Day: September 26, 2021

Regional Express (ASX:REX) share price takes flight despite extended stand-downs

a group of four young boys run along a beach at sunset with the one in front holding aloft a toy aeroplane that is zooming through the air.

To the surprise of some, the Regional Express Holdings Ltd (ASX: REX) share price is surging higher on Monday. This is despite the regional airline announcing further extensions to suspensions of services and staff stand-downs.

At the time of writing, shares in the domestic airline are fetching $1.47, up 5% for the day.

Further delays not hitting the Regional Express share price

Regardless of the company’s latest announcement, investors are bidding up the Regional Express share price today.

Certainly, the company is not alone in the optimistic exuberance on display during the session on Monday. Indeed, much of the ASX travel sector is buoyed with growth to kick off the new week.

It appears not even the company’s latest announcement can dampen investor sentiment. According to its release, Regional Express has been left with no other option but to extend its suspension of domestic services and reduction of regional services. As a result, staff stand-downs will also need to be extended.

This marks the company’s second such extension. Originally, the airline expected the measures to be in place until 12 September. However, due to lockdowns across Greater Sydney, on 1 September this was extended to 10 October 2021.

Unfortunately, the lingering of lockdowns across multiple states means the airline has now had to push these suspensions out until at least 31 October 2021. This date aligns with when Regional Express expects all of its customer-facing staff to be fully vaccinated against COVID-19.

Light at the end of the tunnel

In lieu of these setbacks, onlookers might be scratching their heads as to why the Regional Express share price is pushing higher today.

It seems positive reopening commentary from government officials has boosted travel shares. NSW Premier Gladys Berejiklian has released her plans to open up the state after achieving an 80% vaccination level.

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The news has sent numerous ASX-listed travel shares flying higher at the start of the week. These include Flight Centre Travel Group Ltd (ASX: FLT), Qantas Airways Ltd (ASX: QAN), and Corporate Travel Management Ltd (ASX: CTD)

The post Regional Express (ASX:REX) share price takes flight despite extended stand-downs appeared first on The Motley Fool Australia.

Should you invest $1,000 in Regional Express right now?

Before you consider Regional Express, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Regional Express wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

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Motley Fool contributor Mitchell Lawler 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 owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. 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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Wesfarmers (ASX:WES) share price wobbles amid rival bid for API

Rival hands reaching upward for company trophy or prize.

The Wesfarmers Ltd (ASX: WES) share price is wobbling today amid news a rival bid has been placed for Australian Pharmaceutical Industries Ltd (ASX: API).

The fresh takeover offer comes only weeks after Wesfarmers upped its bid for 100% of API’s shares to $1.55 of cash per share, valuing the company at around $764 million.

This morning, Sigma Healthcare Ltd (ASX: SIG) posted a mostly-scrip bid for 100% of API shares. This offer has an implied value of $1.57 per share – indicating Sigma values API at approximately $773 million.

The Wesfarmers share price has spent most of the morning in the red after the news, but it has since regained ground. At the time of writing, the company’s shares have gained 0.16% to trade at $57.45 apiece.

Let’s take a closer look at the bidding war that’s erupted over the operator of Priceline.

Bidding war for API begins

The Wesfarmers share price has had a turbulent start to the week amid the emergence of a new competitor for API.

Wesfarmers and Sigma are now simultaneously undergoing due diligence to win the pharmaceutical company.

Sigma has put a higher bid to API’s board, albeit a mostly scrip one. Sigma’s proposal would see API’s shareholders walking away with 35 cents of cash and 2.05 Sigma shares per API share they hold at the time of the demerger.

As the Sigma share price finished Friday’s session trading at 59.5 cents, the implied value of Sigma’s merger offer is $1.57 per share.

Additionally, Sigma has found at least $45 million worth of annual synergies that could be realised if it merged with API.

At this stage, API’s board has determined that Sigma’s proposal is superior to Wesfarmers’ $1.55 per share takeover offer.

What’s on the table from Wesfarmers?

Wesfarmers’ bid of approximately $773 million was the retail giant’s second for API. API turned down Wesfarmers’ previous offer of $1.38 per share in July.

The Wesfarmers share price fell 0.2% after that knockback but gained 0.5% on the back of its most recent bid.

Further, Wesfarmers previously secured the vote of API’s major shareholder, Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), which holds 19.3% of API’s stock.

Now, Wesfarmers has a head start on due diligence for API. Its due diligence period expires on 16 October.

Wesfarmers share price snapshot

Those interested in the Wesfarmers share price will likely be watching the company closely in the coming weeks.

Shares in the company have gained 11% so far this year and are trading 26% higher than this time last year.

The post Wesfarmers (ASX:WES) share price wobbles amid rival bid for API appeared first on The Motley Fool Australia.

Should you invest $1,000 in Wesfarmers right now?

Before you consider Wesfarmers, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Wesfarmers wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

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Motley Fool contributor Brooke Cooper 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 owns shares of and has recommended Wesfarmers Limited. 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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The Andromeda (ASX:ADN) share price rises on bulk sample update

a woman holds a fine porcelain cup and saucer at chest level, raising the cup as though going to take a sip of tea.

The Andromeda Metals Ltd (ASX: ADN) share price is up 1.38% in afternoon trade on Monday to 14.7 cents.

This follows the company releasing a key update on its Great White kaolin deposit in South Australia.

Here’s what we know.

What did Andromeda announce?

Andromeda advised that a bulk sample collection program has commenced at its Great White deposit.

The deposit contains kaolin, a rock from which the clay-type mineral kaolinite is derived. Kaolinite has been used for centuries as the main ingredient in porcelain.

Large samples will be extracted from the “high-purity” area to “provide material for the natural nanotech’s prototype carbon and conversion pilot plant”.

The company’s update also notes that Andromeda’s Streaky Bay kaolin refining plant has been upgraded and “arranged to replicated the proposed Great White wet processing plant”.

A large amount of Andromeda’s “ultrabright, high purity Great White PRM (kaolin) product of over 90% ISO brightness” has already been produced at Streaky Bay, the company says.

Aside from this, two other revenue streams will be added to progress commercialisation of Andromeda’s product.

Firstly, high-grade halloysite-kaolin will be produced and used for the approval testing market for cosmetics labels.

“Tonne amounts” of the company’s Halloysite Rheology Modifier (HRM) concrete additive will also be extracted to build sales. HRM technology improves the handling and behaviour of concrete.

Andromeda has already sent a large amount of regional calcrete for testing to see how it performs in upgrading local roads and mining preparations.

It seems investors are welcoming the news, pushing the Andromeda share price higher on the day.

Andromeda Metals share price snapshot

The Andromeda share price has been swimming in a sea of red these past 12 months, posting a loss of 8%.

Indeed, the company’s shares are 48% in the red this year to date and have slipped a further 10% in the last month alone.

At the time of writing, Andromeda Metals has a market capitalisation of $357 million.

The post The Andromeda (ASX:ADN) share price rises on bulk sample update appeared first on The Motley Fool Australia.

Should you invest $1,000 in Andromeda Metals right now?

Before you consider Andromeda Metals, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Andromeda Metals wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

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The author Zach Bristow has no positions 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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Why AVZ, Flight Centre, Fortescue, & Sigma shares are storming higher

chart showing an increasing share price

The S&P/ASX 200 Index (ASX: XJO) has started the week on a positive note. In afternoon trade, the benchmark index is up 0.75% to 7,398.5 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are storming higher:

AVZ Minerals Ltd (ASX: AVZ)

The AVZ share price has jumped 11.5% to 35.7 cents. This morning the lithium developer announced a transaction implementation agreement with Suzhou CATH Energy Technologies (CATH). The agreement will see CATH pay US$240 million in cash for a 24% equity interest in a multi-faceted joint venture to develop the Manono Lithium and Tin Project. CATH will also contribute its pro rata portion of funding for the development of the project.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is up 7% to $21.22. Investors have been buying Flight Centre and other travel shares today. This appears to have been driven by a positive reaction to New South Wales’ roadmap out of lockdown. These plans could be a boost to travel markets.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price has risen 4% to $15.98. The catalyst for this was a rebound in the iron ore price on Friday night. According to Metal Bulletin, the spot benchmark iron ore price rose 2.4% to US$111.33 a tonne. Investors appear optimistic that this could mean the worst is over for the iron ore price.

Sigma Healthcare Ltd (ASX: SIG)

The Sigma share price is up 3% to 61 cents. Investors have been buying Sigma’s shares after it tabled a takeover offer for rival pharmacy chain operator and distributor Australian Pharmaceutical Industries Ltd (ASX: API). Sigma has offered $1.57 per share in cash and shares. This compares to a $1.55 per share offer from Wesfarmers Ltd (ASX: WES). The API board has granted Sigma due diligence to facilitate a binding offer. It believes the offer is more favourable to shareholders.

The post Why AVZ, Flight Centre, Fortescue, & Sigma shares are storming higher appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

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*Returns as of August 16th 2021

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Motley Fool contributor James Mickleboro 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 owns shares of and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. 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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