Tag: Motley Fool

The Alliance Aviation Services Ltd (ASX: AQZ) share price is falling today following a reshuffle of the company’s debt facilities.

At the time of writing, the aviation services company’s shares are selling for $4.34, down 1.59%.

Alliance reorganises debt facilities

Investors are offloading Alliance shares after the company announced a change up in its existing debt facilities.

According to its release, Alliance advised it has successfully refinanced its current debt, and extended the due date. The new long-term fixed loans replace the former debt facilities that were due to expire in January 2022.

The new debt facilities, totalling $176 million, consist of the following:

• $71 million 3-year revolving bank loan facility
• $5 million working capital loan facility
• $25 million 4.5-year fixed rate institutional loan
• $25 million 7-year fixed rate institutional loan
• $50 million 10-year fixed rate institutional loan

The loans will be used to settle the balance of the Embraer E190 acquisition as well as funding maintenance checks.

Alliance noted that the weighted average interest rate for the above loans is between 2.7% and 2.9%. In addition, if the company decided to pursue other expansionary opportunities, the debt facilities provide more leeway.

The bank facility was refinanced by its existing lending partner, Australia and New Zealand Banking Group Ltd (ASX: ANZ). The fixed rate institutional loans have been entered into with Pricoa Private Capital, whom are a subsidiary of Prudential Financial Group.

Alliance managing director, Scott McMillan commented:

We are extremely satisfied with the outcome of this financing renewal. Alliance has always taken a longer-term view of the assets it acquires, and we have now sourced funding that aligns with this view.

Pricoa has provided Alliance with debt facilities that have more flexible terms at a lower cost to the group and with a tenure that will allow Alliance to focus on the deployment of these aircraftandareturnofcapitaltoitsshareholdersinashortatimeaspossible. We welcome Pricoa to the Alliance family and are very excited to see this relationship grow in the future.

Alliance share price summary

The Alliance share price has strongly rebounded since the airline industry nosedived from March last year. Government mandated measures restricted passenger movement and effectively halted almost all airlines due to COVID-19.

However, the company’s share price has gained traction over the past 12 months, outperforming its peers who are still well below their 52-week highs. Alliance shares recently reached an all-time high of $4.92 last month.

More reading

• 2 ASX shares that multiple brokers think could be buys
• Alliance (ASX:AQZ) share price edges lower despite positive update

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If you’ve invested in ASX shares, you’ve likely struggled with this costly pitfall before.

Investors often buy shares because they have a good feeling about them. And then they hold onto them even when the fundamental reasons behind buying the shares have changed, and the price is falling.

Or, on the other side of the coin, they may sell out of an ASX share simply because they feel it’s reached its high.

Investing based on feelings or emotions is something most investors struggle with. But Robert Francis – online trading platform eToro’s Australia managing director – says that all too often leads to losing trades.

Check your emotions at the door

“Humans tend to have emotional connections to their money and often subconsciously apply these same emotions to their investment portfolio,” Francis told the Motley Fool.

And it’s not just newbies putting their hard-earned money where their heart is.

“Even the most experienced investors can fall into the emotional investing trap,” Francis said.

That’s even more true during periods of higher volatility, which “may incite a feeling of excitement if the market goes up, but can quickly turn to fear if the market crashes”. 

The penchant towards emotional investing tends to grow when investors have too much at stake, either in a single share or across the ASX. It’s a good reminder only to invest what you can afford to lose. 

And don’t let yourself get a big head if you’ve made some profitable investments.

According to Francis:

Another pitfall for investors is overconfidence. After making a few rewarding investments, investors can delude themselves into thinking they’re above the average investor in a bull market and tend to trust their gut with everything. This often leads to loss. 

Stay humble and, remember, you’re never too old to learn. “Some of the most successful investors are also the most pragmatic,” Francis said.

Fear and greed on the ASX

Francis calls emotional investing, as opposed to investing based on logic, a high-risk method. “Often it will lead investors to make irrational decisions based on short-term fear, which causes them to lose sight of their strategic objectives and financial goals.”

So what types of mistakes can emotional investing lead to on the ASX?

According to Francis:

The most common emotional reaction is that investors either experience buyers’ regret or overreact during times of stress, euphoria or panic. It means they’re more susceptible to hype-buying, which can lead to ill-informed investment decisions.

It can also lead to panic-selling where potential profit is not realised because the stock is sold at a loss, or significantly lower than its intrinsic value.

As for investors who may have sold most or all of their ASX shares during last year’s COVID driven market rout and are still sitting predominantly in cash, Francis said, “Investors driven by fear or pessimism can miss out on investing opportunities waiting for a market correction or bear run that doesn’t come.”

Indeed, investors who’ve been waiting for a market correction following the 2020 February and March selloff are most likely still waiting.

Down a slender 0.11% at the time of writing, the S&P/ASX 200 Index (ASX: XJO) is up some 49% since the 20 March 2020 lows.

How can ASX investors avoid such a common human impulse?

The big question for ASX investors then is: how can we avoid such an integral human impulse as emotion?

According to Francis, “The key is to take a rational, measured approach to investing. This mindset can be achieved with due diligence, a disciplined investment process, and a sense of perspective.”

Francis shared a few other tips with the Motley Fool.

Chief among those is to “establish and stick to a strategy” with clear investment goals. Taking a long-term view tends to be an easier plan to stick with and “prevents investors from getting caught up in short-term traps”.

Another investment nugget he shared: ignore the hype. Now, this isn’t always easy to do. Particularly in today’s world of around the clock news feeds accessible almost everywhere you go.

But Francis urges investors to be critical of the information they come across. “Research your investments before deploying any capital. And make informed decisions about the intrinsic value of a company before you introduce it to your portfolio.”

Two other valuable, but often overlooked, investing tips Francis shared to help manage risk are: diversification (stocks, crypto assets and other financial instruments) and dollar-cost averaging (DCA).

Finally, Francis told us, it’s best for investors to just be patient.

Many investors already know the saying ‘investing is a marathon, not a sprint’. But really, this is true. The more investors try to get rich quickly, the greater the chance they will lose their money. Usually, the sprinter is emotional.

Being consistent over time is extremely difficult. However, being an emotionally controlled marathoner will generate consistent and long-term returns.

There you have it.

ASX investors, you’d do well to check your emotions at the door.

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The post How to avoid this costly ASX investor trap – it’s harder than you think appeared first on The Motley Fool Australia.

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The BetaShares Crude Oil Index ETF (ASX: OOO) has been attracting a lot of investor interest in recent days. Not for its pricing performance mind you. This exchange traded fund (ETF) hasn’t done much, pricing wise, since early March. That’s when it reached a 52-week high of $6.58 a unit. Today OOO units are down just over 7% from that high. And even so, the ETF is still up 38% over the past six months. And a rewarding 66.5% over the past 12 months.

What’s more, these numbers don’t include the hefty distributions that the fund has made. Including these payouts, the fund has returned 74% for the six months to 30 April, and 123% for the 12 months to the same date.

What is the BetaShares Crude Oil Index ETF?

This ETF is a fund designed to track the performance of an index that provides exposure to crude oil futures contracts. In other words, it’s designed to reflect movements in the crude oil price.

The BetaShares Crude Oil ETF attracted a lot of interest last year amid the massive disruption to the oil market. The rapid onset of the COVID-19 pandemic saw a massive glut in the global oil supply. That’s what happens when almost everyone stops driving to work and flying on planes over just a few weeks. It might seem like a distant memory now, but oil futures for West Texas Intermediate (WTI) oil briefly went into the negative in April 2020 for the first time in history. This prompted enormous interest in the BetaShares ETF at the time. This interest might have proved lucrative for a number of investors, seeing as the fund’s units rose around 123% between 24 April 2020 and 23 April 2021.

But where does it stand today? Spot oil prices have certainly recovered. WTI crude was trading at US$35 a barrel this time a year ago. Today, it’s at US$66.70, roughly on par with late 2018 levels.

ETF distributions go turbo

Rather than movements in the crude oil price, interest in this ETF might instead be coalescing around the fund’s new distribution policy. About a month ago, BetaShares announced that the Crude Oil Index ETF would be making monthly distributions for the remainder of the financial year. And, why?

Here’s what the company said:

The prices of WTI crude oil futures have increased significantly over the course of the financial year to date. As a result, as at the date of this announcement, the Fund has realised substantial gains, which would be required to be distributed by the 30 June 2021 financial year end. The Fund therefore intends to make monthly distributions for the remainder of the financial year – as at the end of April, May and June 2021.

On Friday afternoon last week, the fund made another announcement. This one detailed that the ETF’s next distribution would be paid out on 17 June, with an ex-distribution date of 2 June. As flagged above, this fund’s distribution payments have formed a large component of its overall returns. The monthly payment of 34.14 cents per unit that unitholders received on 18 May for April is alone worth a yield of 5.63% on current pricing. Annualised, that would be a staggering 62%.

According to BetaShares, we are expecting its next distribution amount sometime today. No wonder investors are talking about the BetaShares Crude Oil ETF.

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With low interest rates likely to be here for some time to come, it certainly is a difficult time for income investors.

While this is disappointing, investors need to worry. This is because there are plenty of ASX dividend shares that can help you overcome low rates. Two to look at are listed below:

National Storage REIT (ASX: NSR)

The first ASX dividend share to look at is National Storage. It is one of Australia’s largest self-storage providers, tailoring self-storage solutions to over 80,000 residential and commercial customers at 200+ storage centres across Australia and New Zealand.

The company’s offering spans self-storage, business storage, climate-controlled wine storage, vehicle storage, vehicle and trailer hire, packaging, insurance and other value-added services.

In FY 2021, the company expects to report underlying earnings per share of 7.7 cents to 8.3 cents. From this, it plans to pay out 90% to 100% to shareholders as distributions. Based on the middle of these guidance ranges and the current National Storage share price, this will mean a 3.6% dividend yield.

Positively, with the housing market cycle in its favour and the company continuing to expand through developments and acquisitions, it appears well-placed for growth in the coming years.

Suncorp Group Ltd (ASX: SUN)

Another dividend share to look at is Suncorp. For over a century Suncorp has been building futures and protecting what matters by offering insurance, banking, and wealth products and services through some of Australia and New Zealand’s most recognised financial brands. These include AAMI, Apia, Bingle, GIO, Shannons, Vero, and the eponymous Suncorp brand.

It has returned to form in FY 2021 after a tough year in FY 2020 because of the pandemic. Pleasingly, one leading broker that believes this solid form can continue is Goldman Sachs. In light of this, it recently retained its buy rating and lifted its price target to $12.08.

The broker is positive on the company’s outlook and is forecasting generous dividend payments in the coming years. In FY 2021, for example, Goldman is expecting the company to reward shareholders with a 60 cents per share fully franked dividend. Based on the current Suncorp share price of $11.13, this will mean a 5.4% dividend yield.

More reading

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There’s a pattern emerging in my writing.

A pattern that, I think, holds an important key to good investing.

Let me explain.

See, most Monday mornings, I sit down at my keyboard to type up an article, and my head is awash in potential topics.

But not the usual suspects.

See, in the ‘serious’ financial business, Monday mornings are supposed to be all about the week ahead. 

They’re supposed to be helping traders get ready for the trades they should make. 

To assess the latest news out of the USA, UK, Japan or China.

To arm you with all of the information you need to be a great trader.

Don’t get me wrong… that stuff isn’t completely useless.

For example, this week’s interest rate decision and GDP figures are important economic signposts:

The cost of debt is important — for households and for businesses.

And economic growth — especially the staggeringly quick recovery from the COVID recession — will give us a sense of what we’re doing with our cash. And that matters, especially for businesses relying on discretionary spending.

But — and here’s the secret — none of that needs to be ‘prepared for’ — at least, not if you’re an investor (as opposed to a trader).

Me?

I’ve continued to invest regularly and steadily, regardless of economic circumstances. 

That’s served me pretty well.

And I think I’ve sold maybe precisely one company’s shares in the last few years. 

(I could be wrong, but I can’t remember the last time I sold before that!)

It is, to use Warren Buffett’s phrase, benign neglect, bordering on sloth.

And it suits me just fine.

Instead, I spent the weekend at my young bloke’s soccer game. At a cafe. At my mother’s place for her birthday (Happy Birthday, Mum!). On Weekend Sunrise and Nine’s Late News. And chopping a few months’ firewood.

See, not only is that far more productive, useful and balanced than hoovering up finance ‘news’, but it’s also likely more profitable.

Do you know how many day traders lose money? According to at least one research paper I’ve read, close enough to 9 out of 10.

Do you know how many long term investors (that should be a tautology) lose money? I don’t know, but given the ASX hit a new high just last week, I would suggest not many… if they do it properly.

And that last phrase is important. I am absolutely NOT telling you that you can’t lose money as an investor. You absolutely can, especially if you do it badly!

But if you diversify properly…

… and buy regularly…

… and sell rarely…

… and buy quality businesses…

… and let time do its work…

… you’re seriously increasing your odds of making money.

Again, let me be very clear: you can still lose money.

I don’t want anyone to go away from this under false pretences.

But it is my humble assertion that the more of the above that you do (diversify, buy, don’t sell, quality, wait), the better your odds.

Indeed, the average ‘normal’ investor, like you and me, has one pretty important advantage over the spreadsheet jockeys.

Famed US fund manager (and author of One Up on Wall Street) Peter Lynch called it ‘buying what you know’.

Motley Fool co-founder (and Chief Rule Breaker) David Gardner talks about ‘living a more interesting life’.

I like the simple phrase — which applies to much more than investing, of course — ‘not everything that can be counted, counts, and not everything that counts can be counted’.

Trying to trade charts — and beat the other guy trying to do the exact same thing… let’s just say that’s a reasonably one-dimensional game.

And if you’re not the best at it, you’re like the weekend hacker challenging Phil Mickelson to an 18-hole playoff.

For money.

And if you only see investing through the spreadsheets and financial reports… well, not only does the same apply, but you’re missing the bigger picture, too.

Apple Inc’s (NASDAQ: AAPL) financials are wonderful. But they’re the result, not the cause, of its success.

The fanaticism of Tesla Inc (NASDAQ: TSLA) customers is a helluva thing. That’s not in the spreadsheet, either.

Oh, you can find clues to both… but only if you are looking for them in the first place.

—-

While I’ve got you: The most recent episode of our podcast, Motley Fool Money, hit podcast feeds just yesterday.

Motley Fool Money is a podcast about shares. About business. About investing. 

We try to break down the things we think you need to know and answer questions from our listeners. 

We do our best to make it informative, fun and worth your precious time.

Our listeners tend to agree, and we think you will too.

Click here to learn more about the podcast, including how you can subscribe!

Okay, back to my article…

—–

Closer to home, think about the consumer uptake of Afterpay Ltd (ASX: APT).

The recovery of domestic tourism.

The continued rise of cloud accounting platform Xero Limited (ASX: XRO).

More than that, though, think of what you’re missing if you’re only looking at share prices.

Tech in particular, and growth companies in general, have taken a beating over the past few months.

I don’t do predictions, but I do think the market has dramatically overreacted and is leaving many companies for dead that will recover, like the proverbial phoenix, from the ashes.

You won’t find those ideas using charts. 

You won’t find those ideas using only spreadsheets.

Which companies?

Here are three, from our three ‘entry level’ services.

I asked Kevin Gandiya, our Director of Research and lead advisor at Extreme Opportunities for his idea:

“Bigtincan Holdings Ltd (ASX: BTH): a small Australian software company that is growing in the US market. Recommended twice at Extreme Opportunities. Both recs are up over 100% but in that time it’s been a very volatile ride with drawdowns as large as 48% in 2018 and 60% in 2020. Currently, it is down 32% from its all-time high.”

And Ed Vesely, lead advisor of Dividend Investor, for his, too:

“Bravura Solutions Ltd (ASX: BVS): an enterprise software business serving customers in wealth management, life insurance and funds management.”

Its shares are trading about one-third below their 12-month high.

And as I run Share Advisor, I didn’t have to go far for mine.

It’s a company I own, Kogan.com Ltd (ASX: KGN), which got whacked when investors decided that post-COVID, consumers would stop shopping there, and then whacked again when the company realised it had too much inventory. But I think Kogan’s future is bright. And, down some 60% from its highs of just 6 months ago, I reckon today’s price is attractive.

So there you go: three companies, one from each of our entry-level investment recommendation services.

Of course, that’s not a diversified portfolio. Don’t just own three stocks. And, as I mentioned above, think long term.

But those might be a good start.

History is littered with wonderful investment opportunities that sometimes take months or years to play out.

You often won’t find them from share price charts. Or from spreadsheets.

There’s a reason why many creative people have their best ideas in the shower — when you let your mind turn off for a bit, the work of the subconscious takes over.

So, go and chop wood. Go to a soccer game. Go shopping. Or go for a walk.

You won’t find that advice in most investing textbooks.

And I think that’s precisely why it’s so valuable.

Fool on!

More reading

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The post Don’t play the game you can’t win… appeared first on The Motley Fool Australia.

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The IOOF Holdings Limited (ASX: IFL) share price is in the green today. At close of trade, shares in the financial institution were trading for $3.95 – up 0.77%. By comparison the S&P/ASX 200 Index (ASX: XJO) is 0.25% lower.

The positive price movement comes after the company completed its acquisition of MLC Wealth from National Australia Bank Ltd (ASX: NAB).

Let’s take a closer look at today’s news.

IOOF share price is up

In a statement to the ASX, IOOF Holdings says it has completed the purchase of MLC Wealth from NAB and will begin running operations from midnight tonight.

The takeover was first proposed in August 2020. It was subject to regulatory approval from both the ACCC and APRA, receiving the former in December and the latter in early May. Both times, the IOOF share price shot up on the news, seemingly spurred on by jubilant investors.

The takeover means total funds under management for IOOF will double to $494 billion. IOOF also claims the purchase of MLC means its existing clients will see lower costs through efficiencies and economies of scale. In the statement, IOOF says the merger will deliver a run-rate of “of between $65 million to $80 million of the estimated $150 million in cost synergies by the end of FY22.”

MLC will become fully incorporated into the IOOF fold, under one leadership and management team, according to the statement.

Management commentary

IOOF CEO Renato Mota said:

This acquisition is truly transformational for IOOF as it positions us as the leader of a new era of wealth management in Australia, giving us a strong platform for future growth.

Today we become a new IOOF. We have the strategic intent, the talent, and now the scale, to deliver our advice-led wealth management proposition to more Australians than ever before. While this acquisition delivers immediate value to our shareholders, we consider its potential for medium and long-term value even more compelling.

He added:

While the financial services industry in Australia is transforming, the wealth management sector system growth continues to be strong, with a five-year compound annual growth of superannuation assets of 9% per annum. A bigger and better IOOF will be positioned to take advantage of these opportunities by being at the forefront of the industry transformation.

IOOF share price snapshot

Over the past 12 months, the IOOF share price has decreased 11.6%.

The company took a hammering from the COVID-19 market sell-off of March 2020 and has only fallen further since then. For perspective, on the last trading day of January 2020, the company’s shares were valued at $7.29 each. Since then, they have fallen by 46%.

IOOF Holdings has a market capitalisation of $2.56 billion.

More reading

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The post IOOF (ASX:IFL) share price rises as it completes MLC purchase from NAB appeared first on The Motley Fool Australia.

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Some ASX shares have taken a hit in recent weeks and they might be opportunities for investors looking for businesses that can grow revenue quickly.

COVID-19 caused a boom in e-commerce sales for some ASX stocks. But lower share prices might mean long-term opportunities:

Kogan.com Ltd (ASX: KGN)

Since 25 January 2021, the Kogan share price has more than halved. Over the last month alone the share price has dropped around 10%.

Investor confidence about the business has dropped off as Kogan disclosed demurrage costs, excess inventory and a slowing growth rate.

To ease the inventory problem, Kogan is planning increased advertising spending and more discounting. This could cause margins to decline in the second half of FY21. That’s why the company provided FY21 guidance for adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to be in a range of between $58 million to $63 million. The company warned that it operates in a “highly dynamic” trading environment with trading conditions subject to continual change.

However, investors may remember that prior to the issues felt in the last few months, the business had been reporting continuing profit margin improvements across the board as it benefited from operating leverage from increasing scale.

The ASX share said that the longer-term fundamentals for the business remain very attractive given the company’s position in the Australian and New Zealand online retail markets, and with online retail sales currently accounting for only a small percentage of total retail sales in Australia and New Zealand.

Kogan said it has learnt valuable lessons over the last few months about how to better scale operations. In the third quarter of FY21 it saw gross sales increase by another 47% compared to the prior corresponding period.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster has seen a 8% decline of the share price over the last month and a 27% decline since 25 January 2021.

The business sells hundreds of thousands of different products through a drop-shipping model where products are sent to customers by suppliers directly, which should lead to faster delivery times and reduce the need to hold inventory. This should mean it can sustain a larger product range.

Despite cycling against a very strong comparable period, Temple & Webster is still reporting growth to the market. In the three months to 31 March 2021, it saw revenue growth of 112%. In April 2021, the ASX share generated revenue growth of more than 20%.

The business is expecting a long-term trend of continued online sales growth. It estimates than more than a fifth of furniture and homewares were bought online during 2020 and the company believes that Australia is on track for the same trajectory. In 2020, it’s estimated that around 9% of Australian furniture and homewares were bought online, almost double that of 2019.

Temple & Webster thinks that both Australia and the US will see online penetration increase “significantly”.

To capture this opportunity, the ASX share is going to invest across the business to win higher market share. It’s going to invest in marketing, ensure competitive pricing, invest in a better customer research and buying experience, grow its product range, offer more private label options and launch exclusive ranges with suppliers.

Temple & Webster is committed to remaining profitable even during this investment phase. So it’s expecting strong double digit revenue growth, but the EBITDA margins will be between 2% to 4% for the next few years.

After that, increased scale will result in higher profit margins for the business.

More reading

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Motley Fool Australia Chief Investment Officer Scott Phillips joined Nine’s Late News on Sunday night to discuss the big economic week ahead, including a decision on interest rates, and a huge amount of data, including business sales and profits, building permits and GDP!

More reading

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The post Where to for interest rates, GDP and the rest of the economy? Motley Fool CIO Scott Phillips on Nine’s Late News appeared first on The Motley Fool Australia.

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The Mastermyne Group Limited (ASX: MYE) share price is on the rise during late afternoon trade. This comes after the mining services company announced a significant contract award.

At the time of writing, Mastermyne shares are swapping hands for 83 cents, up 6.41%.

Details of the deal

In a statement to the ASX, Mastermind advised is has been selected for the Gregory Crinum Underground Whole of Mine Contract by Sojitz Blue Pty Ltd.

The award strengthens the relationship between the pair, in which Mastermyne was previously tasked to undertake a number of works. This included a feasibility study focusing on the development of a high productivity bord and pillar mining operation. In addition, Mastermyne also engaged as the Mine Operator to run through the re-entry process, with completion in October 2020.

The new project award is divided into two sections, the re-establishment process, followed by the mining production phase.

During the initial phase, the re-establishment process will see infrastructure works built into the underground mine. Expected to take 6 months to complete, the project involves conveyor systems, ventilation, mine services, remediation works and surface infrastructure.

Once the re-establishment process is finalised, the mine will immediately transition into production. The underground mine is estimated to produce roughly 11 million tonnes ROM (run of mine) over the project life. Mastermyne projects mining production to occur sometime later this year.

The contract term is valid for 7 years and 6 months, and is assumed to generate revenue of between $600 million and $660 million. On average, this equates to $80 million to $100 million in revenue per annum once in full production.

Initial funding for the project will be combined, with Mastermyne drawing on its strong existing cash reserves. The overhaul of the mining fleet and ancillary mining equipment will also be primarily funded by the company.

Management commentary

Mastermyne CEO, Tony Caruso welcomed the new deal, saying:

The execution of our first Whole of Mine Operations contract is a major milestone for Mastermyne and is significant in transitioning the business into a commercial model that is not only complimentary to the existing contracting model but will provide an even greater level of earnings certainty over the long term. Through the detailed feasibility work and contract negotiations the team has put together a balanced contract structure that minimises downside risk whilst at the same time rewards the business (through stronger margins) for better production performance.

Sojitz CEO, Cameron Vorias went on to add:

We are delighted to have Mastermyne as our highly regarded partner for this development and it will support our strategic plans for the growth of high quality hard coking coal from the area.

Mastermyne share price snapshot

The last 12 months have been a rollercoaster ride for Mastermyne shareholders, with its shares moving in volatile directions. Most recently, the company’s share price reached a 52-week low of 55 cents in March, before slightly rebounding.

Mastermyne has a market capitalisation of about $88 million, and over 106 million shares on its registry.

More reading

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The S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a small decline. In afternoon trade, the benchmark index is down 0.2% to 7,165.7 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are tumbling:

BetMakers Technology Group Ltd (ASX: BET)

The BetMakers share price is down 14% to $1.15. Investors have been selling the betting technology company’s shares since it announced a $4 billion offer to acquire the Tabcorp Holdings Limited (ASX: TAH) Wagering and Media business late last week. This offer comprises $1 billion in cash and $3 billion in BetMakers shares. BetMakers shareholders appear concerned that the latter could dilute their shareholding.

Domain Holdings Australia Ltd (ASX: DHG)

The Domain share price is down 2.5% to $4.92. The property listings company’s shares have come under pressure after its attempt to acquire a slice of the PEXA property settlement business fell through. Domain will now focus on its strategic collaboration with PEXA instead.

Link Administration Holdings Ltd (ASX: LNK)

The Link share price has fallen 6% to $5.13. Investors have been selling the administration company’s shares after it confirmed that its PEXA business will be undertaking an initial public offering (IPO). The underwritten price of the IPO implies an enterprise value for PEXA of $3.3 billion. Link, which owns a 44% stake in the company, advised that it expects to receive a minimum of $50 million in cash as a result of the IPO process. Some shareholders appear to have preferred the outright sale option.

Nuix Ltd (ASX: NXL)

The Nuix share price has crashed 17.5% to $2.78. Investors have been selling the investigative analytics company’s shares after it downgraded its guidance just over a month after issuing it. Nuix is now expecting pro forma revenue of $173 million to $182 million in FY 2021. This compares to its 21 April guidance of $180 million to $185 million. Management blamed this on the expected timing of closure of some upsell opportunities and new potential customers.  

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The post Why BetMakers, Domain, Link, & Nuix shares are tumbling appeared first on The Motley Fool Australia.

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