ASX 200 (XJO) up 0.7%, NSW COVID-19 cluster grows

The ASX 200 (ASX: XJO) is up another 0.7% this morning, it briefly went above the 6,000 point mark.

The New South Wales COVID-19 pub cluster continues to grow. The number from the first pub has increased to 13. The Picton Hotel has now also been closed after an infected person visited the premises.

Technology One (ASX: TNE) under attack from a shorter

According to the Australian Financial Review, GMT Research has issued another attack against another ASX share. It has previously attacked other Australian businesses like Treasury Wine Estates (ASX: TWE).

GMT Research claims that Technology One has used accounting tricks to pull forward revenue and profit, hiding a major slow down in the business.

The AFR reported that Nigel Stevenson from GMT Research said that the outfit had estimated FY19 profits were inflated by more than 20%.

One of the issues, according to GMT is that new accounting rules meant revenue should be recognised over a contract’s period rather than booking it upfront. GMT allege that Technology One changed contract renewal dates to get around this.

Credit Corp (ASX: CCP) share price flat

Credit Corp shares are now flat after initially being up a few percent this morning. The debt collector gave an FY20 update about its profit expectations for the year.

Credit Corp has announced that it expects to report net profit after tax (NPAT) between $10 million to $15 million after accounting for the impairment of its purchased debt ledger (PDL) assets and additional provisioning arising from the impact of the COVID-19 pandemic.

Net profit before these adjustments is expected to be in the range of $75 million to $80 million.

The company said that customers have been less prepared to agree and maintain longer term repayment plans. This initially produced a sharp decline in collections and rising loan book arrears. However, some customers have been willing to make one-off repayments which improved PDL collections back to pre-COVID levels.

Credit Corp expects persistently elevated levels of unemployment, which will impact Credit Corp’s credit-impaired customers more severely if they remain unemployed. This will cause PDL collections to fall while loan book arrears will rise.

Management expects to incur an impairment to reflect a 13.5% reduction in the carrying value of its existing PDL assets. Loan loss provisions are expected to increase from 19% of the gross loan book to 24%.

Drop in FUM for VGI Partners (ASX: VGI)

The fund manager announced that its FUM fell by $300 million from $3.2 billion at 31 March 2020 to $2.9 billion at 30 June 2020.

VGI Partners said that the reduction in FUM was almost entirely due to performance. That suggests that its FUM dropped by almost 10% over the quarter due to the difficult COVID-19 circumstances.

VGI Partners recognises performance fees as and when they become due and payable.

However, VGI Partners doesn’t expect to report any material performance fees for the six months to 30 June 2020. This period is its half-year report. As you’d expect from an investment fund, performance fee revenue will fluctuate significantly across different periods.

From 200+ ETFs in Australia, our top investment analyst has just identified his #1 ETF for 2021 and beyond.

Low fees? Check.

Long-term growth potential? Check.

Regular cash returns? Check!

This ETF makes investing in ETFs "Super-Easy".

Simply click here or enter your email address below to access the full ETF report, ticker code, and step-by-step investment guide. Our expert's #1 ETF report is completely free.

No gimmicks, no payment, no credit card info. Just enter your email address below and we'll send you the report right away.

From 200+ ETFs in Australia, our top investment analyst has just identified his #1 ETF for 2021 and beyond.

Low fees? Check.

Long-term growth potential? Check.

Regular cash returns? Check!

This ETF makes investing in ETFs "Super-Easy".

Simply click here to access the full ETF report, ticker code, and step-by-step investment guide. Our expert's #1 ETF report is completely free.

No gimmicks, no payment, no credit card info. Just click the link below and enter your email address. We'll send you the report right away.

CLICK HERE TO GET THE REPORT

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

At the time of publishing, Jaz does not have a financial or commercial interest in any of the companies mentioned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Keep reading:

General Financial Advice warning
The information on this website is general financial advice only. That means, the advice does not take into account your objectives, financial situation or needs. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. Please read our Terms & Conditions and Financial Services Guide before using this website.

© Rask Australia 2020

Join 20,000+ smart investors

Join the Rask Australia mailing and we’ll send you free investment reports, podcasts, expert insights, investing courses, ASX news and lots, lots more. All free. 

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian-owned.

feedback-icon

What can we do better?

Howdy, ASX investor.

I really care about your experience today.

Please, let me know if you have any suggestions we can use to improve our site and help others invest in ETFs. 

Cheers! 

Owen Rask