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Our share market has yet to fell the full impact of the skills shortage, but that could soon change and JPMorgan warns the ASX shares of this company could be most at risk.

The broker’s latest research note on this topic comes after over a quarter of Australian businesses were having trouble finding staff.

The findings from the recent ABS Business Conditions and Sentiment survey found that medium to larger businesses were struggling more to find skilled workers.

Skills shortage pain increasing most in construction

The most impacted roles include hospitality workers, engineering professionals, drivers and building trades.

“The industries most impacted include: Accommodation and Food Services, Utilities, Manufacturing and Construction with the Construction industry seeing the biggest increase in difficulties over the past six months,” said JPMorgan.

“In Dec-20, only 18% of Construction respondents reported an inability to recruit staff compared to 32% in Jun-20.”

Early signs of stress can be seen among some ASX engineering and constructions shares. They have been underperforming the S&P/ASX 200 Index (Index:^AXJO) recently while the rest of the market is unperturbed.

ASX shares feeling the jobs squeeze

For instance, the NRW Holdings Limited (ASX: NWH) share price has halved since the start of 2021. Meanwhile, the Monadelphous Group Limited (ASX: MND) share price and Emeco Holdings Limited (ASX: EHL) share price have fallen 24% and 11%, respectively.

In contrast, the ASX 200 has rallied 11% over the same period.

But the ASX shares that is most negatively impacted by skills shortages and potential wage rises aren’t in this group, warned JPMorgan.

The ASX shares most at risk from skills shortage

The broker reckons that the Downer EDI Limited (ASX: DOW) share price has most to lose. In fact, JPMorgan is so concerned that it downgraded the Downer share price to “underperform” (equivalent to “sell”) due to this risk factor.

The market may not have woken up to this threat. The Downer share price is up around 5% since January and has gained more than 30% over the past year. That’s materially ahead of the other contractors listed in this article.

Perhaps Downer’s greater exposure to infrastructure construction explains its outperformance. But if JPMorgan is right, the gap between the Downer share price and the sector could shrink substantially in the coming months, if not sooner.

Are there ASX buying opportunities?

This raises the question about whether now is the time to be selling Downer and buying one of the laggards.

Coincidentally, the analysts at Macquarie Group Ltd (ASX: MQG) reiterated their “outperform” recommendation on the Emeco share price on the same day JPMorgan downgraded the Downer share price.

Macquarie’s bullish call on Emeco comes as the company successfully raised $250 million via senior secured notes at 6.25%.

It also helped that management reiterated its FY21 operating earnings before interest, tax, depreciation and amortisation (EBITDA) guidance of $235 million to $238 million.

Macquarie’s 12-month price target on the Emeco share price is $1.30 a share.

The post The ASX shares most impacted by Australia’s job squeeze appeared first on The Motley Fool Australia.

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• ASX 200 Weekly Wrap: Share market breaks 5 week winning streak

Motley Fool contributor Brendon Lau owns shares of Emeco Holdings Limited, Monadelphous Group Ltd, Macquarie Group Limited . Connect with me on Twitter @brenlau.

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 Macquarie 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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With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

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

Afterpay Ltd (ASX: APT)

According to a note out of Ord Minnett, its analysts have retained their buy rating and $150.00 price target on this payments company’s shares. This follows news that it is expanding its pay anywhere offering in the United States to cover 12 major retailers. Collectively, these retailers account for almost half of all online retail volume in the lucrative market. Ord Minnett is a fan of Afterpay’s plans and sees opportunities to improve on similar and clunky offerings by rivals. The Afterpay share price is fetching $119.64 today.

Charter Hall Group (ASX: CHC)

A note out of Citi reveals that its analysts have retained their buy rating and lifted their price target on this property company’s shares to $17.50. This follows a funds under management update by Charter Hall last week which has Citi believing that there could be further upside to its guidance in FY 2021. In addition to this, the broker is a fan due to its strong business and undemanding valuation. The Charter Hall share price is trading at $15.68 today.

Origin Energy Ltd (ASX: ORG)

Another note out of Ord Minnett reveals that its analysts have retained their buy rating and $5.75 price target on this energy company’s shares. While Ord Minnett acknowledges that electricity prices were soft during the summer due to mild weather and COVID-19, it appears optimistic that they will soon improve. And of the two major listed energy retailers, Ord Minnett believes Origin is best positioned to benefit from rising prices. The Origin share price is trading at $4.71 this afternoon.

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

More reading

• Why Afterpay, Gold Road, Qantas, & Talga shares are sinking
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• ASX 200 down 0.1%: Metcash results, Costa returns, travel shares sink
• ASX 200 Weekly Wrap: Share market breaks 5 week winning streak
• Top brokers name 3 ASX shares to sell next week

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 AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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 Infinity Lithium Corporation Ltd (ASX: INF) share price is on the move today. This follows the lithium explorer signing of a Memorandum of Understanding (MOU) for the offtake of lithium hydroxide (LiOH).

At the time of writing, Infinity shares are up 6.10% to 8.7 cents.

Infinity progresses lithium hydroxide development

In a statement to the ASX, Infinity advised it has entered into a non-binding MOU with LG Energy Solution.

Based in South Korea, LG Energy Solution is a global leader that is focused on producing advanced lithium-ion batteries. The eco-friendly company services the electric vehicles, mobility & IT applications, and energy storage systems market.

The collaboration will seek to form an agreement for the long-term supply of battery grade LiOH from the San José Lithium Project.

The terms of the MOU are set out below:

• Potential supply of LiOH for an initial 5-year period with the potential to continue for a further 5 years;
• First right to 10,000 tonnes per annum of LiOH product with additional volumes under the MOU subject to negotiations and agreement;
• The purchase price for LiOH set to be set at market prices, pending approval by both parties.

Infinity noted that it aims to have the MOU formed into a binding offtake agreement within the next 12 months. 

Infinity CEO and managing director, Ryan Parkin said:

We are delighted to announce the commencement of a long-term commercial relationship with tier one partner LG Energy Solution, welcoming the potential to support a global leading lithium-ion battery producer to secure essential facets of the supply chain.

About the Infinity share price

From the beginning of 2021 to mid-February, Infinity shares rocketed higher to reach a multi-year high of 28 cents. However, since then, its shares plummeted 67% after being suspended from trading on the ASX in April.

At today’s price, Infinity commands a market capitalisation of around $35 million, with over 402 million shares outstanding.

The post Here’s why the Infinity share price is powering 6% higher today appeared first on The Motley Fool Australia.

More reading

• Why Afterpay, Gold Road, Qantas, & Talga shares are sinking
• Nuix (ASX:NXL) shares continue to tumble on financial, legal concerns
• What’s boosting the Maas Group (ASX:MGH) share price today?
• These 3 ASX biotech shares are all up at least 120% in a year
• How much wealth do Aussies have today? It’s never been higher

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is fighting hard to carve out a small gain. At the time of writing, the benchmark index is up ever so slightly to 7,308.8 points.

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

Afterpay Ltd (ASX: APT)

The Afterpay share price is down 7.5% to $119.33. This decline appears to have been driven by profit taking from investors following a very strong gain last week. That gain was driven by news that the buy now pay later provider is expanding its pay anywhere offering in the US to retail giants such as Amazon and Nike.

Gold Road Resources Ltd (ASX: GOR)

The Gold Road share price is down almost 8% to $1.31. Investors have been selling the gold miner’s shares after it revealed that it will fall short of its guidance in 2021. Gold Road blamed this on disruptions caused to processing plant operations. It now expects production at the low end of its 260,000 to 300,000 ounces range with an all-in sustaining cost of $1,325 to $1,475 per ounce. The latter compares to prior guidance of A$1,225 to A$1,350 per ounce.

Qantas Airways Limited (ASX: QAN)

The Qantas share price has fallen 4% to $4.53. Qantas and a number of travel shares have come under pressure amid concerns over the spread of COVID-19 through Sydney and into other states. This has the potential to derail the travel market recovery, which was just beginning to return to relatively normal.

Talga Group Ltd (ASX: TLG)

The Talga share price has sunk 8.5% to $1.30. This is despite the company revealing that LKAB and Mitsui have extended a Letter of Intent (LOI) for Talga’s Swedish graphite anode project. Investors may be disappointed that the two parties didn’t come to a decision on whether to co-develop the project prior to the previous LOI expiry.

The post Why Afterpay, Gold Road, Qantas, & Talga shares are sinking appeared first on The Motley Fool Australia.

More reading

• The Qantas (ASX:QAN) share price is sinking today
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• Afterpay (ASX:APT) share price tumbles nearly 7%
• Gold Resources (ASX:GOR) share price sinks 7% on production update
• Temple & Webster share price surges with other ASX COVID winners

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 AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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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To say that ASX data analytics company Nuix Ltd (ASX:NXL) has had an underwhelming start to life on the Australian share market is probably an understatement. Since listing at around $8 in December, the embattled tech company’s shares have plunged around 70% lower and are now trading at just $2.415.

Let’s take a look at the reasons why Nuix shares have already been sold off so heavily so soon after first listing on the ASX.

Company Background

First, we ought to find out what it is that Nuix actually does.

Nuix’s proprietary data processing software allows its clients to convert massive amounts of “messy” data into actionable information. The Nuix data engine can sift through data as diverse as social media posts, emails and other human-generated content to deliver more meaningful real-world solutions.

Nuix works with clients across the corporate, government and legal sectors (among others) to provide services as diverse as data privacy, digital forensics, fraud and corruption investigations, as well as data analytics. It has already racked up a long list of top-tier international clients, including the American Express Company (NYSE: AXP), Amazon.com, Inc. (NASDAQ: AMZN) and our very own Commonwealth Bank of Australia (ASX: CBA).

So, what went wrong?

This all sounds pretty good so far: a junior software company operating in a niche field with an already growing list of major international clients. So how come the Nuix share price been stuck in a perpetual nosedive?

Well, there are at least a few reasons.

Financials

First – and perhaps most important – are the financials. Nuix underperformed in the first half of FY21, falling short of its prospectus forecasts. Revenues for the half came in at $85.3 million, a decline of 4% versus the prior comparative period and just 44% of the prospectus forecast for FY21.

Since the release of its first half results, Nuix has been forced to make a number of earnings downgrades – the most recent of which was communicated to the market at the end of May. Nuix advised that it now expects full-year revenues in the range of $173 million to $182 million (a long way off its original prospectus forecast of $193.5 million).

Legal Concerns

There are also legal concerns surrounding the company. Most of these are related to infighting amongst its current and former executives around the validity of options issued as part of its IPO. It has become so serious that Nuix’s Sydney offices were raided last week.

In response, Nuix released a statement acknowledging the raid by the Australian Federal Police, while commenting that “the warrant does not relate to any allegation of wrongdoing by the Company.”

People

Finally, there have also been some recent people movements at Nuix. While hiring new leadership staff can bring about plenty of positive change for a company, in the short term it can often create unwanted uncertainty around the company’s strategy and direction.

CEO Rod Vawdrey has announced that he will retire from the company once a replacement is found. The company is also on the lookout for a new Chief Financial Officer, after long-term CFO Stephen Doyle resigned earlier this month.

The post Nuix (ASX:NXL) shares continue to tumble on financial, legal concerns appeared first on The Motley Fool Australia.

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• Why New Hope, Nuix, Pilbara Minerals, & Woolworths shares are dropping
• Nuix (ASX:NXL) share price falls as warrant to search offices issued
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Motley Fool contributor Rhys Brock owns shares of Nuix Pty Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. The Motley Fool Australia has recommended Nuix Pty 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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Shares in Maas Group Holdings Ltd (ASX: MGH) are gaining today after the company released an update on its earnings and acquisitions. At the time of writing, the Maas Group share price is trading at $5.90 – 2.08% higher than Friday’s close.

However, earlier today, the Maas Group share price gained 9.3% to reach an intraday high of $6.32.

Maas Group provides construction materials, equipment, and services and has vertically integrated interests in real estate.

Let’s take a look at today’s news from Maas Group.

The latest from Maas Group

The Maas Group share price reacted positively after the company released a market update detailing its earnings and acquisitions since its initial public offering (IPO) in December 2020.

It also confirmed its earnings guidance for the current financial year, for which it expects to announce earnings before interest, tax, depreciation, and amortisations (EBITDA) of between $70 million and $77 million. That figure excludes the impact of the acquisitions announced by the company in April.

Maas Group has also successfully increased its Australian debt facilities from $160 million to $200 million. It also has access to another $100 million of funding for commercial property purchases.

The additional debt facilities leave the company with pro forma liquidity of $132 million.

Real estate acquisitions

Since December, Maas Group has spent $47.3 million on commercial and industrial real estate acquisitions, including:

• Dubbo’s Quest Serviced Apartments, for which Maas has entered a binding heads of agreement to purchase.

• Spacey Self Storage, a storage business with assets in Dubbo, Bathurst, Albury, and Canberra.

•  The Southlakes Childcare Centre, for which Maas has now signed a lease agreement with a childcare operator.

• A 45% share in the Badgery’s Creek Development in the Western Sydney Airport development.

Maas Group expects its commercial real estate acquisitions to bring in $2.8 million in pro forma EBIDTA. However, the company doesn’t expect the new acquisitions to contribute to its statutory EBITDA in the 2021 financial year.

Maas Group has also exercised options it held for 2,005 lots in 3 residential developments, located in Shepparton and Tamworth. However, one development is still dependant on shareholder approval, while another is dependent on financier consent.

Additionally, Maas has entered contracts regarding 4 new developments located in Bathurst, Lithgow, and Dubbo. The 4 developments could see the group paying $18 million for 552 residential lots.

The new developments, combined with Maas Group’s existing real estate pipeline, could provide the company with 15 years of subdivision sales.

The company expects to settle 227 lots this financial year, which is above its prospectus’ guidance. It also expects to settle around 300 lots in the 2022 financial year, with 125 lots already under contract.

Business acquisitions

Maas Group is also planning to acquire 6 commercial and civil construction businesses. Most of the acquisitions are subject to conditions including shareholder approval. The businesses include:

• Stanaway Pty Limited, a central NSW-based residential, commercial, and industrial construction company, for a total potential consideration of $10.4 million.

• Maas Construction Group, a Dubbo-based building and demolition company that’s currently owned by the brothers of Maas Group’s CEO and founder, for a total potential consideration of $9.4 million.

• Maas Plumbing Pty Limited, a central West NSW-based plumbing company that’s also owned by a brother of Maas Group’s CEO and founder, for a total potential consideration of $3.9 million.

• Inverell Aggregates & Concrete, an Inverell-based concrete company, for a total consideration of $3.9 million.

• Redimix Concrete, a Tamworth-based concrete company, for a total consideration of $5.9 million.

• A1 Earthworx, a Mudgee-based plant and equipment hire and civil construction business, for a total potential consideration of $12 million.

Each of the potential acquisition’s considerations are made of varying balances of cash and scripts.

Maas Group share price snapshot

Maas Group shares are having a very pleasing inaugural year on the ASX.

The Maas Group share price has gained around 118% since it debuted on the exchange late last year.

The company has a market capitalisation of around $1.6 billion, with approximately 266 million shares outstanding.

The post What’s boosting the Maas Group (ASX:MGH) share price today? appeared first on The Motley Fool Australia.

More reading

• Nuix (ASX:NXL) shares continue to tumble on financial, legal concerns
• These 3 ASX biotech shares are all up at least 120% in a year
• How much wealth do Aussies have today? It’s never been higher
• The Qantas (ASX:QAN) share price is sinking today
• Why the RedHill Education (ASX:RDH) share price is rocketing 18% higher

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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Shares in ASX biotech companies Anteotech Ltd (ASX: ADO), Imugene Ltd (ASX: IMU) and Little Green Pharma Ltd (ASX: LGP) have all posted exciting gains over the past 12 months.

Let’s have a look at the share price performance and recent news of all 3 ASX shares.

Little Green Pharma

At the time of writing, shares in this cannabis manufacturing and distribution company have climbed 121.1% over the course of 1 year. Little Green Pharma shares are also 15.33% up on the previous 5 days and 17.91% on the previous month.

Over the year-to-date, the company’s shares have posted a return of 41%, having come off a high of 94 cents on 4 February 2021.

Over the previous 6 months, the company has reported 2 major announcements, including a firm purchase order from Denmark company Demecan for 9,000 units of flower, and signing an exclusive distribution deal with leading Polish pharmaceutical group Pelion SA.

With a share price of 79.5 cents at the time of writing, Little Green Pharma has a market capitalisation of $104.6 million, and currently has negative earnings per share.

Anteotech

The Anteotech share price has climbed 159% this year-to-date, however is 1.72% down at the time of writing.

Over the previous 5 days, Anteotech shares have gained 26.67%, giving the company a market capitalisation of around $556 million. Shares are trading off their 52-week high of 49.5 cents, but are above the 52-week low of 2 cents.

Over the year-to-date, the company has procured a specified manufacturing line in Brisbane as apart of its EuGeni Test Strip Manufacturing Strategy, forming part of a “decentralised and diversified global manufacturing approach”.

According to a press release on 24 May 2021, the company expects an additional capacity of 12 million strips per annum as a result of the initiative.

Imugene

The Imugene share price has surged by 277% year-to-date, recently down from a high of 49 cents, coming in today at 38 cents at the time of writing.

The company is up 4.05% intraday, and has gained 10% over the previous 5 days. Imugene’s market capitalisation has now reached $1.8 billion, but it has experienced a 1-month drop of 17% from the previous month.

Over the previous 6 months, the company has presented a series of positive data on clinical trial outcomes. Back in April 2021, the company released positive headline results for its phase 2 gastric cancer clinical trial.

Furthermore, on 18 May 2021, the company also announced the commencement of a phase 1 clinical trial in 2022 to expand on Imugene’s expertise in oncolytic virus and cell therapy technology, for investigation in therapy for solid tumours.

Foolish takeaway

These 3 ASX biotech shares have each outperformed the broader Australian index this year, posting returns above the S&P/ASX 200 Index (ASX: XJO)’s 11% year-to-date.

The post These 3 ASX biotech shares are all up at least 120% in a year appeared first on The Motley Fool Australia.

More reading

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• NAB and Zip were among the most traded ASX shares last week
• Here’s why the Little Green Pharma (ASX:LGP) share price is down 5%
• The Imugene (ASX:IMU) share price has fallen 14% in the last 5 days
• These 3 ASX 200 shares are the most actively traded today

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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Last year, one of the strange side-effects of the coronavirus pandemic was an overall increase in household wealth. A rapidly rebounding share market, coupled with a similar move in the national property market helped Aussies feel like there was at least some upside to the roller-coaster that was 2020.

Record governmental stimulus programs, such as JobKeeper and a temporary doubling of JobSeeker, also helped mightily. But how are Aussies faring in 2021 so far, now that much of this stimulus has been wound back?

Never better, according to the Australian Bureau of Statistics (ABS).

Rising tides of property and shares are lifting the Aussie wealth boat

The pandemic continues to see rising household wealth in Australia. At least that’s what the latest findings from the ABS tell us. According to ABS statistics released last week, total household wealth managed to rise by 4.3% in the 3 months to 31 March 2021. That equates to a dollar figure of $510 billion, putting the total wealth pool in Australia at a record $12.66 trillion. Wealth per capita is also at a record high, sitting at $492,055 for every Australian at the end of the March quarter.

The annual numbers tell a similar story. In the 12 months to 31 March 2021, the ABS found that household wealth grew 15.3%. That was the strongest annual growth since March 2010 (22.6%).

So what do Aussies have to thank for all this wealth? The usual suspects, according to the ABS. That annual figure of 15.3% consisted of 8.5% from rising property prices. A further 4.2% came from superannuation balance growth. Here’s what the ABS’ Head of Finance and Wealth, Katherine Keenan, had to say on the rise in wealth:

Residential assets contributed 3.5 percentage points to the quarterly growth in household wealth, followed by superannuation balances and directly held shares, at 0.6 and 0.2 percentage points. Growth in household wealth continued to be driven by rising residential property prices, reflecting record low interest rates, support through a range of government incentives and recovery in the labour market…

Household wealth grew more in the last year than it did during the preceding three years combined. Over the three years prior to March 2020, household wealth grew 11.4 per cent.

So houses and shares… That’s evidently how the Aussie wealth bread is being buttered right now.

The post How much wealth do Aussies have today? It’s never been higher appeared first on The Motley Fool Australia.

More reading

• The Qantas (ASX:QAN) share price is sinking today
• Why the RedHill Education (ASX:RDH) share price is rocketing 18% higher
• Talga (ASX:TLG) share price slides 7% despite positive update
• 2 high performing ASX lithium shares tipped by top fund manager
• Cryptocurrency values plunged this past week. Should you change your investing strategy?

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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Shares in Australia’s leading airline Qantas Airways Ltd (ASX: QAN) are falling today amid a sweeping set of new travel restrictions and lockdowns across the country.

At the time of writing, the Qantas share price has tanked 4.02%, trading at $4.54.

Australia braces for new restrictions

NSW has recorded more new COVID-19 cases on Monday, with Greater Sydney in a two-week lockdown on stay-at-home orders until Friday, 9 July.

Various border travel restrictions now apply across the country, with the situation changing rapidly as states grapple to contain several different COVID outbreaks.

Travel restrictions drag the Qantas share price

The latest restrictions fly in the face of Qantas ambitions to bounce back from COVID-19 impacts.

In the airline’s market update on 20 May, it said the group was on track to reach 95 per cent of its pre-COVID domestic capacity in the fourth quarter of FY21.

The update added that Qantas and Jetstar expected to average 107 and 120 per cent respectively, of pre-COVID domestic capacity by FY22.

In addition, Qantas had revised its expectations for the return of a “significant level of international flying” from the end of October 2021 to late December 2021.

The update also revealed the financial impact of lockdowns, flagging:

A three-day lockdown in Perth during April cost the group an estimated $15 million in EBITDA. This follows the $29 million impact from the Brisbane lockdown in late March and the Sydney (Northern Beaches) outbreak that resulted in an impact of around $400 million in EBITDA for the period.

It appears the latest lockdowns and border closures taking place over the next few weeks are weighing on Qantas shares on Monday.

Back to November 2020 levels

The Qantas share price has struggled to find headway this year, down 7.75% year-to-date.

At current prices, Qantas shares have retreated back to November 2020 levels, when the COVID-19 vaccine was still undergoing trials.

The post The Qantas (ASX:QAN) share price is sinking today appeared first on The Motley Fool Australia.

More reading

• Temple & Webster share price surges with other ASX COVID winners
• ASX 200 down 0.1%: Metcash results, Costa returns, travel shares sink
• Sydney Airport (ASX:SYD) share price is slipping amid COVID border chaos
• Top brokers name 3 ASX shares to buy today
• The Qantas (ASX:QAN) share price is falling today

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 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 RedHill Education Ltd (ASX: RDH) share price has been a very strong performer on Monday.

In afternoon trade, the education and agency services provider’s shares are up 18% to 91 cents.

Why is the RedHill Education share price storming higher?

Investors have been bidding the RedHill Education share price higher today after it provided yet another takeover update.

Hot on the heels of the collapse in talks between RedHill Education and UCW Ltd (ASX: UCW) last week, this morning the company announced its entry into an indicative, non-binding term sheet with iCollege Ltd (ASX: ICT).

According to the release, this follows iCollege’s decision to increase its off-market takeover offer from 7.6 to 9.5 iCollege shares for each RedHill share, subject to satisfaction with the findings of due diligence.

Based on the iCollege share price at the close of play on Friday of 11 cents, this implies an offer of ~$1.045 per share.

The release notes that both the iCollege and RedHill boards and management teams have held several collaborative discussions to better understand the contribution of each business to a potential merged entity. These discussions culminated in an agreement to further investigate what appears to be a sound strategic rationale including synergies, geographic spread and education sector expansion.

iCollege’s Chairman, Simon Tolhurst, commented: “iCollege has been encouraged by the collaborative approach taken by the RedHill Board which has seen agreement reached on next steps. iCollege has considered all additional stakeholder feedback and decided, that subject to entering into a Bid Implementation Agreement with RedHill and satisfactory mutual due diligence the share exchange ratio will be increased to 9.5 iCollege shares ($1.05 per RedHill share). iCollege believes that this agreement provides RedHill shareholders with a reasonable and fair value.”

What now?

RedHill’s directors note this is only an indicative offer. As such, it warned that there is no binding agreement and no certainty a transaction will ultimately be agreed with iCollege.

In light of this, it recommends shareholders continue to take no action in relation to the offer. In the meantime, the company advised that it will continue to keep shareholders informed of any material developments and is committed to acting in the best interests of all shareholders and to maximising shareholder value.

The post Why the RedHill Education (ASX:RDH) share price is rocketing 18% higher appeared first on The Motley Fool Australia.

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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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