The Endeavour Group Limited (ASX: EDV) share price is soaring in late morning trade, up 8% to $6.50 per share.
This comes on the second day of trade for the liquor and hotels company and represents a welcome bounce back for shareholders following yesterday’s losses.
Shares opened yesterday at $6.50 per share and closed the day at $6.07 per share, a loss of 6.7%. With today’s 8% gains, the Endeavor share price is back where it started in listed life.
Remember, it takes a higher percentage gain to offset losses. A 50% share price loss, for example, requires shares to gain 100% to get back to even. A handy reminder on risk management.
Why did Endeavour list on the ASX?
The 332 hotels, 1,775 liquor licenced venues, 12,364 poker machines and 290 TABs and KENO outlets that Endeavour owns were, until a few days ago, mostly owned by Woolworths Group Ltd (ASX: WOW).
But Woolworth’s had been planning to demerge its 85.4% holdings in Endeavour since 2019. Then along came the global pandemic, and things were put on the backburner.
So, why did Woolworth’s decide to split away from its liquor and hotels business segment?
According to the company, it wanted to focus on its core grocery business, saying the split would maximise shareholder value over time. Woolworth’s shareholders received 1 Endeavour share for each share they owned in Woolies.
While the Endeavour share price is soaring today, Woolworth’s share price is sliding, down just over 2% to $36.94 per share.
The post The Endeavour (ASX:EDV) share price is shooting 8% higher today appeared first on The Motley Fool Australia.
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More reading
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- ASX 200 drops again, Westpac falls, Transurban down
- Endeavour Group (ASX:EDV) share price falls on ASX debut
- Why Catapult, Earlypay, Nuix, & Woolworths are tumbling lower
- ASX 200 down 0.25%: Woolworths sinks, Afterpay jumps, Westpac NZ update
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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