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In morning trade the Serko Ltd (ASX: SKO) share price is pushing higher following the release of an update.

At the time of writing, the travel technology company’s shares are up 5% to $5.91.

What did Serko announce?

This morning Serko provided the market with an update on its performance so far during the month of March.

According to the release, the company has experienced a meaningful uplift in transaction volumes this month.

As a result, Serko’s transactions are currently averaging 68% of the volumes recorded during the same period of March 2019, which was unaffected by the COVID-19 pandemic. This is at the high end of the company’s forecasts.

Serko’s CEO, Darrin Grafton, explained: “During March we have seen transaction volumes increase, with transactions month-to-date averaging 68% of the transaction volumes recorded for the same period in March 2019, which were unaffected by Covid-19. As previously announced, Serko has assumed in its forecasts that travel volumes will be transacting in the range of 40-70% of pre-Covid levels by March 2021, so we are pleased to see transactions currently tracking to the higher end of this range.”

Volumes at highest level during the pandemic

In addition to this, Serko advised that its daily transaction volumes are now reaching their highest rate since the pandemic started. This is being driven by improving trading conditions and the onboarding of new customers.

Mr Grafton said: “We are also seeing daily transaction volumes reaching their highest rate since Covid started materially impacting Serko’s travel volumes in mid-March 2020, and are pleased to note that some of this uplift is reflective of continued onboarding of new customers in Australasia despite the effects of Covid.”

“These positive trends follow ongoing volatility over the past few months as a result of further Covid-related travel restrictions, which saw transaction volumes range from 58% of prior year volumes for the month of December 2020, 40% for January 2021 and 51% for February 2021,” he added.

Pleasingly, the CEO is hopeful that these positive trends will continue, especially given that COVID-19 vaccines are now being rolled out.

“We continue to closely monitor travel trends and hope to see these positive trends continue with the vaccination programs underway in key markets and travel restrictions progressively lifting,” Mr Grafton concluded.

More reading

• 2 ASX shares rated as buys by brokers right now

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 Serko Ltd. The Motley Fool Australia has recommended Serko 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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The Openpay Group Ltd (ASX: OPY) share price has started the week in a positive fashion.

In morning trade, the buy now pay later (BNPL) provider’s shares are up 5% to $2.82.

Why is the Openpay share price charging higher?

This morning Openpay announced its entry into the US$55.8 billion US and UK veterinary markets via new partnerships with ezyVet.

The release explains that ezyVet is the next generation in cloud-based practice management software for veterinary professionals who want to save time, grow their business, and deliver excellence in all aspects of veterinary care.

It supports clinical data across the workflows of over 40,000 licensed users and 2,000 practices across several countries. From these, more than 1,200 practices are in the US, accounting for 25% of the veterinary cloud software market in the country.

What are the agreements?

According to the release, under the agreements, Openpay will be integrated as a payment option within the ezyVet vet practice management software, and ezyVet will introduce vet practice clients to Openpay.

This partnership will enable any of ezyVet’s practices in the US and those in the UK to offer payment plans to pet owners seeking to spread the cost of their veterinary procedures and treatments.

Management expects Openpay to be made available on the ezyVet platform to consumers in the UK before the end of FY 2021 and in early FY 2022 in the US.

Openpay’s CEO, Michael Eidel, commented: “We launched with ezyVet in September last year in Australia to enable pet owners and their fur babies to access Openpay. With a surge in the number of pets being brought into families through COVID-19 lockdowns, this relationship really took off as people sought smarter ways to budget and pay for pet care.”

“We’re delighted to be taking the successful model and trusted partnership with ezyVet to our US and UK operations. This is an important milestone for us – it signifies our first significant US partnership and our entry into the UK healthcare vertical.”

Openpay’s USA CEO and Global Chief Strategy Officer, Brian Shniderman, added: “In the US, owners spend an average of around US$1,380 annually on their dogs which make up the majority of pets in US households. We plan to be just as loyal to our customers as dogs are to their human families by giving them the ability to pay for unexpected illnesses and injuries that afflict all of their cherished pets.”

More reading

• Openpay (ASX:OPY) share price drops despite positive announcement
• Is Afterpay (ASX:APT)’s BNPL competition heating up?
• Why did the Openpay (ASX:OPY) share price slide today?
• The Zip (ASX:Z1P) share price is down 34% in less than a month
• Openpay (ASX:OPY) share price tumbles 6% on increasing loss

Motley Fool contributor James Mickleboro 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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After nine months in suspension, the Freedom Foods Group Ltd (ASX: FNP) share price has returned to trade on Monday morning.

In early trade, the diversified food company’s shares were down a massive 94% to 18 cents.

The Freedom Foods share price has recovered a touch since then but is still down 91% to 28 cents at the time of writing.

Why was the Freedom Foods share price suspended for nine months?

Freedom Foods requested its suspension last year amid a series of significant accounting issues that led to the sudden exit of its CEO and CFO.

These issues ultimately led to the company having to revise and restate previous financial statements, culminating in a loss after tax of $174.5 million for FY 2020.

Freedom Foods share price returns

This morning the Freedom Foods share price is trading again after finalising its recapitalisation plans.

The company is raising up to $265 million via the issuance of unlisted, subordinated secured convertible notes. It has also restructured its existing senior debt facilities with HSBC and National Australia Bank Ltd (ASX: NAB).

The company’s capital raising will comprise an invitation to eligible investors to participate in a wholesale investor offer of up to $130 million of notes and a placement of up to $200 million of notes to its largest shareholder Arrovest.

Arrovest will scale back its investment to a minimum of $135 million depending on the level of participation under the wholesale investor offer.

These funds are being raised at $1.00 per note. After which, these notes will convert into shares calculated by dividing the outstanding face value of the notes (including accrued interest) by a notional share price of $0.70.

Subject to shareholder approvals, these notes can convert into shares at any time at a Noteholder’s election. However, notes will be mandatorily converted where 75% or more of Noteholders have elected to convert.

What will it do with the proceeds?

The proceeds will be used repay between $183 million to $233 million of the company’s existing debt. This is consistent with the requirements of the company’s senior lenders.

The funds will also provide a more flexible capital structure that management believes will better facilitate the ongoing financial and operational turnaround of the company.

And finally, the proceeds will provide incremental capital to support the company’s turnaround strategy.

More reading

• ASX quarterly rebalance: HUB24 joins ASX 200, Brainchip into ASX 300
• ASX 200 recovers strongly, Austal floats higher, Fortescue drops
• Here’s how Freedom Foods (ASX:FNP) performed in the first half

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Freedom Foods 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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The conclusion of the February reporting season saw just under 79% of ASX 200 shares issue a dividend, according to CommSec. This is down from the long-term average of 86% but an improvement from the 69% seen back in August 2020.

Investors who purchase a company’s shares before the ex-dividend date are entitled to the next dividend payment. If its shares are purchased on or after that date, the previous owner of those shares will receive the dividend instead. A company’s share price typically falls on the ex-dividend date, to account for the dividend paid.

With more ASX 200 shares paying a dividend, here are the ones going ex-dividend this week. 

Carsales.com Ltd (ASX: CAR) 

Carsales delivered robust 1H21 earnings with an 18% increase in adjusted net profit after tax to $74 million. Its strong cash flow generation and balance sheet supported a 14% increase in interim dividends to 25 cents per share. 

The company will be going ex-dividend on Tuesday 23 March. The issued 25 cents per share interim dividend represents a yield of 1.37% based on its closing price on Friday. 

The Carsales share price is down 10% year to date. At their current $18.20 level, Carsales shares have slumped to an 8-month low. The recent weakness in the Carsales share price is in-line with the broader weakness and selloff for tech shares.

Cochlear Limited (ASX: COH) 

Cochlear’s earnings recovery journey has been slow, with only Q2 FY21 showing positive prior corresponding growth. In the company’s 1H21 results, sales revenue declined 4% to $742.9 million, with the first quarter down 8% and the second quarter up 7%. 

The improved tradition conditions and cash flow generation has seen a return of dividends for Cochlear. Its shares will be going ex-dividend on Thursday 25 March for an interim dividend of $1.150. Despite maintaining a dividend payout ratio of 60% of underlying net profit, this interim dividend only represents a yield of 0.50% based on its Friday closing price of $202.94. 

Healius Ltd (ASX: HLS) 

Healius provides facilities and support services to the healthcare sector with a focus on pathology, imaging and day hospitals. The company has seen a strong improvement in 1H21 earnings with underlying revenues up 16.7% to $953.5 million and net profit after tax up 190% to $75.6 million.

The company announced a fully franked dividend of 6.5 cents per share in line with its 50% to 70% payout ratio. Healius shares will go ex-dividend on Thursday 25 March. 

Seven Group Holdings Ltd (ASX: SVW) 

Seven owns a portfolio of industrial services, property, media and other investors. It delivered a flat 1H21 update with the group’s revenue up 4% to $2,357 million while net profit after tax was 3.1% lower to $246.7 million.

The company edged its interim dividend 10% higher to 23 cents per share fully franked. This represents a yield of ~1% based on its Friday close of $22.14. Seven shares also go ex-dividend on Thursday 25 March.

More reading

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Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia has recommended carsales.com Limited and Cochlear 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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Bapcor Ltd (ASX: BAP) shares will be on watch this morning. This comes after the company announced its plans to expand in Asia through partly acquiring Tye Soon. At Friday’s market close, the Bapcor share price finished the week at $7.40.

Let’s take a look at what the auto parts retailer announced.

Details of the takeover

The Bapcor share price could be on the move today as investors weigh up the company’s latest update.

According to this morning’s release, Bapcor has executed an agreement for a 25% interest in Tye Soon.

Under the deal, Bapcor will acquire 25% of the issued equity in Tye Soon for an amount of SGD$12.5 million. This is expected to help drive Bapcor’s strategy in increasing its presence across Asia where it sees potential growth opportunities.

The completion of the agreement is scheduled to take place sometime next month. In addition, Bapcor will nominate several directors to join the Tye Soon board.

Bapcor’s managing director and CEO, Mr Darryl Abotomey, commented:

The complementary expertise of Tye Soon and Bapcor brings a range of opportunities for both businesses to collaborate and grow their markets. Tye Soon has particular strengths in genuine parts and aftermarket parts distribution as well as an excellent store network in fast growing South East and North East Asian countries. Bapcor will work with Tye Soon to maximise the opportunities to grow their businesses in Asia and Australasia.

What is Tye Soon?

Founded in 1993, Tye Soon is a leading automotive parts distributor that operates across Southeast and North Asia markets. The company imports and exports a wide range of genuine parts as well as aftermarket parts.

Headquartered in Singapore, the company has one of the largest portfolios of top-tier global brands for automotive parts. This includes Mercedes Benz, Bosch, Hengst, GMB, Nozumi, Champion and others.

The group’s annual revenue is around SGD$200 million across its international operations.

Bapcor share price snapshot

Over the past 12 months, the Bapcor share price has gained about 90%, but is down close to 5% year to date. The company’s shares reached a multi-year high of $8.53 during October last year.

Based on current valuation grounds, Bapcor commands a market capitalisation of roughly $2.5 billion, with 339.4 million shares outstanding.

More reading

• 3 reliable ASX blue chip shares to buy
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• 3 reasons why the Bapcor (ASX:BAP) share price could be a buy
• 2 ASX 200 shares to buy for income

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bapcor. 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 Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price could be on the move this morning.

This follows the release of an update on a class action brought against it in the United States during 2016.

What was the class action?

Back in 2016, ANZ confirmed that it was among 17 banks and two international brokerage houses that were named in a class action complaint launched in the United States by two US-based investment funds and an individual derivatives trader.

This related to allegations of the rigging of the bank bill swap rate (BBSW) and bank trading in the United States. The BBSW is an independent reference rate that is used for the pricing securities.

In 2017, ANZ acknowledged to ASIC that, during the course of trading on the BBSW market, a small number of traders attempted to engage in unconscionable conduct on ten dates between September 2010 and February 2012. The bank also admitted that it did not have in place adequate policies and systems to monitor trading and communications of its BBSW traders.

What was today’s update?

This morning ANZ announced that it has reached an agreement to settle the class action brought against it in the United States during 2016.

The settlement is without admission of liability. It also remains subject to negotiation and the execution of complete settlement terms, as well as court approval.

The good news for shareholders, and also the ANZ share price, is that while the terms of the settlement remain confidential, the financial impact of the settlement will not be material.

The bank has not commented on the settlement today. However, back in 2017, the company’s Chief Risk Officer at the time, Nigel Williams, commented on the issue.

He said: “We know our customers and the community expect better from us and we apologise for both the attempted unconscionable conduct and our inability to prevent or detect the behaviour.”

ANZ share price performance

The ANZ share price is up over 22% since the start of the year. Investors will no doubt be hoping this strong run can continue now this issue is behind the bank.

More reading

• Why the Commonwealth Bank (ASX: CBA) share price is on watch today
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• Is the Commonwealth Bank (ASX:CBA) share price a buy or hold?

Motley Fool contributor James Mickleboro 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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A surprising success story to emerge out of the last 12 months has been Australian jewellery and accessories retailer Lovisa Holdings Ltd (ASX: LOV). After a dramatic fall during the market crash last March, the Lovisa share price has rallied strongly since and is now back above its pre-COVID price and trading around new all-time highs.

Let’s take a look at how the retailer has been performing.

What’s been driving the Lovisa share price?

Company background

Lovisa sells on-trend, but affordable, jewellery and accessories. The company aims to deliver a unique in-store shopping experience, with Lovisa stylists providing customers with personalised styling tips and advice. Since launching its first brick-and-mortar store back in 2010, the company has expanded internationally, and now has a presence in 15 countries.

Financial performance

Lovisa’s first-half FY21 results were pretty weak overall. Revenues were down 9.8% versus the first half of FY20 to $146.9 million, while net profit after tax plunged 22.6% to $21.5 million. Despite this, the Lovisa share price surged on the day its results were released.

The results were heavily impacted by COVID-19 lockdowns in various geographies. Strict lockdowns in Victoria hurt sales over the first quarter, but once those restrictions eased, Lovisa reported a strong rebound in foot traffic. However, this was offset by market headwinds in the United States and Europe due to the continuing effects of the pandemic.

A positive sign for investors is that Lovisa has continued with its global expansion plans throughout the pandemic. Lovisa added 25 new stores during the six months ending 31 December 2020, bringing its global total to 460 stores. Fourteen new stores were opened in the US, as well as four in France and four in Australia.

The company also agreed to the acquisition of the European stores of German wholesaler Beeline in November 2020. Lovisa plans to convert around 90 Beeline stores located in six new European markets to Lovisa branding by May 2021. This will give Lovisa a significant presence in Germany, Switzerland, the Netherlands, Belgium, Austria and Luxembourg.

Outlook for FY21

Continued uncertainty around the impacts the pandemic will have throughout the remainder of FY21 make it difficult for the company to commit to a firm earnings outlook. However, Lovisa does note that trading over the first seven weeks of the second half of FY21 has continued to rebound in the Southern Hemisphere.

Despite challenging conditions persisting in the Northern Hemisphere, comparable store sales were up 12% overall during those first seven weeks, suggesting the possibility of a strong rebound over the second half should those green shoots continue to sprout.

Other retailers performing well

The Lovisa share price isn’t the only ASX retail share soaring to new highs, as investors try to price in a possible economic rebound over the next few months. Plus-size women’s clothing retailer City Chic Collective Ltd (ASX: CCX) has also had a stellar run over the last few months, as has Premier Investments Limited (ASX: PMV), the owner of the Just Jeans, Peter Alexander and Jay Jays brands.

More reading

• Why this ASX retail share is tipped as “tremendous”
• ASX fashion and beauty shares shine on half-year results
• 4 ASX retail shares that Morgans thinks are a ‘Buy’
• Why these ASX shares just raced to 52-week highs or better

Motley Fool contributor Rhys Brock has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The last few weeks has seen the ASX and US markets crucifying growth stocks in favour of value shares.

The S&P ASX All Technology Index (ASX: XTX) has lost more than 14% since its 10 February high, while the Nasdaq Composite (NASDAQ: .IXIC) has dropped 7% in a month – even after a slight bounce back this week.

The big theme driving this growth anxiety is the prospect of inflation, and its potential to raise interest rates.

“There are plenty of inflationists who have been forecasting an apocalypse for a dozen years. They are about to have their day in the sun,” said Nucleus Wealth head of investments Damien Klassen.

“And you can bet they will be appearing in financial media to proclaim vindication.”

Pre-COVID deflationary forces are still there

Klassen, posting on a Nucleus blog, posited that all the forces that suppressed inflation for 10 years before COVID-19 have not disappeared.

Those include:

• Technological advances driving prices lower
• Globalisation leading to competitive pricing
• High levels of debt, leading to constrained spending
• Increasing inequality, leading to higher income-earners saving more instead of spending
• Culturally low expectations of inflation, leading to less aggressive requests for pay rises
• Elevated unemployment driving low wage growth

As opposed to these deflationary forces, the drivers that will trigger inflation are all temporary phenomena caused by a one-off pandemic.

They include supply chain disruptions, structural consumption changes, supply chain changes, inventory rebuild, government stimulus and a lower US dollar.

Inflation could go one of two ways

Klassen proposed that one of two scenarios could play out.

The first path was if inflationary forces beat the deflationary ones.

“Inflation gets the upper hand, bond yields rise, and value stocks perform well. Growth stocks fall, quality stocks underperform,” he said.

The second option was if those pre-COVID deflationary forces reasserted themselves.

“Deflation/disinflation resumes after a short inflationary shock,” Klassen said.

“Bond yields fall, bond prices rise. Defensive stocks outperform, as does quality. Value stocks and financials underperform. Growth stocks are more complicated.”

Which is the more likely scenario? Klassen predicted the first scenario would occur, then transition into the second.

“Without stimulus, we will be back to the second scenario tomorrow,” he said.

“With the current stimulus, I’m thinking 6 to 12 months.”

Don’t sell your growth shares in a panic

Klassen’s forecast that deflation would eventually retake the mantle from inflation matches with what other experts have said this week.

The investment committee for T Rowe Price Group Inc (NASDAQ: TROW)’s Australian operations is already pivoting from value shares to growth.

“Central banks made it pretty clear that they want low yields to be maintained. For this reason, we are sceptical about the ability for interest rates to derail the recovery,” it reported.

“Recent actions taken by the Reserve Bank of Australia to buy government bonds to bring down long-term interest rates are a strong indication that monetary policy will remain accommodative.”

Chief executive of UK’s DeVere Group, Nigel Green, warned investors to not overdo the rotation out of growth into value.

“The danger is the massive hype surrounding rotation from growth stocks – those expected to grow sales and earnings at a faster rate than the market average – into value stocks,” he said.

“It should not be a case of either value or growth stocks.  A properly diversified portfolio needs to have both.”

More reading

• We’re betting on ASX growth shares: global fund

Motley Fool contributor Tony Yoo 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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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Kate O’Brien owns shares of Apple and Rio Tinto Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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A pre-market announcement has put the Commonwealth Bank of Australia (ASX: CBA) share price on watch in early trade.

Why is the Commonwealth Bank share price on watch?

Investors will be keeping an eye on the Aussie bank share after an update on its US-based class action. Commonwealth Bank this morning announced that it has reached agreement to settle the ongoing US Bank Bill Swap Reference Rate (BBSW) class action.

The class action commenced in 2016 in the New York District Court against Commonwealth Bank, other banks and brokers. Commonwealth Bank has today reached a settlement in relation to the US BBSW rate rigging allegations.

It becomes the latest of the Big Four banks to do so. Westpac Banking Corporation Ltd (ASX: WBC) settled its US class actions in October 2020 while Australia and New Zealand Banking Group Ltd (ASX: ANZ) reached a settlement yesterday.

What else has been happening for Commonwealth Bank?

The Commonwealth Bank share price will be one to watch in early trade following this morning’s update. Shares in the Aussie bank fell last week in a softer week of trade for the S&P/ASX 200 Index (ASX: XJO).

That share price slide came despite a big announcement from Australia’s largest bank. Commonwealth Bank announced it intends to launch its own buy now, pay later (BNPL) service to customers by mid-year. 

The service will be offered through any merchants who accept credit or debit card payments, enabling people to pay off their purchases (up to $1,000) in instalments, similar to other BNPL offerings.

That put shares like Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) under pressure late last week amid increased competition fears.

Foolish takeaway

The Commonwealth Bank share price will be one to watch in early trade after becoming the latest bank to settle 2016 class actions relating to BBSW products.

More reading

• Why the A2 Milk (ASX:A2M) share price is under pressure in 2021
• ASX 200 Weekly Wrap: Inflation fears hold ASX down
• 5 things to watch on the ASX 200 on Monday
• 2 blue chip ASX dividend shares to buy
• 2 high yield ASX dividend shares to buy

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of 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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