Are these the Top 6 Stocks to look at this Season: KGN, EML, NXT, ANN, TLS, BLD

  • Jul 02, 2020 AEST
  • Team Kalkine
Are these the Top 6 Stocks to look at this Season: KGN, EML, NXT, ANN, TLS, BLD

Summary

  • While many businesses were struck by COVID-19 crisis, there were others whose businesses grew significantly.
  • Healthcare and technology were the best performers amid pandemic, while the sectors who did not perform well were tourism, hospitality, and aviation.
  • COVID-19 gave companies a new direction to continue their businesses in the upcoming period.
  • Kogan, during 4QTDFY20, noted a surge in its gross sales by 100% and completed A$100 million placement to support its customer base expansion & improve its operating model.
  • EML completed the acquisition of PFS. Thus, making it feel empowered to become the largest globally prepaid fintech enablers.

COVID-19 crisis, no doubt has hurt most of the businesses, but at the same time, it brought considerable opportunities for many companies to grow ahead. With the change in the ways of working and people mindset, COVID-19 gave a new direction where companies could further groom themselves.

The industries which were hit significantly by the pandemic were tourism and hospitality followed by aviation and manufacturing. On the other hand, the sectors which played a defensive role in the difficult time were telecom, utilities, and cloud-based technology. The healthcare sector witnessed a dramatic surge in demand of medicines, masks, sanitisers, etc.

In this article, we would be looking at a few ASX listed stocks which have been drawing the attention of various market players during this season. Let’s find the reason for the same.

Kogan.com (ASX:KGN)

Kogan.com is a portfolio of retail and services businesses that recently completed its A$100 million institutional placement where each share was offered at A$11.45. On 18 June 2020, the Company provided qualified shareholders with an opportunity to participate in SPP (share purchase plan) by paying a maximum of A$30,000 to subscribe for more New Shares in KGN without brokerage.

KGN plans to utilise the proceeds of this offer to give financial flexibility to act quickly on the future value accretive opportunities. The funds would provide support to the Company in expanding its customer base or improve its operating model.

As notified on 5 June, in 4QTDFY20 (April-May 2020),  Kogan witnessed growth in its gross sales by over 100% across the period and gross profit by more than 130%. Further, its active customers grew to 2,074,000 by 31 May 2020. In May 2020, the increased customer count was 126,000.

EML Payments Limited (ASX:EML)

EML Payments, the issuer of the pre-paid financial cards, in the trading update released on 20 May 2020 updated that the Company’s gross debit volume for the 9 months ended 31 March 2020 increased by +55% as compared to the previous corresponding period (pcp). Revenue improved by +20% to A$87.1 million and EBITDA by A$27 million.

EML also completed the acquisition of Prepaid Financial Services (PFS), which acted as a plank to the Company’s strategy of rebalancing revenue across its business segment. EML believes that with the acquisition of PFS, it would be amongst the largest global prepaid fintech enablers.

EML, came into limelight, in May 2020 when its Chairman disclosed his intention to sell his shares between 300,000 and 400,000 units. On 25 May 2020, as per EML’s update Mr Peter Martin disposed off 400k fully paid ordinary shares between 20 -22 May 2020. He now holds 7,318,992 fully paid ordinary shares.

NEXTDC Limited (ASX:NXT)

Data Centre-as-a-service provider company, NEXTDC Limited on 1 July 2020 advised that contracted commitments at its NSW data centre facilities rose by ~ 4MW, to over 36MW.

Contracted customer commitments along with expansion options at its NSW data centres are approaching 60MW.

After these new customer commitments, NXT has committed to completing the S2 fit-out to a total planned capacity of 30MW.

During May 2020, the Company informed that the contracted commitments at its Victorian data centre facilities also received a boost.

Ansell Limited (ASX:ANN)

Ansell Limited, a global leader in providing superior health and safety protection solutions, on 17 June 2020 updated that the scheduled CEO succession of the Company has been delayed by six months from July 2021 to December 2021.

As a global safety solutions leader with a diversified portfolio, Ansell is presently placed on the front line to combat COVID-19. ANN saw a continued increase in the demand for a range of its products. These were being used by a multitude of essential service workers such as healthcare providers & emergency responders, as well aa global industries where additional protection was needed to prevent the spread of the virus. Hence, the Company is operational non-stop to optimise and expand its manufacturing, as well as distribution capacities. Meanwhile, it is also ensuring the protection of its staff members.

Do Read: 6 Stocks that Weathered the COVID-19 Storm - ANN, KGN, XRO, RMD, MIN, FMG

Telstra Corporation Limited (ASX:TLS)

Telecommunication carrier Telstra Corporation Limited made significant progress in the 5G rollout during the past couple of months. Few achievements in the past two months are as follows:

  • 5G Coverage expansion into more of Tasmania and Melbourne in May 2020.
  • By the end of May, TLS rolled out ahead of schedule, with 47 cities and regional towns in Australia switching on 5G coverage.
  • Further, in June 2020, 5G Coverage expansion was noted into more of Greater Brisbane.
  • Townsville stepped into a 5G future in June 2020.
  • Additionally, on 24 June 2020, TLS released an announcement wherein, it updated on the changes observed in the way Aussies used the fixed and mobile network, as more and more people have had been working and studying from home during COVID-19 period.

Do Read: When Banks’ Dividends Are Under the Knife, Are Players Like Telstra Emerging as Winner?

Boral Limited (ASX:BLD)

Boral Limited, engaged in the manufacture and supply of building and construction materials recently, on 15 June 2020 announced the appointment of Zlatko Todorcevsk as the CEO of the Company, effective 1 July 2020. BLD also made changes to its executive team during May 2020.

Recently, the Company was under limelight because of the litigation between Wagners Holding Company Limited and Boral.

Other than these, on 9 June Boral notified that it has formed a five-year partnership with the University of Technology Sydney to fasten the product innovation and the research, development, and commercialisation of low carbon concrete.

The collaboration has developed into formation of the UTS Boral Centre for Sustainable Building at UTS Tech Lab. Thus, bringing together to research and innovate sustainable building technologies. 

The alliance intends to quickly advance Australia's shift to a low carbon economy, using practical ways providing incremental & transformational actions to low carbon building & construction.

Stock Information:

By the end of the trading session, on 2 July 2020, performance of the six stocks discussed above, were as follows:

 


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