Category: Stock Market

The Flight Centre Travel Group Ltd (ASX: FLT) share price is currently up as international borders may reportedly open sooner than expected. That compares to the S&P/ASX 200 Index (ASX: XJO) which is currently down around 2.2%.

What’s happening with international borders?

It is being reported across the major media outlets, such as the Australian Financial Review, that Prime Minister Scott Morrison is going to announce that international travel is soon going to open up for fully vaccinated Aussies.

The reporting says that Australians will be able to leave Australia. People stuck in other countries will also be able to return easier.

However, this is only when the double vaccination rate of 80% has been reached. The international borders will lift on a state by state basis when that region reaches its own 80% level. NSW and ACT are expected to be the first two places to reach the required vaccination rate to allow international travel.

The plan is that the international border is going to be open before Christmas. Part of the plan could include arrivals going through home quarantine rather than hotel quarantine.

The Flight Centre share price is still down almost 40% from the pre-COVID level, so international travel may have its part to play in a recovery.

Not all state leaders have signed up to the international travel plan just yet.

The Guardian quoted Queensland Premier Ms Palaszczuk from her news conference, she said:

I’m not going to agree to anything when I haven’t seen any formal paperwork. It would be irresponsible and I think that Queenslanders would expect me to see some paperwork, to understand the issues before an announcement is made. So it’s a bit disappointing that we haven’t been given that due courtesy before National Cabinet.

What I’ve said clearly and Dr Young has said this and the Health Minister has said this. We need to be in a situation where every eligible person, so every eligible person in that cohort is offered a vaccine.

How is Flight Centre’s profit going?

There wasn’t a profit in FY21. It made an underlying loss of $507 million, with almost $4 billion of total transaction value (TTV).

However, it did say that the recovery is gaining momentum, particularly in the corporate sector and in the US. In its FY21 result, it said that it was seeing month-on-month sales revenue growth despite lockdown and heavy restrictions, ending with a COVID-period record in June 2021.

By the year end, corporate TTV was tracking at 40% of pre-COVID levels globally.

Flight Centre is targeting a return to monthly profitability in both corporate and leisure during FY22. The company is looking to the resumption of further global international travel, with a potential material benefit from the trans-Atlantic route opening.

Its profitability hopes rely on vaccination efficacy, governments reopening borders and keeping them open.

Is the Flight Centre share price a buy?

Citi isn’t sure that it is, with a neutral rating and a price target of $16.94. That suggests the broker thinks Flight Centre shares could fall around 20% over the next 12 months.

Whilst Citi is expecting Flight Centre to benefit from the travel recovery, it doesn’t think the old Flight Centre model will be as effective.

The post The Flight Centre (ASX:FLT) share price is in the green today. Here’s why appeared first on The Motley Fool Australia.

More reading

• Why the Webjet (ASX:WEB) share price is on the rise today
• ASX 200 (ASX:XJO) midday update: Gold miners jump, Pro Medicus wins contract
• These were the 5 best performing ASX 200 shares in September
• These were the 5 worst performing ASX 200 shares in September
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Tristan Harrison 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 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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The NIB Holdings Limited (ASX: NHF) share price is sliding today and currently trades 2.87% down at $6.77 apiece.

NIB shares are struggling in early trade after the insurance giant released its FY21 annual report before the market’s open.

The company had already released its FY21 earnings in August, however, a more detailed overview of FY21 operations is contained in NIB’s annual report.

NIB share price slides despite strong profit growth in FY21

It was a strong year for NIB’s operating performance, as it recognised growth across all measures of profitability in FY21.

Its premium revenue came in at $2.2 billion for the year, up almost 5% from FY20. This was backed by investment income growth of 212%, which contributed a healthy $51.8 million to its earnings.

Underlying operating profit gained almost 40% to $205 million, which carried through to an 85% year on year gain in net profit after tax (NPAT).

Another takeout from its annual report is that NIB generated a return of 7.9% on the capital it invested throughout the year. That’s a total of $19.1 million, and in line with the figure for FY19.

That’s important to know because it’s well above the $2 million annual interest expense NIB has on its debt.

With this momentum, the board was able to declare a 14 cents per share final dividend.

This brings the full year dividend for FY21 to 24 cents per share, with NIB paying out 68% of NPAT in dividends to shareholders.

Investors will realise this dividend into their brokerage accounts on 5 October, or participate in the dividend reinvestment plan (DRIP), if eligible.

Aside from this, NIB also remains committed to sustainability, by taking a number of steps to improve its ESG framework.

For instance, it has invested over $2.7 million in community funding, including “a $1 million NIB foundation investment towards chronic disease prevention”.

It also developed a Responsible Investment Policy that aims to improve how the company screens sustainability factors in its investment portfolio.

What’s next for NIB?

NIB has committed to becoming carbon neutral by the end of FY22, by reducing its overall carbon emissions.

It also sees continuing challenges over the next year, as the COVID-19 pandemic continues to mark uncertainty for the company.

As such, the company has revised its forecasts on its travel business, due to ongoing uncertainties on border restrictions.

Its set revenue forecasts are in line with external industry forecasts and federal budget expectations. NIB assumes a gradual recovery in travel volumes, with a “full return to pre-COVID levels in FY24”.

NIB shares have climbed 14% this year to date, and have edged almost 0.5% higher this past month.

The post NIB (ASX:NHF) share price struggles as despite big profits in FY21 appeared first on The Motley Fool Australia.

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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 recommended NIB Holdings 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 Li-S Energy Ltd (ASX: LIS) share price is tumbling again today despite no news having been released by the ASX newbie.

Li-S Energy floated on the ASX on Tuesday, gaining a massive 175% on the day of its initial public offering (IPO).

It gained another 3.85% on Wednesday before falling 14.8% yesterday.

The plunge is continuing into today’s session. At the time of writing, the Li-S Energy share price is $1.90, 8.21% lower than its previous close.

However, that’s still 123% higher than its prospectus’ offer price of 85 cents per share. That offer price saw Li-S Energy raise $34 million through its IPO.

Let’s take a closer look at the lithium-sulphur battery technology company’s first week on the ASX.

What’s up with the Li-S Energy share price?

Li-S Energy’s shares are in the red for the second day in a row despite the company’s silence.

Li-S Energy debuted on the ASX on Tuesday, delighting market watchers when its stock’s value soared to finish its first day’s trade at $2.34.

In fact, the company’s stock set its first, and so far only, record high of $3.05 in intraday trade on Tuesday.

However, the market might have since calmed down from its initial excitement. The Li-S Energy share price has tumbled on Thursday and Friday, though it’s still miles above its offer price.

Currently, Li-S Energy has a market capitalisation of around $1.2 billion. That’s impressive considering the company has anticipated it would float with a market capitalisation of around $544 million.

Oddly enough, the company from which Li-S Energy spawned – PPK Group Limited (ASX: PPK) – has been struggling on the ASX this week.

The PPK share price has been falling all week despite Li-S Energy’s successful float. PPK owns 45.4% of Li-S Energy’s stock.  

The PPK share price is currently 18% lower than it was at last Friday’s close.

The post Why is the Li-S Energy (ASX:LIS) share price sliding 9% today? appeared first on The Motley Fool Australia.

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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 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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The AGL Energy Limited (ASX: AGL) share price had yet another disappointing month, falling to a multi-decade low of $5.22. Investors have continued to dump the energy company’s shares leading to a 10% loss for September.

At the time of writing, AGL shares are adding more pain to shareholder portfolios, down 0.26% to $5.77 apiece.

What’s happening with AGL lately?

It’s been a relatively quiet couple of months for the company, with its last market-sensitive news being its full-year results.

However, a catalyst dragging down AGL shares might be tough conditions for the national electricity market along with unstable electricity prices.

The company previously noted that a sharp decline in wholesale prices for electricity and renewable energy certificates affected its financial performance.

AGL regards the energy market in the 2021 financial year as one of the most difficult on record.

In addition, the increased demand to decarbonise its operations has impacted Australia’s largest carbon emitter. Nonetheless, management plans to turn things around as AGL becomes a more agile business.

At its Annual General Meeting (AGM) last week, the majority of shareholders voted in favour of AGL setting emissions targets. This is in accordance with the Paris Agreement which sets out a global framework to avoid dangerous climate change.

Shareholders strongly opposed the AGL board’s recommendation to vote against adopting decarbonisation targets.

In other news, AGL plans to transform the Liddell coal-fired power station into a hydro and solar energy facility after Liddell’s shutdown in 2023.

Only time will tell if the AGL share price can recover to its pre-COVID highs of about $20.

About the AGL share price

In 2021, the AGL share price has continued to plummet in value, losing more than 50% for investors. Over the past 12 months, its shares are deeper in the red and down almost 58%.

On valuation grounds, AGL presides a market capitalisation of approximately $3.8 billion, with approximately 658 million shares on its books.

The post Why did the AGL share price have such a lousy month in September? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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 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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Motley Fool Australia Chief Investment Officer Scott Phillips joined Nine’s Late News on Thursday night to discuss the best day in 10 months on the ASX (but the first negative month in a year), plus the bounce in banking and resources, and Zip Co Ltd (ASX: Z1P) inking a deal with Microsoft Corporation (NASDAQ: MSFT).

The post The best day in 10 months, and Zip’s Microsoft deal. Scott Phillips on Nine’s Late News appeared first on The Motley Fool Australia.

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Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Scott Phillips has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Microsoft and ZIPCOLTD FPO. 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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The Santos Ltd (ASX: STO) share price is looking worse for wear on Friday, breaching the $7 mark. This follows reports that the oil and gas company’s largest shareholder launched a selling spree last night.

At the time of writing, shares in the $14.4 billion Australian energy company are fetching $6.87, down 4.2%. For context, the S&P/ASX 200 Index (ASX: XJO) is having a disastrous day, down 2.14%.

Let’s take a look at the latest Santos news.

Hefty selldown

The broader base of Santos shareholders appears to be following the lead of its largest investor on Friday. According to reports published by The Australian, private Chinese energy and investment company ENN Group initiated a substantial sale of shares last night.

Prior to this event, ENN held a 10% stake in Santos through its ‘United Faith Ventures’ investment vehicle, making it the company’s largest shareholder.

It is believed that investment bankers Morgan Stanley and UBS were called in to sell 60 million shares in a block trade on behalf of ENN. Although Santos closed at a price of $7.17, the deal was conducted between $6.70 and $6.75 per share. Additionally, bids were accepted in 1 cent increments.

All in all, the sale amounted to a total value of $403 million. Despite this large sale, ENN would still hold approximately 147.6 million shares based on documentation.

Interestingly, this is not the first time ENN has reduced its interest in Santos. Back in March, the shareholder waved goodbye to a third of its holding — with Santos shares commanding a $7.33 price at that time. This monumental selldown was worth around $785 million, with Morgan Stanley and UBS carrying out that transaction as well.

Analysts target on Santos share price

The large sale comes amid a bullish trend in the energy sector. As Europe and China grapple with turbulence in energy supply, prices for energy-bearing resources such as oil and gas are rising with authority.

As such, one analyst recently shared an optimistic perspective on the Santos share price, setting a price target of $8.55. This would indicate a potential 24% upside in the company’s value in the next 12 months (excluding dividends).

The post Santos (ASX:STO) share price sinks after investor sells $403m stake appeared first on The Motley Fool Australia.

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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 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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The S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a very disappointing note. In afternoon trade, the benchmark index is down 2.35% to 7,159 points.

Four ASX shares that are defying the market selloff are listed below. Here’s why these ASX shares are rising:

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is up 2.5% to $3.57. As well as getting a boost from a rising gold price, a positive announcement has given this gold miner’s shares a lift. That announcement reveals that its Cowal Gold Operation has been granted regulatory approval to develop an underground mine. The development will extend the operation’s permitted mine life to 2040. It is also expected to support production in excess of 350,000 ounces of gold per annum from Cowal.

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price is up 3.5% to $8.80. This appears to have been driven by a decent rise in the gold price overnight and increased demand for safe haven assets. According to CNBC, the spot gold price rose 2% on Thursday night to US$1,758.10 an ounce.

Weebit Nano Ltd (ASX: WBT)

The Weebit Nano share price has jumped 7% to $2.74. This follows the release of an update this morning. According to the release, together with its development partner CEA-Leti, Weebit Nano has demonstrated production-level parameters of its Resistive Random-Access Memory (ReRAM) technology in a 28 nanometre (nm) process.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price is up 3% to $3.32. Investors have been buying this coal miner’s shares after coal prices continued their ascent. According to CommSec, the spot thermal coal price rose 3.6% overnight to US$218 a tonne. Very strong seasonal demand in China is driving prices notably higher this week.

The post Why Evolution, Northern Star, Weebit Nano, & Whitehaven Coal are rising appeared first on The Motley Fool Australia.

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• Here’s why the Weebit Nano (ASX:WBT) share price is jumping 14% today
• Why the Evolution Mining (ASX:EVN) share price is charging higher today
• These were the 5 best performing ASX 200 shares in September
• Here’s why the Northern Star (ASX:NST) share price has lost 11% in 2 weeks

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The Webjet Limited (ASX: WEB) share price is currently up 0.8%, whilst the S&P/ASX 200 Index (ASX: XJO) is down by 1.7%. It is being reported that international travel is going to open sooner than originally expected.

What’s happening with international travel?

According to reporting by various news media, such as the Australian Financial Review, the Prime Minister Scott Morrison will announce that international borders are going to open earlier than expected. Perhaps as soon as next month.

It isn’t going to be a return to limitless international borders straight away, according to the reporting.

Vaccinated Australians will be able to leave the country. Aussies stuck overseas will also be able to return. But this is only when the double vaccinated rate of 80% has been reached.

The borders will be lifted on a state by state basis, once that state or territory reaches the required 80% rate. That means that places like the ACT and NSW are closer to potentially seeing international travel than other states.

The goal is that the international borders are going to open up before Christmas.

Over the last two years, the Webjet share price has seen a lot of volatility as COVID-19 impacts when and where travellers can go.

However, not every state leader is on board with the plan yet. According to the ABC, the Queensland Premier Ms Palaszczuk said:

It would be irresponsible and I think that Queenslanders would expect me to see some paperwork, to understand the issues before an announcement is made. So it’s a bit disappointing that we haven’t been given that due courtesy before National Cabinet. We need to be in a situation where every eligible person, so every eligible person in that cohort is offered a vaccine.

What does this mean for the Webjet share price and profit?

COVID-19 has caused a lot damage to Webjet’s profit. In FY21 it saw a net loss after tax of $156.6 million, which was even worse than the $143.6 million loss in FY20. FY21’s underlying loss was $88.8 million, which excludes some non-operating expenses.

Webjet says that there is strong pent-up demand for travel, particularly leisure travel and all its businesses are well positioned to capture it. The company has been focused on transforming all of its businesses to be ready to capitalise when global travel returns.

Management say that all businesses are highly leveraged to domestic and international leisure markets. Webjet also says that the structural shift from offline to online continues to accelerate with all businesses positioned to capture demand.

The company is aiming to become the number one global business to business provider. It says it’s on track to reduce costs by at least 20% once the company gets back to scale.

It has seen “strong demand” as travel restrictions ease in North America and Europe, suggesting “significant upside” as more international markets reopen.

Is the Webjet share price worth looking at?

Webjet is currently rated as a buy by the broker UBS, with a price target of $6.85. The broker notes that Australia’s vaccinated rate is rising, which is helping the prospects for the ASX travel share sector.

The post Why the Webjet (ASX:WEB) share price is on the rise today appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Gold miners jump, Pro Medicus wins contract
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Motley Fool contributor Tristan Harrison 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 Webjet Ltd. 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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At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a very disappointing note. The benchmark index is currently down 2% to 7,184.5 points.

Here’s what is happening on the ASX 200 today:

Gold miners charge higher

One area of the market that is rising today is the gold sector. Thanks to a solid rise in the gold price overnight, gold miners including Ramelius Resources Limited (ASX: RMS) and St Barbara Ltd (ASX: SBM) are charging higher. This has led to the S&P/ASX All Ordinaries Gold index rising 2% at lunch.

Evolution gets underground mine approval

The Evolution Mining Ltd (ASX: EVN) share price is pushing higher thanks to the aforementioned gold price rise and the release of a positive announcement. The latter reveals that the company’s Cowal Gold Operation has been granted regulatory approval to develop an underground mine. The development will extend the operation’s permitted mine life to 2040 and is part of the company’s plan to safely and reliably produce in excess of 350,000 ounces of gold per annum from Cowal.

Pro Medicus shares lower despite contract win

The Pro Medicus Limited (ASX: PME) share price is trading lower despite announcing a major contract win. That announcement reveals that it has signed its equal-largest contract to date with leading US healthcare provider, Novant Health. The deal is worth $40 million over seven years and will see Pro Medicus’ Visage products implemented throughout Novant Health.

The best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the Silver Lake Resources Limited (ASX: SLR) share price with a 4% gain. This follows a rise in the gold price overnight. The worst performer on the ASX 200 has been the Virgin Money UK (ASX: VUK) share price with a 5.5% decline. This follows an update on its digital strategy after the market close on Thursday.

The post ASX 200 (ASX:XJO) midday update: Gold miners jump, Pro Medicus wins contract appeared first on The Motley Fool Australia.

More reading

• Why the Webjet (ASX:WEB) share price is on the rise today
• Why the Evolution Mining (ASX:EVN) share price is charging higher today
• Pro Medicus (ASX:PME) share price dips despite positive update
• These were the 5 best performing ASX 200 shares in September
• These were the 5 worst performing ASX 200 shares in September

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. owns shares of and has recommended Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. 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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It’s been a wild ride for the S&P/ASX 200 Index (ASX: XJO) and ASX shares recently.

The index has lost more than 2.8% in the past month, but on Thursday it had a massive gain of almost 1.6%.

Where is the market going? Nobody knows.

If you’re bewildered about what to do next, some expert opinions might get you started.

This week 2 experts picked out 2 ASX shares each that they thought were ripe for buying right now.

Judge for yourself whether these 4 suggestions tempt you:

Special dividends and buybacks on the cards for Telstra

Ord Minnett senior investment adviser Tony Paterno is high on Australia’s largest telco, Telstra Corporation Ltd (ASX: TLS).

“Management is targeting mid single-digit growth in underlying operating earnings to fiscal year 2025,” he told TheBull.com.au.

“It expects increasing earnings to be driven by mobile service revenue growth, improving consumer and small business fixed margins and further cost reductions.”

Telstra shares have already gained more than 30% this year. But Paterno is excited about more returns forthcoming to shareholders.

“Expect fully franked dividends to remain at a minimum of 16 cents a share,” he said.

“Telstra plans to return any excess cash flow to shareholders – in the absence of merger and acquisition opportunities – via an unfranked special dividend, or further on-market share buybacks.”

Aussie Aussie Aussie…

Telstra’s considerably smaller rival, Aussie Broadband Ltd (ASX: ABB), is the other ASX share on Paterno’s current hit list.

The internet service provider’s stock price has risen a stunning 141% this year.

Paterno explained that management has taken advantage, recently raising $114 million through institutional investors and currently conducting a share purchase plan for retail shareholders.

“The war chest of capital is intended to fund one or more acquisitions and to accelerate the company’s ambitions in the business market,” he said.

“The company has signed a 10-year fibre capacity swap agreement with VicTrack in Victoria. VicTrack’s fibre network will provide ABB with a shortcut to a wider distribution footprint in regional Victoria without deploying incremental capital.”

Both a COVID beneficiary and post-pandemic growth contender

One of Spotee.com.au chief executive Chris Batchelor’s tips is education technology provider Janison Education Group Ltd (ASX: JAN).

“It provides online assessments and e-learning solutions,” he said.

“It recently acquired the global rights to 2 exams administered by schools to provide standardised testing across school-aged students.”

Janison shares have had a nice run, increasing 146% over the past 12 months to leave it with a market capitalisation of $230 million.

But Batchelor is optimistic there’s more to come.

“In our view, Janison is poised to generate significant growth in the years ahead. It also benefits from the pandemic, as education providers require technology-based solutions.”

How about an ASX share that’ll give you 33% of your money back 

Security services and technology provider Ava Risk Group Ltd (ASX: AVA) was Batchelor’s other buy recommendation.

“The company announced the sale of its services business and a capital return to shareholders of 16 cents a share.”

Based on the share price of 48 cents after market close on Thursday, that’s a 33% return for these ASX shares.

Batchelor disclosed that he personally owns Ava Risk stock.

“The existing technology business was recently trading on an undemanding price-earnings multiple of about 11 times,” he said.

“Revenue and other income grew significantly in fiscal year 2021, despite the pandemic. The company’s valuation multiples look attractive.”

The post 4 ASX shares looking ripe for the picking now appeared first on The Motley Fool Australia.

More reading

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• This analyst rates the Telstra (ASX:TLS) share price a buy

Motley Fool contributor Tony Yoo owns shares of Aussie Broadband Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Aussie Broadband Limited and Janison Education Group Limited. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended Aussie Broadband Limited and Janison Education 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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