Today marks 1 month since the S&P/ASX 200 Index (ASX: XJO) hit a coronavirus-induced low. Despite uncertainty around the spread of the virus, duration of lockdowns and the economic fall out, investors appear to be gaining confidence as the number of confirmed cases in Australia falls. Interestingly, this daily figure has roughly been dropping since the end of March, showing a level of correlation between the number of new confirmed cases and ASX returns.
Indeed, anyone who had the courage to invest in the ASX 200 at this bottom would have made a tidy return of 16%. The All Ordinaries (ASX: XAO) is just ahead at 16.8%. Not bad for a 1 month return!
However, there have been a number of standout companies far exceeding these returns. Here are 3 ASX shares that have posted gains of over 100% in the past month alone.
Pointsbet Holdings Ltd (ASX: PBH)
Pointsbet is Australia’s fastest-growing online bookmaker. As the coronavirus pandemic caused cancellations to many major sports, Pointsbet saw its share price tumble a massive 80% from its February high to trade at a low on 23 March of just $1.19.
However, 2 days later, the Pointsbet share price sharply turned, surging on the back of a positive announcement made in regard to receiving 2 new betting licences in the US.
Pointsbet shares continued to rise strongly throughout April, including a 6% jump today where they now trade for $3.59 at the time of writing. This represents a massive rise of around 200% in the last month.
While Pointsbet has not provided any recent guidance updates, investors appear confident in its financial position to ride out the storm. Pointsbet’s balance sheet held $147.9 million of corporate cash as of 31 December 2019. The company also has no borrowings and noted its flexibility to be able to adjust marketing spend given the developing circumstances.
Pointsbet is scheduled to release its Q3 FY20 quarterly activities report next week on Tuesday, 28 April.
Serko Ltd (ASX: SKO)
Serko is a computer software company which provides online corporate travel booking and expense management software.
The Serko share price fell sharply in March along with other ASX travel shares after it withdrew guidance due to the rapidly increasing uncertainty surrounding the coronavirus.
However, over the past month, Serko shares have rebounded strongly, increasing by nearly 175%. Serko shares stormed higher in early April after the company announced it saw no reason to take on any debt. Serko has a current cash balance of $42 million thanks to a capital raising completed late last year.
The company also noted that during the travel shutdown period, it plans to further strengthen its core technology and expects to be well-positioned for global growth when business travel resumes.
Credit Corp Group Limited (ASX: CCP)
Shares in the debt collector hit a multi-year low of just $6.01 on 23 March, falling 84% from its high in February. This came just after Credit Corp followed the lead of many companies at the time and withdrew its FY20 guidance.
Management advised at the time that the impacts arising from the spread of coronavirus include the potential for increased restrictions on Credit Corp’s workforce, as well as the prospect of customers having a reduced capacity to make repayments due to the deterioration in economic conditions.
However, since then, Credit Corp shares have risen an impressive 143%, a spectacular monthly gain for one of Australia’s largest 200 companies. And with no news out from the company, it appears investors have flooded back to buying after government stimulus packages were announced and the number of new coronavirus cases began to flatten and drop.
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Michael Tonon has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Pointsbet Holdings Ltd and Serko Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd and Serko 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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