Tag: Motley Fool

Along with our Top ASX Stock Picks for September, we also asked our Foolish writers to pick their favourite ASX growth shares to buy this month.

Here is what the team have come up with…

Daniel Ewing: WISR Ltd (ASX: WZR)

Wisr offers an alternative to the traditional forms of personal lending provided by the major banks and was Australia’s first neo-lender. This alternative approach is reaping rewards as the company reported phenomenal 136% revenue growth and increased loan originations in its FY 2020 result.

Furthermore, the company recently announced its second major competitive product, vehicle financing, which will help to grow its market share. The Wisr share price has seen amazing growth since its lows during the pandemic, however, it has fallen sharply since releasing its FY 2020 results. I believe this represents the perfect buying opportunity.

Motley Fool contributor Daniel Ewing does not own shares in WISR Ltd.

Tristan Harrison: Citadel Group Ltd (ASX: CGL) 

Citadel is a relatively small ASX tech share. It has global growth aspirations and largely provides software for defensive industries like healthcare, defence and education. It recently acquired a United Kingdom-based healthcare software provider called Wellbeing, which increases its overall level of recurring revenue and the earnings before interest, tax, depreciation and amortisation (EBITDA) margin.  

Citadel has plans to cross-sell its existing healthcare software to Wellbeing clients in the UK. It can also sell Wellbeing’s software to Citadel’s existing clients. It can take the combined offering to new markets. The Citadel share price is trading at just 14x FY22’s estimated earnings.  

Motley Fool contributor Tristan Harrison does not own shares in Citadel Group Ltd. 

Chris Chitty: JB Hi-Fi Limited (ASX: JBH)

My growth share for September is JB Hi-Fi. This company has experienced uninterrupted earnings per share (EPS) growth since 2012 and with online sales booming, this trend looks set to continue. Online sales grew by 48.8% in the 2020 financial year with underlying net profit after tax growing 33.2%. This came as consumers spent more on home appliances and entertainment products. The JB Hi-Fi share price has reflected its long-term earnings growth with the retailer’s share price increasing more than 5 fold over the last decade. JB Hi-Fi has stated that it has a focus on sales growth across all channels and, in my opinion, this company looks set to continue its long-term growth.

Motley Fool contributor Chris Chitty does not own shares in JB Hi-Fi Limited.

Lloyd Prout: Megaport Ltd (ASX: MP1)

Megaport is a ‘network-as-a-service’ provider that helps businesses adjust their fixed broadband bandwidth in line with their requirements.

The company produced a great set of quarterly results recently. Annualised recurring revenues were up 57% year on year, and Megaport had $166.9 million in cash and equivalents as at 30 June. The company is still running at a loss, as it continues to invest in itself. However, management believes it can become EBITDA break even on an exit run rate basis in FY21.

The Aussie tech share is operating in a growth area, however the Megaport share price is likely to be volatile on the road upwards. 

Motley Fool contributor Lloyd Prout does not own shares in Megaport Ltd and expresses his own opinions.

Brendon Lau: Fortescue Metals Group Limited (ASX: FMG)

It’s hard not to think about the iron ore miners for growth in FY21 and Fortescue’s profit results show it’s well placed to continue delivering for shareholders. The iron ore price remains stubbornly high and brokers have been playing catch-up in upgrading their price forecasts for the sector. Fortescue is more leveraged to the stronger-for-longer iron ore price than its larger peers. What’s more, it’s set to pay big dividends. As such, I believe it’s a win-win stock for both growth and income investors.

Motley Fool contributor Brendon Lau does not own shares in Fortescue Metals Group Limited.

Bernd Struben: Castillo Copper Ltd (ASX: CCZ)

All growth shares carry greater risk. Castillo Copper, with its market capitalisation of just $50 million, is no exception. The Castillo share price has traded from lows of 1 cent to as high as 5 cents per share in 2020.

Year to date, Castillo’s share price is up 150%, but I think it could gain far more. Copper prices are at their highest level since mid-2018. And soaring demand from China as inventories shrink should see copper head even higher.

Castillo’s prime asset is the Cangai Copper Mine in New South Wales, amongst Australia’s highest grading historic copper mines. It also has a project in Queensland and prospects in Zambia.

Motley Fool contributor Bernd Struben does not own shares in Castillo Copper Ltd.

James Mickleboro: ELMO Software Ltd (ASX: ELO)

I think ELMO Software could be a top ASX growth share to buy in September. It provides a unified software platform which allows businesses to streamline a range of human resources and payroll processes. It recently provided guidance for organic annual recurring revenue (ARR) of $65 million to $70 million in FY 2021, which represents annual growth of 18% to 27%. This is still only a fraction of its total addressable market, which management estimates to be $9.2 billion across the Australia/New Zealand and United Kingdom markets. ELMO also has a cash balance of ~$140 million available for value accretive acquisitions in the near future.

Motley Fool contributor James Mickleboro does not own shares in ELMO Software Ltd.

Daryl Mather: Whispir Ltd (ASX: WSP)

Whispir is a software-as-a-service (SaaS) company that provides a function rich platform for mass communications by companies and state departments. Typical users would include utility companies, emergency services, or entertainment companies.

Whispir’s FY20 report saw revenues increase by 25.5% and established a gross profit margin of 62.5%, with 95.6% of revenues being annual recurring revenues (ARR). Aside from the company’s growth in Australia, it has started to expand into the United States and Asia, with Manila in the Philippines now its second largest centre of operations.

I think this is a great growth opportunity given the growing demand for mass communications globally.

Motley Fool contributor Daryl Mather does not own shares in Whispir Ltd.

Nikhil Gangaram: Nearmap Ltd (ASX: NEA)

The Nearmap share price has been flying under the radar. Since its low in late March, shares in the aerial mapping company have surged nearly 240%. I still think shares in Nearmap could go higher in September.

Despite the harsh trading environment induced by the pandemic, Nearmap reported a solid FY20. The company saw a lift in annualised contract value (ACV) and also reported a 25% increase in statutory revenue for the full year. Given that Nearmap’s services are classified as essential, I think that the company can deliver strong growth in September and beyond.

Motley Fool contributor Nikhil Gangaram does not own shares in Nearmap Ltd.

Glenn Leese: Pointsbet Holdings Ltd (ASX: PBH)

Pointsbet Holdings is one of the most exciting shares on the market right now. Founded in 2015 in Victoria, the sports betting provider has enjoyed huge success through the rapid growth in market share of its cloud-based technology platform.

After rising nearly 180% in 2020, the Pointsbet share price is taking a brief pause in trade while it issues a $303 million capital raise. The raise is to support efforts of becoming the official sports betting partner of NBC Sports in the US, capturing the attention of its 184 million viewers. Currently, the share price is sitting at $13.69, at the time of writing, and the cap raise offer is set at $6.50. I have little doubt that we may see a pullback in the Pointsbet share price short term ready for another bull run.

Motley Fool Contributor Glenn Leese does not own shares in Pointsbet Holdings Ltd.

Sebastian Bowen: A2 Milk Company Ltd (ASX: A2M)

My growth share for this month is the a2 Milk Company. a2 Milk has been an ASX growth star for years now. But what I really like about this company is it just keeps on winning with its powerful brand and marvellous expansion strategy. In its FY2020 earnings report that was released last month, the company reported an eye-watering revenue growth rate of 32.8%. And that was to NZ$1.73 billion as well. Since winners usually keep winning, I’d be more than happy to look into a2 Milk this September for a long-term investment.

Motley Fool contributor Sebastian Bowen does not own shares in A2 Milk Company Ltd.

More reading

• These 2 ASX 200 shares could be the best value ideas
• Broker picks best ASX small cap stocks to buy from the reporting season
• Leading brokers name 3 ASX shares to buy today
• Why PointsBet launched a $353 million capital raising
• Why Biotron, Fortescue, Ramelius, & Temple & Webster are storming higher

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends MEGAPORT FPO and Whispir Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. and Pointsbet Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Elmo Software. The Motley Fool Australia owns shares of and has recommended Elmo Software. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended Citadel Group Ltd, MEGAPORT FPO, Nearmap Ltd., Pointsbet Holdings 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.

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If small cap ASX shares are out of your comfort zone but you’re looking for strong potential returns, then you might want to consider mid cap shares.

At this side of the market I believe there are a number of well-established companies that can grow materially in the future.

Two that I would buy are listed below. Here’s why I like them:

Collins Foods Ltd (ASX: CKF)

I think this quick service restaurant operator would be a great option in the mid cap space. It is one of the largest operators of KFC stores in the world with a growing footprint in Australia and Europe. At present, it operates 240 KFC restaurants in Australia and 41 in Europe. It also has 12 Taco Bell restaurants in Australia.

While its immediate growth is likely to come from the Australian market, I believe long term the European market will be the key driver of growth. Especially given the under-penetration of the KFC brand in Germany and the Netherlands. In addition to this, management has suggested that it will consider acquisitions in the market if opportunities arise.

Jumbo Interactive (ASX: JIN)

Another mid cap ASX share to consider buying is Jumbo Interactive. It is an online lottery ticket seller and best known as the operator of the Oz Lotteries website. While this website is the company’s cash cow at present, I believe its Powered by Jumbo SaaS business will soon take the mantle. This business provides lotteries with the ability to sell tickets online through its platform.

It has a massive opportunity thanks to the shift to online lottery playing. Management notes that it has a US$303 billion global total addressable market, with just 7% of this market online at the moment. And thanks to the quality of its SaaS business, I believe it has the potential to win a meaningful slice of this market over the next decade.

More reading

• New to investing? Here are 5 ASX dividend shares to buy now
• How to earn a passive income of $50,000 with ASX dividend shares
• Why these mid cap ASX shares could be long term market beaters
• Top ASX Stock Picks for September 2020
• Why I’m buying this undervalued ASX share right now

James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Jumbo Interactive Limited. The Motley Fool Australia has recommended Collins Foods Limited and Jumbo Interactive 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 S&P/ASX 200 Index (ASX: XJO) went up by 0.33% today to 5,945 points.

There was one particular announcement that could be important for the whole country:

CSL Limited (ASX: CSL)

Australia’s biggest healthcare company, CSL, announced a heads of agreement has been signed with Astrazeneca. The deal is for the expected manufacture of approximately 30 million doses of the Oxford University vaccine candidate AZD1222, for the supply to Australia with the first doses scheduled for release in early 2021. This will be done after successful clinical trials.

The ASX 200 business also said that a heads of agreement has been signed between CSL and the Australian government to supply 51 million doses of the University of Queensland vaccine to Australia. The first doses are scheduled for released from the middle of 2021. This will also be done after clinical trials have been successfully completed.

CSL said that results from the pre-clinical and early clinical studies for UQ-CSL V451 are promising, however CSL said it’s impossible to predict the level of success the candidate will have in late stage clinical trials. Should the phase 1 study prove to be successful towards the end of this year, CSL will take full responsibility for the subsequent phase 2b/3 clinical trial, which is expected to commence in late 2020.

The Australian government will provide funding to support CSL’s readiness to manufacture the AZD1222 vaccine candidate and provide an additional COVID-19 vaccine option for Australians.

CSL CEO and managing director Paul Perreault said: “The social and economic impact of the COVID-19 pandemic has brought a high level of urgency to the task of developing a vaccine against the SARS-CoV-2 virus, and to manufacture a successful vaccine at a high quality and in sufficient quantities.

“CSL has been working at pace to respond to the pandemic and has invested significant resources in the rapid development and large-scale manufacture of UQ-CSL V451, along with a number of other therapeutic programs. Together with partners including the University of Queensland and Coalition for Epidemic Preparedness (CEPI), our development and manufacturing teams have been working extremely hard to advance this program to ensure the availability of a safe and effective vaccine should clinical studies prove successful.”

The CSL share price went up 1.1% today.

Magellan Financial Group Ltd (ASX: MFG)

Fund manager Magellan announced its funds under management (FUM) at 31 August 2020.

It said that its FUM has grown by more than $3 billion to $100.87 billion. Most of this increase helped the global equities segment grow FUM to $77.1 billion.

In August, Magellan experienced net inflows of $566 million, which included net retail inflows of $208 million and net institutional inflows of $358 million.

The ASX 200 share was down for most of morning trading. The Magellan share price finished down 0.05% today.

Bailador Technology Investments Ltd (ASX: BTI)

Technology investment fund Bailador Technology Investments said that the value of its investment in portfolio company Instaclustr has increased 42.2% which is equivalent to a 6.5 cent increase of the company’s net tangible asset (NTA) per share on a pre-tax basis.

The 42.2% increase in the value of Bailador’s investment in Instaclustr to $27.1 million follows the “strong” operating performance of the business over the 12 months to 31 August 2020.

The revaluation was done as at 31 August 2020 and was in accordance with Bailador’s valuation policies.

Bailador’s other investments include businesses like SiteMinder, DocsCorp, Straker Translations, Brosa, Rezdy and Standard Media Index.

The business said that its pre-tax NTA was $1.30 at the end of August 2020. The post-tax NTA was $1.19 at the end of last month.

More reading

• Broker picks best ASX small cap stocks to buy from the reporting season
• Stay invested in 2020? This wealth manager says yes
• Why the Ramelius share price is leading the gold sector higher today
• ASX 200 up 0.5%: CSL signs COVID-19 vaccine agreements, big four banks charge higher
• 4 of the best ASX shares to buy before 2021

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

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The chief executive officer of Commonwealth Bank of Australia (ASX: CBA) thinks that Afterpay Ltd’s (ASX: APT) merchant fee margins will come under pressure in the future. The Afterpay share price dropped 2% today.

Matt Comyn, the CEO of CBA, was talking to the House of Representatives economics committee on Friday, according to reporting by the Australian Financial Review.

He had a number of interesting things to say about Afterpay and the industry. Mr Comyn said: “Even though it is not referred to as credit, it certainly looks a lot like credit to me.”

Mr Comyn spoke about future regulation being more likely: “Generally what happens, as industries or products become much larger and popular and usage expands, is there will be more scrutiny on the consequences and vulnerabilities customers may have.

“I will leave it to the regulators ultimately to make those decisions. But I have no doubt that given the size of the industry now, it must be being reviewed quite closely.”

When asked about whether Afterpay’s margins are sustainable in the long-term he said, according to the AFR: “No, I don’t. When you think about credit cards, understandably the central bank and government have been very focused on making sure payments are low cost. What the buy now, pay later sector has done well and successfully is convince [merchant] customers … they are getting more than just the payment, that they are providing an acquisition channel for new customers, they are helping to increase basket size … Businesses are effectively funding the buy now, pay later opportunity for customers.”

The CBA CEO may not have many positive things to say about Afterpay, but it does have an investment in Swedish company Klarna. Afterpay was changing the payment landscape so much that CBA decided it had to invest into a competitor.

My thoughts

CBA is one of the biggest businesses in the country. Though Afterpay is rapidly catching up.

I don’t think you can argue against much of Mr Comyn said. It’s the job of regulators to make sure they stay on top of financial businesses. Regulation is important for banks. If the buy now, pay later sector becomes an even bigger part of the economy then it’s important to make sure that the buy now, pay later (BNPL) sector is doing the right thing by consumers.

There is a question of whether customers who don’t use BNPL services should be effectively penalised if BNPL customers get a better payment deal. There is logic to the suggestion that merchants be allowed to charge (some or all of) the Afterpay fees to consumers.

The Afterpay share price has dropped materially back from above the $90 level that it saw in August 2020. The existing share price still has a lot of expectation built into it.

Under the current operating conditions, Afterpay may be able to justify the expectations. But what if the new PayPal ‘Pay in 4’ offering is popular and goes global? What if regulation causes Afterpay’s margins to be cut?

I think it’s important to acknowledge with a business like Afterpay that there are a few large risks that could derail the earnings growth outlook. There is also a growing number of competitors. Klarna is one. But there are also other names like Zip Co Ltd (ASX: Z1P), Splitit Ltd (ASX: SPT), Sezzle Inc (ASX: SZL) and so on. Competition could organically lower margins. 

Afterpay has done a great job at growing into a global BNPL business. It would be a big business at a share price of $40 or $90. But, investors have to understand that there are potential downsides, which is why I wouldn’t feel comfortable about buying shares today. There are other growth ideas I’d rather buy first.

More reading

• Afterpay, Zip founders team up for ‘Aussie Robinhood’ app
• ASX 200 up 0.5%: CSL signs COVID-19 vaccine agreements, big four banks charge higher
• Why Afterpay, ASX, Mesoblast, & Sydney Airport shares are dropping lower
• Share price opportunities to buy this week
• ASX 200 Weekly Wrap: Friday crash pulls ASX back below 6,000 points

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. 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.

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The Laybuy Group Holdings Limited (ASX: LBY) share price has stormed higher on its first day of trading on the ASX.

The Laybuy share price finished the day on $2.08, 47% above the IPO listing price of $1.41

The buy now, pay later (BNPL) company went as high as $2.30 in early morning trade, before settling back.

What does Laybuy do?

Launched in 2017, Laybuy has been growing rapidly in Australia, New Zealand and the UK. The fintech company has partnered with over 6,000 retail merchants to offer consumers a BNPL service. The integrated payment platform allows customers to make a purchase and pay it off over 6 weekly instalments without incurring interest.

What did management say?

Co-founder and managing director Gary Rohloff was upbeat about the company’s achievements.

He commented:

Laybuy was established to help consumers avoid the trap of high interest credit cards and to help families better manage their budgets by allowing them to stagger their purchase payments. We are all very proud of what we have achieved to date.

With this support from our new shareholders, the board, management and the entire Laybuy team are committed to growing the value of Laybuy as we continue to focus on achieving our goal of creating a ubiquitous global brand.

Financial snapshot

For the full-year ending on 30 June, Laybuy had 5,672 active merchants and 473,000 customers. The company processed over NZ$116 million gross merchandise value (GMV) of sales for the June quarter. Laybuy anticipates around NZ$460 million for the full-year.

The company has secured a NZ$20 million debt facility to fund its New Zealand and Australian operations and a £80 million debt facility to fund growth in the UK.

Outlook

Since the start of FY21, Laybuy has recorded NZ$86.7 million GMV of sales across July and August. This represents a growth of 161% compared to the prior corresponding period. Active merchants at the end of August totalled 6,180 and active customers totalled 542,000.

The company has continued to develop its pipeline, bringing more retailers onboard, and aims to continue capturing highly recognised retail brands and small-to-medium enterprise merchants.

The fintech is hoping to achieve a growth GMV of NZ$4 billion (more than 8 times the annualised GMV for Laybuy) in the future.

More reading

• CBA CEO thinks Afterpay’s merchant fees will come under pressure
• Invest like Warren Buffett and buy and hold these ASX shares
• Viva share price firm despite worrying trade update
• 3 ASX shares for growth, income, and value investors to buy right now
• 2 ASX dividend shares to buy instead of CBA

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.

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I’m a big advocate of buying and holding shares and believe it is the best strategy for generating wealth over the long term.

Legendary investor Warren Buffett is someone that uses this strategy and given the vast fortune he has amassed over the last six decades, it’s hard to argue against it.

But which shares would be good buy and hold options? Listed below are three ASX shares which I think have the potential to provide investors with strong returns over the long term:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

I think this pizza chain operator would be a great buy and hold option. This is due to the popularity of Domino’s pizzas with consumers, its strong market position, and its expansion plans. Management advised that it is aiming to grow its store network to 5,500 stores by 2033. This will be more than double the 2,668 stores it had at the end of FY 2020. In addition to this, the company has a long track record of same store sales growth. If it continues this trend and delivers on its expansion plans, it should lead to strong earnings growth over the next decade.

Kogan.com Ltd (ASX: KGN)

Another top ASX share to consider as a buy and hold investment is Kogan. Although the ecommerce company’s shares have been on fire this year, I believe they still have long way to run over the next decade. Especially given the shift to online shopping which has accelerated during the pandemic. This trend bodes well for its increasingly popular website and should underpin strong sales growth in the coming years. In addition, Kogan also has a hefty cash balance which it plans to use on earnings accretive acquisitions.

ResMed Inc. (ASX: RMD)

A final share to buy and hold is ResMed. I think the medical device company can be a market beater over the 2020s. This is thanks to its world class products, intuitive software solutions, and rapidly growing ecosystem. In respect to the latter, at the end of FY 2020, ResMed’s digital health ecosystem had grown to over 12 million cloud connectable medical devices. This provides it with strong recurring revenues and a large amount of high quality data. Another positive is its massive market opportunity. Management estimates that there are 936 million people with sleep apnoea globally. I feel this gives ResMed a significant runway for growth over the next decade.

More reading

• Broker picks best ASX small cap stocks to buy from the reporting season
• 5 ASX shares I will never sell
• New to investing? ASX growth shares to buy now
• 5 things to watch on the ASX 200 next week
• 3 unstoppable ASX shares to hold for the next decade

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 Kogan.com ltd. The Motley Fool Australia has recommended Domino’s Pizza Enterprises Limited, Kogan.com ltd, and ResMed Inc. 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 Viva Energy Group Ltd (ASX: VEA) share price dropped only slightly today after the company reported on the ongoing impacts of COVID-19 on its Victorian business.

The Viva share price hit a low during the first 10 minutes of opening this morning, but recovered to close just 0.62% down at $1.59.

What does Viva do?

Viva is one of Australia’s largest energy companies, making and delivering fuels and lubricants for engines, chemicals for industries and bitumen for roads.

The company owns and operates the Geelong Refinery, one of only four in Australia. This supplies more than 10% of Australia’s fuel and 50% of all fuel used in Victoria.

In addition, Viva is the exclusive supplier of Shell fuels and lubricants in Australia, and services more than 1,250 petrol stations across the country.

Trading update

Viva advised the market that its retail business in other states and territories had offset the losses incurred from its Victorian business. Sales volumes in the alliance network were holding at 50 million litres per week and the retail margin environment remained supportive. The company expects a similar sales recovery in Victoria.

The commercial business – excluding aviation in Victoria – has not been largely affected by the pandemic. However, Viva has started cutting its capital expenditure and operating costs to cater for the overall lower sales across its retail and commercial portfolio.

Despite longer stage 4 restrictions in Victoria, Viva is confident that it is well-positioned to weather the pandemic.

However, the energy provider’s refining segment continues to be hit hard by the global and local response to COVID-19. The refinery is operating at reduced production levels due to Victorian Government restrictions on passenger movements. Viva is closely monitoring the situation, with a full shutdown possible  given the weak outlook for oil-product demand.

Viva is working with the Australian Government on the viability of the sector and expects to update the market in October.

What did management say?

CEO Scott Wyatt said:

At the conclusion of this year’s major maintenance event, we will have invested more than $600 million at the Geelong Refinery since we acquired the business in late 2014. We have shown strong commitment to manufacturing in Victoria and have extended this by continuing to operate our refinery throughout these challenging times while undertaking the major maintenance of our key processing units.

Unfortunately, the impacts of COVID-19 and the restrictions on mobility and the economy are putting extreme pressures on the refining business that we have not experienced before and are not sustainable over the longer term. We are closely monitoring the evolving situation and will continue to keep our employees, investors and stakeholders updated.

About the Viva share price

The Viva share price has recovered almost 40% since plummeting to a 52-week low of $1.13 in April. While now trading almost 18% lower than the $1.92 reached in July, the Viva share price has fallen 17% in year-to-date trading.

More reading

• The latest 3 ASX stocks to be hit by a broker downgrade today
• Viva Energy share price lifts despite half-year profits slumping 32%

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.

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Depending on which stage you are at in your investment journey, you are likely to have a focus on a particular type of share.

There are investors that have a focus on dividends, others are looking for growth, and some investors are searching for shares which they feel are undervalued.

Whichever type of investor you are, I feel one of the shares listed below will appeal to you. Here’s why I think they are worth considering:

Altium Limited (ASX: ALU)

I think growth investors ought to consider buying Altium. It is an electronic design software provider which has really caught the eye in recent years after delivering very strong sales and earnings growth. And while the pandemic has slowed its growth, its long term outlook remains as positive as ever. This is due to its exposure to the growing Internet of Things and Artificial Intelligence markets, which are underpinning the explosion of electronic devices globally. This is driving increasingly strong demand for its Altium Designer software and is expected to continue doing so over the 2020s.

Dicker Data Ltd (ASX: DDR)

I think the wholesale distributor of computer hardware and software would be a top option for income investors. Dicker Data has been growing its earnings and dividends at a solid rate consistently over the last five years and looks well-placed to continue this trend over the next five. This is thanks to its strong market position, favourable industry tailwinds, and its new distribution centre. Another positive is its generous dividend yield and its quarterly payments to shareholders. Based on the current Dicker Data share price, it offers investors a fully franked 4.5% dividend yield.

Telstra Corporation Ltd (ASX: TLS)

If you’re a value investor I think Telstra would be worth considering. At present the telco giant’s shares are changing hands at under 19x estimated FY 2021 earnings. I think this is good value due to its medium term outlook, defensive qualities, and generous dividend yield. In respect to its outlook, I believe a long-awaited return to growth isn’t too far away thanks to the easing NBN headwind, the arrival of 5G, and its T22 strategy. This strategy is stripping out costs and simplifying the Telstra business.

More reading

• 4 of the best ASX shares to buy before 2021
• New to investing? More ASX growth shares to buy now
• ASX 200 Weekly Wrap: Friday crash pulls ASX back below 6,000 points
• Why I would buy these quality ASX shares for a retirement portfolio
• Why I would buy Telstra and this high yield ASX dividend share

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. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited and Telstra Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post 3 ASX shares for growth, income, and value investors to buy right now appeared first on Motley Fool Australia.

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At the current level, I think the Commonwealth Bank of Australia (ASX: CBA) share price is in the buy zone for income investors.

However, not everyone is comfortable investing in the banking sector at present due to the possible impacts of the pandemic on bad debts.

For those investors, I have picked out two ASX dividend shares which I think would be great alternatives. They are as follows:

Aventus Group (ASX: AVN)

I think Aventus is an ASX dividend share to buy right now. This retail property company owns and operates 20 large format retail parks across Australia. These centres have a high weighting towards everyday needs, with major retailers such as ALDI, Bunnings, Officeworks, and The Good Guys among its 593 tenancies.

This has proven to be a very positive mix during the pandemic. While many other retail property companies are struggling to collect rent, Aventus was able to collect the vast majority of its rent as normal in FY 2020. This led to the company reporting a 4.2% increase in funds from operations (FFO) to $100 million. This allowed its board to declare an 11.9 cents per security full year distribution. Based on the current Aventus share price, this equates to a generous 5% yield.

Bravura Solutions Ltd (ASX: BVS)

Bravura Solutions isn’t a company I would normally go to for dividends. However, a sizeable pullback in the Bravura share price means it now offers an attractive yield to investors. In FY 2020 the provider of software products and services to the wealth management and funds administration industries declared an 11 cents per share dividend. This currently equates to a 3% yield.

I think this makes it well worth considering, especially given its positive long term growth potential. This is thanks to the quality of its software and the significant market opportunity it has globally. Particularly given recent acquisitions which have opened the company up to new and lucrative markets.

More reading

• Will ASX bank shares be dragged down by mortgage pain?
• Share price opportunities to buy this week
• ASX 200 Weekly Wrap: Friday crash pulls ASX back below 6,000 points
• Why I would buy Telstra and this high yield ASX dividend share
• ASX 200 plunges 3.1%, Afterpay suffers

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 Bravura Solutions Ltd. The Motley Fool Australia has recommended AVENTUS RE UNIT and Bravura Solutions 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 2 ASX dividend shares to buy instead of CBA appeared first on Motley Fool Australia.

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It’s no secret that ASX bank shares like Commonwealth Bank of Australia (ASX: CBA) have had a tough year in 2020. Between dividend cuts, share price slumps and ongoing pains on the Australian economy, bank shares have born much of the brunt of the coronavirus pandemic that has crippled economies around the world.

Banks are highly leveraged in the economy, as individuals and businesses tend to only utilise debt and credit when the economy is in good shape. It isn’t too hard to see why the share prices of the big four ASX banks have been struggling ever since the pandemic arrived on our shores.

The share prices of Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB) and Australia and New Zealand Banking GrpLtd (ASX: ANZ) all remain approximately half of what they were worth at the beginning of February. While CBA has performed a little better. It is still sitting at $67.12 at the time of writing, a long way from the company’s 52-week high of $91.05.

So where to from here? Some investors might think the worst is behind the ASX banks. By extension, they might even view the historically-low share prices we see today as a buying opportunity.

Are the ASX banks out of the woods?

Well, reporting from Business Insider may make those investors think twice today. In this reporting, Business Insider quotes figures released from the Australian Banking Association (ABA) today. Those figures reveal that 450,000 banking customers are set to receive a call in the next few weeks regarding deferred loan payments. The figures tell us that around 900,000 Australians currently have debts under ice right now, worth $274 billion. That equates to 1 in 9 mortgages and 1 in 6 small business loans across the country.

Much of this $274 billion pile of debt is scheduled to be un-frozen at the end of this month. And that could be a problem for the ASX banks.

There are a number of options for these borrowers available, including transitioning to interest-only loans or deferring until January 2021. Even so, it doesn’t mask the fact that lenders are facing a real precipice over the next few months. The reporting tells us that by the end of July, Australians had only recommenced repayments of around 13% of the $274 billion of frozen debt. And that’s after economic reopening across much of the country, and continued government stimulus.

Over the next few months, national unemployment is forecasted to rise over the remainder of the year. Meanwhile, government assistance payments like JobKeeper and the coronavirus supplement are scheduled to taper off over the next 6 months or so.

Foolish takeaway

If borrowers are forced to eventually default on their loan obligations, it is bad news for the ASX banks. And we might see this come to a head over the next 6-12 months. Myself? I wouldn’t want to be buying ASX bank shares going into that headwind, even if they do look historically cheap today. Uncertainty is not a companion you want on your investing journey, in my view.

More reading

• 2 ASX dividend shares to buy instead of CBA
• Leading brokers name 3 ASX shares to buy today
• ASX 200 up 0.5%: CSL signs COVID-19 vaccine agreements, big four banks charge higher
• Share price opportunities to buy this week
• ASX 200 Weekly Wrap: Friday crash pulls ASX back below 6,000 points

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

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