Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

I’d buy these ASX growth shares in February 2021

I’ve got my eyes on some ASX growth shares that might be good buys during February 2021.

I like the idea of investing in businesses that can be long term holdings and have the potential to make pretty big returns. That’s why I like these two shares:

Redbubble Ltd (ASX: RBL)

Redbubble is one of the most promising ASX growth shares in my opinion. The e-commerce business has seen excellent growth over the past year as shoppers turn to online shops to make their purchases. That’s been really good news for artist-product website business Redbubble.

I think the e-commerce trend was always going to happen, it’s just been rapidly accelerated by COVID-19 and the related impacts.

There are some wonderful network effects that come with being a leading platform like Redbubble. Being large attracts lots of potential shoppers, which then encourages artists to make sure their products on the Redbubble website, which then attracts more shoppers..and so on.

Once a platform business has developed the system then quite a lot of the extra revenue can fall to the profit lines. That’s what is happening with Redbubble.

In the first quarter of FY21, Redbubble said its marketplace revenue soared 116% to $147.5 million. Gross profit grew even faster, rising by 149% to $64.5 million, that’s a big increase of the gross profit margin for the ASX growth share. It generated $22.1 million of EBIT (EBIT explained) in the first quarter, up from an EBIT loss of $1.5 million last year.

Operating cashflow shot up by 166% to $27.1 million, up from $10.2 million in the prior year. The e-commerce business finished with a closing cash balance of $85.4 million.

As long as Redbubble keeps investing in the customer experience, marketing and in other initiatives then I think Redbubble can become a much larger business over time.

Betashares Global Quality Leaders ETF (ASX: QLTY)

I like the idea of investing in companies that diversify away from Australian shares.

Australia only accounts for around 2% of the global share market, so there are plenty of other opportunities.

But where to invest? Europe? The US? Asia? It’s hard to know. The ASX already represents a lot of different shares, the investment universe is quite large. A good way to cover international shares could be to invest in an exchange-traded fund (ETF) which only invests in quality overseas businesses.

Betashares Global Quality Leaders ETF ticks the box for me. It only invests in businesses that rank well on return on equity (ROE), debt to capital, cash flow generation and earnings stability.

Overall, it has around 150 positions with names like Intel, Keyence, Johnson & Johnson, AIA, SAP, Alphabet, Texas Instruments, 3M, Cisco Systems and Nvidia.

The net returns, after the 0.35% annual management fee, have been solid since inception in November 2018 – with a performance of an average of 18.9% per year.

As well as the above growth ideas, I suggest getting a free Rask account and accessing our full stock reports. Click this link to join for free and access our analyst reports.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

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

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.

At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.
Skip to content