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The NIB Holdings Limited (ASX: NHF) share price will be in focus today following the release of its full year results.

How did NIB perform in FY 2020?

For the 12 months ended 30 June 2020, the private health insurer reported a 3.4% increase in total revenue to $2.5 billion. This was driven by premium increases in 2019 and all of its health insurance businesses growing their membership numbers. The latter saw the company report policyholder growth of 1.9% for the year, compared to industry growth of 0.4%. This means NIB accounted for more than 41% of total industry growth for the year.

Things weren’t as positive for its earnings due to a sizeable increase in claims expense. NIB’s claim expense (including a deferred claims provision of $98.8 million) was up 6.7% to $1.9 billion in FY 2020. This ultimately led to its underlying operating profit falling 25.6% to $150.1 million for the year.

Also weighing on its profits were volatile markets, which led to net investment income falling 54% to $16.6 million over the period. This led to the company posting a net profit after tax of $89.2 million, down 40.3% on the prior corresponding period. According to CommSec, the market was expecting a net profit after tax of $95.02 million. So this profit result is a little short of expectations.

Despite the sizeable profit decline, the company has still declared a final dividend. It will pay shareholders a fully franked 4 cents per share final dividend, down from a final dividend of 13 cents per share last year. This brought its full year dividend to 14 cents per share, compared to 23 cents per share in FY 2019.

Outlook.

NIB advised that it continues to target net organic policyholder growth of 2% to 3% in Australian residents health insurance business. And while it is wary about macroeconomic threats, current market conditions look conducive.

In addition to this, it notes that the sector outlook in New Zealand is similar and market conditions in other businesses remain challenging. Though, for the latter, it feels the longer-term fundamentals are good.

The company’s Managing Director, Mark Fitzgibbon, commented: “COVID-19 remains a confounding factor in our planning and forecasting. It’s implication for sales, claims, expenses, investment income and earnings is enormous. Nevertheless, we have cause to have confidence in our arhi and New Zealand businesses and we’re adjusting strategy in other parts of the Group to adapt to current circumstances,”

More reading

• 5 things to watch on the ASX 200 on Monday
• Where to now for the NIB share price?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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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Every Monday I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Webjet Limited (ASX: WEB) has become the most shorted share on the ASX with short interest of 13.1%. Short sellers have been increasing their positions following its full year results release last week. They appear to believe the Webjet share price is severely overvalued based on its medium term outlook.
• Myer Holdings Ltd (ASX: MYR) has seen its short interest reduce slightly week on week to 11.9%. Short sellers appear to believe the pandemic is going to undo the hard work the department store operator has put into its turnaround plans.
• Speedcast International Ltd (ASX: SDA) has short interest of 11.7% again. The communications satellite technology provider’s shares remain suspended while it declares itself bankrupt. It has recently made progress and announced that it has received a US$395 million equity commitment to complete its chapter 11 recapitalisation.
• Inghams Group Ltd (ASX: ING) has 10.3% of its shares held short, which is up week on week once again. Last week the poultry producer released a disappointing full year result. Inghams reported a 68.2% drop in profits for FY 2020.
• Orocobre Limited (ASX: ORE) has seen its short interest remain flat week on week at 8.9%. Short sellers have been going after the lithium miner due to an oversupply of the battery making ingredient and weak demand.
• CLINUVEL Pharmaceuticals Limited (ASX: CUV) has also seen its short interest remain flat this week at 7.8%. Short sellers appear concerned that lockdowns will weigh heavily on demand for its SCENESSE product. This product is used to prevent skin damage from the sun in people with erythropoietic protoporphyria.
• InvoCare Limited (ASX: IVC) has short interest of 7.7%, which is down slightly week on week. Last week the funerals company released its half year results and revealed a sharp decline in profits. InvoCare’s performance was hit by social distancing restrictions.
• Corporate Travel Management Ltd (ASX: CTD) has entered the top ten with short interest of 7.6%. As with Webjet, short sellers appear to believe this travel company’s valuation is expensive given its medium term outlook.
• Nearmap Ltd (ASX: NEA) is back in the top ten with short interest of 7.5%. Short sellers may believe the aerial imagery technology and location data company is going to struggle in FY 2021 because of the pandemic.
• Bank of Queensland Limited (ASX: BOQ) has seen its short interest fall slightly to 7.45%. Short sellers continue to close their position after a series of better than feared updates out of the banking sectors.

More reading

• ASX 200 Weekly Wrap: Blue chips, earnings drag ASX lower
• Are these ASX shares future millionaire makers?
• Top brokers name 3 ASX shares to sell next week
• Top brokers name 3 ASX shares to buy next week
• These were the best performing ASX 200 shares last week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited, Nearmap Ltd., and Webjet Ltd. The Motley Fool Australia has recommended InvoCare 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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Exchange-traded funds (ETFs) are a great way to invest into ASX shares.

ETFs allow us to invest in many different businesses at once in a single investment. I think it’s an attractive way to passively be invested in the share market and benefit from the long-term capital growth.

ASX shares are a good place to invest. Australia is a good country for businesses to operate in and it’s a good base for some mid-cap ASX businesses to launch their global plans from.

So which ETFs are good options to invest into ASX shares? Here are two of the best in my opinion:

BetaShares Australia 200 ETF (ASX: A200)

This is the lowest-costing ETF for ASX share investors. BetaShares offers this ETF for an annual cost of just 0.07% per annum – that’s great value. It’s even cheaper than the Vanguard ASX option. The lower the costs of an ETF, the higher the net returns.

It aims to track the returns of the S&P/ASX 200 Index (ASX: XJO). That means a sizeable amount of the returns of the ETF are influenced by the ASX’s biggest blue chips.

Looking at the latest holdings, BetaShares Australia 200 ETF’s biggest exposures are: CSL Limited (ASX: CSL), Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), Wesfarmers Ltd (ASX: WES), Australia and New Zealand Banking Group (ASX: ANZ), Woolworths Group Ltd (ASX: WOW), Macquarie Group Ltd (ASX: MQG) and Transurban Group (ASX: TCL).

The fact that you get exposure to 200 businesses in a single investment is good diversification, although it’s not as attractive as other ETFs. When you look at the sector allocation, around half of the ETF is invested in just financial and resource businesses.

However, in normal times – when COVID-19 isn’t around – the ASX normally offers an attractively-high dividend yield because banks and miners usually have higher dividend payout ratios than other sectors.

Betashares S&P ASX Australian Technology ETF (ASX: ATEC)

However, what the ASX 200 offers in income, it seems to lose in growth potential. Most ASX blue chip shares have limited growth prospects, but ASX technology shares tend to offer more profit growth potential with higher margins and global growth aspirations.

Software can be replicated for new customers at a very low cost. New revenue tends to come with a higher profit margin, more of it is added to the bottom line.

This ETF gives exposure to many of the ASX’s leading technology companies in segments like information technology, consumer electronics, online retail and medical technology.

It was only launched in March 2020, but it has been a strong performer since then. Since 4 March 2020 it has risen in value by 31.8%. The recovery since the COVID-19 crash has been strong. Over the past three months the ETF has produced net returns of 25.2%.

Some of its largest holdings right now are: Afterpay Ltd (ASX: APT), Xero Limited (ASX: XRO), SEEK Limited (ASX: SEK), REA Group Limited (ASX: REA), Nextdc Ltd (ASX: NXT), Carsales.Com Ltd (ASX: CAR), Altium Limited (ASX: ALU), Appen Ltd (ASX: APX) and WiseTech Global Ltd (ASX: WTC).

Many of the above names are leaders in their industries and are among the best businesses on the ASX.

This ETF’s annual management fee, at 0.48% per annum, is more than BetaShares Australia 200 ETF. But the most important number for investors is the net return figure, not the annual cost figure. The Betashares S&P ASX Australian Technology ETF return has been strong so far, which has been driven by its biggest position – Afterpay.

Foolish takeaway

Both of these ETFs are good investment options for ASX investors to consider. If you want to get the cheapest ETF to track the ASX 200, then you could go for the one I have written about in this article. However, for medium-to-long-term growth I think the Betashares S&P ASX Australian Technology one will be the better performer because of the underlying investments.

More reading

• Why Afterpay and these ASX shares just hit record highs
• ASX 200 Weekly Wrap: Blue chips, earnings drag ASX lower
• Are these ASX shares future millionaire makers?
• 3 ASX growth shares to buy in September
• Top brokers name 3 ASX shares to buy next week

Tristan Harrison owns shares of Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd., WiseTech Global, and Xero. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO, Appen Ltd, Transurban Group, and Wesfarmers Limited. The Motley Fool Australia has recommended carsales.com Limited, REA Group Limited, and SEEK 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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If I had to pick which ASX share I’d buy this week, other than last week’s pick, it would be Bubs Australia Ltd (ASX: BUB).

A quick overview of Bubs

Bubs is best known as an infant formula business. The company was set up in 2006 by current-CEO Kristy Carr.

The ASX share’s main range of products is a goat milk derived infant formula. Three years ago Bubs acquired NuLac Foods, Australia’s largest producer of goat milk products, including CapriLac, a leader in goat milk, powder and yoghurt, and Coach House Dairy, a premium range of Jersey milk products. That acquisition guaranteed exclusive supply of locally sourced fresh goat milk from Australia’s largest herd of milking goats.

Bubs also owns its a Chinese-approved manufacturing facility called Deloraine.

I think Bubs is a great buy for a number of reasons:

International growth

Entering the global market can turn a consumer business from being a decent opportunity to one with much larger potential. Look how much further A2 Milk Company Ltd (ASX: A2M) has grown because it is servicing the Asian and USA markets.

Bubs is doing a really good job of getting its foot into the door of international markets. We can see the growth in the ASX share’s June 2020 update a few weeks ago.

In June 2020 we saw Bubs’ China direct sales increase by 37% – this now represents around a fifth of total sales. Its ‘other export’ sales were up 71% in the fourth quarter of FY20, largely helped by the launch into Vietnam. Other international sales accounted for 9% of total sales in FY20.

Asia is a much larger total addressable market for Bubs compared to Australia. This region alone could be enough for the company to be a long-term market outperformer.

I like the ASX share’s recent moves of launching grass-fed organic cow infant formula as well as a range of vitamin and mineral supplements. Both of these segments could become material for Bubs in the next few years as their distribution grows across various stores.

Defensive, essential product

I think this COVID-19 period has shown us how important Bubs’ products are to families. Nutrition is essential, it’s not a discretionary item. I think Bubs’ existing revenue base is more defensive than some investors may give it credit for.

We saw in the FY20 third quarter how much demand there was for Bubs’ products when households were stocking up. The ASX share’s revenue grew by 67% compared to the prior corresponding period and it went up 36% on the previous quarter.

Rising profit margins

An ASX share can generate strong returns when there is a combination of strong revenue growth and rising profit margins.

In FY20 the total revenue rose by 32% to $62 million and the ‘normalised’ gross profit margin improved by 3 basis points, according to Bubs.

What’s most exciting is that infant formula, which has a gross profit margin of around 40%, is becoming a bigger part of Bubs’ total sales. In FY19 it made up 43% of total revenue, in FY20 it was 55% of total revenue. In FY20 infant formula revenue increased by 69%.

Margins could rise further as Bubs grows into Singapore, Hong Kong and Malaysia.

Near-term profitability

Reaching profitability is one of the most important things for a business to convince investors that it’s on the right path.

In FY21, excluding any residual COVID-19 adverse impacts, The ASX share expects to achieve profitability at the normalised earnings before interest, tax, depreciation and amortisation (EBITDA) level. That would be a very promising step. 

Bubs thinks the group margin will be further enhanced by optimised product mix, the highest and best use of the milk pool allocation and enhanced value chain.

Foolish takeaway

Bubs could see growth in every segment and every geographic region in FY21. I think there’s a lot of promise for Bubs over the next 12 months and particularly the next five to ten years. I think Bubs is a very exciting business which is worth owning for the long-term, I’d be happy to buy it this week.

More reading

• The smartest 7 ASX shares to buy if you have $2,000
• Should you buy the beaten down shares of Bubs and Webjet?
• 2 five-star ASX growth shares to buy in August
• 2 ASX shares you could invest $500 into
• Should you buy these 2 ASX dairy shares instead of A2 Milk?

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 BUBS AUST FPO. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended BUBS AUST FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post I’d buy this ASX share this week appeared first on Motley Fool Australia.

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The S&P/ASX 200 Index (ASX: XJO) had a shaky week last week, dominated by mixed earnings reports and some wild fluctuations in individual share prices. Earnings season is still in full swing, and we heard from a range of ASX shares last week in what was a mixed bag of results.

It was a volatile week for the ASX 200, which touched as high as 6,188 points and as low as 6,011 at various points. Despite these swings, the ASX 200 finished only  0.2% lower for the week.

It was a fast-paced and action-packed time, to be sure.

Some ASX 200 earnings tidbits

Westpac Banking Corp (ASX: WBC) announced its third-quarter results and cancelled its interim dividend.

The WiseTech Global Ltd (ASX: WTC) share price took off (up nearly 40% for the week) after the logistics company announced a 23% surge in revenue.

Coles Group Ltd (ASX: COL) also impressed with a bump in revenue and earnings and a hefty 14.6% increase for its dividend.

Wesfarmers Ltd (ASX: WES) was also in dividend investors’ good books last week. It announced a 77 cents per share dividend, as well as a special dividend of 18 cents per share, mostly funded from the sale of Coles shares that the company offloaded earlier in the year.

Another winner was Corporate Travel Management Ltd (ASX: CTD). Although the company announced an $8.2 million loss, there are signs of a recovery under way in the travel sector. That pushed up Corporate Travel shares up more than 20% for the week.

Meanwhile, a big loser for the week was Treasury Wine Estates Ltd (ASX: TWE). After it was announced that China (a major market for Treasury) is considering possible tariffs on Australian wine over allegations of dumping, the company’s share price cratered more than 20%.

We also had some fairly momentous events over on the US markets as well. Hot stock Tesla Inc. (NASDAQ: TLSA) powered to over US$2,000 a share last week to yet another new all-time high. That helped push Tesla’s CEO (and major shareholder) Elon Musk’s net wealth to new heights. According to Forbes, Musk is now the world’s 5th richest person partly as a result. Tesla shares are now up more than 376% year to date

Apple Inc. (NASDAQ: AAPL) also passed a phenomenal milestone of its own, becoming the first publically-listed company to be valued at more than US$2 trillion when its share price passed US$473 last week. The shares closed on Friday night (our time) at close to US$500 a share, meaning Apple has now appreciated more than 65% in 2020 so far.

How did the markets end the week?

It was a topsy turvy week as companies’ earnings reports began trickling in. Overall, the ASX 200 saw a 0.2% drop for the week after starting out at 6,126.2 points and finishing up at 6,111.2 points. Monday saw a 0.8% drop, which Tuesday mirrored with a 0.8% rise. Wednesday saw the ASX 200 pile on another 0.7%, which took the index to its highest level since March at 6,167.1 points. This was erased on Thursday and Friday though, with falls of 0.8% and 0.14% respectively.

Meanwhile, in contrast to the ASX 200, the All Ordinaries Index (ASX: XAO) eked out a small gain of 0.1% last week, after starting at 6,261.7 points and finishing up at 6,270.7 points. Since the All Ordinaries contains 500 ASX shares compared to the smaller ASX 200, its movements can often produce contrasting results.

Which ASX 200 shares were the biggest winners and losers?

Time now to get salacious and check out the ASX 200’s biggest winners and losers from the past week. So let’s get the kettle on and start with last week’s losers:

Worst ASX 200 losers	% loss for the week
Treasury Wine Estates Ltd (ASX: TWE)	(22.82%)
Unibail-Rodamco-Westfield (ASX: URW)	(12.89%)
Cooper Energy Ltd (ASX: COE)	(10%)
Resolute Mining Limited (ASX: RSG)	(9.52%)

As we flagged earlier, Treasury was the recipient of the wooden spoon last week over concerns that China is moving to restrict the importation of Aussie wine into China.

Struggling real estate investment trust (REIT) Unibail-Rodamco-Westfield also didn’t have a great week. Investors are apparently not convinced the worst of the coronavirus pandemic is behind the international owner of the Westfield brand.

Coopper Energy also had a shocker over issues with its bedfellow APA Group (ASX: APA) shutting down one of its gas pipelines.

Meanwhile, gold miner Resolute was sold off after political issues in Mali emerged involving a coup d’etat. Resolute has a large gold mine in the African country, so political instability isn’t good news.

Now with the bad news out of the way, lets now have a look at last week’s winners:

Best ASX 200 gainers	% gain for the week
WiseTech Global Ltd (ASX: WTC)	39.99%
IDP Education Ltd (ASX: IEL)	31.64%
Monadelphous Group Limited (ASX: MND)	29.26%
Corporate Travel Management Ltd (ASX: CTD)	20.88%

Again, as we noted earlier, WiseTech was the week’s best share with an extraordinary 40% jump in market capitalisation after its well-received earnings report.

IDP Education also makes the list following a surprisingly good earnings report of its own. Investors clearly loved the company’s 29% increase for its earnings before interest, tax, depreciation and amortisation (EBITDA) that was revealed.

We’ve also already covered Corporate Travel, while engineering company Monadelphous benefitted from positive sentiment (including from brokers) after its own expectation-beating earnings.

What does this week look like for the ASX 200?

Earnings madness is set to continue this week, which will undoubtedly shape the ASX 200’s overall performance. Investors will be looking forward to seeing how companies like Afterpay Ltd (ASX: APT), Appen Ltd (ASX: APX), Fortescue Metals Group Limited (ASX: FMG), Ramsay Health Care Limited (ASX: RHC), Woolworths Group Ltd (ASX: WOW) and Zip Co Ltd (ASX: Z1P) have been fairing when they release results this week. Considering the number of companies that have been forced to cut or cancel dividend in recent weeks, these payouts will form a major part of the reception of these earnings, particularly from blue chip ASX 200 shares like Fortescue and Woolworths.

I’m also keeping a close eye on coronavirus case numbers in New South Wales and Victoria this week, as any new developments (as always) have market-moving potential. The US Presidential election campaign is also heating up, so that also merits an increasingly watchful eye this week, in my view. As I discussed last week, we shouldn’t underestimate how much the US elections can have an impact on or own ASX.

Before we go, here’s a look at how the major ASX 200 blue chip shares are fairing as we start another week in paradise:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

And finally, here is the lay of the land for some leading market indicators:

•     S&P/ASX 200 (XJO) at 6,111.2 points
•     All Ordinaries (XAO) at 6,270.7 points
•     Dow Jones Industrial Average at 27,930.33 points after rising 0.69% on Friday night (our time)
•     Gold (Spot) swapping hands for US$1,940.89 per troy ounce
•     Iron ore asking US$121.78 per tonne
•     Crude oil (Brent) trading at US$44.35 per barrel
•     Crude oil (WTI) going for US$42.34 per barrel
•     Australian dollar buying 71.61 US cents
•    10-year Australian Government bonds yielding 0.87% per annum

Foolish takeaway

As we enter another week of warnings, I think keeping the following concept in mind is a great idea. Coronavirus brought a great deal of uncertainty to investors. We simply didn’t know how much the pandemic would affect each company.

Now, the curtains are finally being pulled back, it’s a great time to assess whether a company will suffer only in the short-term, or whether it might be in terminal decline. As always Fools, stay safe, stay rational and stay Foolish this week!

More reading

• These are the 10 most shorted shares on the ASX
• 2 of the best ETFs for investing in ASX shares
• 5 things to watch on the ASX 200 on Monday
• Why I would buy CBA and this top ASX dividend share
• Top brokers name 3 ASX shares to buy next week

Sebastian Bowen owns shares of National Australia Bank Limited, Newcrest Mining Limited, Ramsay Health Care Limited, Telstra Limited, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd., Idp Education Pty Ltd, WiseTech Global, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited, Macquarie Group Limited, Telstra Limited, and Treasury Wine Estates Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO, APA Group, Appen Ltd, COLESGROUP DEF SET, Transurban Group, Wesfarmers Limited, and Woolworths Limited. The Motley Fool Australia has recommended Apple 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.

The post ASX 200 Weekly Wrap: Blue chips, earnings drag ASX lower appeared first on Motley Fool Australia.

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On Friday the S&P/ASX 200 Index (ASX: XJO) was out of form and finished the week with a small decline. The benchmark index fell 0.15% to 6,111.2 points.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX futures pointing lower.

The ASX 200 looks set to start the week in the red. According to the latest SPI futures, the benchmark index is poised to open the week 11 points or 0.2% lower. This is despite a solid finish to the week on Wall Street with all three major indices recording gains. The Dow Jones rose 0.7%, the S&P 500 climbed 0.35%, and the Nasdaq index pushed 0.4% higher.

Fortescue to declare big dividend?

The Fortescue Metals Group Limited (ASX: FMG) share price will be on watch this morning when the iron ore producer releases its full year results. Because of its improving grades, strong iron ore prices, and its record shipments, expectations are high for Fortescue’s profits. As a result, analysts are forecasting a very generous full year dividend. Macquarie, for example, has forecast a fully franked dividend of ~$1.80 per share for FY 2020. This represents a 10% dividend yield.

Oil prices drop lower.

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could start the week in the red after oil prices dropped lower. According to Bloomberg, on Friday night the WTI crude oil price fell 1.1% to US$42.34 a barrel and the Brent crude oil price dropped 1.2% to US$44.35 a barrel. Despite this, oil prices recorded their fifth week of gains in the last six.

Gold price flat.

The shares of Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could be steady on Monday after a subdued night of trade for the gold price on Friday. According to CNBC, the spot gold price traded flat at US$1,947 an ounce.

NIB full year result

The NIB Holdings Limited (ASX: NHF) share price will be one to watch this morning when it releases its full year results. According to CommSec, the private health insurer is expected to post a full year net profit after tax of just $95.02 million. Investors will no doubt also be looking for commentary around the positive and negative impacts of the pandemic on its financial performance.

More reading

• 5 blue chip ASX 200 shares a beginner can use to start a share portfolio
• 5 things to watch on the ASX 200 next week
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week
• The ASX 200 fell 0.1% today, Suncorp shines

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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.

The post 5 things to watch on the ASX 200 on Monday appeared first on Motley Fool Australia.

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The market may have been out of form on Friday, but that didn’t stop some ASX shares from pushing higher.

Nor did it stop the three ASX shares listed below from climbing to new record highs. Here’s why these shares are flying high right now:

Afterpay Ltd (ASX: APT)

The Afterpay share price hit a record high of $82.00 on Friday. Investors were fighting to buy the payments company’s shares last week after a surprise upgrade to its earnings before interest, tax, depreciation and amortisation (EBITDA) guidance for FY 2020. According to the release, due to better than expected collections, its net transaction losses were far lower than first forecast. As a result, Afterpay is now forecasting EBITDA of approximately $44 million in FY 2020. This is a 76% to 120% increase on its previous EBITDA guidance of $20 million to $25 million.

Codan Limited (ASX: CDA)

The Codan share price continued its impressive run and hit a new all-time high of $11.08 last week. The catalyst for this was the release of an impressive full year result by the electronic products company. For FY 2020, Codan delivered record sales of $348 million thanks largely to strong metal detector demand. And on the bottom line, the company reported a record statutory net profit after tax of $64 million. This was an increase of 40% year on year. The exceptionally strong gold price has been supporting demand for its metal detectors.

Nick Scali Limited (ASX: NCK)

The Nick Scali share price was on form again last week and climbed to a record high of $9.41. Investors have been buying this furniture retailer’s shares since the release of a very positive full year result earlier this month. Although Nick Scali posted a 2.1% decline in sales, it managed to hold its profits steady at $42.1 million. However, what really got investors excited was its guidance for the first half. Following a very strong start to the financial year, Nick Scali is forecasting its first half profit “to be up by at least 50-60%” compared to the same period last year.

More reading

• Top brokers name 3 ASX shares to buy next week
• 5 things to watch on the ASX 200 next week
• Codan share price soars 16% thanks to record sales
• ASX 200 down 1%: Qantas results, Afterpay hits record high, Webjet crashes lower
• Why Afterpay, Codan, IDP Education, & Sonic shares are charging higher

Motley Fool contributor James Mickleboro 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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If you’re wanting to add some dividend shares to your portfolio this week, then I think the two listed below could be top options.

Here’s why I think these dividend shares are in the buy zone:

Commonwealth Bank of Australia (ASX: CBA)

The first ASX dividend share to consider buying is Commonwealth Bank. It remains my favourite in the banking sector due to the quality of its operations, its strong management team, and robust balance sheet. In respect to the latter, when it released its full year results earlier this month, it revealed a CET1 ratio of 11.6%. This is comfortably ahead of APRA’s ‘unquestionably strong’ benchmark of 10.5%.

Given the pandemic and the potential for APRA to place further restrictions on dividend payments in 2021, it is difficult to predict what dividend the bank will play next year. However, I would expect something in the region of $3.00 per share. Based on the Commonwealth Bank share price, this equates to a generous fully franked 4.3% yield.

Rural Funds Group (ASX: RFF)

Another dividend share to consider buying is Rural Funds. It is a leading agriculture-focused real estate company which owns a collection of high quality rural assets. These assets are leased to some of the biggest names in the industry such as Treasury Wine Estates Ltd (ASX: TWE).

I’m a big fan of Rural Funds because of its long leases and the periodic rental increases included in them. This gives the company great visibility on its future earnings and ultimately its distributions. In FY 2021 it intends to increase its distribution in line with its long term target of 4%. This will mean a distribution of 11.28 cents per share. Which based on the current Rural Funds share price, means a very attractive 5.15% yield.

More reading

• 2 of the best ASX dividend shares to buy next week
• 5 blue chip ASX 200 shares a beginner can use to start a share portfolio
• Where to invest your Commonwealth Bank dividends in September
• Which ASX bank share is the best buy for dividend income?
• This ASX fund manager is going back to value in a post-COVID world. Here’s why.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and Treasury Wine Estates 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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I’m sure that many readers have aspirations to become a millionaire one day. While a lucky few may achieve this through winning the lottery, the odds are certainly not in your favour.

Instead, I would suggest readers grow their wealth by investing in the share market. Especially given how there are a number of ASX shares that have made regular investors millionaires over the last decade or two.

Take for example electronic design software company Altium Limited (ASX: ALU). Over the last 10 years the Altium share price has generated an average return of 66.4% per annum.

This means that a single $6,500 investment in 2010 would now be worth just over $1 million. 

But that was then and this is now. Which ASX shares could be future millionaire makers? My money would be on these ASX shares:

ELMO Software Ltd (ASX: ELO)

I think ELMO Software is worth looking closely at and could be a future millionaire maker. It is a cloud-based human resources and payroll software company that provides a unified platform to streamline processes for businesses. ELMO was a strong performer in FY 2020 despite the pandemic. It grew its annualised recurring revenue (ARR) by 19.7% to $55.1 million. The good news is that management expects similarly strong organic ARR growth in FY 2021. But perhaps even better is the mountain of cash the company is sitting on. It ended the period with a cash balance of $140 million, the bulk of which it plans to deploy on value accretive acquisitions in the near future. Looking longer term, I believe ELMO is well placed for long term growth thanks to its massive market opportunity and the continued shift to automated platforms.

Nearmap Ltd (ASX: NEA)

Another ASX share that I think could be a future millionaire maker is Nearmap. It is a leading aerial imagery technology and location data company. I believe it has enormous potential to dominate a highly fractured market and generate very strong returns for investors over the next decade. Especially given its high quality technology (which includes an excellent new AI offering), the cost savings it offers, and its significant global market opportunity.

Pushpay Holdings Group Ltd (ASX: PPH)

A final potential millionaire maker share is Pushpay. It is a donor management platform provider for the faith sector and has been growing at a rapid rate in recent years thanks to its leadership position in a niche but lucrative market. The good news is that this rapid growth doesn’t look likely to stop any time soon. Management has set itself a target of winning a 50% share of the medium to large church market in the future. This represents a US$1 billion revenue opportunity and is many times greater than FY 2020’s revenue of US$127.5 million. It also looks set to deliver improving margins in the coming years thanks to the benefits of scale and last year’s acquisition of Church Community Builder for total cash consideration of US$87.5 million. As a result, I expect its earnings growth to outpace its ARR growth this decade.

More reading

• 3 ASX growth shares to buy in September
• Top brokers name 3 ASX shares to buy next week
• Where to invest $100,000 into ASX shares right now
• At this share price is Pushpay a millionaire maker?
• 3 exciting mid cap ASX tech shares to buy for the long term

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

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I think there are a number of S&P/ASX 200 Index (ASX: XJO) growth shares that have a place in a portfolio.

In my opinion, not every ASX 200 share is worth investing in. I think some ASX shares have quite limited medium-term profit growth prospects like BHP Group Ltd (ASX: BHP) and Westpac Banking Corp (ASX: WBC).

But I think there are other ASX 200 growth shares that could generate strong returns:

A2 Milk Company Ltd (ASX: A2M)

I think that A2 Milk could be the best value ASX 200 growth share. The infant formula business still has plenty of international growth potential in my opinion.

The FY20 result from A2 Milk was very strong. Total revenue increased by 32.8% to NZ$1.73 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 32.9% to NZ$549.7 million. Net profit after tax (NPAT) rose by 34.1% to NZ$385.8 million.

What gives me hope for continued strong growth is that its distribution network continues to grow. In China its Chinese label infant formula nutrition has expanded to approximately 19,100 stores, compared to 18,300 at 31 December 2019. The US distribution network has grown to 20,300 stores, up from 17,500 at 31 December 2019 and 13,100 stores at 30 June 2019.

It can take a while for a consumer to try a new brand, so just the stores added this year alone could add to incremental growth for the ASX 200 share for the next few years.

I really like the growth potential into the Canadian market. An exclusive licensing agreement has been entered into with Agrifoods International Cooperative for the production, distribution, sales and marketing of A2 Milk branded liquid milk. The product has recently been launched to a number of customers in Western Canada.

A2 Milk is currently trading at 28x FY22’s estimated earnings.

Tassal Group Limited (ASX: TGR)

Tassal may not strike you as a growth share, but I think it continues to impress.

In FY20 the salmon and prawn business reported a number of good numbers. Operating EBITDA rose by 23.4% to $138.6 million with salmon operating EBITDA per kilo up by 4.3% to $3.29 (pre AASB 16).

The ASX 200 share reported that operating EBIT increased by 12.7% to $99.8 million and operating NPAT rose by 13.3%. Statutory net profit went up 18.3% to $69.1 million.

I’ve been impressed by the fish company’s ability to continue to grow its biomass and production efficiencies whilst boasting of “industry world best ESG initiatives”.

Fish is an important food source. With many other protein sources potentially being disrupted by COVID-19, demand for salmon could continue to rise.

In FY21 the company is looking to reduce costs with salmon after the improvements at its farming operations. In prawns it’s looking to increase its harvest volumes to around 4,000 tonnes to lift prawn earnings and generate “substantial growth”.

As a bonus, Tassal offers a partially franked dividend yield of 4.7%.

At the current Tassal share price it’s trading at 10x FY22’s estimated earnings.

Brickworks Limited (ASX: BKW)

Brickworks may not instantly strike you instantly as an ASX 200 growth share, but I think it should be considered as one.

The company has a number of growth initiatives which could grow its valuation into the future. The ASX 200 share has a strong existing Australian building products business with categories like bricks, roofing, paving, masonry, precast and so on. Brickworks’ Australian earnings can rise as Australia’s cities grow and renew.

I’m excited by the other avenues of growth. Brickworks recently invested into three brickmaking businesses in the US. I thought these acquisitions were a good idea – it made Brickworks the biggest player in the north east of the country. The United States is a much larger market than Australia, so it adds a lot of addressable market for Brickworks. The company can also improve efficiencies there significantly.

Brickworks currently owns around 40% of investment house Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) which owns a portfolio of defensive assets with good growth potential. Soul Patts is an ASX 200 share itself and provides Brickworks with rising dividends and a growing asset base.

The company owns a 50% stake of an industrial property trust along with Goodman Group (ASX: GMG). That industrial trust is investing in building large distribution centres for Coles Group Limited (ASX: COL) and Amazon, which should deliver a sizeable increase in the rental income and value of the trust.

At the current Brickworks share price it offers a grossed-up dividend yield of 4.8%.

More reading

• 3 ASX share reports I loved this week
• Is the A2 Milk share price still a good buy after strong full year results?
• The ASX 200 fell 0.1% today, Suncorp shines
• ASX 200 flat: Suncorp surges higher, A2 Milk acquisition plans, TPG’s half year update
• Why a2 Milk, Coca-Cola Amatil, Star, & Suncorp shares are charging higher

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of A2 Milk and COLESGROUP DEF SET. 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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