In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to end its winning streak. At the time of writing the benchmark index is down 1.4% to 5,383.6 points.

Four shares that have fallen more than most today are listed below. Here’s why they are sinking lower:

The Altium Limited (ASX: ALU) share price is down 4% to $35.32. This morning the electronic design software company warned that it could fall short of its aspirational goal of US$200 million in revenue in FY 2020. This is because economic and social impacts of the coronavirus lockdowns are likely to impact its performance in the final quarter of the financial year. Altium remains committed to achieving its 50,000-subscriber target for the full year.

The ELMO Software Ltd (ASX: ELO) share price is down 10% to $7.08. This morning the cloud-based human resources and payroll software provider successfully completed its fully underwritten $70 million institutional placement. ELMO raised the funds at $7.00 per new share, representing an 11.5% discount to its last closing price. The proceeds will primarily be used for organic growth initiatives and to fund acquisition opportunities. ELMO will now push ahead with its $20 million share purchase plan.

The Suncorp Group Ltd (ASX: SUN) share price has tumbled 5% lower to $8.79. The catalyst for this decline may have been a broker note out of Morgan Stanley. In response to its trading update, the broker has retained its underweight rating and cut the price target on its shares to $8.10. It notes that Suncorp is facing a number of headwinds right now.

The Webjet Limited (ASX: WEB) share price has fallen 7% to $3.25. Today’s decline appears to be down to profit taking after some sensational gains on Friday and Monday. Webjet and other travel shares zoomed higher in response to the government’s plan to reopen Australia.

More reading

• Is the Webjet share price a buy right now?
• 3 ASX tech shares to buy now for long-term returns
• Altium share price on watch after warning of tough trading conditions
• Is it time to invest in shares or wait on the sidelines?
• In a post-COVID world, could Australia be the next superpower?

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 recommends Elmo Software. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia owns shares of Altium. The Motley Fool Australia has recommended Elmo Software. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to give back all of Monday’s strong gains. At the time of writing the benchmark index is down 1.25% to 5,392.4 points.

Four shares that are not letting that hold them back are listed below. Here’s why they are storming higher:

The CSR Limited (ASX: CSR) share price has jumped 9.5% to $3.70. Investors have been buying the building products company’s shares after the release of its full year results. Although CSR delivered a 25.8% decline in underlying net profit to $134.8 million, this was better than the market was expecting. Furthermore, the company revealed that trading conditions have remained reasonably steady in the first six weeks of FY 2021.

The Kogan.com Ltd (ASX: KGN) share price is up 6.5% to $8.90. This follows the release of a business update from the ecommerce company this morning. During the month of April, Kogan’s sales grew by more than 100% compared to the prior corresponding period. Things were even better in respect to profits. Its gross profit grew more than 150% and its adjusted EBITDA increased by more than 200% during the month. This was despite its biggest monthly investment in marketing during the period.

The Premier Investments Limited (ASX: PMV) share price is up 2% to $15.75 following the release of a business update. According to the release, Premier Investments will reopen the balance of its Australian stores later this week. This will be a positive as its total sales for the six weeks to May 6 were down 74% on the prior corresponding period. The store closures were partially offset by a 99% jump in online sales.

The ResMed Inc. (ASX: RMD) share price is up 5.5% to $26.14. This follows a strong gain by its NYSE-listed shares during overnight trade. Investors may be betting on the company’s ventilator sales remaining strong for some time to come because of the pandemic and potential second waves.

More reading

• Premier Investments share price higher after announcing store reopenings and online sales surge
• These were the top 10 ASX 200 shares over the last year
• Kogan share price jumps after doubling its sales in April
• Brokers may be upgrading this ASX stock even as it delivered a plunge in profits
• In a post-COVID world, could Australia be the next superpower?

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

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Is the Webjet Limited (ASX: WEB) share price a buy? Investors certainly thought so yesterday when it jumped around 20%.

A bit of the gloss has been taken off as Webjet has fallen back a bit this morning, but it’s still up significantly this week.

In-fact, the last few weeks have been very good for the Webjet share price, it’s gone up 49% since 22 April 2020.

So what next for Webjet? It hasn’t really said much since the capital raising at the start of April 2020. The company raised around $350 million which is being used to strengthen the balance sheet due to the travel restrictions that are in place globally due to the coronavirus.

The capital raising proceeds are expected to be sufficient to provide for the operating costs and capital expenditure through to the end of 2020 even if severe travel restrictions continue. Despite being cashed up, Webjet is working on cost reductions where it can.

What’s the bull case for the Webjet share price?

I think there are two key points why the Webjet share price could continue to be a good performer over the rest of 2020.

The first is that the restrictions are lifting much earlier than expected. Whilst normal travel isn’t on the agenda yet, particularly international travel, the possibility of domestic travel has been brought forward with other restrictions ending. I think that’s very promising that bookings could start again sooner rather than later.

I believe the second point to consider is how Webjet delivers its service. It’s an online-only offering. It doesn’t rely on a large physical network of travel agent stores to sell services. The online model means it has lower costs and can offer a cheaper service than many of its competitors. This might be very important for cost conscious customers. Webjet’s global earnings and product lines may mean it can perform well when things start returning to normal.

How much earnings can Webjet generate over the next 12 months? Will it even be profitable? These are obviously important for the Webjet share price. I don’t know the answer to those questions, but it now seems very unlikely that going bust is on the cards.

Is it a buy today?

It’s unknowable whether there will be a second wave of infections. Are there lots of Aussies wanting to go on a (domestic) holiday as soon as they can?

At this share price, Webjet is still priced very cheaply in a scenario where domestic travel rebounds strongly. I think Webjet could be a high-risk, high-reward option today with a multi-year investment time in mind. Restrictions are lifting and that could help Webjet get back to some sort of ‘normal’. 

More reading

• Is it time to invest in shares or wait on the sidelines?
• ASX 200 starts the week strongly, up 1.3%
• Webjet share price jumps 25%: Is it good value?
• ASX 200 storms 1.2% higher: Cochlear reports 60% sales decline, Webjet jumps 22%
• ASX tourism shares on watch as government flags easing of coronavirus restrictions

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

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