The ASX tech share to rocket during lockdown

Expert reveals this stock is in his own superannuation portfolio, which looks set to take advantage of a COVID-induced lifestyle change.
The post The ASX tech share to rocket during lockdown appeared first on The Motley Fool Australia. –

As half of Australia continues to suffer from COVID-19 lockdowns, certain lifestyle habits come into play.

One trend, first seen last year during the first wave of the pandemic, is the increased usage of private cars.

Understandably, Australians are more averse to riding public transport when a deadly virus is spreading.

According to multiple experts, there is one particular ASX stock that is set to take advantage of this theme.

Expert reveals he owns this ASX share himself

Online loan provider Money3 Corporation Limited (ASX: MNY) specialises in financing for second-hand car purchases.

Shaw and Partners senior investment advisor Adam Dawes revealed he has the stock stashed in his own superannuation portfolio.

“It’s a really good business; it’s a really good technology business. I’m really comfortable with it,” he told Switzer TV Investing.

“I like recommending it to clients.”

Dawes liked that Money3 revised its financial forecast upwards a couple of months ago.

“They were looking for a net profit of about $36 million. They upgraded that to $38 million,” he said.

“They’ve had a couple of acquisitions that they’re bedding down at the moment which seem to be working on the right space.”

Money3 will rake it in while cars are going like hotcakes

Burman Invest chief investment officer Julia Lee agreed with Dawes that Money3 was heading in a positive direction.

“The outlook for cars is extremely strong,” she said.

“If you want to try to buy a new car there’s a long wait — and if you’re trying to buy a used car, the price has gone up substantially than what you would’ve paid 2 years ago.”

Lee added that Money3 has “a good team” running the ship.

Dawes also saw the consumer shift to private vehicles as a major tailwind.

“We know that the second-hand vehicle market has gone absolutely ridiculous because it takes 6 months to get a new car delivered,” he said.

“And people need cars straight away sometimes — and that’s why that second-hand car market has done so [well].”

Money3 started off as a bricks-and-mortar business and listed on the ASX in 2006. 

Its shares have risen almost 80% over the past 12 months, going for $3.10 on Tuesday afternoon. Money3 now has a market capitalisation of just under $650 million.

The post The ASX tech share to rocket during lockdown appeared first on The Motley Fool Australia.

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More reading

Here are the 5 best ASX fintech shares of the 2021 financial year

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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