Between mid-February and late March, shares in SEEK Limited (ASX: SEK) fell by around 50% to $11.95. However, since then, SEEK has managed to regain most of this share price decline. The SEEK share price is currently trading at $19.29.

During the initial period of the coronavirus pandemic, investors became spooked due to the sharp fall-off in listing volumes. Billings were down by up to 60% during the week ending 29 March, across all regions.

However, lockdown restrictions are gradually easing across Australia and New Zealand. This is leading to increased investor confidence and rising ad volumes. Investors are becoming increasingly optimistic that the worst of the pandemic is now behind us.

Is the SEEK share price a buy right now?

Job ad volumes starting to rise

New job ads on SEEK are still down significantly on what they were during February and early March, before the full impact of the pandemic hit. However, there are early signs of job ad volume recovery. In SEEK’s latest employment monthly snapshot it revealed that new job ads posted on the Aussie employment platform during the fortnight ended 7 June, were up by a very sharp 60.6%. This represented a further increase on the previous three fortnights of 26.8%, 39.7% and 49.2% respectively.

The Australian market is bouncing back from the pandemic much faster than anticipated in late March. Australia and New Zealand have been two of the most successful countries globally in containing the coronavirus outbreak.

Sectors which are seeing strong growth over the past month in Australia include trades and services, healthcare and medical and hospitality and tourism. In addition, manufacturing, transport and logistics and education and training are all starting to see stronger demand.

July also looks promising. Job ad volumes have historically tended to ease off towards the end of the financial year (i.e. the end of June). July and August tend to then see an initial boost as hirers reaffirm their budgets.

Is the SEEK share price a buy?

Lockdown restrictions appear set to be further eased across Australia over the coming months. There also continues to be strong encouragement by the Australian Government for people to return to work. I think that it’s looking increasingly likely that employment ad volumes will continue to improve significantly over the next few months for SEEK. That is assuming there isn’t a second wave of the pandemic.

SEEK’s second biggest market, New Zealand, also looks set to follow a similar path towards recovery.

From a long-term perspective, I believe SEEK appears to be well positioned for continued growth in revenue and profitability. It has an entrenched and dominant position in its local Australian market and is also continuing to grow its international presence.

While SEEK’s share price has bounced back since late March, it is still well below the 12-month peak it saw in late January.

I therefore believe that the SEEK share price offers investors a reasonable buying opportunity right now.

In light of this, two other online classifieds ASX shares you might want to look are: Carsales.Com Ltd (ASX: CAR) and REA Group Limited (ASX: REA).

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Motley Fool contributor Phil Harpur owns shares of carsales.com Limited, REA Group Limited, and SEEK Limited. The Motley Fool Australia has recommended carsales.com Limited, REA Group Limited, and SEEK Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re on the lookout for dividend shares for your retirement portfolio, then I think the three listed below could be worth considering.

All three have qualities that I think are attractive for retirees in search of both growth and income. Here’s why I would buy them:

BWP Trust (ASX: BWP)

The first ASX dividend share that I think retirees ought to consider buying is BWP. It is a real estate investment trust with a focus on commercial properties. The majority of the company’s assets are large format retailing properties which are leased to Wesfarmers Ltd (ASX: WES) operated Bunnings Warehouse. I think this is a great tenant to have and the risk of rental defaults and store closures is low in comparison to other areas of the retail sector. In light of this, I believe BWP is well-positioned to continue growing its income and distribution at a solid and predictable rate for a long time to come. I estimate that BWP will pay investors an 18.5 cents per share distribution in FY 2021. This means that its shares currently offer a forward 4.9% distribution yield. I believe this is very attractive for income-focused investors in this low interest rate environment.

Goodman Group (ASX: GMG)

Another dividend share to consider buying is Goodman Group. It shares may not offer the biggest yield, but I believe the integrated commercial and industrial property group could still be a top option for retirees. I estimate that Goodman will pay a distribution of approximately 32 cents per share in FY 2021. This represents a modest forward yield of approximately 2.2% based on its current share price. However, given its exposure to the structural tailwinds of the ecommerce market, I believe this distribution could grow strongly over the next decade and drive solid total returns for investors.

More reading

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Ardent Leisure Group Ltd (ASX: ALG) share price is bouncing around today following news that the entertainment company has sold a stake in its Main Event business in the US.

Investors initially reacted positively to the news, sending Ardent shares flying 20.41% in early morning trade. However, it appears sentiment has turned, with the Ardent Leisure share price now trading 4.08% lower at the time of writing.

As its name suggests, Ardent is in the business of leisure and entertainment. It is the owner and operator of Gold Coast theme parks Dreamworld and WhiteWater World. And over in the US, Ardent owns a portfolio of family entertainment assets under the Main Event brand. Main Event offers activities like bowling, laser tag, and arcade games across 44 locations throughout North America.

Details of the transaction

This morning, Ardent revealed that US-based private investment firm, RedBird Capital Partners, will invest US$80 million to acquire a 24.2% interest in Main Event Entertainment.

The transaction values Main Event at an implied enterprise value (EV) of US$424 million and an EV/EBITDA multiple of 8x based on CY19 adjusted EBITDA.

As part of the transaction, RedBird has also been granted an option to acquire an additional 26.8% interest in Main Event at a future date. The option is exercisable between July 2022 and July 2024. Valuation will be based on normalised pro forma EBITDA at the time of exercising the option, subject to a minimum equity floor price.

According to Ardent, RedBird’s invested capital will be used exclusively to support Main Event. The funds provide Main Event with the financial support and flexibility to adapt to the current challenging macro environment. What’s more, the transaction provides Ardent with potential capital in the future in the event that the option is exercised.

The company noted there are no conditions to the transaction, nor shareholder approval. Therefore, the initial investment is expected to settle on 15 June 2020.

Along with the transaction news, Ardent revealed that Main Event has secured support from its lenders, including near-term covenant relief. It also stated that 28 of 44 Main Event centres have reopened following COVID-19 restrictions.

Management commentary

Commenting on the deal, Ardent chair Dr Gary Weiss said:

“We are excited by this new partnership with RedBird which not only reinforces Main Event’s financial strength and liquidity, but also provides a value-added strategic partner who can help drive the Company’s growth and expansion plans in the United States.”

Meanwhile, Gerry Cardinale, managing partner of RedBird, said, “we have witnessed firsthand Main Event’s growth as a leading brand in a resilient and fast growing family entertainment market. RedBird’s focus on building high-growth companies in sports and entertainment and expertise in delivering premier content to consumers will be highly complementary to the Main Event platform as it looks to expand throughout the country.”

More reading

• Leading fund manager names 4 ASX stocks set to benefit from a faster re-opening of the Australian economy

Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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