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The S&P/ASX 200 Index (ASX: XJO) has fought back from an early decline and is pushing higher. In late morning trade the benchmark index is up 0.2% to 6,689.3 points.

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

Adairs Ltd (ASX: ADH)

The Adairs share price has jumped over 8.5% to $3.50. This follows the release of a trading update by the homewares retailer this morning. For the first 23 weeks of FY 2021, Adairs reported a 23.4% increase in total Adairs sales compared to the prior corresponding period. The company’s Mocka business was an even stronger performer, reporting a 45.1% increase in sales. In light of this positive performance, management is forecasting exceptionally strong earnings growth in the first half.

Link Administration Holdings Ltd (ASX: LNK)

The Link share price has surged 14% higher to $5.66. This follows the receipt of a second takeover approach. SS&C Technology has tabled an offer of $5.65 per share. This represents a 13.9% premium to Link’s last close price. It is also higher than the offer made by a consortium comprising Pacific Equity Partners and Carlyle Group. It is currently conducting due diligence after offering $5.40 per share.

Nuix Ltd (ASX: NXL)

The Nuix share price has risen 4.5% to $9.45. Investors continue to scramble to get hold of the investigative analytics and intelligence software provider’s shares following its IPO last week. The Nuix share price is now up over 78% since listing at $5.31.

Tyro Payments Ltd (ASX: TYR)

The Tyro share price has risen 4.5% to $3.48. This appears to have been driven by a broker note out of Macquarie this morning. According to the note, Macquarie has upgraded Tyro’s shares to a neutral rating from underperform. The broker has also lifted its price target to $3.50. It has been pleased with the payments company’s recovery since the height of the pandemic.

More reading

• Why the Adairs (ASX:ADH) share price has rocketed up 13% today
• Red hot ASX IPOs that you might have missed from last week
• Link (ASX:LNK) share price on watch after receiving second takeover approach
• 5 things to watch on the ASX 200 on Tuesday
• Watch out! ASX IPO boom may sink the ASX bull market in 2021

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 Link Administration Holdings Ltd and Tyro Payments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends ADAIRS FPO. The Motley Fool Australia has recommended ADAIRS FPO and Link Administration Holdings 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 Gold Road Resources Ltd (ASX: GOR) share price has been all over the map this year.

After falling 54% from 24 February through to 16 March during the COVID-driven market panic, shares surged 144% to reach an all-time high of $1.98 by 22 July. Since that high, shares have retraced by 35%, currently trading at $1.26.

Following on a renewable energy upgrade announcement at its Gruyere gold mine this morning, and a slight uptick in the price of gold, the share price is up 1.2% in morning trade.

What does Gold Road Resources do?

Gold Road is an Australian gold producer. The company has a Tier 1 mine and exploration projects in the Yamarna Greenstone Belt in Western Australia’s north-eastern Goldfields.

Gold Road owns 50% of the Western Australia Gruyere gold mine, developed in joint venture with Gold Fields Ltd. According to the company, Gruyere is one of Australia’s biggest and lowest-cost gold mines, expected to produce 300,000 ounces per year over the next 11 plus years.

Gold Road is part of the S&P/ASX 200 Index (ASX: XJO).

What’s driving the Gold Road share price higher?

In an announcement to the ASX this morning, Gold Road revealed a major hybrid renewable power expansion initiative at its jointly held Gruyere Gold Mine.

APA Group (ASX: APA) will install a 4-megawatt (MW) reciprocating gas-fired engine by the middle of next year. APA will also construct, own and operate a 13MWp solar farm and a 4.4MW battery energy storage system. That’s expected to be complete by the end of 2021.

The company estimates the cost between $32–38 million. The benefits include increased power capacity to 64MW; reduced carbon emissions; 5% energy cost savings; and increased throughput to 10 million tonnes per annum.

Commenting on the new initiatives, Gold Road CEO Duncan Gibbs said:

Gold Road is proud to be part of this green energy initiative… The power expansion at Gruyere provides an elegant technical solution that reduces greenhouse gas emissions, decreases costs and enables an increase in plant capacity up to a targeted 10 Mtpa from the current nameplate design of 8.2Mtpa.

This will, not only see increased annual cash flow generation for the business, but it will help drive additional unit cost reductions as Gruyere is further defined as a tier one, low cost and long life gold producer.

More reading

• Got money to invest? Here are 3 ASX dividend shares to buy
• 3 ASX dividend shares to buy in December
• APA Group (ASX:APA) share price flat despite major project news
• ASX 200 Weekly Wrap: ASX continues to climb, despite outage
• These were the worst performing ASX 200 shares last week

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of APA Group. 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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When it comes to ASX dividend shares, most income investors tend to focus on the trailing dividend yield a company has on offer at any one time. Sure, there is something to be said for a high yield.

Thus, it’s understandable that a company like Telstra Corporation Ltd (ASX: TLS), with its 16 cents a share dividend offering 5.23% yield, is arguably more attractive from an income standpoint than, say, Woolworths Group Ltd (ASX: WOW), which currently offers just 2.44% on current pricing.

But, almost uniquely in Australia, the dividend yield of an ASX share isn’t the only thing that matters for income investors. There’s also the franking credits. Franking is a system that most other countries don’t have. It means that shareholders of a company can be acknowledged for the tax ‘their’ company has already paid.

In the United States, for example, a company’s dividend is effectively taxed twice. That’s once at the corporate level, and once at the investor level as income tax.

But here in Australia, company dividends derived from a pool of Australia-taxed profits come with a ‘receipt’ for this tax. Shareholders can offset this against other income (or claim as a cash refund). These ‘receipts’ are known as franking credits, and they can significantly increase an ASX dividend share’s income potential.

ASX franking heroes

We already touched on how Telstra shares are offering a 5.23% yield on current prices. But Telstra’s dividend also comes with full franking credits. That means, if you include the benefits of this franking, Telstra’s grossed-up yield rises to a whopping 7.47%.

Franking credits are generated by paying corporate tax to the Australian Taxation Office (ATO). Thus, a company can effectively ‘stockpile’ franking credits if it doesn’t pay all of this taxed profit out at once.

And reporting from the Australian Financial Review (AFR) today reveals the company holding the most franking credits as a proportion of its market capitalisation on the S&P/ASX 200 Index (ASX: XJO).

That company is coal miner New Hope Corporation Limited (ASX: NHC). The AFR reports that New Hope currently “has the equivalent of 44 per cent of its market cap [currently $1.2 billion] in franking credits”. However, it also notes that New Hope has declined to pay a final dividend in 2020. Although it did pay an interim dividend of 6 cents per share back in May. It seems shareholders might have to wait a little while until they can enjoy the benefits of New Hope’s franking pool.

The AFR also notes that BHP Group Ltd (ASX: BHP) has the most franking credits available out of any company in the ASX 100, at 13% of market cap. What’s more, the AFR reckons that BHP is far better placed to return these credits to shareholders. That’s reportedly due to the strength of its balance sheet at the current time. Unlike New Hope, BHP has paid 2 dividends in 2020. It offers a trailing, grossed-up yield of 5.93% on current pricing.

More reading

• Woolworths (ASX:WOW) opens new Sydney store customers can’t go to
• ASX small caps could get a boost with the Aussie dollar hitting 28-month highs
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 rises on Monday
• Here’s why the Beach Energy (ASX:BPT) share price is up more than 50% over the past month

Motley Fool contributor Sebastian Bowen owns shares of Telstra Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of Woolworths 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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In late morning trade the S&P/ASX 200 Index (ASX: XJO) has recovered from its poor start and is edging ever so slightly higher. At the time of writing, the benchmark index is up slightly to 6,677.8 points.

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

G8 Education Ltd (ASX: GEM)

The G8 Education share price is down 5% to $1.22 following the release of a trading update. Although the childcare centre operator has experienced an increase in its occupancy, it is still down year on year. In addition to this, while G8 Education has delivered wage efficiencies, the decline in its occupancy means that its wage hours per booking metric is currently higher than the prior corresponding period.

Metcash Limited (ASX: MTS)

The Metcash share price is down almost 3% to $3.45. This appears to have been driven by a broker note out of UBS this morning. Although the broker was pleased with its better than expected first half profit, it doesn’t see enough upside in its shares at this level to maintain its buy rating. It has downgraded Metcash to a neutral rating with a $3.75 price target.

Woodside Petroleum Limited (ASX: WPL)

The Woodside share price is down over 1% to $22.89. This morning the energy producer announced the surprise retirement of its Chief Executive Officer, Peter Coleman, after 10 years at the helm. Mr Coleman advised that he believes this is the right time to retire and transition leadership. Woodside has commenced an internal and external search for the company’s next CEO.

Zip Co Ltd (ASX: Z1P)

The Zip share price has fallen 3% to $5.27. This decline may have been triggered by a broker note out of Ord Minnett this morning. The broker continues to see solid growth ahead for the company, particularly given lockdowns in the United States, and has held firm with its accumulate rating. However, it has trimmed its price target by 3% to $6.50.

More reading

• G8 Education (ASX:GEM) share price on watch after trading update
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 rises on Monday
• Here’s why the Beach Energy (ASX:BPT) share price is up more than 50% over the past month
• ASX 200 up 0.7%: Metcash impresses, BHP & Fortescue storm higher, Xero given buy rating

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 ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Adairs Ltd (ASX: ADH) share price is rocketing higher today after the company announced a strong business update for the first 23 weeks of the 2021 financial year. In opening trade, the Adairs share price shot up 13.3% higher to $3.65, but has since retreated to $3.42, up 6.21%, at the time of writing.

What’s driving the Adairs share price higher

For the period ending 6 December, Adairs reported a robust result across all channels of its business. Despite COVID-19 closing down 43 Melbourne metropolitan stores for 3 months during government restrictions, the company managed to outperform expectations.

Compared to the prior corresponding period, Adairs saw growth in all key metrics. Most notably, its online division recorded a 99.7% increase in sales, which accounted for 39% of total group sales.

While Adairs’ physical stores saw a marginal 5.2% lift, like-for-like sales growth jumped 17.3%. This reflected continued consumer demand across its store network.

Its online furniture business Mocka achieved a 45.1% rise in sales over the comparable period.

Adairs advised that gross margins are tracking well above FY20 levels, with pricing, promotion and sourcing measures implemented.

The company’s inventory levels for its Adairs brand are prepared for the Christmas holiday period.

However, its Mocka inventory levels remain below plan due to the surge in sales that was not foreseen by the company. In addition, longer product lead times has hampered in getting stock more readily available.

First half FY21 guidance

In light of the strong performance achieved, the board decided to provide investors with an earnings guidance for the first half of FY21.

Group sales are anticipated to be somewhere between $235 million and $245 million. In comparison, Adairs achieved $179 million in group sales for 1H FY20.

Underlying group earnings before interest and tax (EBIT) is forecasted to reach $62 million to $66 million. Again, in first half FY20, underlying group EBIT saw $23.2 million realised.

What did management say?

Adairs CEO and managing director Mark Ronan welcomed the positive update, saying:

With a few weeks to go, it is now clear our first half FY21 result will be outstanding and builds on the excellent result in FY20.

Whilst we have clearly been a COVID-19 beneficiary, the result has been delivered through the team’s strong execution against our articulated business strategies and the fundamental strength of our vertical business model. These gains extend across all aspects of our business with Adairs achieving strong growth through our integrated omni-channel model and Mocka delivering strong results as we continue to build momentum and scale.

For the group to achieve an expected EBIT outcome in six months that exceeds the EBIT of the full prior year, which was itself a record for the company, is testament to the strategic health and operational excellence of our business.

About the Adairs share price

The Adairs share price has gone gangbusters over the last 9 months, leaping 729% from its 44-cent low in March.

Adairs has a market capitalisation of $607 million and a price-to-earnings (P/E) ratio of 17.3.

More reading

• Why the BrainChip (ASX:BRN) share price is charging higher
• Redcape (ASX:RDC) share price on watch after hotels acquisition
• Will the Qantas (ASX:QAN) share price go higher with reopened borders?
• Why the Douugh (ASX:DOU) share price is pushing higher
• This ASX travel share is already too expensive: fundies

Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends ADAIRS FPO. The Motley Fool Australia has recommended ADAIRS 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 BrainChip Holdings Ltd (ASX: BRN) share price has been a positive performer on Tuesday morning.

At the time of writing, the artificial intelligence technology company’s shares are up over 4% to 37 cents.

Why is the BrainChip share price charging higher today?

Investors have been buying the company’s shares this morning after it provided an update on the evaluation boards for its Akida Neuromorphic System-on-Chip (NSoC).

According to the release, the company began shipping the evaluation boards in November.

Management notes that these boards complement its Akida Development Environment (ADE) for Early Access Partners (EAP) that have developed Akida compatible networks.

It explained that the ADE is a robust development environment that allows potential customers to design a neural network as a Convolutional Neural Network (CNN). They can then utilise the ADE workflow to convert the network to an event-based CNN or develop a native spiking neural network (SNN).

By implementing an event-based CNN, users can significantly reduce power consumption by processing only non-zero activations and take advantage of the sparsity in most data.

Management commentary.

BrainChip’s CEO, Louis DiNardo, commented, “The Akida NSoC has proven to provide significant power savings and is the complete integration of a neural network design. Akida introduces new and powerful features to the high-growth AI Edge market.”

“True AI Edge learning does not exist with current AI solutions and our ability to provide this and other features while significantly reducing both power consumption, size and the Bill-of-Materials (BOM) has attracted the attention of leading suppliers in the Smart Home, Smart Transportation and Smart City markets,” he added.

The chief executive believes the company’s technology can provide solutions in the healthcare sector.

Mr DiNardo explained: “We believe that these capabilities also will provide new solutions in Smart Healthcare applications that serve our mission of supporting Beneficial AI applications and improve the human condition globally in terms of diagnosis of infectious diseases, cancers and a wide array of challenging global health concerns.”

“We are excited about our technology and the potential to impact many industries including healthcare and energy conservation which are clearly a global concern,” he concluded.

More reading

• ASX small caps could get a boost with the Aussie dollar hitting 28-month highs
• Here’s why the BrainChip (ASX:BRN) share price is zooming 8% higher

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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Pubs operator Redcape Hotel Group Pty Ltd (ASX: RDC) has continued its buying spree, announcing today that it has acquired two pubs in Queensland for $27.5 million.

In early morning trading, The Redcape share price rose marginally by 0.5% to 95.5 cents but has since retreated to its opening price of 95 cents.

Acquisitions strategy

Redcape advised it has acquired the Shafston Hotel in Kangaroo Point, and the Aspley Hotel in Aspley, for a total amount of $27.5 million. This increases its portfolio in Queensland to eight hotels.

There will be no capital raising as the acquisitions will be funded from existing resources, with settlement anticipated prior to June 2021.

Previously owned by an offshore hospitality vendor, Redcape says the hotels will now be owned and operated by a proven local operator who understands Australian suburban communities, and the important role pubs play as social meeting places.

The company says the new hotels will be revitalised by “considerable capital investment”.

Today’s acquisition represents Redcape’s second major acquisition in a month. In late November, the company announced that it had acquired the Gladstone Hotel in Dulwich Hill, Western Sydney, for $38 million.

Redcape chief executive Dan Brady says that these acquisitions are part of the company’s long term strategy.

“The incorporation of these two Queensland hotels into the portfolio following the acquisition of the Gladstone Hotel in Sydney’s inner west last month, provides further evidence of a return to our strategy, post the COVID-19 trading disruption,” he said.

Today’s acquisitions bring the company’s total portfolio to 35 hotels under management.

Strong first-quarter

In September, Redcape reported positive trading results for the first quarter of FY21, and said it expected to deliver earnings higher than the equivalent period last year.

The company reported earnings before interest, tax, depreciation, and amortisation (EBITDA) of $24 million in the first quarter, up from $19.5 million.

In that announcement, Redcape also said that it would reinstate dividends after suspending them temporarily during the pandemic lockdown period.

The Redcape share price in 2020

The Redcape share price has lost almost 15% this year, after shutting down most its establishments in the early part of the year due to the government-imposed restrictions.

The share price began the year at $1.11, but dropped to as low as 44 cents in March at the height of the lockdown period. It has since bounced back to today’s levels, but still a long way off from its 52-week high of $1.135.

Redcape currently commands a market value of $525 million.

More reading

• What will new acquisition mean for Redcape (ASX:RDC) share price?

Motley Fool contributor Eddy Sunarto 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 first shipments of a COVID-19 vaccine have been delivered to the United Kingdom in super-cold containers, two days before a much anticipated public immunisation program. 

Back at home, restrictions continue to ease as the new COVID-normal sets in. ASX travel shares have been propped higher in recent weeks on the back of reopening borders. Could this see the Qantas Airways Limited (ASX: QAN) share price make a further recovery? 

December market update 

Qantas expects to start repairing its balance sheet during the second half of FY21 as domestic borders reopen, cost reduction programs kick in and loyalty and freight divisions continue to help move the company into recovery mode. 

Group domestic capacity is expected to increase to 68% of pre-COVID levels for December, rising to nearly 80% in the third quarter of FY21. This compares with the 20% capacity in the first quarter and around 40% in the second quarter of of FY21. 

Trading conditions have also vastly improved to match the airline’s rising domestic capacity. Over 200,000 fares were sold for flights to Queensland in the 72 hours after the border openings with Sydney and Victoria were announced. 

The airline believes that changes in the broader domestic market have seen a number of large corporate customers move to Qantas this year, a trend that has accelerated in the past few months. Qantas expects to see its domestic market share of above 70% to be maintained. 

Overall, the company will post a substantial statutory loss for FY21 but expects to be close to break even at the underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) level for the first half and net free cash flow positive in the second half. This assumes no material domestic border closures and no material international travel until at least the end of June 2021 beyond an increase in trans-Tasman flying to New Zealand. 

Qantas freight and loyalty 

Qantas freight continues to perform due to the spike in e-commerce volumes across its domestic freighter network and high yields on the international freighter network. To add some perspective, in the company’s FY20 results, net passenger revenue stood at $12.18 billion while net freight revenue was at $1.045 billion. Qantas freight is also doing preliminary work on logistics for transporting COVID-19 vaccines at cold temperatures. 

Qantas loyalty has been the group’s most profitable segment with $1.224 billion in revenue and $341 million in EBIT in FY20. Financial services and retail partners have been the two main earnings drivers, followed by loyalty’s own ventures. 

Cautiously optimistic 

A recovery is taking place for the beaten up travel and tourism industry, but Qantas Group CEO Alan Joyce remains cautious given the various unknowns. He highlights the uncertainty around the domestic economy, particularly once broader government support winds back, the dependency on a vaccine rollout and the standstill for international travel. 

More reading

• This ASX travel share is already too expensive: fundies
• Regional Express (ASX:REX) share price soars to 13-year high
• Leading brokers name 3 ASX shares to buy today
• The meaning of ‘diversification’ when it comes to ASX shares
• Why BetMakers, Medical Development International, Qantas, & Zip are dropping lower

Motley Fool contributor Lina Lim 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 Douugh Ltd (ASX: DOU) share price is edging higher on Tuesday following the release of an announcement.

At the time of writing, the financial wellness app provider’s shares are up 1% to 23.8 cents.

What did Douugh announce?

This morning Douugh revealed that it has successfully completed a $12 million placement to institutional and sophisticated investors. This includes financial services company Humm Group Ltd (ASX: HUM), which was a cornerstone investor with a $2.5 million investment.

These funds were raised a 22 cents per share, which represented a ~24% discount to the Douugh share price at the time of the placement announcement.

Following this placement, Dough now has a cash balance of $16 million. It feels this puts it in a position to significantly accelerate product development measures and customer acquisition initiatives in the United States.

Speaking of which, management also provided an update on its recent performance. No customer numbers have been provided by the company, but management advised that it has been experiencing incremental growth week on week in line with its expectations.

What is Douugh trying to achieve?

Douugh is seeking to provide consumers with a platform that helps them better manage their money and become financially healthier through a smart bank offering.

However, its app doesn’t have any game-changing features at present and most can be found across other banking, payment, and finance apps.

Though, it is attempting to add to them in the future. One such offering will be a buy now pay later (BNPL) option in partnership with Humm.

This feature will allow customers to borrow up to $1,000 and repay it in six automatic weekly instalments. This is expected to be launched into the increasingly crowded US BNPL market within the next six months.

Douugh will be responsible for technology, credit decisions, and customer service, whereas Humm will provide warehouse funding, the BNPL technology, and be responsible for credit losses and collections.

More reading

• Why the Afterpay (ASX:APT) share price continues to dominate
• ASX 200 rises on Tuesday
• Why the Douugh (ASX:DOU) share price is rocketing 15% higher today
• Flexigroup rebrands to Humm (ASX:HUM) on the ASX today
• Why Afterpay, Bega Cheese, Humm, & Telix shares are storming higher

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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The travel industry was pretty much forced to shut down this year in response to the COVID-19 pandemic. 

But now as interstate borders reopen and possible vaccines offer hope for future international trips, share prices for the sector are starting to look up.

But two fund managers have warned there is one prominent ASX travel stock that is already a potential value trap.

Flight Centre Travel Group Ltd (ASX: FLT) has flown from $11.26 at the end of October to now $17.90 – an almost 60% climb in just 5 weeks.

It’s thus already overvalued, said NAOS Asset Management Limited portfolio manager Ben Rundle.

“What investors are missing with Flight Centre is that the majority of their earnings actually come from the corporate side of the business,” he told Livewire.

“That corporate market, I don’t think is going to recover as quickly as everyone thinks. While the leisure market might be full when everyone’s piling into airports to go on holidays, I think they’re overestimating the benefit that Flight Centre will get from that.”

Flight Centre has raised a lot of cash and closed a lot of stores

In its 2020 financial year results, Flight Centre revealed it had a cost base of $230 million per month. The company was forced to raise $900 million in April to stay alive then issued $400 million in convertible notes last month.

Flight Centre has also closed 408 retail stores this year, leaving just 332 to recoup the losses.

Forager Australian Shares Fund (ASX: FOR) chief investment officer Steve Johnson said Flight Centre’s current price already has recovery built-in.

“The bull case might be, ‘Well, as this business recovers, all of that working capital comes back into the business and you can give the cash back to shareholders’,” he told Livewire.

“I don’t mind the business. I think it’s got some long-term issues, but again, I think the share price is fully pricing in the recovery that is going to come.”

Other travel shares also rallied in November on the back of favourable conditions. Webjet Limited (ASX: WEB) has risen 65% since the end of October, Qantas Airways Limited (ASX: QAN) is up 31%, and Corporate Travel Management Ltd (ASX: CTD) is 32% higher.

More reading

• Regional Express (ASX:REX) share price soars to 13-year high
• Leading brokers name 3 ASX shares to buy today
• These are the 10 most shorted shares on the ASX
• The meaning of ‘diversification’ when it comes to ASX shares
• These were the worst performing ASX 200 shares last week

Motley Fool contributor Tony Yoo owns shares of Corporate Travel Management Limited, Qantas Airways Limited, and Webjet Ltd. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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