an existing network of 204 million users. 

Afterpay shares are in a sector which has very few barriers to entry, it is surrounded by giant sharks, and it already has a market cap larger than many of the blue chip shares in the S&P/ASX 20 Index (ASX: XTL). 

If you want high levels of growth, there are a range of well positioned companies to choose from. All of them are first movers in their sectors, they have solid competitive advantages, and they appear well managed.

Whispir Ltd (ASX: WSP)

Like Afterpay shares, Whispir has a very large addressable market. Large enough for it to more than double its current market cap of $337.6 million, I believe. Whispir provides a communications platform between organisations and people across a whole range of content. It produces 1.5 billion transactions each year and counts many government departments, retail chains, utilities and councils among its client base. 

The company recently reported an increase in revenues of 25.5%, a gross profit margin of 62.5%, and 95.6% of revenues come from annual recurring revenues (ARR). The company is not yet profitable, however it has a subscriber model, very high gross margin, and is growing at a considerable rate. 

Zip Co Ltd (ASX: Z1P)

Most people understandably think Zip shares are just smaller copies of Afterpay shares. Zip entered the BNPL market in pursuit of Afterpay and is now continuing to pursue it in the United Kingdom and the United States. It is impacted by the same issues that affect all of the BNPL shares. So what makes it different?

Zip Co is building an alternative finance company, not just a BNPL company. It recently announced a deal between its business lending division, Zip Business, and the Australian arm of eBay Inc (NASDAQ: EBAY). The company has another arm purchased in 2019 called Spotcap. In the recent deal, this will provide cash flow finance to small and medium enterprises on eBay, as well as invoice financing and lines of credit.

DroneShield Ltd (ASX: DRO)

DroneShield makes non-ballistic detection and disruption technology for drones. The company is gaining momentum with sales to defence and civil clients globally. Recently it has announced contracts with South East Asian defence forces, the US Government and European airports.

Some of the company’s other recent successes during CY20 include an EU Police 4-year framework agreement for DroneGun Tactical units, a European Ministry of Defence purchase of DroneShield command and control systems, as well as several other orders for anti-drone technology. I think DroneShield is likely to continue to grow because, unlike Afterpay shares, it has solid intellectual property.

More reading

• Are biotech shares like Polynovo (ASX:PNV) a better buy than Afterpay?
• Is value investing dead?
• 5 things to watch on the ASX 200 on Wednesday
• BNPL shares like Afterpay (ASX:APT) and Zip (ASX:Z1P) are soaring today. Here’s why
• BrainChip (ASX:BRN) and Zip (ASX:Z1P) were among the most traded shares on the ASX last week

Daryl Mather owns shares of DroneShield Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends PayPal Holdings and Whispir Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends eBay and recommends the following options: long January 2021 $18 calls on eBay, short January 2021 $37 calls on eBay, and long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended PayPal Holdings 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.

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Are you wanting to make a few additions to your portfolio in September? If you are, I would suggest you consider one or two of the five ASX shares listed below.

I think all five could be great long term options for investors. Here’s why I would buy them today:

a2 Milk Company Ltd (ASX: A2M)

While I have some short term concerns over a2 Milk Company’s performance, I continue to believe that it would be a great ASX share to own for the long term. This is largely down to the increasing demand for its infant formula in China and its modest market share in the lucrative market. However, due to some potential short term headwinds, I would suggest investors buy half of a desired holding now and the other half when trading conditions return to normal.

Altium Limited (ASX: ALU)

I think Altium shares are a strong buy for long-term focused investors. It is an award-winning printed circuit board (PCB) design software provider. Over the last few years it has carved out a leading position in this growing market. I think this is a huge positive given the proliferation of electronic devices globally. This is likely to lead to increasing demand for its software over the next decade and underpin strong earnings growth.

Aristocrat Leisure Limited (ASX: ALL)

This gaming technology company’s shares are down 26% since the start of the year due to the pandemic. However, with casinos now reopening and its Digital business performing very strongly, I believe now would be an opportune time to consider picking up shares. Once both sides of the business are pulling together, I expect Aristocrat Leisure’s growth to accelerate.

Megaport Ltd (ASX: MP1)

Another option to consider is Megaport. It is an elasticity connectivity and network services company. Its service allows businesses to increase and decrease their available bandwidth in response to their own requirements. This is an increasingly popular alternative to being tied to a fixed service level on long-term and expensive contracts. Megaport has been delivering very strong recurring revenue growth in recent years. And given the cloud computing boom, I expect more of the same in the coming years.

REA Group Limited (ASX: REA)

A final share to consider buying is REA Group. It is the owner and operator of the realestate.com.au website and several international property listings websites. Although times are hard right now for the industry, I believe it would be a great buy and hold investment option. This is due to the quality and strength of its business model and its solid long term growth potential.

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• Buy Afterpay (ASX:APT) and these ASX shares before the tech rebound
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium and MEGAPORT FPO. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended 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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The Australian share market has returned to form this week and is pushing higher.

While a number of shares have climbed higher with the market, some are performing better than others.

Three ASX shares that have just hit new highs are listed below. Here’s why they are flying high right now:

OptiComm Ltd (ASX: OPC)

The OptiComm share price hit a record high of $6.05 on Tuesday. Investors were fighting to buy the telco’s shares after Uniti Group Ltd (ASX: UWL) increased its takeover offer. This followed a competing offer by First State Super last week. OptiComm is happy with Uniti’s $5.85 per share offer and is recommending it to shareholders. Uniti has also secured the support of large shareholders, making it very difficult for First State Super to derail proceedings a second time.

OZ Minerals Limited (ASX: OZL)

The OZ Minerals share price continued its positive run and hit a multi-year high of $15.07 yesterday. The catalyst for this has been a rise in the copper price over the last few months. The base metal is currently trading at a two-year high of US$3.08 per pound. It has also been tipped to go even higher from here in the coming months.

Ramelius Resources Limited (ASX: RMS)

The Ramelius share price stormed to a record high of $2.50 on Tuesday. Investors have been buying this gold miner’s shares in 2020 thanks to a strong rise in the gold price. This has been driven by a combination of falling interest rates, the pandemic, and major economic stimulus. Its rise means that Ramelius is generating bumper profits from its operations. In fact, thanks also to its low costs, the gold miner delivered a 420% increase in net profit after tax to $113.4 million in FY 2020. This strong form will see the company’s shares added to the S&P/ASX 200 Index (ASX: XJO) later this month.

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• Uniti (ASX:UWL) share price surges higher on revised OptiComm (ASX:OPC) takeover offer
• IGO share price surges on potential sale of Tropicana

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 OZ Minerals (ASX:OZL) and these ASX shares are hitting new highs appeared first on Motley Fool Australia.

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