Consumer confidence up on charts – 5 ASX Stocks to look at EML, APT, RIO, MTS, and HVN

Consumer confidence up on charts – 5 ASX Stocks to look at EML, APT, RIO, MTS, and HVN

Summary

  • The strong balance sheet ensures more room for making bets to support future growth and the resilient financial strength provide continuous support for future investment.
  • APT continuous to make headway, achieved a triumph by reaching more than 5 million active customers.
  • Metcash solidifies its balance sheet, concluded equity raising to strengthen the balance sheet and enhance liquidity.

The COVID-19 pandemic has induced tremendous volatility in the global stock markets. Some of the companies have started to decline towards their 52-week low levels. However, some companies have won confidence of investors and delivered a decent return in the past one month.

EML Payments Limited

EML Payments Limited (ASX: EML) is an issuer of pre-paid financial cards. The company recently updated the market with business conditions for the nine months ended 31st March 2020 (Unaudited) and reported Gross Debit Volume amounting to $9.83 billion with a rise of 55% over pcp. Revenue and EBITDA for the period stood at $87.1 million and $27.0 million, reflecting a rise of 20% and 24%, respectively. The company has a long-term strategy in order to generate revenue and earnings diversification via organic growth and strategic acquisitions.

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EML possesses a strong balance sheet to navigate any downturn in business and has a solid financial strength to continue to invest in growth and take advantage of opportunities.

The stock of EML closed the day’s trading session at $3.640 per share on 29th May 2020, a drop of 1.08% against its previous closing price. The stock of EML has provided shareholders with the returns of 52% and -18.22% within the time span of one month and six months, respectively.

Afterpay Limited

Afterpay Limited (ASX: APT) provides technology-driven payments solutions for consumers and businesses via its Afterpay and Pay Now services and businesses.

Changes in Board

The company recently announced some changes to the Board of APT and outlined the following:

  • APT appointed Elana Rubin as Independent Chair of the company and Elana Rubin will transition from Interim Chair to Chair of the Afterpay Board. As per the CEO, the ongoing stewardship and focus on good corporate governance of Elana would continue to deliver value to shareholders.
  • The company has also appointed Sharon Rothstein as an independent Non-Executive Director of APT, effective from 1st June 2020.

APT in another update stated that it has achieved a milestone by reaching over five million active shoppers in the U.S. who are using the service at Afterpay merchant partners, and APT has ~9million U.S. consumers who have joined the platform.

Do Read: The Record Levels for BNPL stock.

APT closed the day’s trading session at $47.41 per share on 29th May 2020, a rise of 2.8% against its previous closing price. The stock of APT has provided shareholders with the returns of 62% and 41% within the time span of one month and six months, respectively. 

Rio Tinto Limited

Rio Tinto Limited (ASX: RIO) is engaged in production of copper, gold, iron ore, coal and aluminium etc. The company recently completed its Annual General Meeting on 7th May 2020, wherein, Chief Executive Officer of the company stated that the company has pledged US$25 million investment into COVID-19 related community projects globally in order to support the effort to contain COVID-19.

 During FY19 (year of Strong financial performance), the company has delivered significant cash flow while maintaining balance sheet strength. The company has paid cash returns to shareholders to the tune of US$11.9 billion in the form of dividend (US$10.3 billion) and share buybacks (US$1.6 billion).

The stock of RIO closed the day’s trading session at $93 per share on 29th May 2020, marginally down by 0.24% against its previous closing price. The stock of RIO has provided shareholders with the returns of 9% and -3.86% in the time span of one month and six months, respectively.

Metcash Limited

Metcash Limited (ASX: MTS) is a wholesaler to independent retailers in grocery, food, hardware, liquor, and automotive industries. MTS recently announced that Commonwealth Bank of and its related bodies corporate has become an initial substantial holder in the company with the voting power of 0.63%.

The company has recently completed its share purchase plan and raised around $30 million and the SPP follows the $300 million institutional placement. The company is likely to use the proceeds from institutional placement to strengthen its balance sheet and improve liquidity.

The stock of MTS closed the day’s trading session at $2.70 per share on 29th May 2020, closing flat against its previous closing price. The stock of MTS has provided shareholders with the returns of 8.87% and –8.47% within the time span of one month and six months, respectively.

Harvey Norman Holdings Limited

Harvey Norman Holdings Limited’s (ASX: HVN) business activities include integrated retail, franchise, property and digital system. The company has decided not to pay FY20 interim dividend of 12 cents per share considering the ambiguity on the timespan of the COVID-19 pandemic as well as its possible impact on trading, and for abundance of precaution.

In addition, the management has agreed to waive off 20% of its salaries till June 2020.

During 1H FY20, Profit before tax amounted to $301.15 million, reflecting a decline of 4.6% from $315.68 million in the PCP. This decline was due to decrease in the net property revaluation increment.

The stock of HVN closed the day’s trading session at $3.260 per share on 29th May 2020, a fall of 3.26% against its previous closing price. The stock of HVN has provided shareholders with the returns of 21% and –22% within the time span of one month and six months, respectively.

 


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