Tag: Motley Fool

The Flight Centre Travel Group Ltd (ASX: FLT) share price has been a test of patience amid ongoing lockdowns and rising COVID-19 cases across Australia.

Flight Centre share price lower as lockdown woes continue

This morning, The Australian reported that the Sydney lockdown could be extended until mid-September.

“The NSW government has requested financial modelling for a lockdown of Greater Sydney that extends until mid-September due to the severity of the outbreak and an expectation that businesses and jobs won’t survive without more financial support.”

However, in a separate report from 9 News, NSW Premier Gladys Berejiklian said she would not jump to “any conclusions” and was “unaware of the source of a claim in The Australian that the lockdown would be pushed to mid-September”.

Regardless, the COVID-19 situation in NSW continues to worsen with 145 new cases reported on Monday.

With more cases coming out of NSW, investors might have to brace for continued volatility for the Flight Centre share price.

Travel is picking up … just not in Australia

The Flight Centre share price continues to face headwinds in Australia. However there is an encouraging restart to domestic and international tourism across major countries including Europe and the United States.

Commentary from the RBA’s July monetary policy meeting, said a “relaxation of containment measures had expanded opportunities for the consumption of discretionary services, including … domestic air travel. There had been a tentative restart to international tourism in some countries, particularly within Europe.”

Domestic travel is also making a strong rebound in the United States, with TSA checkpoint travel numbers rebounding close or even above 2019 figures.

Unfortunately for the Flight Centre share price, it’ll have to patiently wait for domestic lockdowns and COVID-19 cases to subside.

What’s next for the Flight Centre?

According to Flight Centre’s investor calendar, the company is due to report its full year FY21 results on 27 August.

The post Flight Centre (ASX:FLT) share price slides amid news Sydney lockdown could last until September appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• ASX 200 travel shares face new headwinds as Kiwi bubble policy tightens
• ASX 200 travel shares slide as New Zealand closes travel bubble
• The Flight Centre (ASX:FLT) share price is up today, despite lockdowns
• What happened on the US stock market overnight and how could it impact ASX shares?

Motley Fool contributor Kerry Sun 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.

from The Motley Fool Australia https://ift.tt/2V8NtR6

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is fighting hard to stay in positive territory. At the time of writing, the benchmark index is up slightly to 7,396 points.

Four ASX shares that are climbing higher today are listed below. Here’s why they are charging higher:

City Chic Collective Ltd (ASX: CCX)

The City Chic share price is up 6% to $5.74. This follows the release of an announcement revealing a new acquisition and its preliminary results for FY 2021. In respect to the former, City Chic has signed an agreement to acquire online plus-sized women’s clothing marketplace Navabi for $9.6 million. As for the latter, City Chic expects to report FY 2021 EBITDA in the range of $42 million to $42.5 million. This will be 58% to 60% year on year growth.

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas share price has jumped 10% to $7.08. This follows the release of the rare earths producer’s fourth quarter update. Lynas reported a 79.7% increase in fourth quarter neodymium and praseodymium (NdPr) production to 1,393 tonnes. And thanks to the almost doubling of its average realised price, this led to a significant increase in quarterly sales revenue to $185.9 million. This compares to sales revenue of $38 million a year earlier.

Rio Tinto Limited (ASX: RIO)

The Rio Tinto share price is up 2.5% to $130.29. Investors have been buying the mining giant’s shares following the release of a positive note out of Macquarie. This morning the broker retained its outperform rating and $162.00 price target on the company’s shares. It notes that current spot commodity prices mean Rio Tinto is trading with a free cash flow yield above 20%.

Stavely Minerals Ltd (ASX: SVY)

The Stavely Minerals share price has jumped 17% to 47 cents. The catalyst for this was the mineral exploration company revealing further significant results from the ongoing resource drilling program at the Cayley Lode discovery. This is part of Stavely’s 100% owned Stavely Copper-Gold Project in Victoria.

The post Why City Chic, Lynas Rare Earths, Rio Tinto, & Stavely Minerals are charging higher appeared first on The Motley Fool Australia.

More reading

• The City Chic (ASX:CCX) share price has jumped 6% today. Here’s why
• ASX 200 midday update: Lynas jumps, GPT withdraws guidance
• Own Rio Tinto (ASX:RIO) shares? What to look for when the miner reports on Wednesday
• Here’s why the Lynas (ASX:LYC) share price is on watch today
• ASX 200 Weekly Wrap: Just like that… ASX back to record highs

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.

from The Motley Fool Australia https://ift.tt/2TznX78

The BlueBet Holdings Ltd (ASX: BBT) share price surged more than 15% today to a record high.

Shares in the wagering company have continued their miraculous run after listing on the exchange earlier this month.

Let’s take a look at what’s been fuelling the BlueBet share price.

What’s fuelling the BlueBet share price?

BlueBet has not released any price-sensitive news that could explain today’s bullish activity.

However, several catalysts could explain why investors are jumping for shares in BlueBet.

The BlueBet share price received a boost after providing the market with an update on its US operations.

In the update, BlueBet highlighted its agreement with the Dubuque Racing Association.

Through this agreement, the company will be allowed to conduct online sportsbook operations in the state of Iowa.

Although subject to regulatory approval, the agreement opens an avenue to the lucrative US market. BlueBet’s management notes that the Iowa wagering market has grown by more than US$1 billion following the approval of sports betting in 2019.  

According to BlueBet, the US market is projected to be worth between US$8.5 billion to US$13.5 billion.

Supplementing its US agreement, the BlueBet share price has also received a favourable outlook from brokers.

Analysts from leading broker Ord Minnet recently put a buy rating on the company’s shares. Analysts highlighted that BlueBet is positioned for growth given the shift of sports betting online and the company’s expansion into the US.

More on BlueBet

BlueBet is an online bookmaker that provides both Australian and international sporting products to customers.

BlueBet offers wagering products on 31 sports in Australia and internationally, in addition to entertainment and politics wagering markets.

The company’s IPO saw BlueBet raise $80 million after selling 70.2 million shares for $1.14 apiece earlier this month.

Following its listing, BlueBet highlighted that the company plans expand its Australian operations and push into the US market.

Snapshot of the BlueBet share price

At the time of writing, the BlueBet share price is trading more than 2.66% higher at $2.32. Shares in BlueBet were up more than 15% earlier after hitting an intraday and all-time high of $2.63.

Shares in the wagering company have surged more than 25% since listing on the exchange earlier this month.

The post Here’s why the BlueBet (ASX:BBT) share price soared 15% higher today appeared first on The Motley Fool Australia.

More reading

• BlueBet (ASX:BBT) share price surges 13% to record highs
• Leading brokers name 3 ASX shares to buy today
• Why BlueBet, Orocobre, Praemium, & Sandfire shares are racing higher
• Why the BlueBet (ASX:BBT) share price is jumping 8% on Wednesday
• Is BlueBet or Pointsbet the better bet right now?

Motley Fool contributor Nikhil Gangaram 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.

from The Motley Fool Australia https://ift.tt/2TznGRE

The Best & Less Group Holdings Ltd (ASX: BST) share price has entered the secondary market well into the green as it commenced trading after its initial public offering (IPO).

Best & Less shares are now exchanging hands at $2.32 apiece, a 6.89% jump on the float price of $2.16.

Let’s explore how it has unfolded for Best & Less so far.

Quick recap on Best & Less

Best & Less Group, made up of the brands Best & Less in Australia and Postie in New Zealand, is a retailer specialising in baby and kids’ apparel.

The company generates 86% of revenue from its proprietary brands, all designed in house. Its clothing is then distributed for sale across 246 physical stores and online.

The group recorded unaudited sales revenue of $663 million for FY21, beating the prospectus forecast of $658 million.

Best & Less IPO

Best & Less listed on the ASX today after a “successful public offering” in which the company raised $60 million on a valuation of $2.16 per share.

At this price, its market capitalisation was $271 million. Demand for its shares was “well supported by institutional and retail investors”, according to the company.

Best & Less shares jumped to an intraday high of $2.31 after entering the secondary market.

For context, the S&P/ASX 200 Index (ASX: XJO) has posted a return of 0.07% today.

Regarding guidance, Best & Less sees “FY21 pro forma [earnings before interest, tax, depreciation and amortisation] EBITDA to exceed the pcp [prior corresponding period] by over 100% and to outperform the prospectus forecast…by approximately 15%”.

The company also finished FY21 with a cash position of ~$27 million, approximately 18% ahead of forecasts.

Speaking on the listing, Best & Less chief executive Rodney Orrock said:

Today marks another milestone in the history of Best & Less Group, which has served generations of families across Australia and New Zealand.

Foolish takeaway

The Best & Less share price jumped more than 7% after entering the secondary market today. Best & Less shares trade under the ticker “BST”.

The company has a market capitalisation of $282 million at the time of writing.

The post Best & Less (ASX:BST) share price jumps 7% after IPO appeared first on The Motley Fool Australia.

More reading

• Here’s why the BlueBet (ASX:BBT) share price soared 15% higher today
• Why the Hazer (ASX:HZR) share price is edging higher today
• These are the 10 most shorted ASX shares
• The Archer Materials (ASX:AXE) share price is up 60% in a month to a record high
• The AFIC (ASX:AFI) share price is up after releasing its unaudited results

Zach Bristow has no position in any of the stocks mentioned. 

from The Motley Fool Australia https://ift.tt/3zztSs7

The Hazer Group Ltd (ASX: HZR) share price is rising during afternoon trade. This comes after the hydrogen producer provided a quarterly trading update to the ASX before market open.

At the time of writing, Hazer shares are swapping hands for 93 cents apiece, up 1.09%.

Hazer progresses Commercial Demonstration Project

Investors appear pleased with the company’s latest update, with Hazer shares hitting an intraday high of 95 cents.

In its release, Hazer advised it is continuing to focus its efforts on developing the Hazer Commercial Development Project (CDP).

Hazer’s CDP is being constructed at Water Corporation’s Woodman Point Water Recovery Facility in Western Australia. The company aims to convert natural gas and similar methane feedstocks into renewable hydrogen and high-quality graphite.

During the quarter, civil site preparations were completed. Construction activities have since followed including building the hardstand area, trenching and cable preparations, and directional drilling for grid connection.

Concreting and ground stabilisation works are scheduled to be finished towards the middle of Q1 FY22.

The company has awarded a number of engineering and procurement contracts for the Hazer reactor and high-temperature heat-exchanger materials and fabrication. The reactor and furnace is a complex, first-of-its-kind project that requires special skills to ensure safe manufacture and operation.

Hazer stated that the fabrication of equipment modules is progressing, with equipment packages starting to be delivered and stored ahead of construction.

However, the project is facing increased costs due to COVID-19 related disruptions to global supply chains for equipment. Surging freight costs have also restricted suppliers in meeting the technical requirements to supply the project.

As such, Hazer announced that the project budget is predicted to increase by around $20-$22 million. Commissioning of the plant is still estimated to take place around December 2021.

To help fund the development, global venture capital firm AP Ventures invested $4 million into the CDP. In return, Hazer issued 4 million unlisted, unsecured $1.00 convertible notes and 2,250,000 Hazer options.

At the end of the quarter, Hazer declared cash reserves of $24.6 million. This includes $7.2 million relating to Australian Renewable Energy Agency (ARENA) grant proceeds, which is available upon specific milestone completions.

About the Hazer share price

Investors would be relatively pleased with the company’s share price, doubling over the last 12 months. Hazer shares are sitting in the middle of their 52-week range of 36 cents to $1.885.

Hazer commands a market capitalisation of about $134 million, with 145 million shares on hand.

The post Why the Hazer (ASX:HZR) share price is edging higher today appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• The Archer Materials (ASX:AXE) share price is up 60% in a month to a record high
• The AFIC (ASX:AFI) share price is up after releasing its unaudited results
• How do you value the Sydney Airport (ASX:SYD) share price?
• Why the ResMed (ASX:RMD) share price just hit an all-time high

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.

from The Motley Fool Australia https://ift.tt/3y9uHYC

At the start of each 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:

• Zip Co Ltd (ASX: Z1P) has become the most shorted share on the ASX after its short interest jumped to 10.6%. Short sellers have been increasing their positions since rumours emerged claiming that Apple is planning to enter the BNPL market.
• Webjet Limited (ASX: WEB) has seen its short interest ease to 10.3%. This online travel agent’s shares have been targeted amid concerns over recent lockdowns and the spread of the Delta strain of COVID-19.
• Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest climb to 10.2%. Short sellers have been shorting this travel agent’s shares due to concerns that the delayed travel market recovery could push back Flight Centre returning to profit.
• Inghams Group Ltd (ASX: ING) has 8.3% of its shares held short, which is down week on week. A major contract renewal with a supermarket giant continues to weigh on investor sentiment. That current contract is due to end in August.
• Kogan.com Ltd (ASX: KGN) has short interest of 7.7%, which is down notably week on week. Short sellers may be closing positions on the belief that recent lockdowns will be a boost to its sales and help ease inventory issues.
• Mesoblast limited (ASX: MSB) is back in the top ten with short interest of 6.5%. This biotech company has had a very turbulent 12 months due to a number of disappointing trial updates.
• Tassal Group Limited (ASX: TGR) has short interest of 6.1%, which is down week on week. Short sellers may be closing positions after salmon prices were tipped to improve.
• Metcash Limited (ASX: MTS) has seen its short interest ease to 6%. There are concerns that a post-COVID reversal in consumer trends will be less than favourable for Metcash.
• A2 Milk Company Ltd (ASX: A2M) has seen its short interest fall to 6%. This infant formula company has been targeted by short sellers due to weakness in the daigou channel and the growing popularity of Chinese infant formula brands.
• Electro Optic Systems Hldg Ltd (ASX: EOS) has 5.8% of its shares held short, which is down week on week again. A strong update by the communications, defence, and space company last week may have spooked short sellers.

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

More reading

• Is the A2 Milk (ASX:A2M) share price a buy right now?
• ASX 200 travel shares face new headwinds as Kiwi bubble policy tightens
• 6 ASX shares to rocket when COVID Delta passes
• Own A2 Milk shares? Here’s what to look for during reporting season
• Why Zip (ASX:Z1P) and this explosive ASX growth share could be buys

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 A2 Milk and 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.

from The Motley Fool Australia https://ift.tt/3iQcSqK

The Archer Materials Ltd (ASX: AXE) share price has been a strong performer again on Monday.

In afternoon trade, the semiconductor company’s shares are up over 8% to a new record high of $1.48.

This means Archer Materials shares are now up over 60% in the space of a month.

Why is the Archer Materials share price up 60% in a month?

A key driver of the Archer Materials share price gain has been the release of an announcement in the middle of the month in relation to its CQ qubit processor technology.

Archer is developing a qubit processor chip that could potentially operate at room temperature and integrate into modern electronics. Management notes that current quantum computing technologies are limited in ownership and use because they use qubit processors that can only operate at low temperatures or are difficult to integrate in modern electronics.

As a result, the successful development of Archer’s CQ room-temperature qubit processor chip could potentially provide a breakthrough solution to the widespread use and ownership of quantum computing powered technology.

What was this month’s announcement?

The announcement that got investors excited and has driven the Archer Materials share price to a record high revealed that development progress has been made with the first quantum information signals detected. This indicates on-chip qubit control.

This development means the company is on track towards achieving ‘qubit control’ under various qubit environments, including few and single qubits.

Archer Materials’ CEO, Dr Mohammad Choucair, commented: “Archer is making significant progress towards on-chip qubit control as part of its CQ chip development. We have the strongest indication yet that on-chip control of quantum information in our qubit material is within reach and entirely possible under miniaturisation conditions required for any future chip operation.”

Based on the current Archer Materials share price, the company has a market capitalisation of just under $340 million.

The post The Archer Materials (ASX:AXE) share price is up 60% in a month to a record high appeared first on The Motley Fool Australia.

More reading

• Why the Archer Materials (ASX:AXE) share price is up 30% in a week
• Why the Archer Materials (ASX:AXE) share price is surging 12% higher

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.

from The Motley Fool Australia https://ift.tt/3kUyKEc

The Australian Foundation Investment Co.Ltd. (ASX: AFI) share price is in the green today after the release of the company’s preliminary final results.

The listed investment company reported slightly lower profits for the 2021 financial year. However, it’s forging forward with the same dividend it handed out to its shareholders last year.

The AFIC share price is currently $8.15, 0.99% higher than its close on Friday.

Let’s take a closer look at AFIC’s unaudited full year results.

AFIC’s full year financial results

The AFIC share price is being boosted by its preliminary full year results.

Perhaps the most exciting news AFIC shared today was of its fully franked final dividend.

The company will be returning 14 cents per share to its shareholders. AFIC has drawn on its reserves to provide the dividend.

The 14 cents per share will be paid on 31 August. AFIC shares will trade ex-dividend on 11 August.

Over the year ended 30 June 2021, AFIC saw net profits of $235.1 million – down 2.2% from $240.4 million over the prior corresponding period.  

The profits included a $36.5 million demerger dividend which resulted from Endeavour Group Ltd‘s (ASX: EDV) demerger from Woolworths Group Ltd (ASX: WOW).

AFIC said the fall in profits is a direct result of the economic impact of COVID-19.

The company also brought in $262.8 million in revenue – 0.6% less than it did the year before.

AFIC’s net tangible assets per share, before taking the final dividend into account, were $7.45 per share. That’s more than the prior corresponding period, within which that figure was $5.96.

AFIC has ended the period with around $97 million in cash and roughly $40 million in receivables.

2021 financial year activities

The AFIC portfolio’s strong performance is also likely boosting the share price.

AFIC has announced it performed better than the S&P/ASX 200 Accumulation Index over the last 12 months. The index saw a 29.1% gain, while AFIC saw a return of 31.9%.

The top performers within its portfolio were Reece Ltd (ASX: REH), Mainfreight Limited (NZE: MFT), ARB Corporation Limited (ASX: ARB), James Hardie Industries plc (ASX: JHX) and ALS Ltd (ASX: ALQ).

The investment firm jumped in on PEXA Group Ltd‘s (ASX: PXA) initial public offering (IPO), which went down on 1 July. It also sold out of South32 Ltd (ASX: S32), Alumina Limited (ASX: AWC), and Brickworks Limited (ASX: BKW).

AFIC share price snapshot

The AFIC share price has been performing well lately.

It has gained 11.64% year to date. It is also 32.7% higher than it was this time last year.

The investment firm has a market capitalisation of around $9.9 billion, with approximately 1.2 billion shares outstanding.

The post The AFIC (ASX:AFI) share price is up after releasing its unaudited results appeared first on The Motley Fool Australia.

More reading

• The AFIC (ASX:AFI) share price just hit an all-time high

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 Brickworks. 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.

from The Motley Fool Australia https://ift.tt/3i2nLGP

The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price is having a very undramatic start to the week this morning. At the time of writing, Sydney Airport shares have… done very little so far today. The company is sitting at $7.82 at the time of writing, up just 0.2% on the price it finished up at last Friday.

But still, shareholders don’t have too much to complain about. Sydney Airport was (and still is) one of the hardest hit ASX 200 shares from the coronavirus pandemic.

Shuttered international tourism, sporadic and sudden closures of state borders – and don’t forget the bans on most Australian leaving the country – have all combined to smash the business model of this airport company.

And yet, Sydney Airport shares today are up 21.7% year to date in 2021 so far. They also remain up 45.8% over the past year. And only 12.85% off of the all-time high share price of ~$9 a share that we saw back in December 2019.

Much of these gains have, of course, come in the past month or so. The Sydney Airport share price climbed a whopping 34% between Friday 2 July and Monday 5 July, and have pretty much stayed at these elevated levels ever since.

This huge hike in Sydney Airport shares came as a result of a takeover proposal from a consortium of infrastructure investors that was publicly released on the morning of 5 July.

COVID woes and takeovers

This consortium, which included QSuper and IFM Investors, offered to buy all outstanding SYD shares at a price of $8.25 a share, at the time a 42% premium on the then Sydney Airport share price.

Even so, the Sydney Airport board subsequently rejected this offer. It stated that the offer was “opportunistic” and “undervalues Sydney Airport and is not in the best interests of securityholders”.

Undervalues Sydney airport? Well, it’s fairly difficult to come up with a value for Sydney Airport right now, for obvious reasons. This is a strong company holding an asset of enormous intrinsic value (Sydney’s only international airport). But also one that has had its business model damaged enormously by a situation which has no end date in sight.

So how do we value the Sydney Airport share price today?

Well, let’s start by checking out its most recent numbers. So Sydney Airport delivered its full-year earnings for the 2020 calendar year back in February. These are the most recent numbers we can go off.

So back then, the company reported a total of $803.7 million in revenue for 2020, which was down from the $1,639.6 million it brought in in 2019. In terms of earnings before interest, tax, depreciation and amortisation (EBITDA), Sydney Airport reported $627.8 million for 2020. That was down from the $1,145.5 million from 2019.

Even though these earnings are still very much in the green, the company ended up reporting a statutory loss after tax of $107.5 million for 2020. That was down from the profit of $215 million in 2019.

What is the Sydney Airport share price really worth?

This unique situation makes it hard to value Sydney Airport’s shares right now. There are a lot of variables, including the speed of vaccination rollouts (not just in Australia but around the world), what other countries do with their borders, new COVID variants… the list goes on.

There could be a case to be made that the Sydney Airport share price might not be worth the 12.85% discount to its all-time high that it is trading at today. However, long-term investors can also make the case that its valuation prior to the takeover proposal was undervaluing its long-term potential.

My Fool colleague Brooke looked at this question last week. She cited a report in which Credit Suisse analyst Paul Butler stated that the consortium bidders “likely didn’t post its best bet. Butler expects to see a higher offer given to the airport shortly”.

We shall have to see what institutional investors are ultimately willing to put on the table for this company. As it stands today, this might give us the best idea as to what Sydney Airport shares are really worth right now.

The post How do you value the Sydney Airport (ASX:SYD) share price? appeared first on The Motley Fool Australia.

More reading

• ASX 200 travel shares face new headwinds as Kiwi bubble policy tightens
• ASX 200 Weekly Wrap: Just like that… ASX back to record highs
• ASX 200 travel shares slide as New Zealand closes travel bubble
• COVID-19 lockdowns and the Sydney Airport (ASX:SYD) share price
• Broker: Sydney Airport (ASX:SYD) share price won’t hit $8.25 for awhile

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.

from The Motley Fool Australia https://ift.tt/3kWYOPc

The ResMed Inc.(ASX: RMD) share price is breaking new records.

At the time of writing, shares in the healthcare company are trading for $35.28 – up 0.54%. At one point, shares reached an intraday and all-time high of $35.44.

The S&P/ASX 200 Index (ASX: XJO) is also having a record day. Presently, the benchmark index is 0.05% higher but reached a high of 7,417.6 points. While the influence of the general market on the ResMed share price could be having an effect, there may be more to the story.

Let’s take a closer look.

Healthcare shares are looking fit

Throughout July, ASX healthcare shares, like ResMed, have been surging. Just in the last month, the ResMed share price has jumped 8.1%, Sonic Healthcare Limited (ASX: SHL) improved 8.2% and CSL Limited (ASX: CSL) shares are up 1.5%.

With COVID back in the spotlight, as the delta variant causes a sharp increase in cases across the world, healthcare shares – including ResMed – may be the few to benefit from this strain of the virus.

Experts too have had nothing but positive words to say about the ResMed share price in recent days.

Analysts at Macquarie Group, for example, say ResMed is a growth share for investors to buy right now. Randal Jenneke, head of Australian equities at T Rowe Price Group, says ResMed is a “quality” share for investors.

Jenneke previously said

Over more than two decades of data for the Australian market, high quality had outperformed low quality by 6.7% per annum.

… [quality shares like ResMed are] poised to outperform over the coming year.

As the ResMed share price has just hit a 52-week high, this advice is being borne out – at least for the time being.

Another factor potentially helping ResMed shares – the falling Aussie dollar.

Experts are tipping it to fall below 70 cents against the greenback. For ASX listed companies that predominately do business in the US, this could be a windfall.

ResMed is one of those companies that predominantly trade in the US. In fact, it is a dual listed company with shares on the New York Stock Exchange.

ResMed share price snapshot

Over the past 12 months, the ResMed share price has increased 23.1%. Year-to-date it is up an even greater 28.3%.

ResMed has a market capitalisation of around $51 billion.

The post Why the ResMed (ASX:RMD) share price just hit an all-time high appeared first on The Motley Fool Australia.

More reading

• Macquarie picks the best ASX shares to buy for the August reporting season
• Forecast crash in Aussie dollar to under US70 cents to boost these ASX 200 shares
• 3 ASX shares to buy before looming economic slowdown: expert
• Polynovo (ASX:PNV) share price bounces off 10-month lows, up 3% today
• These ASX 200 healthcare shares are holding up in today’s sea of red

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. and Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/2UKLa6Q