The National Australia Bank Ltd (ASX: NAB) share price will be one to watch closely on Tuesday.

This follows the release of the banking giant’s full year results this morning.

NAB share price on watch after profit surge in FY 2021

• Revenue down 2.4% to $16,729 million
• Cash earnings up 76.8% to $6,558 million
• Cash return on equity up 420 basis points to 10.7%
• CET1 ratio of 13%
• Fully franked final dividend per share of 67 cents (full year dividend up 90% to $1.27 per share)
• Credit impairment charge write-back of $217 million
• Collective provisions at 1.35% of credit risk weighted assets

What happened in FY 2021?

For the 12 months ended 30 September, NAB reported a 76.8% increase in cash earnings to $6,558 million. This was driven partly by a lack of notable items in FY 2021. Excluding notable items from the prior corresponding period, NAB’s cash earnings would have increased 38.6% over the 12 months.

A key driver of NAB’s growth was its Personal Banking segment, which reported a 14.4% increase in cash earnings to $1,650 million. Management advised that this reflects lower credit impairment charges and volume growth in home lending.

Also supporting NAB’s growth was its New Zealand Banking business, which reported an 18.7% increase in cash earnings to NZ$1,230 million. This was driven by lower credit impairment charges, combined with higher revenue, volume growth, and increased margins.

NAB’s Business & Private Banking segment delivered a 0.3% increase in cash earnings to $2,480 million in FY 2021. Its broadly stable earnings also reflect lower credit impairment charges, which were partly offset by higher operating expenses.

Finally, the Corporate & Institutional Banking segment acted as a drag on NAB’s performance. It reported a 14.8% decline in cash earnings to $1,207 million. This reflects lower Markets income, combined with higher credit impairment charges. The latter relates to an increase in provisions associated with the partial sale of an aviation portfolio.

NAB’s CEO, Ross McEwan, commented: “Our results this year demonstrate we have navigated a challenging environment well while delivering better experiences for customers and colleagues, resulting in safe growth across our business.”

“Our strategy is achieving results. While there is still much to do, I am encouraged by our progress as we execute with discipline and focus. Over the year, customer and colleague engagement scores increased, and we extended our market leadership in SME business with lending growth of 7%, well ahead of system.”

“Our bank has momentum, our strategy is clear and as lockdown restrictions ease, a pick-up in activity is expected. While some uncertainties exist in the outlook including the impact of tapering support, our balance sheet settings are strong and we are well positioned for the expected economic rebound in Australia and New Zealand.”

How does this result compare to expectations?

According to a note out of Morgans, its analysts were expecting the banking giant to report cash earnings from continuing operations of $6,597 million in FY 2021. This was broadly in line with consensus estimates. Morgans had also pencilled in a fully franked final dividend of 64 cents per share.

This means NAB missed slightly with its cash earnings of $6,558 million but is paying a larger than forecast final dividend at 67 cents per share.

The NAB share price is up 27% in 2021.

The post NAB (ASX:NAB) share price on watch after reporting 77% jump in cash earnings appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Analysts name 2 ASX 200 dividend shares to buy
• Own NAB shares? Here’s the bank’s proposal to stop crypto mania getting ‘really ugly’
• Which ASX bank shares were the best performers during October?
• How did the NAB (ASX:NAB) share price perform in October?

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 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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With the Reserve Bank last week declaring the end of bond yield curve control, the era of COVID-19 stimulus is winding down.

This leaves great uncertainty about which direction ASX shares are headed in.

Do stock prices already have rate rises baked in? Or will it still be a shock to investors when it happens?

The unpredictability means that selecting ASX shares to buy based on the characteristics of the underlying business, rather than external influences, becomes more important.

It’s with this lens we examine 2 stocks that Catapult Wealth portfolio manager Tim Haselum this week recommended as “buys”.

Let’s celebrate with drinks and pokies 

Endeavour Group Ltd (ASX: EDV) only listed on the ASX in late June, but is no newbie to the game.

The $12.8 billion liquor and hospitality venture was spun off from $47.9 billion supermarket giant Woolworths Group Ltd (ASX: WOW). 

“The company owns the Dan Murphy’s liquor chain and ALH Hotels,” Haselum told The Bull.

“Alcohol retailing has been strong throughout the pandemic.”

Endeavour shares started life at $6.50 but, at Monday’s close, they were going for $7.18.

As COVID restrictions lift around Australia and people return to hotels, pubs and backyard parties, Haselum has high hopes for the upward stock price trend to continue.

“We see upside from its hotels and poker machines. We expect a stronger performance moving forward.”

Pleasingly, investors received Endeavour’s latest update positively a couple of weeks ago, sending the stock shooting up.

According to CMC Markets, other analysts don’t necessarily share Haselum’s view. Four out of 10 rate the stock as a “strong buy”, but 3 classify it as a “sell”. The other 3 are neutral, calling for a “hold”.

ASX share absolutely beaten-up, but not down for the count

Shareholders for artificial intelligence (AI) services provider Appen Ltd (ASX: APX) have suffered greatly in recent times.

They’ve watched in horror as the former market darling lost almost 70% over the past 12 months.

That’s not putting off Haselum though.

“We like the company and believe it’s undervalued. It has strong rebound potential.”

The portfolio manager liked Appen’s recent acquisition of mobile location data provider Quadrant Global and believes the demand for AI will remain “strong” into the future.

“This language technology and data services company has reduced guidance. But the stock is trading at a discount on these valuations, in our view.”

Other analysts seem to agree with Haselum that Appen is far from permanent damage.

Out of 11 professionals surveyed by CMC Markets, 5 rate the stock as a “strong buy” and one counts it as a “moderate buy”. Only one analyst rates it as a sell, while 4 are recommending a “hold”.

In fact, the team at Citi has a price target of $17.10. Appen shares closed on Monday at $11.

The post Alcohol and intelligence: 2 ASX shares on the way up appeared first on The Motley Fool Australia.

More reading

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• 10 top ASX shares to buy in November
• Is the Appen (ASX:APX) share price a serious bargain?
• Move over Appen: A new artificial intelligence stock to list on the ASX
• Analysts name 2 excellent ASX growth shares to buy

Motley Fool contributor Tony Yoo owns shares of Appen Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Appen Ltd. The Motley Fool Australia owns shares of and has recommended Appen 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 A2 Milk Company Ltd (ASX: A2M) share price was out of form again on Monday.

The embattled infant formula company’s shares dropped 2.5% to $6.23.

This means A2 Milk’s shares are now down almost 16% over the last three weeks.

Is the A2 Milk share price good value now?

Positively for its long-suffering shareholders, one leading broker continues to see value in the A2 Milk share price at the current level.

According to a note out of Bell Potter this morning, its analysts have retained their buy rating and $7.70 price target on its shares.

Based on the current A2 Milk share price, this implies potential upside of ~24% for investors.

What did the broker say?

Bell Potter has been looking at recent industry data to get a picture of how A2 Milk is performing.

While the broker acknowledges that China’s infant formula import volumes continue to demonstrate double digit year on year declines, it highlights that volumes are improving. For example, September volumes were down 24% year on year but up 10% month on month.

Outside this, Bell Potter continues to believe that the A2 Milk share price is not reflective of its turnaround potential. Particularly given its belief that the company could double its earnings by FY 2026.

It explained: “There is no change to our Buy rating. We see the scope for EPS to double by FY26e, if A2M can execute on the China offline expansion strategy, while recovering 50% of the lost sales (from FY20-21) in English label IMF. Exiting the loss making US assets or navigating a turnaround at the MVM asset would likely accelerate this turnaround. We do not see the current share price as reflecting this potential.”

All in all, the broker appears to see this as a buying opportunity for investors.

The post Is the A2 Milk (ASX:A2M) share price dirt cheap? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• October was a rollercoaster month for the A2 Milk (ASX:A2M) share price
• Top brokers name 3 ASX shares to sell next week
• Top brokers name 3 ASX shares to sell today
• Is the A2 Milk (ASX:A2M) share price a buy after the selloff?

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 has recommended A2 Milk. 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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Ask A Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, Fidelity International portfolio manager Kate Howitt tells why the finance industry is so male-dominated.

The Motley Fool: You were recently named among the top 30 female fund managers in the world and the only Australian. Congratulations.

Kate Howitt: Thank you. That’s an annual ranking that they’ve been doing for a while now. I’ve been on the list 4 [consecutive] times now.

It’s of all female portfolio managers across both equities and bonds, so it’s a really broad set. Citywide has the broadest rankings. I think a couple of years ago [the selection pool] was 1,200 women. It’s gone up a bit since then, which is good.

MF: Why do you think it’s so important for your industry, which obviously is very male-dominated, to have diversity?

KH: Well, I think it’s incontrovertible now that diversity of thought is better for most endeavours. And I don’t think anyone would claim that women or men are necessarily better investors, but when you have a broader perspective in the team, it’s just going to get better results [for] clients. 

Then you can flip it around and say, it’s a really interesting job. And it’s an important role because the role is not only building retirement savings for Australians, but it’s also the efficient allocation of capital. And so, women should have a role in both of those processes, and women should have the option to do a job that is just so fascinating and challenging.

MF: What would be a quick solution to get more girls and women involved in the finance world?

KH: Part of it is the industry needs an image makeover, right? 

I have a teenage daughter, and when young women are setting out to think about what they want to do with their lives, a lot of them think, ‘I want to do something that… is inherently meaningful and good for the community’. And finance has too much of a Wolf of Wall Street image. 

And there’s a sense that finance is something you go into if you’re greedy. Whereas I think of finance as solving problems for the community. It’s intermediating between people who have excess funds and need a return, and people who have great investment opportunities but need the seed capital. Putting those two together, that kind of community problem solving is really what finance is about. 

But we don’t talk about it that way, we don’t think about it that way, we don’t market it to high school girls that way. So, that’s one part of the issue — to have teenage girls not cringe at the thought of telling their friends they want to go into finance. That’d be a start.

Then you’ve got all the issues that would help with one of the big problems, which is the pipeline, which heavily skews male. Then you can move on to secondary challenges, like retention and promotion. 

We’ve got two women on our team. We’ve just promoted them to portfolio managers. One of them has just been on maternity leave, the other one’s just about to go on maternity leave. 

I was promoted to portfolio manager. I called my chief investment officer to confess that I was pregnant for the second time… I was, honestly, a bit embarrassed about it, which is a terrible thing to say.

MF: It shouldn’t be that way, should it? 

KH: Yeah. But she said, “Well, we were going to promote you anyway, so when you come back from maternity leave, you’ll be a portfolio manager.”

There’s that overlap, these critical periods in the career of an aspiring portfolio manager, overlap with those early childbearing and child raising years. 

We’ve got a small team and yet we are about to have our 11th maternity leave that we’ve carried in that analyst team. We’re fine with it, but the industry as a whole needs to get better at getting women through those critical, tricky years.

MF: I’m keen to talk ASX shares with you, but just before we do that, how did you start in the industry yourself?

KH: I did a liberal arts degree, which was fascinating until I got about halfway through and realised that I was going to be qualified to work in a restaurant. And I was in the US, so I had a massive student debt to pay off on top of it. 

So I went to do an MBA at the University of Chicago, which is, of course, the home of the Efficient Market Theory. There’s not too many active fund managers who come out of Chicago. 

I started off at the Boston Consulting Group with guys like [Woolworths Group Ltd (ASX: WOW) chief] Brad Banducci, and [Latitude Group Holdings Ltd (ASX: LFS) chief] Ahmed Fahour, and then I moved from that into AMP Ltd (ASX: AMP) in corporate finance. And then moved on to investor relations, which was my first exposure. 

After a couple of years, I started thinking it would be more fun to ask the questions than answer the questions. So I moved from the corporate side of AMP into AMP Capital, into one of their teams.

MF: It was a bit of a journey, wasn’t it? It wasn’t straight from school.

KH: Yeah, a lot of the women I know of my vintage, similarly, they kind of fell into finance. 

A lot of them studied a language and then got hired by a bank, and then they went from there, that kind of thing. I think when you are an industry that’s relying on women kind of accidentally falling into your industry, it’s no wonder we’re not kind of finding enough of them.

The post How to get more women trading ASX shares for a living appeared first on The Motley Fool Australia.

More reading

• AMP (ASX:AMP) share price climbs despite ratings downgrade
• So far, so good for the AMP (ASX:AMP) share price in November. Here’s why
• Here are the top 10 ASX shares today
• These 3 ASX 200 shares are topping the volume charts this Wednesday
• Why AMP, Eclipx, Paradigm, and Praemium shares are surging higher

Motley Fool contributor Tony Yoo 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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Could the Qantas Airways Limited (ASX: QAN) share price be worth looking at as more borders open?

The airline has been making numerous moves to capitalise on the border changes that are happening.

For example, Qantas is bringing all of its Australian-based employees back to work by early December 2021, which is happening half a year earlier than expected.

Flights from Sydney to Singapore, Bangkok, Phuket, Johannesburg and Fiji are resuming ahead of schedule.

Qantas is looking to launch an Australia to India route on 6 December 2021, flying from Sydney with three return flights per week, increasing to daily flights by the end of the year.

The reopening of flights between Sydney and Melbourne (with no quarantine) is another positive that Qantas points to. This route was one of the busiest routes in the world before the pandemic. The airline is hoping to operate 37 return flights per day by the end of the year.

The Qantas CEO Alan Joyce noted how strongly international ticket sales are currently going:

In recent weeks, sales on international flights to and from Sydney have outstripped sales on domestic flights, which shows how important certainty is to people when making travel plans.

While these flights will initially be for Australians and their families, we expect tourists from Singapore, South Africa and India to take advantage of these flights once borders reopen to international visits, which is great news for the industry.

Asset sale to improve the balance sheet

Qantas announced last month that it was selling 13.8 hectares of land in Mascot for $802 million to a consortium led by LOGOS Property Group. Settlement of the vast majority of the lots is expected in the first half of FY22, with the funds being used to reduce debt and accelerate the airline’s recovery.

Qantas has also entered into discussions with LOGOS about potential future development options for the sites being acquired, including the creation of a dedicated precinct for the airline, as well as the sale of an additional 3 hectares of land that adjoins some of the lots being sold. Qantas expects to complete the evaluation of these proposals in early 2022, and if an agreement is reached, this has the potential to raise the total value of the deal to more than $1 billion.

The precinct would take several years to deliver if it decides to go for it, the airline would need it to drive efficiencies in how it operates and make a material contribution towards lowering its emissions footprint.

Qantas will lease back portions of the land for a period of time while arrangements are made to relocate some of the functions that the land is currently used for and while LOGOS progresses its border development plans.

Is the Qantas share price a buy?

The broker UBS thinks so, with a price target of $6.40. UBS thinks the land sale is a good sale to help the company’s balance sheet during this period of difficulty for its profit.

Citi also thinks that Qantas is a buy, though the price target is only $5.93.

Based on UBS projections, the Qantas share price is valued at less than 12x FY23’s estimated earnings.

The post Is the Qantas (ASX:QAN) share price a buy as borders open? appeared first on The Motley Fool Australia.

More reading

• Here’s why travel shares led the ASX 200 on Monday
• Why the Qantas (ASX:QAN) share price is flying 4% higher today
• The Qantas (ASX:QAN) share price is lifting, but returning planes to the air isn’t without challenges
• Qantas (ASX:QAN) share price climbs as overseas travel ban lifts
• I’m buying these 2 cheap ASX shares right now: expert

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 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 Flight Centre Travel Group Ltd (ASX: FLT) share price has been in recovery mode this year following a challenging 2020. The company is aiming to bring back the travel agenda to people’s lives after an 18-month hiatus.

At Monday’s closing bell, Flight Centre shares ended the day up a robust 5.71% to $21.12. Last month, the company’s shares reached a 52-week high of $25.28 but are still down around 40% from pre-COVID-19 levels.

Flight Centre launches digital travel experience

To coincide with the restart of the travel industry, Flight Centre has introduced a digital travel experience, dubbed “Travel Runway”.

From today, Travel Runway will be showcasing travel experiences in an online environment designed to inspire and educate travellers. The four-day event is aiming to guide customers to begin planning their next holidays. This includes categories such as beach, nature, food and wine, adventure, and luxury.

Coupled with accelerated vaccination rates and easing government restrictions, Flight Centre remains positive about the anticipated travel boom.

Flight Centre general manager of Australia Kelly Spencer commented on the resumption of travel:

…We’re seeing huge week-on-week increases in enquiries for both local and overseas travel. Last week, we saw a 34% increase in flight enquiries and a 35% increase on fly and stay packages on the previous week. It’s never been a better time to see what the world has on offer, and Travel Runway will provide endless inspiration and advice for anyone looking to book a holiday in 2022 and beyond.

In the company’s annual general meeting (AGM), management highlighted that sales revenue increased month-on-month. In particular, both the leisure and corporate segments ticked up a notch during Q4 FY21. Corporate transaction numbers were at 50% before COVID-19, representing around 40% of total transaction value (TTV).

Flight Centre share price snapshot

Up until late August, Flight Centre shares were trading mostly sideways. During the company’s full-year results release in August, its shares skyrocketed almost 60% in just 5 weeks. However, profit-takers decided to lock in gains, sending the company’s shares lower.

Flight Centre has a current price-to-earnings (P/E) ratio of -3.06 and commands a market capitalisation of roughly $4.2 billion.

The post The Flight Centre (ASX:FLT) share price is still trading 40% below pre-COVID highs. So, what now? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Here’s why travel shares led the ASX 200 on Monday
• Here are the top 10 ASX shares today
• Why API, Evolution, Flight Centre, and Sydney Airport shares are pushing higher
• Why the Qantas (ASX:QAN) share price is flying 4% higher today

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 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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On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in a subdued fashion. The benchmark index fell slightly to 7,452.2 points.

Will the market be able to bounce back from this on Tuesday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set to rebound on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 12 points or 0.15% higher this morning. This follows a decent start to the week on Wall Street, which in late trades sees the Dow Jones up 0.2%, the S&P 500 up 0.15%, and the Nasdaq trading 0.25% higher.

NAB full year results

The National Australia Bank Ltd (ASX: NAB) share price will be on watch today when it releases its full year results. According to a note out of Morgans, its analysts are expecting the banking giant to report cash earnings from continuing operations of $6,597 million in FY 2021. This is broadly in line with consensus estimates. The broker has also pencilled in a fully franked final dividend of 64 cents per share.

Oil prices rise

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a positive day after a decent night for oil prices. According to Bloomberg, the WTI crude oil price is up 0.55% to US$81.70 a barrel and the Brent crude oil price has risen 0.65% to US$83.28 a barrel. Oil prices were boosted by the passing of the US infrastructure bill.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could be on the rise today after the gold price pushed higher. According to CNBC, the spot gold price is up 0.6% to US$1,827.7 ounce. The gold price has been rising amid dovish central bank comments about interest rate increase plans.

A2 Milk shares still a buy

The A2 Milk Company Ltd (ASX: A2M) share price is in the buy zone according to the team at Bell Potter. This morning its analysts retained their buy rating and $7.70 price target on the company’s shares. The broker sees scope for the infant formula company’s earnings per share to double by FY 2026.

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

More reading

• Analysts name 2 ASX 200 dividend shares to buy
• Own NAB shares? Here’s the bank’s proposal to stop crypto mania getting ‘really ugly’
• October was a rollercoaster month for the A2 Milk (ASX:A2M) share price
• Which ASX bank shares were the best performers during October?
• How did the NAB (ASX:NAB) share price perform in October?

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 has recommended A2 Milk. 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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Once a week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) continues to be the most shorted ASX share after its short interest remained flat week on week at 12.1%. Short sellers will have been disappointed to see Flight Centre’s shares jump today after the US announced the reopening of its borders.
• Kogan.com Ltd (ASX: KGN) has short interest of 10.7%, which is up notably week on week. Short sellers appear to be targeting this ecommerce company due to inventory issues and its slowing sales growth.
• Redbubble Ltd (ASX: RBL) has short interest of 10.4%, which is up slightly since last week. Short sellers have been increasing their positions in this ecommerce company since the release of a disappointing quarterly update.
• Webjet Limited (ASX: WEB) has short interest of 9.2%, which is up slightly week on week. Valuation concerns appear to be the reason for this high level of short interest.
• Zip Co Ltd (ASX: Z1P) has seen its short interest jump to 8.9%. Short sellers have increased their positions despite the buy now pay later provider delivering a record monthly performance in October.
• Mesoblast limited (ASX: MSB) has short interest of 8.8%, which is down slightly week on week. Concerns that this biotech company will have to raise funds soon could be weighing on sentiment.
• Electro Optic Systems Hldg Ltd (ASX: EOS) has 8.6% of its shares held short, which is up week on week once again. Short sellers have been increasing their positions after the defence and space company downgraded its earnings guidance.
• Inghams Group Ltd (ASX: ING) has 8.3% of its shares held short, which is flat week on week. Last week this poultry producer’s shares sank after revealing that higher grain costs were impacting its financial performance.
• Cooper Energy Ltd (ASX: COE) has 7.9% of its shares held short, which is up week on week once again. Short sellers have been targeting this energy company due to concerns over the Sole Gas operation.
• BHP Group Ltd (ASX: BHP) has seen its short interest remain flat week on week at 6.9%. The softening iron ore price could be behind this high level of short interest.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

More reading

• Here’s why travel shares led the ASX 200 on Monday
• ASX 200 companies take note – global carbon credit trades soaring
• Here are the top 10 ASX shares today
• Why API, Evolution, Flight Centre, and Sydney Airport shares are pushing higher
• Why is the Webjet (ASX:WEB) share price taking off on Monday?

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 Electro Optic Systems Holdings Limited, Kogan.com ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems Holdings Limited, Kogan.com ltd, and Webjet Ltd. 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 Aristocrat Leisure Limited (ASX: ALL) share price fell by the wayside today. This comes after the gaming technology company shared an update regarding its attempt to acquire leading global online gambling software supplier, Playtech.

By the end of Monday’s session, shares in Aristocrat Leisure were trading 2.1% lower to $47.25. As a result, the company is now trading 4.8% below its 52-week high.

Let’s take a deeper look at the latest ASX announcement for Aristocrat Leisure.

Playing snakes and ladders with Playtech

Despite having already successfully raised $895 million in capital to fund the Playtech acquisition, Aristocrat Leisure has now encountered a potential roadblock.

According to today’s release, Playtech has now entered a dance of courtship with another party. The company received a preliminary approach from Hong Kong-based Gopher Investments, which might amount to a bid of £3 billion (~A$5.46 billion).

Reportedly, Gopher Investments began building its position earlier this year and has become a substantial shareholder in Playtech. At this stage, Gopher has merely sought access to information in order to conduct due diligence. As such, a formal offer may not eventuate, though it can’t be ruled out either.

This development throws a spanner in the works of what looked like a likely deal for the ASX-listed Aristocrat Leisure. Currently, the Aussie gaming company has mostly solidified a deal with Playtech valuing it at approximately A$5 billion.

To raise these funds, the company is issuing 31 million new shares which are expected to hit the ASX in mid-November. Running the numbers, this would represent a dilution of roughly 4.8% of the company’s current shares on issue.

Perhaps the market is concerned Aristocrat will be stuck with $1.3 billion worth of cash and nothing to put it towards.

Lastly, the timing of the announcement is almost uncanny. Today was the last day for the retail component of the capital raise. This would see a further expected A$405 million collected from retail investors.

What’s next for ASX-listed Aristocrat?

Today’s announcements stated that the company would continue to work with Playtech to progress its own acquisition proposal. In fact, the scheme document was mentioned to be published ‘shortly’, recommending shareholders recommend the acquisition.

Finally, Aristocrat noted it would share any further updates relating to its new potential competition. The Aristocrat Leisure share price remains 51% higher year-to-date.

The post Aristocrat (ASX:ALL) share price slides amid takeover update appeared first on The Motley Fool Australia.

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• 10 top ASX shares to buy in November
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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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Monday has been a big day for ASX 200 travel shares as the sector faced numerous exciting happenings.

Earlier this afternoon (Australian time), the United States’ international borders were flung open to vaccinated travellers.

However, there was perhaps more exciting news for ASX market watchers. This morning, Sydney Airport (ASX: SYD) confirmed it had agreed to a $23.6 billion takeover offer.

As a result, the Sydney Airport share price shot up 2.7% over the course of today. Meanwhile, that of Qantas Airways Limited (ASX: QAN) gained 4%.

Though, it was the ASX 200 travel agents that walked away with the best wins.

The Webjet Limited (ASX: WEB) share price ended Monday’s session 4.7% higher than it did Friday’s.

Flight Centre Travel Group Ltd (ASX: FLT) did even better. Its share price surged 5.7% despite the company’s silence.

For context, the S&P/ASX 200 Index (ASX: XJO) fell 0.06% today.

Let’s take a closer look at the news that likely piqued the market’s interest in the ASX 200 travel sector on Monday.

ASX 200 travel shares outperform

ASX 200 travel shares had a great day’s trade as the world awaited the United States’ international borders reopening, which happened the moment the market closed.

As of 12:01 am eastern standard time Monday (3:01 pm AEST and 4:01 pm AEDT), vaccinated travellers from all over the world are welcome to travel to the United States for non-essential purposes.

It’s the first time non-essential travel has been allowed into the United States since March 2020 when then-President Donald Trump slammed the borders shut to help stop the spread of COVID-19.

Perhaps in anticipation, some United States-based travel shares surged higher on Friday. Expedia Group Ltd (NASDAQ: EXPE) gained 15% on Friday, while Airbnb Inc (NASDAQ: ABNB) soared 12%.

Those gains might have helped inspire today’s movements on the ASX.

Meanwhile, the market was spoilt by exciting news from Sydney Airport on Monday.

The ASX-listed airline has accepted the Sydney Aviation Alliance’s takeover bid of $8.75 per share.

Though, shareholders might want to wait before getting too excited. The acquisition is still subject to approval from the Foreign Investment Review Board and the Australian Competition and Consumer Commission. It will also need to be approved by 75% of Sydney Airport’s shareholders.

The post Here’s why travel shares led the ASX 200 on Monday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
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• Why API, Evolution, Flight Centre, and Sydney Airport shares are pushing higher
• Why is the Webjet (ASX:WEB) share price taking off on Monday?
• Sydney Airport (ASX:SYD) share price lifts off following takeover news

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 Webjet Ltd. 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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