Australia's S&P/ASX 200 (Index: ^AXJO)(ASX: XJO) and ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) indices finished lower on Friday.

Here's a short recap of the Australian market:

• S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) lower 0.36% to 5,774.60
• ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) lower 0.33% to 5,834.80
• AUD/USD at US 72 cents
• Gold at US$1,296.85 an ounce
• Brent Oil at US$61.52 a barrel

The best-performing ASX 200 share today was Treasury Wine Estates Ltd (ASX: TWE). The wine business released a market guidance update late yesterday afternoon which reassured investors.

Shares of horticultural business Costa Group Holdings Ltd (ASX: CGC) recovered 2.9% today, although it is still down significantly after yesterday's profit downgrade.

Gold business Regis Resources Limited (ASX: RRL) fell 4.25%, making it the worst performer in the ASX 200.

Major bank Westpac Banking Corp (ASX: WBC) ended the day down 0.9%, but it is still up over the week.

The Healius Ltd (ASX: HLS) share price rose by 3% today. The healthcare company officially knocked back a takeover bid recently, but it may soon receive another one.

Lithium business Galaxy Resources Limited (ASX: GXY) shares registered a fall of 3.5% today.

iCar Asia Ltd (ASX: ICQ) shares ended the day up 27% after giving the market a pleasing update earlier in the day.

Finally, the Gale Pacific Limited (ASX: GAP) share price dropped 7.3% today after issuing a disappointing profit guidance update.

Here are some of today's top stories:

• Insiders have been buying Aristocrat Leisure shares: Should you invest?
• Why the Alacer Gold share price is climbing today
• 3 ASX shares rated as strong buys by brokers

Westpac may be one of the biggest companies in Australia, but I don't think it offers us the biggest opportunity – I believe there are ASX shares that could grow profit much faster over the next few years.

The post ALL ORDINARIES finishes lower Friday: 8 shares you missed appeared first on The Motley Fool Australia.

GALE Pacific Limited (ASX:GAP) disappointed investors this morning with pre-tax profit guidance in the range of $1.25 – $1.35 million for the second half of the 2018 calendar year. The GALE Pacific share price has fallen 7.4% to $0.32 at the time of writing.

It's no surprise that the market reacted negatively to the news, with the upper bound of this guidance range representing a 22% decline from the previous corresponding period. In its announcement, GALE Pacific primarily attributed the result to lower-than-expected sales from Australian operations during November and December. Cooler weather conditions, it said, were partially to blame.

Despite the dismal result, GALE Pacific remains positive on its FY19 outlook, anticipating continued strong growth in the Americas region driven by key retail partners such as Home Depot and Lowes. The company still believes it will be able to deliver earnings per share growth for FY19, a goal which will be made easier by an on-market share buyback program.

GALE Pacific is a global marketer and manufacturer of screening and shading products. It has vision to become a fabrics technology business while expanding further outside of Australia, particularly into the US. It has a market capitalisation of approximately $90 million.

The company plans to release its financial report for the second half of calendar 2018 on or around 15th February.

The post GALE Pacific share price drops on dismal earnings guidance appeared first on The Motley Fool Australia.

These two small cap stocks look to be quality, fast-growing businesses in my opinion.

If they're not already on your watch list, they should be in my opinion.

Explaurum Ltd (ASX: EXU)

Shares in gold and base metal explorer Explaurum Ltd seem to be tracking upwards after a late 2017 downtrend in price and some pretty flat months in between.

Explaurum's flagship operation is the Tampia Gold Project in Western Australia and work is progressing rapidly at the mine with a feasibility study due this month.

Explaurum's shares closed up 3.8% on April 11 at 13c per share – well up from its 52-week low of 0.08c with good news expected out of Tampia likely to see some solid trading volumes over the next few weeks.

Explaurum made considerable operational progress in the 6 months to December 31, 2017, with a capital raising of $4.5 million by domestic and international investors over this time through the issue of 42.9 million shares at an issue price of 10c per share.

One to watch this month as Tampia's future becomes more obvious.

Gale Pacific Ltd (ASX: GAP)

Marketer and manufacturer of branded screening and shading products, Gale Pacific Ltd, is making a name for itself globally, with operations in Australia, New Zealand, the USA, Middle East and China in both the domestic and commercial sector.

Gale Pacific shares have been stalled for the past 12-months, with its April 11 closing price of 40c per share not far from its 41c per share price at this time last year.

A recent guidance update out of the company could improve the sentiment of investors, with its global push likely to underpin a strong second half after the company reported a $1.7 million first-half profit – in line with expectations.

Gale Pacific opened a new warehouse in California late last year, which should complement its growth strategy across the US, and any success in this market should mean great things for its bottom line.

If Gale can make a go of its overseas operations to drive its growth its balance sheet should start to look pretty strong in the medium term.

But making gains from speculative stocks isn't all about luck….

The post Gale Pacific Ltd & Explaurum Ltd: 2 small-cap stocks on my watch list appeared first on The Motley Fool Australia.

On a day when the All Ordinaries (Index: ^AORD) (ASX: XAO) gained 1.4% on the back of the RBA cutting interest rates, several stocks clearly weren't investors favourites and were heavily sold off.

Here's our view of five of them…

Gale Pacific Limited (ASX: GAP) dropped 13.2% to 16.5 cents and has now lost 23% since the start of this year. The maker of fabric shade sails still appears to be feeling the effects of its profit downgrade last week. Gale said it expects underlying first half net profit to be around $1 million – compared to $3.5 million in the previous year, but expects to report a strong second half.

Salmat Limited (ASX: SLM) sank 10.7% to $1.42. The provider of junk mail catalogues has seen its share price rise 15% since the start of this year, but down 32% over the past 12 months. That's despite the company forecasting revenue growth of between 12 and 15% and earnings in the range of $17 to $21 million this financial year, although the first half will be much poorer than the second.

Education provider Navitas Limited (ASX: NVT) fell 9.5% to close at $4.75, after announcing a 13% fall in first-half net profit, despite revenues growing by 14%. CEO Rod Jones says the company is on track to meet guidance of earnings before interest, tax, depreciation and amortisation (EBITDA) of between $162 and $172 million – a substantial increase from last year's $144.9 million. Clearly investors were disappointed and had expected more.

Admedus Ltd (ASX: AHZ) lost 8.7% to end at 10.5 cents, and is down 31% over the past 12 months. The small biotech stock continues to grow revenues selling its CardioCel product, a small medical patch used to repair holes and other heart defects in patients. In the December quarter, sales rose 23% over the previous year to $2.5 million, as more centres use CardioCel, but the company is yet to generate positive operating cash flow.

Maverick Drilling and Exploration Ltd (ASX: MAD) fell 6.3% to 15 cents and is back to where the price started the year. The oil producer and explorer, focused on the US shale regions, recently announced that it was going to lower its drilling plans in the face of lower oil prices. But the key question is what Maverick is going to do with its US$500 million debt facility. Clearly, acquisitions are on the cards.

The post 5 stocks crashing on the ASX today appeared first on The Motley Fool Australia.

Gale Pacific Limited (ASX: GAP) is currently paying a dividend yield of more than 10%, partly franked, and trading on a P/E ratio of less than 10, so why is the market missing the company?

For a start, with a market cap of just $74.4 million, Gale Pacific is too small for most fund managers. Shares are fairly illiquid too, with an average of around $30,000 worth of shares trading each day, over the past 3 months.

And then you also need to consider that the 2014 financial year's reported net profit of $8.2 million was lower than the previous year by 9%, despite revenues rising 14% to $137.3 million.

Doesn't look too tempting then does it? Well, a number of things are likely to see revenues and profit higher next financial year, which could see earnings per share and dividends increase.

Gale manufactures and sells screening and shading products, most notably its Coolaroo brand of umbrellas and shade cloth, which is sold through retailers like Bunnings and Masters, owned respectively by Wesfarmers Ltd (ASX: WES) and Woolworths Limited (ASX: WOW).

In fact, 58% of the group's sales comes from Australia, but David Allman, the company's chairman described this year's Australian result as 'unacceptable'. Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 73% to $1.7 million, driven in part by higher input costs, a problematic IT system implementation and poor service levels.

Offsetting the poor Australian performance were strong growth in overseas markets. US sales jumped 27%, while Middle East sales rose 14% and China sales were up 9%. Gale Pacific says it expects strong growth in its offshore markets should continue.

A restructure, which will result in a $2.5 million one off cost in the 2015 financial year, and continued transformation of the Australian business should see the domestic business report a better result this financial year.

Gale Pacific has also recently diversified into window furnishings as well as pool fencing products, kitchen splashbacks, shower screens and balustrades, which should gain traction this year.

With a cheap price, whopping dividend and the potential for a much better result in 2015, Gale Pacific is one stock you might want to add to your watchlist.

What would Warren Buffett have made of Gale Pacific you might ask? Well in this new report, you can read some of the investing wisdom the legendary investor has freely shared with investors over half a century.

The post This 10% dividend stock is hard to ignore appeared first on The Motley Fool Australia.

As I noted in an article earlier today, the banks have been the go to place for self-managed super funds (SMSFs) and retail investors for high dividend yields in recent years.

But with their share prices crashing through all-time highs on a regular basis, investors may want to consider three retail companies that can offer juicy fully-franked dividends. With the market – S&P/ASX 200 Index (Index; ^AXJO) (ASX: XJO) paying around 4.2%, investors could generate yields of more than 50% higher.

Myer Holdings Limited (ASX: MYR)

The department store retailer is paying a fully-franked dividend yield of 7.4%, according to Commsec, although dividends may fall this financial year, on the back of lower earnings per share. The retailer is also suffering from increased competition from a wave of international arrivals like ASOS, H&M, Zara and Topshop, not to mention a formidable competitor in David Jones Limited (ASX: DJS). If the company can continue to differentiate its offering, there may be value in this stock at current prices.

RCG Corporation Limited (ASX: RCG)

The owner of Athlete's Foot shoe stores and the exclusive rights to distribute several well-known fashion brands including Merrell, Saucony and CAT is paying a 6.1% dividend (franked to 75%). Earnings and dividends are expected to grow, and the stock could be a bargain at current prices.

Gale Pacific Ltd (ASX: GAP)

Currently paying a fully-franked dividend yield of over 10%, Gale Pacific has seen its share price crumble – down 22% over the past 12 months, as its largest division, Australasia, has failed to perform. The company, known for its Coolaroo shade sails, is forecasting a better second half, after implementing a number of changes to cut costs and improve performance in this division. That could even see dividends rise.

If none of these stocks tickle your fancy, how about two ASX stocks that investing legend Warren Buffett would appreciate.

The post 3 retailers paying juicy franked dividends appeared first on The Motley Fool Australia.

The dividend boom of 2013 saw the rise of the blue chip dividend-paying stocks such as the big banks, as investors favoured dividend yields over bank deposit rates. Of course, unlike bank deposits, share prices can go down, effectively wiping out income received as dividends. For that reason, it is understandable that investors choose companies they perceive as safe.

However, after a solid run it seems unlikely that dividend stocks like the banks will rise much more, as they are some of the most expensive in the world on most metrics. Here are seven high-yielding stocks that will pay a solid income stream and, in my view, will also see share price appreciation on the balance of probabilities.

The first stock on this list is hotel and flight booking website Wotif.com Holdings Limited (ASX: WTF). Wotif is trading on a trailing yield of 8.6% fully franked, although in FY 2013 it had a 96% payout ratio, so it could barely afford the dividend. The company is no longer growing, as intense competition from new websites such as Air Bnb and Skyscanner undermine its appeal. However, the company has extremely high brand recognition and even if revenues are in decline, I'm of the opinion that the decline will be a slow one. As a result, I believe the company has the ability to pay dividends in excess of 7% (at current prices) for many years to come.

The only mining services stock I've written about positively is NRW Holdings (ASX: NWH). You won't catch me buying mining related stocks, but I do think NRW Holdings is the baby thrown out with the bathwater. I suggested it was a buy at $1 and although it now trades at $1.34, it still has a fully franked dividend of 8.4%. Although profits are likely to decline, NRW should be able to get through the end of the mining boom because most of its projects are related to production, rather than Greenfield development. To minimise risk, potential investors should wait until some bad news is released and buy shares on a dip.

A far safer option for yield seekers would be Australian Leaders Fund (ASX: ALF). The fund is essentially a publicly traded hedge fund with a trailing yield of 7.1%. It trades at above net tangible assets, indicating that the market is willing to pay a premium for (expected) superior investment management. Personally, I like the fund because it is setting itself up to profit from the ageing population, but I don't invest in managed funds as a general rule.

One high-yielding company that investors are likely to know well is Oroton Group Limited (ASX: ORL). The company paid 50c in dividends in FY2013 and trades on a trailing yield of 9.1% at current prices. However, don't be caught out by this manoeuvre; this dividend represented an unsustainable payout ratio of 287% of underlying earnings. This state of affairs has been brought about by the loss of the Ralph Lauren brand in Australia. There is good reason to believe the company will grow earnings going forward, as it has just made investments in Gap and Brooks Brothers and expanded the Oroton brand to Hong Kong and China. However, the dividend is likely to be drastically cut. I've included Oroton in this list because it is attractive at current prices, but the company does demonstrate that investors should be wary about trailing dividend yields: it's the future that counts most.

My favourite company on this list boasts a more sustainable dividend, also over 9%. Gale Pacific Limited (ASX: GAP) manufactures and distributes shading materials and other home improvement products. Gale boasts a P/E ratio of under 10, brings in foreign revenue, has manageable debt, and, I believe, will continue to experience demand for its products. Low Return On Investment (ROI) businesses like Gale can easily lose money if they make poor acquisitions or take on too much debt. I'd call Gale a strong buy for the dividend at 25c or below, but even at current prices it boasts a partially franked dividend yield of 9.3%.

One way to secure a strong income stream is to buy a solid company when the market has turned against it. Such an opportunity has arisen with Metcash Limited (ASX: MTS), which yields 8% fully franked at current prices. Metcash is a distribution company that supplies independent supermarkets and liquor stores, competing directly with the well-known supermarket duopoly. Earnings went backwards in FY 2013, sending the share price tumbling; it cannot be denied that significant risks remain, as the introduction of new competitors such as Aldi has made the supermarket space increasingly competitive. I'm not willing to buy shares yet, but I believe the dividend would only be cut by a small amount, if at all.

Trading at a trailing P/E of just 5 and paying a fully franked dividend yield of 7.4%, toy company Funtastic Limited (ASX: FUN) certainly has its attractions. However, the company only turned itself around in FY 2012, having made a loss in the prior years. Significant dilution in recent years has hurt shareholders and one of the directors sold $150,000 worth of shares in January. Personally, I'd avoid this stock, but I have to admit the metrics look attractive.

Foolish takeaway

All the high-yielding stocks mentioned above are likely to pay strong dividends and will probably beat the market. Of these, I'd only consider buying Wotif or Gale Pacific, because I think there is a substantial chance of capital gains with these stocks. As a mater of principle I much prefer to buy shares in discounted companies with growing dividends. Such companies may yield less income today, but they are likely to outperform the high-yielding companies on the list above over the long term. It's often worth accepting a slightly lower yield, if the business is high quality.

The post 7 solid stocks yielding over 7% appeared first on The Motley Fool Australia.