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The Sydney Airport (ASX: SYD) share price is pushing higher on Monday.

In afternoon trade, the airport operator’s shares are up almost 3% to $8.45.

Why is the Sydney Airport share price taking off?

The catalyst for the rise in the Sydney Airport share price today has been the release of an update on a takeover approach.

According to the release, Sydney Airport has accepted an offer of $8.75 per share from a consortium of investors led by IFM Investors and Global Infrastructure Partners. This compares favourably to the initial offer by the consortium, known as the Sydney Aviation Alliance, of $8.25 per share made in July.

The latest offer values Sydney Airport at $23.6 billion on an equity basis and $32 billion on an enterprise value basis.

What’s next?

Sydney Airport’s board has unanimously recommended its shareholders vote in favour of the deal. This is in the absence of a superior proposal and subject to an independent expert concluding that the deal is in the best interests of Sydney Airport shareholders.

Subject to those same qualifications, each member of the Sydney Airport Board intend to vote all shares held or controlled by them in favour of the deal.

Sydney Airport’s Chairman, David Gonski AC, commented: “Today’s announcement is the culmination of months of engagement between all parties. The Sydney Airport Boards believe the outcome reflects appropriate long-term value for the airport, and unanimously recommend the proposal to securityholders, subject to customary conditions such as independent expert approval and no superior proposal.”

Why are its shares trading below the offer price?

With the Sydney Airport share price currently fetching $8.45, it is trading at a 3.3% discount to the offer price.

This is likely to be due to there still being a number of hurdles for the deal to overcome before completion.

The transaction is conditional on the aforementioned independent expert’s report, approval from 75% of the company’s shareholders, the thumbs up from the competition regulator, and authorisation by the Foreign Investment Review Board. The latter is a process that could take several months to complete.

The Sydney Airport share price is likely to gravitate nearer to the offer price as and when these conditions are met.

For now, the company’s shares are up approximately 32% in 2021.

The post Sydney Airport (ASX:SYD) share price takes off after accepting $32bn takeover offer appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Sydney Airport agrees to takeover, Wesfarmers’ strikes API deal
• Confirmed: $32 billion Sydney Airport (ASX:SYD) deal to land today
• Own Sydney Airport (ASX:SYD) shares? Here’s how the share price performed in October
• Why the Sydney Airport share price has beaten the ASX 200 in the last 4 months
• These 3 ASX 200 shares are topping the volume charts this Tuesday

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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The Qantas Airways Ltd (ASX: QAN) share price is flying higher today. Shares in the airline are up 4.09% to $5.85 per share at the time of writing.

And Qantas isn’t the only S&P/ASX 200 Index (ASX: XJO) travel share to be lifting off today.

The Webjet Ltd (ASX: WEB) share price is up 2.5% at this same time. And the Flight Centre Travel Group Ltd (ASX: FLT) share price is charging 4.8% higher.

This as the broader ASX 200 is struggling today, down 0.15%.

So, what’s helping lift the Qantas share price?

The world’s biggest economy throws open its doors

The United States, the world’s biggest economy, has just thrown open its doors to international travellers.

Well, sort of.

The US has announced that it will again allow entry to travellers from more than 30 nations. Aside from the European countries, those include India, China, Brazil and Australia.

That news looks to be driving interest in ASX 200 travel shares today, and providing welcome tailwinds for the Qantas share price.

But some caution remains in order.

As mentioned, the doors to international arrivals into the US have only “sort of” been fully reopened.

Though there may be select individual exemptions, only fully vaccinated travellers will be allowed to fly into the US. And surging COVID-19 cases across much of Europe in recent weeks has some market watchers worried new rounds of lockdown restrictions may be in the pipeline.

Then there’s the depressed demand from business travellers.

The pandemic saw most corporations turn to work from home settings, widely adopting video conferencing over any kind of face-to-face meetings. That drastic change in business modelling may well prove sticky, even as travel restrictions are lifted, as it costs a lot less to Zoom with US clients or colleagues than it does to fly your executive team across the world.

According to John Strickland at JLS Consulting in London (quoted by Bloomberg):

There’s definitely going to be pressure on ticket prices as airlines go after the same travellers. We’ve seen a surge in demand from people looking to visit friends and family, but although demand for premium leisure is encouraging, it will not likely be enough to offset the lack of business travel.

If Strickland’s right and ticket prices remain under pressure, that could in turn see the Qantas share price pressured as well.

Qantas share price snapshot

The Qantas share price has gained 19% so far in 2021. That compares to a year-to-date gain of 11% posted by the ASX 200.

Over the past month Qantas shares are up 5%.

The post Why the Qantas (ASX:QAN) share price is flying 4% higher today appeared first on The Motley Fool Australia.

More reading

• Flight Centre (ASX:FLT) share price leaps 5% as US borders to reopen
• Why is the Webjet (ASX:WEB) share price underperforming Corporate Travel lately?
• The Qantas (ASX:QAN) share price is lifting, but returning planes to the air isn’t without challenges
• Own Flight Centre shares? Here’s the company’s plan to reopen WA
• Travel is resuming but the Flight Centre (ASX: FLT) share price still lost 7% in October

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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Shares in ASX resources company Stanmore Resources Ltd (ASX: SMR) have jumped out of the starting blocks today to now trade 15% higher at $1.19 apiece. Earlier in the session, the share price touched $1.28 a share.

Stanmore Resources share price is leading the pack after a confirmed agreement with BHP Group Ltd (ASX: BHP) to acquire an interest in the BHP Mitsui Coal (BMC) joint venture.

The transaction is expected to close for a cash consideration of up to US$1.3 billion in mid-CY2022, according to the company.

Here are the details out of Stanmore’s camp today.

Stanmore to acquire interests from BHP

Stanmore has signed a share purchase and sale agreement to acquire BHP’s 80% stake in the BMC project.

It will now assume all economic and operating control of BMC on completion of the sale, including its share of all future liabilities.

BMC is a metallurgical coal joint venture that has operations in Queensland and owns the “world-class” South Walker Creek and Poitrel mines.

Combined, it has a total metallurgical coal production of around 10 million tonnes (Mt) per annum and total marketable reserves of more than 135Mt.

And with the price of coal still at 5-year highs after a sharp pullback in recent months, investors appear to have piled into Stanmore Resources shares on the news today.

BMC also recorded annualised revenue of more than US$1.5 billion and EBITDA of US$696 million in the 12 months to September 30 2021 when adjusting on a 100% ownership basis.

Embedded into the acquisition are port and rail agreements that support a minimum of 10.5 million tonnes of resource per annum through various coal terminals.

The deal structure itself is a curious one, to be finalised through a number of subsidiary vehicles.

For instance, to complete the transaction, Stanmore has established a new subsidiary to acquire all of the shares of Dampier Coal, a company owned by a subsidiary of the BHP Group.

It is these daughter companies of BHP that actually own the stake in BMC – not the Group itself.

So even though BHP is divesting its stake at BMC, Stanmore isn’t purchasing anything directly from the resources giant.

In terms of valuation, the deal represents an Enterprise Value/EBITDA multiple of 6.9x, excluding a US$150 million “price-linked earnout” embedded in the contract.

Stanmore intends to finance the US$1.3 billion transaction through a debt facility of US$625 million, its own reserves, and a partially underwritten entitlement offer of ordinary shares for $600 million.

The transaction is expected to close in mid-CY22, according to the company, and is still subject to several conditions and approvals.

What next for Stanmore Resources?

Stanmore states the acquisition is “transformational” for the company as it “creates a leading global metallurgical coal producer with a portfolio of high quality assets in the Bowen Basin”.

In combination with the purchase, the company also expects greater production next calendar year at its other projects, including the MetRes Millennium and Mavis mines.

Speaking on the announcement, Stanmore’s CEO Marcelo Matos said:

This is an exciting and transformative acquisition for Stanmore, and we are fortunate to be able to rely on the full support received from our controlling shareholders, GEAR as well as the Sinar Mas Group, to successfully execute this deal.

Matos continued:

This transaction will see the Company become one of the leading metallurgical coal producers globally and provide Stanmore with a portfolio of tier 1 assets, with a significantly increased reserves and resources base and assets with an expected mine life exceeding 25 years production, positioning the company for substantial cashflow generation and future growth opportunities.

Stanmore Resources shares have climbed 62% into the green these past 12 months after rallying 48% this year to date.

The post Kicking Coals: Stanmore Resources (ASX:SMR) share price soars 15% on BHP acquisition appeared first on The Motley Fool Australia.

More reading

• Why is the Oil Search (ASX:OSH) share price having such a great start to the week?
• Why is the Betashares Nasdaq 100 ETF (ASX: NDQ) having such a great month?
• Flight Centre (ASX:FLT) share price leaps 5% as US borders to reopen
• Why has the ANZ (ASX:ANZ) share price dropped 2% today?
• Own Fortescue (ASX:FMG) shares? Here’s how the company is selling its green hydrogen vision to the world

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 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 Oil Search Ltd (ASX: OSH) share price is off to a great start this week. Shares are currently up 2.3% to $4.33 per share.

And it’s not just the Oil Search share price lifting off today.

Fellow S&P/ASX 200 Index (ASX: XJO) energy share Santos Ltd (ASX: STO) is up 2.8% at time of writing. And Woodside Petroleum Limited (ASX: WPL) is up 2.7%.

This as the ASX 200 itself has given back its early morning gains and is currently down 0.2%.

So, what’s helping boost ASX 200 energy shares?

Energy markets remain tight

The answer to that question lies in the rapidly increasing demand for crude oil amid sluggish increases in supply.

As the world emerges from COVID-19 lockdowns, more factories are returning to full operation, more ships are plying the oceans, and more airplanes are taking wing.

Yet, in good news for the Oil Search share price, global crude output is only increasing at a trickle. Well, a 400,000 barrel per month trickle.

Last Thursday (overnight Aussie time) OPEC+ announced that it was sticking with its production schedule. That schedule sees the cartel of oil producing nations ramping up its self-restricted crude output by 400,000 barrels per month.

That’s less than the monthly increase in global demand. And it’s seeing crude price again trend higher.

Over the weekend Brent crude oil popped 3.1%, from US$80.54 per barrel to US$83.03 per barrel. Just 1 year ago that same barrel was trading for a lowly US$42.40 per barrel, according to data from Bloomberg.

Certainly a nice tailwind for Oil Search shareholders.

Oil Search share price snapshot

Amid soaring energy prices, the Oil Search share price has rocketed 52% over the past 12 months. That well outpaces the 18% gains posted by the ASX 200 over that same time.

Oil Search shares are down 4% over the past month.

The post Why is the Oil Search (ASX:OSH) share price having such a great start to the week? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Why ASX 200 energy shares are tanking on Thursday
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 energy shareholders will welcome this Blackrock forecast
• Oil Search (ASX:OSH) share price up amid tighter production forecast

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 Betashares Nasdaq 100 ETF (ASX: NDQ) has had a good month so far in November 2021, with the exchange-traded fund (ETF) rising by around 6%.

Why is Betashares Nasdaq 100 ETF having such a good month?

How an index ETF works

Lots of the most popular ETFs on the ASX simply track an index, a group, of shares.

If the underlying index of shares collectively goes up (or down), then the ETF should also follow the movement of the index. The biggest positions in an ETF’s portfolio will have the largest impact on the return, whilst the smallest positions will have limited impact.

This ETF tracks the performance of the NASDAQ-100 Index (before fees and expenses). The NASDAQ-100 comprises 100 of the largest non-financial companies listed on the NASDAQ market.

NASDAQ-100 Index performance

Given the ASX ETF tracks what the NASDAQ-100 Index does, it could be useful to know what’s happening in North America. Foreign exchange rates sometimes create a bit of difference between the underlying index and the ASX ETF.

The NASDAQ-100 Index has risen by more than 3% since the start of November 2021 in US dollar terms. The Australian dollar has weakened against the US dollar, boosting the returns for Aussies.

What shares are in the Betashares Nasdaq 100 ETF?

Many of the world’s biggest and most recognised companies are in this portfolio. Those names include businesses like: Apple, Amazon.com, Tesla, Nvidia, Alphabet (Google), Facebook/Meta Platforms, Adobe, Netflix, PayPal, Costco, PepsiCo, Intel, Starbucks, Booking, Mondelez International (Cadbury, Oreo, Ritz, Toblerone etc), Moderna, Zoom Video Communications, eBay and Kraft Heinz.

Which shares have been driving the performance?

As already mentioned, the biggest businesses have the largest impact on ETFs. Which ones helped Betashares Nasdaq 100 ETF?

Apple shares have only risen by 1% this month so far.

The Amazon share price has gone up by more than 4%.

Tesla shares have risen almost 10%.

Nvidia shares have gone up by more than 16% since the start of the month.

The Alphabet share price has only gone up around 0.5%.

Facebook/Meta Platforms has seen its share price rise by more than 5% since the start of the month.

Plenty of businesses have been giving investors updates about their quarterly earnings.

Business updates can have impacts on share prices, particularly if the update (or outlook) was materially better, or worse, than the market was expecting.

For example, Apple recently reported its FY21 fourth quarter update, with record revenue of US$83.4 billion. This was an increase of 29% year on year. Its quarterly diluted earnings per share (EPS) was US$1.24. It also declared a cash dividend of US$0.22 per share. Indeed, the company said that in FY21, it set new revenue records in all of its geographic segments and product categories in spite of continued uncertainty in the economic environment.

Plenty of businesses in the Betashares Nasdaq 100 ETF are actually reporting high levels of revenue and earnings.

The post Why is the Betashares Nasdaq 100 ETF (ASX: NDQ) having such a great month? appeared first on The Motley Fool Australia.

More reading

• 2 ASX tech shares that might be buys in November 2021
• 2 ETFs worth considering for a diversified ASX share portfolio today
• 2 top ETFs that might be buys in November 2021
• Why is the Betashares Nasdaq 100 (ASX:NDQ) ETF share price struggling lately?

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. owns shares of and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. 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 shaky start to the trading week so far this Monday. At the time of writing, the ASX 200 is down by 0.16% at 7,445 points. But one ASX 200 share is seemingly faring far worse so far today. That would be the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price.

ANZ shares are currently down by a nasty 2.22% on Friday’s closing share price at $28.16 a share today. In stark contrast, the other big four ASX banks are all in the green today with Commonwealth Bank of Australia (ASX: CBA) even hitting a new all-time high this morning. So what on earth is going so wrong for ANZ shares today?

Well, fortunately for shareholders, it’s nothing to worry about. ANZ shares have today just traded ex-dividend for the bank’s upcoming final dividend payment for FY21.

ASX bank drops after going ex-dividend

When an ASX share declares a dividend, it must also pick an ex-dividend date for its payout. This date represents the cutoff for new shareholders to receive the said dividend. If an investor brought ANZ shares last week, they are entitled to the bank’s upcoming dividend. But for anyone picking up ANZ shares from today onwards, they will miss out.

That’s why we usually see the dividend paying company’s share price fall in value by a similar amount to this upcoming dividend – it represents the value of the dividend leaving the share price.

So, for ANZ, the bank will be paying out a final dividend of 72 cents per share, fully franked, on 16 December. That payout is a touch higher than the interim dividend of 70 cents that ANZ doled out back in July. But it’s a lot higher (more than double) last year’s final dividend of 35 cents per share.

At Friday’s closing share price, these two dividends gave ANZ shares a yield of 4.94%. After today’s big drop, ANZ now has a trailing yield of 5.04%.

ANZ share price snapshot

ANZ shares have given investors a solid performance in recent months. This bank is up a healthy 24% year to date  as well as up 44% over the past 12 months. However, over the past 5 years, ANZ is actually down by an anaemic 0.35% on today’s pricing.

At $28.17 a share, ANZ has a market capitalisation of $79.54 billion, with a price-to-earnings (P/E) ratio of 13.7.

The post Why has the ANZ (ASX:ANZ) share price dropped 2% today? appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Sydney Airport agrees to takeover, Wesfarmers’ strikes API deal
• These 6 ASX shares are going ex-dividend this week
• CBA (ASX:CBA) share price gains amid Silicon Valley AI partnership
• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to buy next week

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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It is a brand new week and shares in Fortescue Metals Group Limited (ASX: FMG) are already pushing to the upside. This seems fitting considering the mining giant’s aspiring green subsidiary, Fortescue Future Industries (FFI), has been included in a select group of companies that are leading the charge in commercializing emerging clean energy technologies.

The inclusion in what is known as the “First Movers Coalition” was announced at the COP26 climate summit in Glasgow on Tuesday. Notably, United States President Joe Biden revealed the coalition has been formed through a partnership between the US government and the World Economic Forum.

For shareholders and investors, a wandering question might be what role does FFI have to play in this coalition? The answer lies in the proliferation of hydrogen energy.

A cleaner way to do business

Fortescue and its green entourage of the First Movers Coalition is serious business. Sitting among 25 founding companies, Fortescue Metals Group is shoulder to shoulder with the likes of Apple Inc (NASDAQ: AAPL), Boeing Co (NYSE: BA), and Volvo Group.

On 4 November, the coalition launched its first phase of sectoral commitments in steel, trucking, shipping, and aviation. Interestingly, the term ‘hydrogen’ is referred to in three out of these four sectors in the press release. Perhaps hinting at the importance the US government is allocating to hydrogen as an energy alternative. In turn, Fortescue shares are finding some momentum today.

After Biden’s address, FFI chief executive Julie Shuttleworth spoke to an audience, sharing the potential of green hydrogen. The event, titled “Accelerating Clean Technology, Innovation and Deployment” was attended by an array of political leaders and VIPs.

Our incredible CEO @JulieShuttlewth speaking at the #COP26 World Leaders Summit about why #GreenHydrogen is the practical, implementable solution that will decarbonise heavy industry, create jobs globally and lower emissions faster @beisgovuk #GlasgowBreakthroughs pic.twitter.com/riX6AwJYtx

— Fortescue Future Industries (@FortescueFuture) November 2, 2021

https://platform.twitter.com/widgets.js

Shuttleworth explained how green hydrogen is a real alternative right now, stating:

We are absolutely confident (to make such a statement) because we are already doing it… We’ve built the world’s first hydrogen mining truck. And, we’ll be converting hundreds of trucks to green energy by 2030.

Moreover, the company aspires to slash the use of diesel by one billion litres per year by the end of the decade.

Additionally, Shuttleworth called out other companies to tackle the climate problem, saying:

We (the parent company Fortescue Metals Group) are a big carbon emitter and we are doing something about it, we will decarbonise our operations by 2030. So, if we can do this, what is stopping every other heavy, hard to abate industry from doing the same? Nothing. Just the will to do it.

Fortescue shares in review

While the company is beginning to build out some green credentials, it hasn’t done much for the Fortescue share price to date. Since the beginning of this year, shares in the mining giant have slumped 42%. This follows an entrenched weakening in the price of iron ore being played out since July.

As a result, the company’s trailing 12-month price-to-earnings (P/E) ratio is now floating around 3.2 times. This represents a substantial discount from the 14.6 times average P/E ratio for the mining industry. However, investors are likely discounting Fortescue shares with the expectation of a fall in earnings ahead.

Finally, Fortescue Metals Group currently holds a market capitalisation of ~$44 billion.

The post Own Fortescue (ASX:FMG) shares? Here’s how the company is selling its green hydrogen vision to the world appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell next week
• Evergrande latest, plus another Chinese developer just missed a payment
• 2 top ASX 200 shares that might be buys today
• Why did the Fortescue (ASX:FMG) share price have such a lousy month in October?
• Why is the Fortescue (ASX:FMG) share price charging higher today?

Motley Fool contributor Mitchell Lawler owns shares of Apple. 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 Apple. 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 PolyNovo Ltd (ASX: PNV) share price is having a poor start to the week.

In fact, in early afternoon trade, the medical device company’s shares are the worst performers on the ASX 200.

At the time of writing, the PolyNovo share price is down 8% to $1.61.

Why is the PolyNovo share price sinking?

Investors have been selling down the PolyNovo share price since the release of an announcement late on Friday afternoon. Including today’s decline, the company’s shares have now lost 13% over the last two trading sessions.

As you might have guessed from the market’s reaction, that announcement wasn’t a positive one.

According to the release, after almost seven years with the company, Managing Director Paul Brennan has handed in his resignation. Though, he will remain in the position for three months to assist with an orderly transfer.

The release explains that Mr Brennan’s interactions with senior staff and his management style have led to differences with the PolyNovo Board. This ultimately culminated with the Managing Director tendering his resignation.

PolyNovo’s Chairman, David Williams, explained: “I would like to thank Paul for his leadership over the last 7 years. During this time PNV has undergone a significant transformation, expanded geographically, and enjoyed extraordinary commercial success that has shaped the company into a global medical device business.”

“However, in more recent times there have been increasing differences with the Board in relation to Paul’s interaction with the company’s senior management team and his management style. Accordingly, the Board has accepted Paul’s resignation.”

What’s next?

PolyNovo advised that it will now seek to find a new Chief Executive Officer that will take the company to another level.

Mr. Williams said: “The Board sees this as an excellent opportunity and a catalyst to take the company to another level with a new leader. The Board has started the search for a new outstanding candidate and leader with appropriate sales and marketing experience to spearhead growth in the US and the EU.”

In the meantime, Max Johnston has accepted the role of interim Chief Executive Officer.

The release notes that Mr Johnston was a Director of PolyNovo between 2014 and 2020 and knows the business well. In addition, for 11 years he was President and Chief Executive Officer of Johnson & Johnson Pacific and an Executive Director of Johnson & Johnson.

The PolyNovo share price is now down 59% in 2021.

The post Why the PolyNovo (ASX:PNV) share price is sinking 8% today appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Sydney Airport agrees to takeover, Wesfarmers’ strikes API deal
• Can the Polynovo (ASX:PNV) share price hit $3 by Christmas?
• Polynovo (ASX:PNV) share price rises after “positive” FY22 quarterly update
• Why is the Polynovo (ASX:PNV) share price having such a tough time of late?

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 POLYNOVO 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 Flight Centre Travel Group Ltd (ASX: FLT) share price is surging higher today. Meanwhile, the world is awaiting the reopening of the United States’ international borders.

The nation’s border restrictions will ease on Monday, allowing vaccinated travellers to enter the United States for non-essential reasons.

At the time of writing, the Flight Centre share price is $20.94, 4.8% higher than its previous close. However, earlier today, the travel agent’s stock was trading at $21.25, representing a 6.3% gain.

For context, the S&P/ASX 200 Index (ASX: XJO) has fallen 0.16% today.

Let’s take a look at the news that might be inspiring excitement for the travel giant’s shares.

United States ready to reopen to tourism

The Flight Centre share price is having a great day’s trade amid the United States’ preparations to reopen to the world for the first time since March 2020.

Previously, the nation had planned to reopen its borders to 33 select countries. Unfortunately, Australia didn’t make that list.

However, late last month, US President Joe Biden announced the nation’s strategy had changed:

[I]t is in the interests of the United States to move away from the country-by-country restrictions previously applied during the COVID-19 pandemic and to adopt an air travel policy that relies primarily on vaccination.

Vaccinated international travellers will be able to enter the United States from 12:01 am eastern standard time on Monday (3:01 pm AEST or 4:01 pm AEDT).

The nation will still allow unvaccinated non-citizens to cross its international land borders for essential reasons. However, all people entering the United States via land or ferry will need to be fully vaccinated from January 2022.

The United States’ reopening comes one day after Flight Centre’s CEO Graham Turner told the Australian Financial Review‘s How I Made It the company’s recovery will take time:

This is not going to be over in three or six months time. It’s three or four or five years. And we need to be there for this, for that journey, from now till 2025… we’ve got to be able to get back to our pre-COVID size, without all the costs that were associated pre-COVID and that’s going to be quite a challenge.

Though, Turner did note, as he has previously, that travellers will probably be more likely to seek out expert advice post-COVID than they were before the pandemic.

Additionally, Turner believes corporations will look to provide their people with outside help while travelling to avoid pandemic-related “pitfalls”.

Flight Centre share price snapshot

The Flight Centre share price has gained ~32% since the start of 2021. It is also currently 49% higher than it was this time last year.

The post Flight Centre (ASX:FLT) share price leaps 5% as US borders to reopen appeared first on The Motley Fool Australia.

More reading

• Own Flight Centre shares? Here’s the company’s plan to reopen WA
• Travel is resuming but the Flight Centre (ASX: FLT) share price still lost 7% in October
• These are the 10 most shorted ASX shares
• 2 very unpopular ASX shares that’ll keep rising: expert
• Here’s why the Flight Centre (ASX:FLT) share price is up 26% so far in 2021

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 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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A rare Australian unicorn has just graduated to the ASX, with Siteminder Limited (ASX: SDR) shares commencing trading on Monday.

The stock can be bought and sold on a deferred settlement basis until normal trading begins on Wednesday morning.

SiteMinder operates a global hotel e-commerce platform. The Sydney company — which was a ‘unicorn’ because it was privately owned with a valuation exceeding $1 billion — claims it currently has 32,000 hotels in 150 countries selling, marketing and managing their business on the system.

The initial public offer, priced at $5.06 per share, gave the company a market valuation of $1.36 billion.

The stock was in hot demand in its first moments on market, rocketing up 35% to hit $6.85 at the time of writing.

Chief executive Sankar Narayan thanked his staff, customers, partners and investors for the 15-year journey thus far.

“Today serves as yet another reminder that the world’s innovators and market leaders can emerge from Australia,” he said.

“I am thrilled with the extremely high quality of shareholders who have joined us for our journey ahead. These include many of the biggest and most knowledgeable global and Australian giants in the investment world.”

SiteMinders’ big-name backers add to their holdings

One of the long-term investors in SiteMinder is fellow ASX company Bailador Technology Investments Ltd (ASX: BTI), which held onto its “substantial” stake through the IPO.

Existing investors AustralianSuper, Ellerston Capital, Fidelity International, Pendal Group and Washington H Soul Pattinson and Co Ltd (ASX: SOL) added to their holdings.

As the depressive effects of COVID-19 on the tourism industry start to lift, Narayan had high hopes for his platform.

“The global hotel industry has experienced evolution like never before in recent times,” he said.

“The need for technology like SiteMinder’s hotel commerce platform is of substantial relevance as hotels have had to digitally transform with haste, while adjusting to their customers’ changing needs and behaviours.”

SiteMinder raked in $101 million in the 2021 financial year, and claimed a total annual recurring revenue of $104.9 million as of June 2021.

The business is still definitely in the growth stage though, reporting a $121.8 million statutory net loss after tax for the last financial year.

The post Siteminder (ASX:SDR) share price rockets 35% on ASX debut appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bailador Technology Investments Limited. The Motley Fool Australia owns shares of and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Bailador Technology Investments 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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