Tag: Motley Fool

The BrainChip Holdings Ltd (ASX: BRN) share price has continued its slide and is crashing notably lower on Tuesday.

In afternoon trade the artificial intelligence technology company’s shares are down a massive 21% to 53 cents.

This latest decline means the BrainChip share price is now down 45% from the record high it hit just last week.

Why is the BrainChip share price crashing lower?

The BrainChip share price appears to have come under pressure due to profit taking after some sensational gains over the last few weeks.

For example, even after accounting for today’s sizeable decline, its shares are up over 120% in the space of a month. 

What else is weighing on its shares?

In addition to this, I suspect investors may have come to the realisation that the rampant rise in its share price has not truly been justified.

While BrainChip is making progress with some exciting technology, it still has a long way to go before it proves it has a marketable end product and is generating meaningful revenue.

In the first half of FY 2020, BrainChip reported revenue of US$13,397 and posted a loss of US$6.86 million.

It is also worth noting that the company doesn’t have the largest market opportunity for its technology. It estimates that the Neuromorphic Chip Market was worth US$111 million in 2019 and will grow to US$366.14 million in 2025.

Given the competition in the industry from a number of tech giants, it seems unlikely BrainChip will be able to dominate this market.

So with a market capitalisation of over $1 billion (prior to today’s decline), BrainChip appears to be one of the most wildly overvalued shares on the Australian share market in my opinion.

In light of this, I wouldn’t be surprised to see its shares continue their descent in the coming days.

If you’re looking for exposure to the artificial intelligence market, I would suggest you consider Appen Ltd (ASX: APX) instead.

More reading

• BrainChip (ASX:BRN) and Zip (ASX:Z1P) were among the most traded shares on the ASX last week
• Why Beach, BrainChip, Cleanaway, & Credit Corp shares are sinking lower
• Why Althea, BrainChip, Rio Tinto, & Starpharma shares are pushing higher
• 3 booming ASX shares for the new space age
• BrainChip (ASX:BRN) share price rockets 24% higher on Akida update

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

The post Why the BrainChip (ASX:BRN) share price is crashing 21% lower today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3izd2BD

The Ramelius Resources Limited (ASX: RMS) share price has today hit a new all-time high. At market open this morning, the Ramelius share price opened at $2.37 and immediately shot higher, hitting the new high watermark of $2.50 just after midday. The shares have cooled somewhat since, but are still sitting at $2.44 at the time of writing. Ramelius continues to deliver for its shareholders. This is a company that was just 19 cents a share 5 years ago, and $1.20 just 1 year ago.

So what is behind this latest move upwards for this ASX gold miner?

Why the Ramelius share price is shooting up today

Along with other ASX gold miners, Ramelius has been in a nice tailwind all year. At the start of 2020, gold was priced at US$1,519 an ounce. Today, the gold price is US$1,965, up nearly 30% year to date. Back in July, gold broke its 9-year record high of US$1,921 an ounce and has climbed higher ever since, topping out at over US$2,061 in early August.  It seems a pandemic, uncertain economic times and massive share market volatility are a perfect cocktail for a safe haven asset. Who knew!

As a gold miner, Ramelius is leveraged to the price of gold, which means if gold rises, the Ramelius share price will likely rise by a multiple of the gold appreciation. That explains why Ramelius shares have been charging higher all year and are up 93% year to date.

Investors not bothered by insider selling

Investors also don’t seem to mind that the company’s managing director Mark Zeptner, as well as non-executive director Michael Bohm, have been offloading shares recently. According to an ASX filing on 11 September, Mr Zeptner has recently offloaded 1.75 million shares, with Mr Baum unloading 237,500 shares as well. Apparently, Mr Zeptner’s sale was for the purpose of meeting ‘tax obligations’.

But earlier this month, we also got some news that would have boosted Ramelius’ appeal to investors even more.

Enter the ASX 200

It was announced on 4 September that Ramelius will officially join the S&P/ASX 200 Index (ASX: XJO) from 1 October. The ASX 200 is the ASX’s most popular and widely quoted index and is also the foundation for most ASX-tracking index exchange-traded funds (ETFs). ASX 200 index funds such as the iShares Core S&P/ASX 200 ETF (ASX: IOZ) blindly follow the ASX 200, so if Ramelius is included in the index, ETFs like IOZ will buy Ramelius shares to reflect this in their holdings.

This means that on 1 October, there is likely to be an influx of buying pressure on the Ramelius share price. Investors know this and will probably buy into Ramelius before this happens today.

That, in my opinion, is why Ramelius is at a new all-time high today.

More reading

• The Mesoblast (ASX:MSB) share price surges on award win
• Brokers upgrade Macquarie (ASX:MQG) share price targets despite profit warning
• ASX 200 flat: Afterpay (ASX:APT) rebounds, Cleanaway (ASX:CWY) sinks, big four banks lower
• KGL Resources (ASX:KGL) share price surges on big upgrade
• Can the Harvey Norman (ASX:HVN) share price push higher in 2021?

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 Why the Ramelius (ASX:RMS) share price is at a new all-time high appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3ixYBh8

The Access Innovation Holdings Limited (ASX: AIM) share price has hit the ASX boards in style today.

After listing on the share market at a price of $1.23 per share, the technology company’s shares are up 10% to $1.39 currently.

They were up as much as 23% to $1.51 at one stage shortly after listing.

What is Access Innovation?

Founded in 2002, Access Innovation is a global provider of technology-driven live and recorded captioning, transcription, and translation services.

Its technology platform combines artificial intelligence and human expertise to deliver speech-to-text accuracy.

Access Innovation is the biggest captioning provider in the Australian market, with clients including major free-to-air and pay television networks.

It also has growing international footprint, with offices in the US, UK, Canada and Singapore. Globally, it provides captioning for nearly 1 million minutes of live and recorded media content, online events, and web streams every month.

Why did it launch an IPO?

Today’s initial public offering (IPO) raised gross proceeds of $65.5 million at a price of $1.23 per share. Based on the current share price and its 144.4 million shares on issue, Access Innovation has a market capitalisation of approximately $200 million.

The funds from the IPO will be used to continue its current growth trajectory, particularly in offshore regions. It will also support the ongoing developments of its technology platform to provide a wider range of services for its customers.

Management notes that the IPO attracted strong demand from domestic and international institutions, retail investors, along with the ongoing support of existing shareholders and employees.

The company’s Chair, Deanne Weir, commented: “We are delighted with the outcome of the IPO and by the strong support shown by both institutional and retail investors. Our listing today on the ASX marks an important milestone for Ai-Media, supporting our global growth strategy along with our continued investment in product innovation and our technology platform. We want to help build an inclusive world by making all content accessible to all people everywhere.”

This sentiment was echoed by its Co-founder and Chief Executive Officer, Tony Abrahams.

He said: “We’re all excited by the opportunities ahead of us in a growing global market, by harnessing the power of our high-quality, security-accredited and scalable proprietary technology to deliver great outcomes for our customers and our shareholders.”

More reading

• ASX welcomes $180 million tech player on Tuesday

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 Access Innovation (ASX:AIM) share price rockets 23% higher on ASX debut appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/33J88vV

The Australian Primary Hemp Ltd (ASX: APH) share price is up 15.63% today at the time of writing to 18.5 cents. This came after the company announced it has started production of hemp-based personal protective equipment (PPE) which would be supplied to retailers immediately.

What was in the announcement?

Investors are driving up the Australian Primary Hemp share price after the company announced the launch of a protective face mask which provides 99.9% microbial reduction. Additionally, the company launched a hemp-infused hand sanitiser.

Australian Primary Hemp stated that it developed its new products in response to concerns about the environmental effects of traditional face masks and other PPE products.

The company’s face masks are biodegradable and have been tested by certification company SGS. Its hand sanitiser has antiseptic and moisturising properties and, according to the company, meets World Health Organisation standards.

Australian Primary Hemp had advised that orders for its new PPE products currently stand at a value of $315,000. The company will commence supplying face masks to Australian and international retailers immediately with the hemp-infused hand sanitiser available for online ordering.

About the Australian Primary Hemp share price

Australian Primary Hemp produces, manufactures and distributes hemp products, farming its own hemp and using it to create manufactured goods. It has been listed on the ASX since 2019.

In the year to 30 June 2020, Australian Primary Hemp had revenue of $1.16 million. It experienced a loss of $5.91 million in the 2020 financial year. 

In August, Australian Primary Hemp announced it had signed a 2-year agreement with Annex Foods to supply it with hemp seeds. The agreement was valued at $760,000 and the hemp seeds will be used as an ingredient in Annex Food’s Red Tractor brand products in Australia and overseas.

The Australian Primary Hemp share price is up 278% since its 52-week low of 4.9 cents and is up 8.8% since the beginning of the year. The company’s shares are down 33.9% since this time last year.

More reading

• BNPL shares like Afterpay (ASX:APT) and Zip (ASX:Z1P) are soaring today. Here’s why
• The Mesoblast (ASX:MSB) share price surges on award win
• Why the BrainChip (ASX:BRN) share price is crashing 21% lower today
• Why the Ramelius (ASX:RMS) share price is at a new all-time high
• Access Innovation (ASX:AIM) share price rockets 23% higher on ASX debut

Motley Fool contributor Chris Chitty 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 Australian Primary Hemp (ASX:APH) share price up 15% on PPE launch appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2FAm3Mb

Australia’s leading investment platform provider CommSec has just released data on the five most traded ASX shares on its platform from last week.

Once again, the usual suspects are populating the list this week, with buy now pay later (BNPL) and tech shares heavily featured.

Here’s the data:

Brainchip Holdings Ltd (ASX: BRN)

BrainChip was the most traded share on the CommSec platform last week by some distance. The ultra-low power high performance artificial intelligence technology provider’s shares accounted for a whopping 8.4% of trades on the platform. Approximately two-thirds of these trades came from buyers, helping to drive the BrainChip share price 30% higher over the period. Investors have been buying shares this month after it announced a potential program collaboration with NASA.

Zip Co Ltd (ASX: Z1P)

This BNPL provider was very popular with ASX investors again last week. Zip shares accounted for 3.4% of total trades made on the CommSec platform over the five days, with 61% coming from buyers. However, this wasn’t enough to stop the Zip share price from dropping notably lower. Concerns over PayPal’s entry into the BNPL market and a tech selloff weighed on its shares.

Afterpay Ltd (ASX: APT)

This payments company’s shares accounted for 2% of trades on the CommSec platform over the period. The buying and selling was largely even last week, with 47% of trades coming from the buy side. The Afterpay share price dropped 5.5% lower over the week due to the tech selloff.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

This popular exchange traded fund (ETF) made the list for a second week in a row. The BetaShares NASDAQ 100 ETF was involved in 1.6% of trades on the CommSec platform last week. Once again, the majority of these trades came from the buy side, with 88% coming from buyers. Investors appear to believe the tech selloff on Wall Street has created a buying opportunity (I agree).

CSL Limited (ASX: CSL)

CSL has re-entered the top five with 1.5% of trades on the CommSec platform attributed to its shares. Last week the company announced plans to manufacture COVID-19 vaccines for Australia should one be successfully developed. Investors appeared to like this, with 72% of trades coming from buyers. The CSL share price edged higher over the five days.

More reading

• BNPL shares like Afterpay (ASX:APT) and Zip (ASX:Z1P) are soaring today. Here’s why
• Why the BrainChip (ASX:BRN) share price is crashing 21% lower today
• Why Beach, BrainChip, Cleanaway, & Credit Corp shares are sinking lower
• ASX 200 flat: Afterpay (ASX:APT) rebounds, Cleanaway (ASX:CWY) sinks, big four banks lower
• Why Afterpay, Clinuvel, Mesoblast, & Uniti shares are storming higher

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 BETANASDAQ ETF UNITS, CSL Ltd., and ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS. 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 BrainChip (ASX:BRN) and Zip (ASX:Z1P) were among the most traded shares on the ASX last week appeared first on Motley Fool Australia.

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

ASX gold and resources miner Red 5 Limited‘s (ASX: RED) share price is up 3.81% in early afternoon trading today.

The company emerged from yesterday’s trading halt after releasing the final feasibility study on its King of the Hills project in the Eastern Goldfields region of Western Australia.

Red 5’s volatile share price year

After enjoying a stellar 2019, which saw the Red 5 share price soar in 12 months, 2020 has seen shareholders endure some sharp price swings in both directions.

Like most ASX shares, Red 5 was battered by the wider market selloff driven by COVID-19. From 24 February through 3 April, the Red 5 share price fell 50%. Since the April low, the share price has gained 83%, though by no means in a straight line higher.

Following today’s gains, year-to-date Red 5’s share price is right where it started 2020, at 33 cents per share.

In comparison, the All Ordinaries Index (ASX: XAO) is down 11% over that same time.

What did Red 5’s final feasibility study reveal?

Red 5 said the final feasibility study at its King of the Hills project would usher in Australia’s next major goldmine. It forecasts total life of mine (LOM) production of 2.5 million ounces at all in sustaining costs (ASIC) of AU$1,415 per ounce starting in 2022.

The company said it would take some steps before making a final investment decision in ‘coming months’. These include early site works, acquiring the final permits and project financing, alongside major contract tenders.

The feasibility study indicated updated ore reserves of 64.6Mt @ 1.15g/t Au for 2.4M ounces of contained gold. Red 5 plans a processing rate of 4 million tons per year over the initial 16-year life of mine plan, with the first production scheduled for June quarter in 2022.

Red 5’s managing director Mark Williams said:

The completion of this high-quality final feasibility study, delivering a 2.4 million ounce ore reserve, is a pivotal moment for Red 5 shareholders, for our hard-working team and for communities in the Leonora-Leinster region of the Eastern Goldfield.

Based on a gold price of AU$2,500 per ounce, Williams added:

With strong production in the early years of the mine, the project is well placed to benefit from the favourable gold price environment – with a capital payback period estimated at 25 months for the project’s capital requirement of A$226 million.

With the final investment decision on the mine yet to come, the Red 5 share price will be one to watch.

More reading

• The Mayne Pharma (ASX:MYX) share price leaps almost 8% higher
• Auscann (ASX:AC8) share price up 6% on phase I study results
• How the China rift could spur these ASX tech share prices to new records
• ASX 200 Weekly Wrap: ASX 200 hits 4 straight weeks of losses
• Why the Retail Food Group (ASX:RFG) share price is up 4%

Motley Fool contributor Bernd Struben 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 RED 5 (ASX:RED) share price up 4% on feasibility study appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3hqQ5PK

Magellan Financial Group Ltd (ASX: MFG) is often regarded as one of the best fund managers in the country. As such, I like to keep close tabs on which companies Magellan, and its chief investment officer, Hamish Douglass, are interested in every month.

Well, Magellan has recently released the shares that its flagship Magellan Global Trust (ASX: MGG), as well as the high-octane Magellan High Conviction Trust (ASX: MHH), are currently holding. Magellan Global Trust (and its unlisted equivalent, the Global Fund) aims to hold 20-40 shares in a balanced and well-diversified portfolio. Meanwhile, the Magellan High Conviction Trust (and its unlisted sibling, the High Conviction Fund) instead aims to hold 8-12 shares in a concentrated, high-conviction strategy.

So, without further ado, here are that top shares, in alphabetical order, that the Global Trust was holding, as of 31 August:

1. Alibaba Group Holding Ltd (NYSE: BABA)
2. Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL)
3. Atmos Energy Corporation (NYSE: ATO)
4. Facebook, Inc. (NASDAQ: FB)
5. Mastercard Inc (NYSE: MA)
6. Microsoft Corporation (NASDAQ: MSFT)
7. Reckitt Benckiser Group Plc (LON: RB)
8. Tencent Holdings Ltd (OTCMKTS: TCEHY)
9. Visa Inc (NYSE: V)
10. Xcel Energy Inc. (NASDAQ: XEL)

And here are the top 5 stocks that the High Conviction Fund is holding, as of 31 August:

1. Alibaba Group
2. Alphabet Inc
3. Facebook Inc
4. Microsoft Corporation
5. Tencent Holdings

What can we learn from Magellan’s share picks?

It’s interesting to note that Magellan is still betting big on the giant United States tech shares that have come to dominate the US markets over the last few years. FAANG stocks Facebook and Alphabet make up large proportions of both portfolios, as does fellow tech giant Microsoft. Magellan is also investing heavily in Chinese e-commerce, represented by the online titans Tencent and Alibaba.

Interestingly, both funds remain far from being fully invested. The Global Fund holds a 16% cash position, while the High Conviction Trust is 20% in cash. This tells us (in my view anyway) that Magellan is keeping a foot in both camps and is keeping some cash handy for any upcoming market volatility.

The Global Fund is also notably holding a number of defensive shares, such as utilities Xcel and Atmos, and consumer staples giant Reckitt Benckiser (who you might know as the maker of Dettol and Mortein products).

Magellan seems to be sticking with a philosophy of ‘keeping winners and letting them run’. Many of these shares have been in Magellan’s portfolios for years now. So it’s nice to see the company isn’t killing the geese that keep laying golden eggs.

All in all, I think there are many interesting and useful insights we can glean from Magellan’s August stock holdings. I hope you agree.

More reading

• Tesla (NASDAQ:TSLA) and Nikola (NASDAQ:NKLA) among most traded US shares last week
• 3 ASX 200 shares I’d buy right now
• 3 personal finance tips to help strong investing
• 3 exotic ASX tech ETFs you might want to add to your portfolio today
• 2 top notch ASX shares for beginners

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, Magellan High Conviction Trust, Mastercard, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Facebook, Mastercard, Microsoft, and Visa and recommends the following options: long January 2021 $85 calls on Microsoft and short January 2021 $115 calls on Microsoft. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Facebook, and Mastercard. 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 Magellan (ASX:MFG) reveals best share buys for September appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/32vwoC3

Magellan Financial Group Ltd (ASX: MFG) is often regarded as one of the best fund managers in the country. As such, I like to keep close tabs on which companies Magellan, and its chief investment officer, Hamish Douglass, are interested in every month.

Well, Magellan has recently released the shares that its flagship Magellan Global Trust (ASX: MGG), as well as the high-octane Magellan High Conviction Trust (ASX: MHH), are currently holding. Magellan Global Trust (and its unlisted equivalent, the Global Fund) aims to hold 20-40 shares in a balanced and well-diversified portfolio. Meanwhile, the Magellan High Conviction Trust (and its unlisted sibling, the High Conviction Fund) instead aims to hold 8-12 shares in a concentrated, high-conviction strategy.

So, without further ado, here are that top shares, in alphabetical order, that the Global Trust was holding, as of 31 August:

1. Alibaba Group Holding Ltd (NYSE: BABA)
2. Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL)
3. Atmos Energy Corporation (NYSE: ATO)
4. Facebook, Inc. (NASDAQ: FB)
5. Mastercard Inc (NYSE: MA)
6. Microsoft Corporation (NASDAQ: MSFT)
7. Reckitt Benckiser Group Plc (LON: RB)
8. Tencent Holdings Ltd (OTCMKTS: TCEHY)
9. Visa Inc (NYSE: V)
10. Xcel Energy Inc. (NASDAQ: XEL)

And here are the top 5 stocks that the High Conviction Fund is holding, as of 31 August:

1. Alibaba Group
2. Alphabet Inc
3. Facebook Inc
4. Microsoft Corporation
5. Tencent Holdings

What can we learn from Magellan’s share picks?

It’s interesting to note that Magellan is still betting big on the giant United States tech shares that have come to dominate the US markets over the last few years. FAANG stocks Facebook and Alphabet make up large proportions of both portfolios, as does fellow tech giant Microsoft. Magellan is also investing heavily in Chinese e-commerce, represented by the online titans Tencent and Alibaba.

Interestingly, both funds remain far from being fully invested. The Global Fund holds a 16% cash position, while the High Conviction Trust is 20% in cash. This tells us (in my view anyway) that Magellan is keeping a foot in both camps and is keeping some cash handy for any upcoming market volatility.

The Global Fund is also notably holding a number of defensive shares, such as utilities Xcel and Atmos, and consumer staples giant Reckitt Benckiser (who you might know as the maker of Dettol and Mortein products).

Magellan seems to be sticking with a philosophy of ‘keeping winners and letting them run’. Many of these shares have been in Magellan’s portfolios for years now. So it’s nice to see the company isn’t killing the geese that keep laying golden eggs.

All in all, I think there are many interesting and useful insights we can glean from Magellan’s August stock holdings. I hope you agree.

More reading

• Tesla (NASDAQ:TSLA) and Nikola (NASDAQ:NKLA) among most traded US shares last week
• 3 ASX 200 shares I’d buy right now
• 3 personal finance tips to help strong investing
• 3 exotic ASX tech ETFs you might want to add to your portfolio today
• 2 top notch ASX shares for beginners

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, Magellan High Conviction Trust, Mastercard, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Facebook, Mastercard, Microsoft, and Visa and recommends the following options: long January 2021 $85 calls on Microsoft and short January 2021 $115 calls on Microsoft. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Facebook, and Mastercard. 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 Magellan (ASX:MFG) reveals best share buys for September appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/32vwoC3

Okay. We’re a bit early with this one. Almost three months early, in fact. But as long-term investors, it pays to look ahead and position your portfolio of ASX shares accordingly.

What we’re looking ahead to is Christmas 2020. Specifically, the three or so trading weeks before Christmas.

That’s because in the runup to Christmas, ASX share prices have a tendency to rise. You may have heard this referred to as the Santa Claus rally.

Why do share prices often rise in the weeks before Christmas?

Good question.

We’re told the phenomenon is driven by positive sentiment as people embrace the Christmas spirit. Or that our consumer-focused economies and share markets get a welcome boost from all the holiday shopping. Or that institutional investors move to settle their books before tuning out for a few weeks.

Most likely all three of these factors work together to have a positive impact on ASX share prices.

Not that there’s any guarantee share prices will go up in December. But taking a look back at the past five years, the Santa Claus rally proved out on the All Ordinaries Index (ASX: XAO) 80% of the time.

Here are the rounded gains and losses for the All Ords in the three (or so) weeks before Christmas since 2015:

• 2015 gained 1%
• 2016 gained 3%
• 2017 gained 2%
• 2018 lost 1%
• 2019 gained 2%

There you have it. While the big man himself may not be real (don’t tell the kiddies!) the rally named after him appears to have legs.

And 2020, if the stars align as hoped, could see a December rally that you’ll be talking about for years to come.

How these 3 stars are aligning for a record Santa Claus share price rally

There’s a lengthy list of factors I believe could see the All Ords gain 5% or more in December, with select shares enjoying far higher share price gains. In the interest of time (and word count) I’ll stick to my top 3 factors today.

First, the politics in the world’s biggest economy, in which its own share market moves have a massive influence on ASX share prices.

The United States presidential election takes place on 3 November. The divisive campaigning from both the Democrats and the Republicans is causing renewed jitters in investment markets. These jitters are likely to last for several weeks beyond the election date as both sides contest the outcomes of voting results in states that didn’t go their way.

But by early December, that ruckus should thankfully be fading into history. And investors’ pre-election jitters will calm once markets have certainty as to who will be in the White House for the next four years.

Both the other stars I believe will align to drive a record Santa Claus rally relate to COVID-19.

First, summer is coming Down Under. That means baking heat reducing the time the coronavirus can survive on outdoor surfaces subjected to the good old Aussie sun. It also means more open windows and more time spent outdoors, rather than indoors where the virus can spread more easily.

Now we know summertime alone won’t spell the end of the pandemic, though it should help. 

Second, the silver bullet to stop the pandemic is a vaccine. And on that front, US pharmaceutical giant Pfizer Inc. (NYSE: PFE) announced it’s in advanced stages with an expanded trial, and could know whether its vaccine is effective by October.

Pending subsequent approval from the US Food and Drug Administration (FDA), Pfizer’s CEO, Albert Bourla believes it’s likely his company’s vaccine will be rolled out in 2020.

In other words, just in time to fuel a record Santa Claus rally.

2 ASX shares that could see their share prices boom

If the stars align as outlined above, a lot of ASX shares should benefit. But of course, some will see their share prices gain far more than others.

One share that’s already had a great year but could be in for more hefty gains is online retailer Kogan.com Ltd (ASX: KGN). The Kogan share price is down 17% from its 18 August all-time highs. Year to date, the share price is still up 155%, and, at the time of writing, it’s up 2.5% in trading today. The shift to online shopping won’t end overnight with the rollout of a vaccine. But if sentiment is running high, consumers may spend big this holiday season, which should be a boon for the Kogan share price.

Other shares to consider are those in the beaten down travel and leisure industries.

Macquarie has recommended several shares in these industries it believes will outperform during the recovery.

In the travel industry, the investment bank is tipping Sealink Travel Group Ltd (ASX: SLK). The Sealink share price has already managed to claw back the huge losses suffered during the pandemic panic selling earlier this year. Year to date, the share price is up 4.7%. But once travel restrictions are lifted, Sealink should benefit from its domestic operations.

These are just two ASX shares to keep a close eye on or add to your shareholdings today. If the Santa Claus rally kicks into high gear as hoped, a host of other ASX shares could rocket into Christmas.

More reading

• Can the Harvey Norman (ASX:HVN) share price push higher in 2021?
• Buy and hold these stellar ASX growth shares for 10 years
• The best ASX stocks to buy for the COVID-19 recovery play
• Forget day trading and get rich with these top ASX shares
• Where to invest your JB Hi-Fi (ASX:JBH) dividends today

Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com 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 ASX shares to own now for the Santa Claus rally of all time appeared first on Motley Fool Australia.

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

Every week, we Fools like to have a look at which shares Aussies are taking the most interest in. Today, we’ll be looking at the most traded US shares. Commonwealth Bank of Australia‘s (ASX: CBA) CommSec platform shares this data on a regular basis. It lists the international shares (which are almost always US shares) that ASX investors have been buying and selling on its platform, this time between 7-11 September.

Top US shares

Tesla Inc (NASDAQ: TSLA)

Will nothing take Tesla’s crown? This electric car and battery manufacturer has topped this list for the last several weeks (if not months). Elon Musk’s controversial company never seems to be far out of the spotlight and made headlines again this week for some extreme volatility. Tesla shares were up 13% last night alone and are up more than 18% over the past week.

Apple Inc (NASDAQ: AAPL)

Apple is also a share that’s been attracting a lot of attention recently, helped by the company’s recently executed 4-for-1 stock split. Apple shares have also been rather volatile in recent months. Apple was up 3% last night and is up a staggering 52% year to date. No wonder ASX investors are interested in this company.

Microsoft Corporation (NASDAQ: MSFT)

Mr Softy was the 3rd most popular US share last week. Microsoft shares are down almost 10% in September so far, so perhaps ASX investors are seeing a buying opportunity here. Even so, Microsoft is also up a healthy 28% in 2020 so far, so it’s not hard to see why ASX investors can’t leave this tech pioneer alone.

Amazon.com, Inc (NASDAQ: AMZN)

Amazon is never far from the action and once again makes the top 5 this week. Investors still can’t get enough of Jeff Bezos’ baby, despite the astronomically high share price of US$3,102.97 that the shares are currently sitting at (representing a price to earnings (P/E) ratio of 119.27).

Nikola Corporation (NASDAQ: NKLA)

Nikola is a fellow electric car and battery manufacturer which competes with Tesla, both in name (after inventor Nikola Tesla) and in the next-generation vehicle space. I say ‘compete’ lightly because Nikola has yet to have a vehicle actually on the market but has just announced a new partnership with car titan General Motors Company (NYSE: GM).

Nikola has been on the nose recently after a short-seller attack sent the shares down more than 20% over the past week. Even so, it appears many ASX investors are seeing a bargain here, with CommSec showing 73%-13% ratio of buyers to sellers.

More reading

• Why the Tesla (NASDAQ:TSLA) share price zoomed 12.5% higher
• How the China rift could spur these ASX tech share prices to new records
• Did Apple and Tesla stock splits signal the stock market top?
• How to tell if this is the end of the ASX bull market
• 3 ways Aussies can buy Tesla (NASDAQ:TSLA) shares

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, 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. Sebastian Bowen owns shares of Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon, Apple, Microsoft, and Tesla 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 Amazon and Apple. 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 Tesla (NASDAQ:TSLA) and Nikola (NASDAQ:NKLA) among most traded US shares last week appeared first on Motley Fool Australia.

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