Key points

• ASX travel shares finished Wednesday in the green
• Prime Minister Scott Morrison has expressed optimism on international borders opening
• Citi analysts are optimistic about travel as COVID-19 Omicron cases peak

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ASX travel shares finished in positive territory today amid renewed optimism on international borders.

The Webjet Ltd (ASX: WEB) share price closed up 1.97% while Qantas Airways Limited (ASX: QAN) finished 2.65% higher. The Flight Centre Travel Group Ltd (ASX: FLT) also edged 1.44% into the green.

Let’s take a look at what may have lifted ASX travel shares today.

Renewed push on international borders

ASX 200 travel shares have been performing well since the market emerged from the Australia Day holiday. Since market open on January 27, Webjet is 12% higher, Qantas has gained 10% while Flight Centre is up 13%.

In a press conference in Sydney today, Prime Minister Scott Morrison expressed optimism the international border will open, Perth Now reported.

The key issue that I’ve tasked our health officials to advise me on in opening up the border to international arrivals is what impact that might have on the hospital system and the pressures that could come from additional people coming into the country at this time.

Morrison hailed the opening to backpackers and visa holders a success, the publication reported.

The comments follow Morrison telling radio on Friday the borders may “fully open” before Easter.

Other ASX travel shares seem to have been buoyed by the optimism today. Helloworld Travel Ltd (ASX: HLO) closed 1.27% in the green while Corporate Travel Management Ltd (ASX: CTD) was up 0.33% on the day

Earlier this week, Citi research analyst Samuel Seow found despite the COVID-19 Omicron scare, people continued to visit international travel sites in the past month. In comments reported in The Australian, he said:

Intentions to travel as measured by website visits remained relatively stable through the uncertain period. We expect this bodes well for travel as cases begin to peak.

Today, the Australian Tourism Export Council also backed calls for the international border to open. In a media release, managing director Peter Shelley said:

Opening our borders would bring in desperately needed workers, reconnect people with their families and provide a lifeline to our tourism industry which has copped a lot over the last two years.

In every way we have joined the rest of the world in taking on covid as part of our day to day lives and we now need to remove the last pretence of a barrier and accept that Australia has to re-engage with the global travel community by fully reopening or international borders. 

ASX travel share summary

In the past 12 months, ASX travel shares have found themselves back in positive territory.

Webjet is 3.17% higher, Qantas has gained 7.39% while Flight Centre’s share price has hiked almost 22% in the past year.

Over the same period, the S&P/ASX 200 Index (ASX: XJO) has gained around 4.85%.

The post Are ASX travel shares finally emerging from the COVID storm? appeared first on The Motley Fool Australia.

More reading

• Why has ASX travel share Flight Centre (ASX:FLT) lifted 10% in a week?
• Could the Webjet (ASX:WEB) share price be about to get a boost?
• Top broker says Corporate Travel Management (ASX:CTD) shares can rise 36%
• ASX 200 shares offer 12% upside after sell-off: JP Morgan
• What is green shorting and which ASX 200 shares are being targeted?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Helloworld Limited. The Motley Fool Australia owns and has recommended Helloworld Limited. The Motley Fool Australia has recommended Corporate Travel Management Limited, Flight Centre Travel Group Limited, and 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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The S&P/ASX 200 Index (ASX: XJO) is having a strong day. In afternoon trade, the benchmark index is up 1.2% to 7,092.3 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are sinking:

Amcor (ASX: AMC)

The Amcor share price is down 3.5% to $16.39. Investors have been selling the packaging company’s shares following the release of its half year results. For the six months ended 31 December, Amcor reported net sales of US$6,927 million and a net profit of US$548 million. The latter fell short of the market consensus estimate of US$554 million.

Ansell Limited (ASX: ANN)

The Ansell share price is down 2.5% to $26.00. Investors have been selling this health and safety products company’s shares this week after it downgraded its earnings guidance. Ansell now expects its earnings per share to be between 125 US cents to 145 US cents in FY 2022. This is down materially from its previous guidance of 175 US cents to 195 US cents. This downgrade was driven by softening demand and COVID-related operational challenges.

Block Inc (ASX: SQ2)

The Block share price is down 5.5% to $161.46. Investors have been selling this payments company’s shares after its rival PayPal fell materially short of the market’s expectations with its quarterly result. This led to the PayPal share price falling 18% in after hours trade on Wall Street. The US listed shares of Block were down 7% after hours.

Credit Corp Group Limited (ASX: CCP)

The Credit Corp share price is down almost 6% to $32.89. This appears to have been driven by a lukewarm response to the debt collector’s half year results from brokers. For example, while Morgans has put an add rating and $36.80 price target on its shares, it analysts note that Credit Corp’s first half profit fell short of its expectations.

The post Why Amcor, Ansell, Block, and Credit Corp shares are sinking today appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Amcor slides, BHP and Fortescue storm higher
• Amcor (ASX:AMC) share price falls despite reaffirming earnings guidance and US$200m buyback expansion
• Why did these tech shares lead the ASX 200 today?
• Ansell (ASX:ANN) share price falls again amid broker upgrade
• Afterpay takes a bow, officially uniting with Block (ASX:SQ2) shares on the ASX

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The S&P/ASX 200 Index (ASX: XJO) has continued to power ahead this Wednesday so far with another healthy gain. At the time of writing, the ASX 200 is up a robust 1.3% at 7,098 points, rising steadily for most of the day

So let’s dig a little deeper and check out the ASX 200 shares that are currently at the top of the ASX 200’s trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Wednesday

Telstra Corporation Ltd (ASX: TLS)

Telstra is the first ASX 200 share worth taking a look at today. This telco has seen a hefty 13.9 million of its shares bought and sold so far this Wednesday. This might have something to do with the announcement Telstra made this morning. As we covered earlier, the company has gazetted two new infrastructure programs, a satellite system and a new ‘dual’ fibre network. Amid this announcement, the Telstra share price has risen strongly today, currently up 1.4% to $4 a share. It’s this combination that has probably earned Telstra its place on this list today. 

Pilbara Minerals Ltd (ASX: PLS)

Lithium share Pilbara is next up this Wednesday. The ASX 200 resources company has had a sizeable 15.01 million of its shares swap hands thus far today. There’s not much in the way of news out of Pilbara today. However, the company has been the beneficiary of some broker love, as my Fool colleague James covered this morning. The Pilbara share price is also enjoying some pleasing gains today. It’s presently up a meaty 4.3% at $3.40 a share. It’s probably this combination that has helped Pilbara experience such high trading volumes.

BHP Group Ltd (AS:X BHP)

Our final and most traded ASX 200 share today is none other than the mining giant BHP. The Big Australian’ has had an impressive 17.08 million of its shares traded on the markets thus far this Wednesday. BHP shares have had a solid day on the ASX today, rising by 1.8% to $45.74 a share. However, it’s likely that BHP’s unification is also lending a hand to this trading volume. This week, BHP ended its London listing, which resulted in millions of LSX-listed shares being relocated to the ASX. This might be why we are finding BHP at the top of the volume tables today. 

The post These 3 ASX 200 shares are topping the volume charts on Wednesday appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy today
• Why Aussie Broadband, BrainChip, Talga, and Telstra shares are pushing higher
• Oil prices are at an 8-year high, so why isn’t the Woodside (ASX:WPL) share price?
• ASX 200 (ASX:XJO) midday update: Amcor slides, BHP and Fortescue storm higher
• Telstra (ASX:TLS) share price climbs on new $1.6 billion ‘nation-building’ projects

Motley Fool contributor Sebastian Bowen owns Telstra Corporation Limited. 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 and has recommended Telstra Corporation 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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Key points

• The Flight Centre share price has gained 10.56% in a week
• Flight Centre shares up 1.38% in today’s trade
• International border reopening hope is helping ASX travel shares

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The Flight Centre Travel Group Ltd (ASX: FLT) share price is flying high this week, taking off since Australia Day.

The travel company’s shares are up 10.56% since market close on 25 January. In today’s trade the Flight Centre share price is up 1.38%, swapping hands for $17.58 at the time of writing.

Let’s take a look at what could be impacting this ASX travel share.

What’s been happening at Flight Centre?

Flight Centre shares may be ascending, but they are not the only ASX travel share on the rise.

Since market close on 25 January, Qantas Airways Limited (ASX: QAN) shares have risen 7.83%. And the Webjet Limited (ASX: WEB) share price is soaring 8.84% in the same timeframe.

Meanwhile, Corporate Travel Management Ltd (ASX: CTD) has climbed 5.46%, and Helloworld Travel Ltd (ASX: HLO) has leapt 11.16% in that time.

Flight Centre and ASX travel shares appear to be on the rise on the back of positive news on the international border.

Prime Minister Scott Morrison provided hope international borders may be open before Easter. He made the comments during a visit to Cairns on Friday.

In an interview with 4CA, Mr Morrison said:

I look forward to international visitors more broadly, tourists coming back.

And that’s our next, that’s our next hurdle. And we’re working away to just get the timing of that right, and I don’t think it’s too far away.

… I’d like to see us get there soon, certainly before Easter, well before Easter.

Meanwhile, the Australian Tourism Export Council has weighed into the debate on borders today, stating international closures are “no longer a viable or sensible approach”.

Managing director Peter Shelley said:

Given every person arriving in Australia has to be fully vaccinated and tested, there simply is no greater health risk which would result from reopening our international borders – rather it would provide a huge relief to an already burdened and struggling tourism sector.

The hermit kingdom approach to protecting our borders is no longer viable and we need urgent clarity from the government on when we can welcome international visitors.

What’s the outlook for Flight Centre?

Citi has lowered its price target for the Flight Centre share price, News Corp reported yesterday.

Commenting on his outlook for Flight Centre shares, Citi vice president and analyst Sam Seow said:

Our cautiousness on Flight Centre increases as cash burn appears to have increased during this (Omicron) period and it appears to be getting closer to debt covenants.

Meanwhile, my Foolish colleague James recently reported Flight Centre is the most shorted share on the ASX.

Share price recap

The Flight Centre share price has surged 21% in the past 12 months but is down 0.23% year to date.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has gained nearly 5% in the past 52 weeks.

The company has a market capitalisation of about $3.5 billion based on the current share price.

The post Why has ASX travel share Flight Centre (ASX:FLT) lifted 10% in a week? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Are Virgin Australia shares set to rejoin the ASX soon?
• When will Flight Centre (ASX:FLT) pay a dividend again?
• The Flight Centre (ASX:FLT) share price just hit a 5-month low. Is now the time to buy?
• These are the 10 most shorted ASX shares

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Helloworld Limited. The Motley Fool Australia owns and has recommended Helloworld Limited. The Motley Fool Australia has recommended Corporate Travel Management Limited, Flight Centre Travel Group Limited, and 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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Key points

• The Webjet share price is still nearly 40% lower than it was before the pandemic began. That’s despite the broader market having arguably recovered
• However, light might have appeared at the end of the tunnel. The prime minister has seemingly flagged the end to many of Australia’s border restrictions
• International travellers from much of the world could be holidaying in Australia before Easter

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Australia’s COVID-19 response has been a flurry of movement lately, but many travel shares like Webjet Limited (ASX: WEB) are still caught up in border chaos.

Now, an industry body is calling for international border restrictions to end. Simultaneously, the prime minister has signalled the government’s intent to open up as soon as possible.

At the time of writing, the Webjet share price is $5.17. That’s 39% lower than it was at the end of January 2020, just weeks before Australia’s international borders slammed shut to travellers in the wake of the COVID-19 pandemic.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently 1% higher than its final close of January 2020.

Australia’s international borders could soon be back to normal

The Webjet share price could be in for a boost in the near future as prime minister Scott Morrison reportedly said he’s “cautiously optimistic” about allowing all travellers back into Australia.

According to reporting by the Guardian, the prime minister told a press conference today he’s called on health officials to provide advice on the impact that opening the nation’s borders could have on the hospital system.

It was only days ago Morrison commented that the government hopes to welcome all international visitors back “well before Easter”. He told Cairns radio station 4CA:

[W]e’re just watching how Omicron is sort of washing over the eastern states at the moment, but with Omicron peaking, that then starts opening up opportunities… we’ve already got those backpackers and students coming back and we’re seeing arrivals now back into the country, you know, going back up very, very quickly.

But tourism and health bodies are calling for a faster restart to tourism.

The Australian Tourism Export Council (ATEC) released a statement today saying Australia’s border restrictions are “no longer a viable or sensible approach”. It said their unnecessary closure is impacting the recovery of industries including tourism, hospitality, and farming.

The body is calling for the federal government to announce a reopening date. ATEC managing director Peter Shelley stated:

Given every person arriving in Australia has to be fully vaccinated and tested, there simply is no greater health risk which would result from reopening our international borders, rather it would provide a huge relief to an already burdened and struggling tourism sector.  

Meanwhile, the World Health Organisation recommended nations remove travel bans last week. It argues they “do not provide added value and continue to contribute to the economic and social stress” during Omicron outbreaks.

Webjet share price snapshot  

Right now, the Webjet share price is flat with its final close of 2021.

Though, it is 2.5% higher than it was this time last year.

The post Could the Webjet (ASX:WEB) share price be about to get a boost? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Is February 2022 the time to buy these 2 beaten-up ASX shares?
• Are Virgin Australia shares set to rejoin the ASX soon?
• What might the WA border closure mean for the Webjet (ASX:WEB) share price?
• These are the 10 most shorted ASX shares

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 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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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three ASX shares brokers have named as buys this week are listed below. Here’s why they are bullish on them:

ARB Corporation Limited (ASX: ARB)

According to a note out of Citi, its analysts have retained their buy rating and lifted their price target on this 4×4 parts manufacturer’s shares to $57.00. This follows the release of its first half trading update which outperformed Citi’s estimates. Looking ahead, the broker is positive on ARB’s medium term outlook. It notes that the company has significant medium-term growth drivers including its partnership with Ford, distribution gain opportunities in the US, and opportunities to expand in Europe. The ARB share price is trading at $46.86 this afternoon.

ELMO Software Ltd (ASX: ELO)

A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $7.80 price target on this HR technology company’s shares. This follows the release of a first half trading update which revealed a strong rebound in demand for its offering. In addition, the broker was pleased to see ELMO’s cash burn reduce and its recurring revenue guidance increased. The ELMO share price is fetching $4.19 today.

Pilbara Minerals Ltd (ASX: PLS)

Analysts at Macquarie have retained their outperform rating and $3.70 price target on this lithium miner’s shares. Pilbara Minerals fell short of Macquarie’s production expectations during the second quarter due largely to labour shortages. As a result, it suspects a guidance downgrade is coming with its half year results. However, this is only expected to be temporary. Furthermore, offsetting this bad news was higher lithium price expectations for the second half. The Pilbara Minerals share price is trading at $3.41 today.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares this Tuesday
• Leading brokers name 3 ASX shares to sell today
• Here’s why the Elmo (ASX:ELO) share price is surging 9% today
• ASX lithium shares in focus amid potential supply squeeze
• ARB Corporation (ASX:ARB) share price goes into overdrive, up 9% on revenue surge

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 and has recommended Elmo Software. The Motley Fool Australia owns and has recommended Elmo Software. The Motley Fool Australia has recommended ARB Corporation 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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Key points

• Almost every Australian has some awareness of crypto
• At least 25% of Aussies trust digital currencies 
• 40% expect to own crypto in the next 5 years

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2022 hasn’t been off to the greatest start for crypto investors.

The world’s top crypto by market cap, Bitcoin (CRYPTO: BTC) is down 20% since 1 January. The Bitcoin price currently stands at US$38,231 (AU$54,466).

Ethereum (CRYPTO: ETH) has been doing it even tougher. The Ethereum price is currently at US$2,685. That’s down 29% so far in 2022.

But according to a new survey commissioned by Australian cryptocurrency exchange CoinSpot, that’s unlikely to deter millions of Aussies from investing in crypto over the coming years.

What did the CoinSpot Crypto Awareness Survey reveal?

Among its key findings, the survey revealed that Australians’ awareness of crypto assets has hit 97%.

Along with increased awareness, “trust, ownership, risk appetite and legitimate investing for wealth building” all increased down under, with some strong growth witnessed among older cohorts.

While still a minority, 22% of respondents said they’d bought, sold, swapped or traded crypto over the last 4 years.

As for trust, 27% of Aussies said they trust crypto completely, “especially when it comes to navigating financial and economic concerns” and hedging against inflation. Adding to that, 42% said they think the risks of digital assets will decrease over time and that they’ll become more widely accepted.

The number of respondents saying they expect to own crypto in the next 5 years reached 43%. That figure has more than doubled since 2020, when only 20% had the same expectations.

Not just for fun anymore

Another big shift among respondents came around the question of whether they were investing for enjoyment, with 10% fewer saying this was the case than in June 2021. Since then, 8% more Aussie investors said they’re investing in crypto for business and 6% more are employing it for personal use.

Additionally, 55% said they invest with a long-term focus. And some 40% are “willing to accept moderate to high levels of financial risk” when investing in crypto.

Generation X joining in the crypto charge

Some of the biggest changes in responses since 2020 came from those belonging to Generation X.

Awareness of digital tokens (knowing a “fair bit” or a “little bit”) among this cohort increased from 34% in 2020 to 61% in the 2022 survey.

Trust among the Gen X group also increased markedly, up from 46% in 2020 to 61% today.

Commenting on the survey results, Tim Wilks, marketing executive at CoinSpot, said:

The younger generations will always be early adopters of tech, which we’ve seen in previous iterations of this report. From the data it appears as though we are reaching an inflection point in mainstream adoption when the historically more conservative/risk averse generations start to jump on board in larger numbers.

From institutional investors, private offices, corporates, to everyday Mums and Dads, the appeal and opportunity that exists with crypto is becoming better understood.

The post Aussie crypto investments tipped to soar in 2022: survey appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy today
• What we now know (and don’t know) about inflation and interest rates
• This ASX energy share is rocketing 71% so far this week. Here’s why
• Earlypay (ASX:EPY) share price leaps 9% as profits, dividends surge
• Here’s why the Altium (ASX:ALU) share price is ‘significantly undervalued’

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. 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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Key points

• Yesterday, the Reserve Bank of Australia (RBA) kept interest rates on hold
• The current cash rate of 0.10% is the lowest in history
• What could force the RBA to raise rates sooner than it is predicting?

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The talk of the ASX town so far this week has more or less centred on the Reserve Bank of Australia (RBA). Yesterday, the RBA met for its monthly consideration of monetary policy. As most investors expected, the RBA kept the official cash rate on hold at its historic low of 0.10%. However, it did announce the end of its quantitative easing (QE) bond buying programs that have been ongoing since the outbreak of the pandemic in 2020.

Yesterday’s meeting was a highly watched one for a number of reasons. Since the RBA last gathered in December, the global inflation outlook has shifted considerably. We’ve seen decades-high inflation over in the United States. And Australia’s own inflation numbers have recently come in at far higher rates than what the RBA was predicting only a few months ago.

For most of last year, the RBA was telling Australians not to expect any increases in interest rates until 2024. Given that inflation is now inching closer to the upper end of the RBA’s 2-3% target band, many investors were expecting the RBA to move the goalposts on this prediction.

RBA governor Lowe addresses the nation

As it happens, the Governor of the Reserve Bank, Dr Philip Lowe addressed the National Press Club today after yesterday’s meeting. His remarks shine a light on where the RBA’s thinking now stands. So let’s check out what we now know about interest rates, and what we still don’t know.

So Dr Lowe has brought forward the RBA’s expectations for when interest rates will rise. Lowe confirmed that the RBA is now pricing in a wages growth rate of 3% over 2023, which, going off some of his previous comments, would suggest that the RBA would raise rates in 2023, and not 2024 as previously flagged.

Even though underlying inflation is today at 2.6% (with CPI inflation at 3.5%), it seems the RBA is still waiting on the wage growth index to rise further. It’s currently at 2.25. Here’s some of what Lowe said on these matters today:

As I have said on previous occasions, the Board will not increase the cash rate until inflation is sustainably within the 2 to 3 per cent range… aggregate wages growth in Australia remains low and is at a rate that is unlikely to be consistent with inflation being sustained around the midpoint of the target range…

While inflation has picked up in Australia, it remains substantially lower than [other advanced economies] and it has not been accompanied by strong wages growth… These are important differences…

Based on the evidence we have, it is too early to conclude that inflation is sustainably in the target range… aggregate wages growth in Australia remains low and is at a rate that is unlikely to be consistent with inflation being sustained…

Inflation might be picking up, but don’t expect rates to follow (yet)

So it seems that the RBA is sticking to its guns for the most part, albeit with the implicit suggestion that we might see rate hikes in 2023 rather than 2024. But it all seems to rest on wages growth, rather than headline inflation. So keep an eye on that number if you want to attempt to predict what the RBA might do next.

But these things can change as fast as the weather, so keep that in mind as well. 

The post What we now know (and don’t know) about inflation and interest rates appeared first on The Motley Fool Australia.

More reading

• This ASX energy share is rocketing 71% so far this week. Here’s why
• Earlypay (ASX:EPY) share price leaps 9% as profits, dividends surge
• Here’s why the Altium (ASX:ALU) share price is ‘significantly undervalued’
• Sparc Technologies (ASX:SPN) share price slides 12% despite Fortescue buy in. What’s happening?
• Why Aussie Broadband, BrainChip, Talga, and Telstra shares are pushing higher

Motley Fool contributor Sebastian Bowen 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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Key points

• The FAR share price has jumped more than 70% in the last week
• The price movement comes amid a takeover offer from an investment company
• A decision on the takeover is pending

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The FAR Ltd (ASX: FAR) share price is having a stellar week, jumping by 71%.

The oil and gas company’s shares have been climbing since FAR received a takeover offer earlier this week.

At the time of writing, the FAR share price is up 16.5% today to 60 cents.

Let’s take a closer look at what’s going on with the ASX energy share.

FAR responds to takeover offer

Earlier this week, the energy explorer received a conditional takeover offer from Samuel Terry Asset Management (STAM), a Sydney-based investment management company.

STAM proposed to acquire all FAR shares, offering 45 cents cash per share, with conditions including a 50.01% acceptance level.

However, on the same day, FAR advised its shareholders to take no action as the offer was not yet open.

The company said the offer recognised its shares were undervalued given the company’s cash reserves and a potential $55 million payment from the sale of its interest in an oil project in the West African nation of Senegal.

FAR advised it has appointed legal advisors and said it would consider the offer and advise shareholders in due course.

FAR proud of strong cash position

Prior to the acquisition offer, FAR released its activities and cash flow report for the quarter ending 31 December 2021.

In it, the explorer revealed cash holdings of US$55.6 million and said it allowed the company to “consider its options for the future, not limited to its current portfolio of oil assets”.

FAR also reported its efforts to decrease costs. It estimated employment, administration, and corporate costs to be $820,000 for the upcoming quarter.

It paid 80 cents a share of capital return in late September. In October, the company announced the Australian Taxation Office had issued a class ruling that no part of the payment would be assessable as a dividend.

FAR share price snapshot

Over the last 6 months, the FAR share price has dropped by 45%. In the days leading up to its September business snapshot presentation, it dived 48%.

However, year to date, the company’s shares have gained almost 56%.

The company has a market capitalisation of almost $60 million with 99 million shares on offer.

The post This ASX energy share is rocketing 71% so far this week. Here’s why appeared first on The Motley Fool Australia.

More reading

• Earlypay (ASX:EPY) share price leaps 9% as profits, dividends surge
• Here’s why the Altium (ASX:ALU) share price is ‘significantly undervalued’
• Sparc Technologies (ASX:SPN) share price slides 12% despite Fortescue buy in. What’s happening?
• Why Aussie Broadband, BrainChip, Talga, and Telstra shares are pushing higher
• Here’s why the Dicker Data (ASX:DDR) share price is having such a great week

Motley Fool contributor Alice de Bruin 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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Key Points

• Earlypay shares rocket on back on record result for H1 FY22
• NPATA came in at $7.5 million, an increase of 110% over the prior comparable period
• Upgraded guidance for the FY22 full-year in the range of $13 million and $14 million

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The Earlypay Ltd (ASX: EPY) share price is in fine form today following a positive trading update from the company.

At the time of writing, the payment advance company’s shares are up 9.30% to 47 cents a pop.

Earlypay continues its growth story

Investors are snapping up Earlypay shares after the company reported a robust result for the first-half of FY22.

According to its release, Earlypay achieved Net Profit After Tax before amortisation (NPATA) of around $7.5 million. This represents an increase of 110% over the prior corresponding period and is well ahead of forecasts.

Earlypay attributed the strong result to its core Invoice Finance product which is offered to small and medium-sized enterprises clients.

Total transaction volume (TTV) for the 6 months stood at $1.2 billion, up 35% on this time last year. The Equipment Finance business also saw substantial improvement in new originations in recent months and returned to growth.

Earlypay noted that January which is normally impacted by holiday seasonality performed ahead of expectations. This was driven by organic growth in client numbers and continued high utilisation rate of Invoice Finance facilities.

Due to the solid performance of the first-half along with favourable trading conditions, Earlypay upgraded its FY22 NPATA guidance.

As such, the company is anticipating NPATA of between $13 million and $14 million, which is 60% higher than the result achieved in FY21.

The strong profit result is expected to materially increase the first-half FY22 dividend compared to pcp. Earlypay’s dividend payout ratio will remain at 60% of NPATA across the full year.

Management commentary

Earlypay CEO, Daniel Riley commented:

We are delighted to announce a record H1 FY22 result, which shows material growth in Invoice Finance. The stronger than expected earnings have been driven by record TTV, lower cost of debt and increased utilisation of proprietary technology to facilitate operating leverage for the business.

It is also pleasing to see the equipment finance book return to growth in recent months. Following the record first half and a notable pickup in SMEs looking for alternate funding, Earlypay has upgraded its FY22 NPATA Guidance from $13m+ to $14m+.

The company noted it will provide additional information in the release of its FY22 first-half results on 24 February.

Earlypay share price snapshot

It has been a solid 12 months for the Earlypay share price, rising by 23% over the period. Year to date, the company’s shares are almost 10% higher.

Based on valuation grounds, Earlypay commands a market capitalisation of around $132.29 million and has approximately 281.47 million shares outstanding.

The post Earlypay (ASX:EPY) share price leaps 9% as profits, dividends surge 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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