Tag: Motley Fool

Lovisa Holdings Ltd (ASX: LOV) shares have fallen more than 3% in today’s trade after the retailer released its financial results for the year ended 30 June 2020 (FY20). The accessories and jewellery retailer saw profits plunge nearly 50% after it was forced to shutter stores due to lockdowns. 

What does Lovisa do?

Lovisa is a fast-fashion accessories and jewellery retailer with stores in multiple jurisdictions worldwide. The company opened 66 new stores in FY20, ending the year with a total of 435 stores. Lovisa operates a vertically integrated business model, developing, designing, sourcing, and merchandising 100% of its Lovidsa branded products. 

What did Lovisa report?

Lovisa reported a 3.2% decline in revenue, which was down to $242.2 million. This was a result of COVID-19 disruptions in the second half of the year. In the first half of the financial year, the retailer had seen strong growth in total sales both from the increased store network and comparable store sales growth.

Lovisa began to see the impacts of COVID-19 in the third quarter, initially in its Asian markets, but this quickly escalated to store closures globally by the end of March. Supply chain disruptions were also experienced during this period, initially due to factory and warehouse closures in China, followed by freight disruption and bottlenecks. These factors combined to result in total sales for the second half being down 32.2% on FY19.

The business was able to begin re-opening in mid-April with the majority of stores now trading. Closures are still impacting stores in Melbourne, California, New York, and New Zealand. Efforts on the digital business have been refocused with improved execution and expanded geographical reach. The digital business saw sales growth of 382% in the fourth quarter compared to the prior corresponding period. Nonetheless, the overall drop in sales flowed through to earnings, with Lovisa reporting a 28.3% decline in earnings before interest, taxes, depreciation and amortisation (EBITDA) for FY20, which fell to $44.7 million. Net profit after tax dropped 47.8% to $19.3 million, from $37 million in FY19. 

Managing director Shane Fallscheer said:

We are pleased with what our team has been able to achieve through the disruptions to our business over the past 6 months, and whilst it has had a temporary impact to sales and profitability we remain confident in our growth objectives and have been able to maintain the balance sheet strength required to deliver on them. This leaves us well placed for the future.

What is the outlook for Lovisa? 

Lovisa says trading for the first 8 weeks of FY21 has seen challenging conditions continue in most markets. Comparable store sales for this period were down 19%, an improvement on the 32.5% decline seen in Q4 FY20.

Eight new stores have been opened since the end of the financial year, with the store network currently at 443 stores. The balance sheet remains strong with a net cash position of above $20 million and undrawn debt facilities. This will enable Lovisa to continue its strategic plans and store roll out. 

At the time of writing, the Lovisa share price is down more than 3% to $7.28 per share.

More reading

• Take a look at last week’s best performing ASX shares
• What’s driving the surge in jewellery retailer Lovisa Holdings’ share price in August?
• How will Victoria’s stage 4 lockdowns impact ASX shares?

Motley Fool contributor Kate O’Brien 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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The WiseTech Global Ltd (ASX: WTC) share price has soared more than 36% higher so far in August. Despite sliding 1% in late afternoon trading today, that still puts WiseTech among the top 5 leading share price gainers on the S&P/ASX 200 Index (ASX: XJO) this month.

During this same period, the ASX 200 has climbed a far more subdued 3.1%. (Not that we’re turning our noses up at 3% monthly gains!)

WiseTech wasn’t immune to the wider COVID-19  viral selloff that gripped markets in late February into March. From February 18 through March 19, the logistics software provider’s share price crashed a gutwrenching 64%.

However, from the March low, the WiseTech share price rebounded strongly, and is up 173% at time of writing. That rebound has been enough to put the company well into the green for 2020, with the WiseTech share price up 22% since 2 January.

What does WiseTech do?

WiseTech is a leading global provider of cloud-based software solutions for the international and domestic logistics industries. Its leading product, CargoWise One, provides a comprehensive, end-to-end global logistics solution.

WiseTech Global was founded in 1994 in Sydney, with the intent to lead the international logistics industry in technology innovation. WiseTech shares began trading on the ASX in 2016.

Today, the company operates in 50 offices worldwide. More than 12,000 logistics organisations in 150 countries use WiseTech software.

What’s behind the 36% WiseTech share price leap in August?

The WiseTech share price saw rapid growth from its March low through the end of May. From there it traded in a range roughly between $19 and $22 per share. Right up until last Wednesday, 19 August. Wednesday saw WiseTech’s share price close up 34% for the day, to $27.87 per share. (It’s currently trading for $28.56 per share.)

The huge daily surge, responsible for most of August’s 36% share price gains, came upon the release of WiseTech’s 2020 financial year results. The company reported a 23% increase in revenue and a 17% increase in earnings before interest, taxes, depreciation and amortisation (EBITDA).

The company holds a strong position with its global logistics software solutions business model. While the coronavirus pandemic may have shuttered countless restaurants across the globe and slashed international travel, goods still need to be stored and moved around from place to place.

As WiseTech founder and CEO Richard White noted: “COVID-19 market disruptions have provided a long-term tailwind for growing our market share.”

More reading

• ASX 200 down 1.25%: Big four banks tumble, Cleanaway impresses, Whitehaven disappoints
• Investors to look beyond Worley’s big jump in earnings and dividend
• 5 things to watch on the ASX 200 on Wednesday
• ANZ-Roy Morgan consumer confidence rises as COVID-19 case numbers fall
• ASX 200 rises, Bingo jumps after reporting

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 WiseTech Global. 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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It’s no secret 2020 so far has been the year of the disappearing dividend. We’ve had a revolving door of companies cancelling, slashing, deferring or suspending their shareholder payouts so far this year.

That far-from-illustrious conga line includes the ASX banks like Westpac Banking Corp (ASX: WBC). Then there’s Ramsay Health Care Limited (ASX: RHC), BHP Group Ltd (ASX: BHP), Sydney Airport Holdings Pty Ltd (ASX: SYD), Qantas Airways Limited (ASX: QAN) and Transurban Group (ASX: TCL). The list goes on.

So where to turn for ASX dividend income in 2020? It’s a vexing conundrum, made worse by the fact there are few opportunities for yield outside the world of dividend shares these days. With interest rates at record lows, the old alternatives of cash or government bonds are out of the question.

Luckily, there is one ASX dividend share that I’m looking at today that I think is a fantastic option.

It’s an ASX dividend share with 9% yield

Enter WAM Research Limited (ASX: WAX). WAM Research is a listed investment company (LIC) run by the LIC powerhouse of Wilson Asset Management (the WAM in WAM Research).

WAM Research has been around in its current form since 2010. Since then, it has returned an average of 14% per annum before fees and taxes. It has managed this performance through an investment mandate which involves buying undervalued growth companies (usually in the mid-cap space) and selling them when a pricing catalyst is realised.

Some of WAM Research’s current holdings include Redbubble Ltd (ASX: RBL), Elders Ltd (ASX: ELD), Breville Group Ltd (ASX: BRG) and Adairs Ltd (ASX: ADH). It uses the proceeds of these sales to fill a ‘profit reserve’, from which its fully franked dividends are funded.

The company’s most recent dividend came in at 4.9 cents per share, which was paid in April and was an increase from 2019’s interim dividend of 4.85 cents per share. If we annualise this payout, we get a dividend yield of 6.81% on the company’s share price (at the time of writing) of $1.44. If we include the value of WAM Research’s full franking, the grossed-up yield rises to 9.73%.

The best part (in my view) about this yield is how sustainable it is. In its latest update for July 2020, WAM Research advised investors that its profit reserve stood at 27.7 cents per share. That’s enough to fund the dividend at its current level for at least another 2½ years by my rough calculations.

Foolish takeaway

For this stupendous and yet sustainable yield, I think WAM research is a great ASX dividend share to invest in today. Especially so if we consider the current prospects for dividend income on the share market. It’s worth noting that WAM Research currently trades at a large premium to its underlying assets (probably as a result of this yield). Even so, it’s hard to turn down a 9%+ yielder today.

More reading

• On a day when the ASX 200 is going nowhere, these popular “coronavirus shares” are hitting record highs
• Leading brokers name 3 ASX shares to buy today
• 3 ASX share reports I loved this week
• 2 ASX dividend shares with yields over 7%
• Meet the latest ASX stock that’s more than doubled its full year COVID-19 earnings

Motley Fool contributor Sebastian Bowen owns shares of Ramsay Health Care Limited and WAM Research Limited. The Motley Fool Australia owns shares of Transurban Group. The Motley Fool Australia has recommended Elders Limited and Ramsay Health Care 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 Polynovo Ltd (ASX: PNV) share price has been among the worst performers on the S&P/ASX 200 Index (ASX: XJO) on Wednesday following the release of its full year results for FY 2020.

In afternoon trade the dermal regeneration solutions-focused medical device company’s shares are down 8.5% to $2.16.

How did PolyNovo perform in FY 2020?

PolyNovo had a very positive 12 months and delivered strong NovoSorb BTM sales growth in FY 2020.

For the 12 months ended 30 June 2020, the company sales revenue grew 104% to $19.1 million.

This was driven by strong growth in all markets, but particularly in the United States. The company’s US business delivered a record quarterly sales result in the March quarter and then followed it up with a 36% increase in sales compared to the prior corresponding period during the June quarter.

Management notes that it is building a solid revenue base in trauma, reconstructive surgery, hand surgery, necrotising fasciitis, and general surgery. Its Burn sales are also strong, with significant account penetration in accredited burn centres in all regions

However, also growing strongly during the year was the company’s operating expenses. They increased 28.4% year on year to $22.6 million.

As a result, the company posted an operating loss of $1.1 million, down from FY 2019’s operating loss of $2.8 million. And on the bottom line, it reported a net loss after tax of $4.2 million. While this compares unfavourably to a net loss of $3.2 million a year earlier, it includes $2.06 million in share-based payments.

In respect to cash flow, PolyNovo reported a net cash outflow from operations of $0.4 million, leaving it with a cash balance of $11.6 million.

Outlook.

Management notes that there has been no material impact on its business from the COVID-19 pandemic. It revealed that its global digital marketing program is proving effective and sales continue to grow.

And while no guidance was given for the year ahead, management revealed that its fourth quarter sales came in at $5.99 million. This means PolyNovo starts FY 2021 with a sales run rate of $24 million, which already implies annual growth of almost 26%.

It also advised that it plans to reinvest its cashflows back into the business. It aims to use the funds to enter new markets, expand its market share, and develop new products.

More reading

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• Down 37% in 2 days! Is the Mesoblast share price a buy?
• Is the CSL share price the best ASX biotech buy right now?
• Where I’d invest $10,000 in ASX shares for the future
• 3 tips for beginners investing in ASX shares

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 POLYNOVO FPO. 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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Looking for the best ASX shares to boost the value of your portfolio? Choosing ASX shares with both long-term growth prospects and reliable high-yield dividends is a foolproof way to build income and set-up your retirement early.

Here are 2 top ASX shares I would buy right now for shareholder value and dividend growth.

Dicker Data Ltd (ASX: DDR)

Dicker Data is an Australian wholesale and distributor of computer hardware, software and related products.  Its vendors include Hewett-Packard, Cisco, Toshiba, Lenovo, Microsoft, ASUS and other major brands.  Dicker Data services 5,000 retailers who in turn service multiple clients ranging from small and medium enterprises to large corporate businesses.

Dicker Data’s half year 2020 group results in July didn’t disappoint.  Total revenue was up 18.1% to $1,005.9 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew 27.6% to $47 million. And net profit after tax rose 23.5% to $29.4 million.

Pleasingly for shareholders, the company’s dividend growth was a massive 63.4% increase for FY19 compared to 20.2 cents per share (cps) for FY18.  In total, the company paid out 33 cents to shareholders in the last 12 months.  It plans to further increase its dividend to 35.5 cps this year.

Dicker Data has achieved double-digit revenue and profit growth for the past 5 years to become Australia’s largest commercial distributor and leading market share distributor for most of its tier 1 vendors represented.

To maintain growth and preserve the company’s strong balance sheet, Dicker Data has reduced its reliance on its top 5 vendors from 90% in FY12 to 57% in FY19.

I like Dicker Data because it pays quarterly dividends to shareholders and the business has been maturing consistently for a number of years.  Dicker Data has shown to be resilient in challenging conditions such as COVID-19 and is well-positioned for future growth

At the time of writing, the Dicker Data share price is down 2.97%, trading at $7.51. Still, I think Dicker Data offers investors a worthy buy.

Fortescue Metals Group Limited (ASX: FMG)

As the world’s fourth largest iron ore producer, Fortescue has become a very important trade partner to China and other countries with a strong demand for the steel-making ingredient.

Fortescue’s FY20 results released on Monday highlighted total revenue of $12.82 billion, an increase of 28.6% on FY19.  Underlying EBITDA was also up 38.4% to $8.375 billion, and net profit after tax climbed to $4.735 billion, a strong percentage boost of 48.5%.

The pure-play miner also boasts the industry’s leading cost position on extracting and refining its key product, at C1 costs at US$12.94 per wet metric tonne.  Record shipments were exported of 178.2 million tonnes in the past year.

It’s no wonder the Fortescue share price has exploded over the past 5 years from $1.62 to a whopping $18.64 (at the time of writing).  Of course, a major catalyst for the company’s strong balance sheet is the rising spot price of iron ore which has a knock-on effect with the share price.

The company has a dividend yield of 10.59%, as shareholders have recently been rewarded with $1 for every Fortescue share held.  For FY20, the mining magnet’s total dividend remuneration was $1.76.  For those lucky early investors who bought and kept Fortescue shares back in 2015, they would have a 108% payout on their initial investment in just one year.  That is the power of long-term investing.

I think Fortescue is a great ASX share to add on your portfolio.  The company offers shareholder value with strong growth in both its business and dividends.

More reading

• 3 ASX dividend shares that have increased their payouts in 2020
• Leading brokers name 3 ASX shares to sell today
• Why I would buy Coles and this ASX dividend share today
• ASX 200 rises 0.3%, Afterpay up on European plans
• 3 ASX shares to buy and hold through COVID-19

Motley Fool contributor Aaron Teboneras owns shares of Dicker Data Limited. The Motley Fool Australia owns shares of and has recommended Dicker Data 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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You might have heard of Apple (NASDAQ: AAPL).

It’s kind of a big deal.

Makes computers and phones, apparently.

Sports a lazy US$2 trillion market capitalisation, making it the first US company to reach that mark and, by dint of that achievement, the most highly valued company on the US exchanges.

(If you’re wondering, the Saudi-owned oil company, Aramco, has the highest market cap in the world.)

Those numbers are impressive. But I want to give you another one.

32%.

And a bigger one:

$500 billion.

That’s the extra ‘value’ that’s been created in Apple shares over just — get this — the last 20 or so trading days.

That’s 4 CBAs.

Almost 4 CSLs.

20 Afterpays.

And remember, that’s not Apple’s total value… just the increase in market cap since this time last month.

The increase in value is almost exactly equal to the entire market cap of Berkshire Hathaway — the investment conglomerate that Warren Buffett has spent a lifetime creating (and I own shares, for the record).

And in a nice twist, Apple is Berkshire’s largest public company holding.

But 32%?

In a month?

For a well-known company that was already the largest on the US markets?

It’s hard to find a good, brand new reason for such a jump.

Yes, it released earnings on July 31. So that’s something.

But 32%?

Instead, here’s what I think it happening:

Either Apple shareholders are correcting a past mistake… or making one.

If this was a small, underfollowed company, 32% might make sense.

If it announced it was getting into some previously unknown new (and large!) business line, I could understand it.

But this is Apple.

It’s not exactly an ‘under the radar’ small cap that no-one knows about!

Which brings me back to the ‘mistakes’.

If shares of a company of Apple’s size and profile gain that much in that short a timeframe, one of two things is taking place.

If you’re in the ‘correcting a mistake’ camp, the share price gains are the market belatedly releasing that Apple is a much better business than it had given it credit for, and with a longer, stronger growth path ahead of it.

Realising the error, the market is repricing its expectations for a brighter future.

And that would be sensible.

But equally sensible is the ’making a mistake’ hypothesis. In this case, investors — perhaps due to a lack of decent alternatives in a COVID-impacted world — are just jumping on ‘certainty’ and/or ‘quality’. Where the ‘safe stocks’ used to be banks and oil companies, they’re quickly being supplanted by big, well known, consumer-tech stocks.

And that thesis is fine, as far as it goes, but paying too much, even for the highest quality businesses, can hurt your returns. In the wake of the dot.com boom, for example, Microsoft shares spent the best part of 15 years going nowhere.

Let me illustrate.

Apple now sells on a P/E of 38.

A month ago, it was 29.

A year ago it was less than 20.

But profits haven’t doubled.

So either the shares were cheap, back then, and the market is correcting that mistake…

… or they’re expensive now, and the market is making one.

If shares were up 5, 10 or even 15%, and over a longer timeframe, you could explain it away as the slow ratcheting up of future potential, as a company progressively increases profits.

But — again, and for the last time — 32%?

It is true we’re living in strange, largely unprecedented times.

But investors need to make sure they understand the businesses they own, and what they’re worth.

It’s not just Apple, by the way. Afterpay Ltd (ASX: APT) is up 10-fold in less than 6 months. Kogan.com Ltd (ASX: KGN) (I own shares) is up 5-fold over the same timeframe.

And other businesses have been left for dead.

Knowing the difference between sentiment and value is imperative.

As Warren Buffett’s mentor, Ben Graham, reminds us:

“You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right.”

Whether your shares are up or down by large amounts, it’s vital that you don’t get carried away by exuberance or despair; and don’t let the market tell you what to think!

Fool on!

More reading

• The 1 Warren Buffett quote that tells us how to invest right now
• Apple becomes first company worth US$2 trillion. Here’s what we can learn
• These beaten down ASX energy shares could mirror the tech share price boom
• After the stellar COVID-19 rebound, can ASX share prices keep rising?
• Apple to hit US$3 trillion by 2023, analyst predicts

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Scott Phillips owns shares of Berkshire Hathaway (B shares) and Kogan.com ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple, Berkshire Hathaway (B shares), and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. and Kogan.com ltd and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), long January 2021 $85 calls on Microsoft, short January 2021 $115 calls on Microsoft, and short September 2020 $200 calls on Berkshire Hathaway (B shares). The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Apple, Berkshire Hathaway (B shares), and 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.

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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Afterpay Ltd (ASX: APT)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and lifted the price target on this payments company’s shares to $106.00. This follows the announcement of its expansion into mainland Europe via the acquisition of Spain-based Pagantis. In addition to this, the broker has upgraded its estimates to reflect stronger than expected app downloads in the United States. I agree with Morgan Stanley and believe Afterpay would be a great buy and hold option.

Nanosonics Ltd (ASX: NAN)

Analysts at UBS have retained their buy rating but trimmed the price target on this infection prevention company’s shares to $7.20 following its FY 2020 results. The broker notes that Nanosonics was impacted greatly by the pandemic and is likely to continue being impacted in FY 2021. This is due to a reduction in market access and a slower consumable products recovery. And while this has led to UBS downgrading its estimates, it remains positive on the future. It believes Nanosonics is a quality company and structural growth story. I think UBS is spot on and it would be worth being patient with Nanosonics.

NIB Holdings Limited (ASX: NHF)

A note out of the Macquarie equities desk reveals that its analysts have upgraded this private health insurer’s shares to an outperform rating with an improved price target of $5.15. While the broker notes that NIB delivered a full year result that fell short of expectations in FY 2020, it believes recent share price weakness has left it trading at an attractive level. Especially given its sizeable discount to peers. Although I think Macquarie makes some good points, I’m not a buyer at this point. I have concerns about the industry due to affordability issues.

More reading

• If you invested $10,000 into Zip shares in March, here’s how much you’d have today
• How to boost your share market gains
• Flexigroup share price in trade halt ahead of capital raise
• The Afterpay share price is up 1,000% in 6 months
• Afterpay share price leaps 7% today after 3 broker upgrades

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

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The latest research into the outlook for consumer spending, released today by AMP Capital’s Econosights, reveals the extent to which government subsidies have been supporting household spending. And those subsidies are slated to wind down.

Diana Mousina, Senior Economist at AMP Capital, highlights that the impacts of COVID-19 have hit spending in the consumer services area especially hard. And lockdowns and social distancing have caused some changes in consumer spending habits that are likely to be permanent.

Online shopping, for example, peaked at 11% of total retail spending since the virus emerged Down Under, where pre-virus it had peaked at 7%. Today’s higher spending on household goods rather than dining out and travel are temporary, but they won’t return to normal until sometime after COVID-19 is eradicated or controlled.

Government support

Mousina says that the increased unemployment, and hence lower total wages, have been more than offset by government handouts. In fact, total consumer incomes are up by a net amount of roughly $5,000 over the past 6 months.

Alongside the overall fall in consumer spending, this has seen an increase in the savings rate. While the official data has not been released yet, Mousina estimates the savings rate in June quarter was around 10% compared to 5% prior to the viral outbreak.

But this windfall is unlikely to continue. The unemployment rate today stands at 7.5%, but is forecast to rise to 9.5%–10% by the end of the year. No annual salary growth is expected until mid-2021.

This comes as government subsidies are scheduled to fall. In October, JobKeeper payments will fall from $1,500 per fortnight to $1,200. And in January the payments are meant to fall to $1,000. The coronavirus JobSeeker supplement is also heading lower. While it’s been extended to the end of the year, the payment rate is dropping from $550 per fortnight to $250.

The outlook

With that in mind, AMP Capital doesn’t expect to see positive annual growth in consumer spending until mid-2021. In the meantime, the biggest impact of COVID-19 restrictions will continue to be on travel, dining out, and recreation. However, the big rise in spending on household goods is unlikely to continue, with consumers having brought their spending on durable goods forward.

AMP Capital forecasts total consumer spending will stay 5%–10% below what it was before the viral slowdown until mid-2021. With consumption making up 60% of Australia’s economy, that in turn will crimp GDP growth. It should also see interest rates and bond yields remain low.

Foolish takeaway

Continued social distancing could see further pressure on traditional shopping centre shares, like Scentre Group (ASX: SCG) over the coming months. And it could continue to benefit the share price of online retailers, like Kogan.com Ltd (ASX: KGN).

More reading

• Mosaic Brands share price crashes on FY20 results
• The latest ASX stocks that brokers just upgraded to “buy”
• The Scentre Group share price is up today. Here’s why
• Why Afterpay, BINGO, Scentre, & Westpac shares are charging higher
• Is this ASX 200 market too greedy right now?

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 and Scentre Group. 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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Investment platform provider CommSec has released data on the five most traded ASX shares on its platform from last week.

There were a number of familiar names in the list this week, but also one which may come as a big surprise to investors.

Here’s the data:

CSL Limited (ASX: CSL)

The biotherapeutics company was the most traded share on the CommSec platform last week and accounted for 2.4% of total trades. This followed the release of its full year results for FY 2020 which revealed a 10% increase in net profit after tax to US$2.1 billion. The buy and selling was relatively even, with 55% of trades from the buy side. The CSL share price rose 6% over the period.

Mesoblast limited (ASX: MSB)

Mesoblast shares were popular with investors last week and accounted for 2% of total trades on the CommSec platform. The biotech company’s shares have been on the move this month following its successful meeting with the U.S. FDA. The regulatory agency’s advisory panel backed its Ryoncil treatment at the meeting, paving the way for approval later this year. Approximately 51% of trades were from buyers last week.

Hydrix Ltd (ASX: HYD)

A surprise entry to the top five was Hydrix. The medical device company’s shares accounted for 1.7% of trades by CommSec investors over the period, with 59% of them coming from buyers. Early buyers did extremely well, with the Hydrix share price recording a 411% gain last week. Investors were buying its shares amid news of four successful implants of its AngelMed Guardian product. This product the world’s first FDA approved implantable heart attack warning system.

Commonwealth Bank of Australia (ASX: CBA)

Australia’s largest bank was popular with investors again and accounted for 1.7% of trades on the CommSec platform. A massive 79% of these trades came from buyers, which appears to indicate that they were pleased with its full year results from the week before.

Zip Co Ltd (ASX: Z1P)

This buy now pay later provider is back in the top five after accounting for 1.5% of trades on the platform last week. However, on this occasion there was more selling than buying going on. Approximately 52% of these trades came from the sell side. Though, this didn’t stop the Zip Co share price from recording another weekly gain. Those buyers will be celebrating today after its shares rocketed to a record high.

More reading

• If you invested $10,000 into Zip shares in March, here’s how much you’d have today
• How to boost your share market gains
• Flexigroup share price in trade halt ahead of capital raise
• Why Bigtincan, Cleanaway, Worley, & Zip Co shares are storming higher
• Zip share price surges 20% on eBay partnership

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

The post Hydrix and Zip were among the most traded shares on the ASX last week appeared first on Motley Fool Australia.

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In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. At the time of writing the benchmark index is down 0.95% to 6,102.7 points.

Four shares that are falling more than most today are listed below. Here’s why they are sinking lower:

The APA Group (ASX: APA) share price is down 5% to $10.34. This morning the energy infrastructure company released its full year results and revealed a 10.1% increase in profit after tax to $317 million. However, its guidance for flat operating earnings in FY 2021 appears to have sent some investors to the exits today.

The Bravura Solutions Ltd (ASX: BVS) share price has sunk 12% lower to $3.81. Although the financial technology company reported strong growth in FY 2020, its comments on FY 2021 appear to have spooked investors. Due to the negative impacts of the pandemic, management warned that its profits could be flat in FY 2021.

The Jumbo Interactive Ltd (ASX: JIN) share price is down almost 3.5% to $13.17. Investors have been selling the online lottery ticket seller’s shares after the release of an underwhelming full year result. Although Jumbo reported a 9% increase in total transaction value to $349 million and a 9% lift in revenue to $71 million, its profits were flat at $26.5 million. This was largely the result of a 38.9% increase in administrative expenses to $17.6 million. This related to its Gatherwell acquisition and investments in its future growth.

The Whitehaven Coal Ltd (ASX: WHC) share price has crashed 14% lower to $1.07. Investors have been heading to the exits in their droves following the coal miner’s full year results release. Whitehaven reported a massive 95% decline in underlying net profit after tax to $30 million in FY 2020. This was due to weak coal prices and labour shortage issues. As a result of its poor performance, the company cut its dividend down from 50 cents per share to just 1.5 cents per share.

More reading

• Whitehaven Coal share price crashes to 52 week low following annual result
• ASX 200 down 1.25%: Big four banks tumble, Cleanaway impresses, Whitehaven disappoints
• Jumbo share price drops lower on flat FY 2020 profits
• APA Group share price dips despite FY20 earnings growth
• Bravura Solutions share price on watch after strong FY 2020 growth but cautious guidance

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 Jumbo Interactive Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Bravura Solutions Ltd. The Motley Fool Australia owns shares of APA Group. The Motley Fool Australia has recommended Bravura Solutions Ltd 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.

The post Why APA, Bravura, Jumbo, & Whitehaven shares are sinking lower appeared first on Motley Fool Australia.

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