Tag: Motley Fool

In morning trade the Avita Therapeutics Inc (ASX: AVH) share price is pushing higher after the release of its first quarter update.

At the time of writing the regenerative medicine company’s shares are up 2% to $6.23.

How did Avita perform in the first quarter?

For the three months ended 30 September, Avita reported total global revenue of US$5.1 million. This was up 56% on the prior corresponding period.

This revenue is made up almost entirely of its U.S based RECELL revenue, which came in 59% higher than the same period last year at US$5 million.

This was driven by a 27.2% increase in procedural volumes to 496 and the addition of 9 new accounts in the first quarter. The latter brings its total accounts to 86.

Avita reported a gross margin of 82% for the first quarter of 2021, compared with 81% in the same quarter last year.

However, its operating expenses are still vastly greater than the money it is bringing in. Operating expenses were US$14.9 million for the first quarter, up from US$8.3 million for the prior corresponding period.

Management advised that this increase was primarily driven by the additional costs incurred from its dual listed entity on the NASDAQ and the ASX, along with the commencement of pivotal clinical trials for the treatment of paediatric scald injuries, soft tissue reconstruction, vitiligo and other research and development activities aiming to further promote the RECELL System.

In light of this, Avita posted a net loss of US$10.2 million for the quarter. This led to the company finishing the period with a cash balance of US$65.8 million.

Outlook.

Due to the uncertainty surrounding the COVID-19 pandemic, management advised that it will not be providing financial guidance at this time.

However, it will continue to evaluate its guidance policies and anticipates providing an update at the time of its second quarter earnings announcement based on available information at that time.

More reading

• Why Alcidion, Avita, BHP, & REA Group shares are storming higher
• AVITA Therapeutics (ASX:AVH) share price climbs higher on reverse ageing project
• 3 ASX small cap shares you must add to your watchlist
• The ASX 200 sank almost 2% today

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 Avita Medical Limited. The Motley Fool Australia has recommended Avita Medical Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Avita Therapeutics (ASX:AVH) share price higher following Q1 update appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/38uGrL6

We all know the deep, heavy quiet of an ANZAC Day commemoration service.

The minute’s silence, when we stop, together, to reflect on the sacrifices paid by our service men and women in our country’s name.

I was moved to think about that silence when I again read this description on the RSL’s website:

“At 11.00 am on 11 November 1918 the guns fell silent as hostilities ceased on the Western Front, ending four years of death and destruction. Earlier that day, at 5.00 am, the Germans signed an armistice in a railway carriage at Compiègne. In the following year, the Treaty of Versailles made the cease-fire permanent.”

I can only imagine the other-worldly silence of that moment, 102 years ago.

After years of fighting, of gunshots and explosions, near and far, all of a sudden there would have been… silence.

I imagine some of our Diggers may have embraced their mates, overcome by the moment.

I imagine others might have just exhaled deeply, trying to comprehend the end of what had, minutes earlier, been a life and death struggle.

So much death. Destruction. Loss. Sacrifice.

The mates who wouldn’t be on the ship with them for the long journey home.

And the rest, who returned, but would never be the same.

I think about the silences in the homes of families whose loved ones would not return. 

I think about the deep, painful silences of those who returned, but forever bore the mental and physical scars of their service.

Tragically, while November 11, 1918 marked the end of The Great War, its other moniker, The War To End All Wars, was sadly optimistic.

The Great War was, of course, renamed World War I, a name change forced, two decades later, by The Second World War.

Thankfully, the human cost of war has been slowly falling, since; yet it has continued.

And so November 11, originally known as Armistice Day, to remember that original cease fire, became Remembrance Day: a day for Australia and her allies to remember the sacrifice of those who died in the service of their country in all wars and war-like conflicts, and the sacrifice of those who returned, but were forever changed.

They all paid a heavy price. Some, the ultimate price.

“Greater love hath no man than this, that a man lay down his life for his friends” the Christian bible tells us.

I’m not religious, but that remains one of life’s great truisms.

And so, we still stop, today, at 11am, for one minute’s silence.

I would encourage you to do the same.

To remember.

They went with songs to the battle, they were young,

Straight of limb, true of eye, steady and aglow.

They were staunch to the end against odds uncounted;

They fell with their faces to the foe.

They shall grow not old, as we that are left grow old:

Age shall not weary them, nor the years condemn.

At the going down of the sun and in the morning

We will remember them.

Lest We Forget.

More reading

• 3 compelling ASX shares rated as buys by brokers
• Is the AMP (ASX:AMP) share price really worth $2.45?
• 2 little-known ASX small cap shares rated as buys by fundie
• An insider just bought $355,000 worth of Westpac (ASX:WBC) shares
• These ASX dividend shares offer 4.5%+ dividend yields

Motley Fool contributor Scott Phillips has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post We Will Remember Them appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/35kDRpc

The three ASX shares I’m going to mention in this article are rated as ‘buys’ by several brokers.

Broker recommendations give an indication where market analysts think there are buying opportunities for investors. Share prices change all the time, so sometimes a broker could think an ASX share is a buy at one price and perhaps a sell if it were significantly higher.

Investment site MarketIndex regularly collates the ratings of brokers together to assess what the broker community collectively think are opportunities. Just because several brokers think something is a buy doesn’t mean it’s guaranteed to do well, but it may reveal some insights.

With that in mind, here are three ASX shares that brokers like:

BHP Group Ltd (ASX: BHP)

BHP Group is one of the largest resource businesses in the world. The ASX share produces a number of commodities including iron ore, copper and oil.

According to the ASX, it has a market capitalisation of $106 billion, making it one of the biggest businesses listed in Australia.

BHP is rated as a buy by at least 10 analysts, although there are also at least six that think it’s only a ‘hold’.

The BHP share price is down 7.5% since the start of 2020, though it fell to almost $25 in March. In FY20 BHP reported that its continuing profit from operations declined by 11%, however underlying attributable profit only declined by 4%. This result was supported by stronger iron ore prices and continuing Chinese demand, which mostly offset weaker markets in coal and petroleum.

BHP’s FY20 dividend was cut by 10% to US$1.20 per share. Using the same dollar in Australian dollars, it offers a trailing grossed-up dividend yield of 6.9%.

Coles Group Ltd (ASX: COL)

Coles is one of Australia’s biggest supermarket businesses. It operates a nationwide network of Coles supermarkets, as well as a liquor business with brands such as Liquorland.

According to the ASX, Coles has a market capitalisation of $23.6 billion, it’s one of the largest 20 ASX shares.

Coles is rated as a buy by at least eight analysts, though it’s rated as a ‘hold’ by at least five as well.

The supermarket ASX share recently reported in its FY21 first quarter that its food sales continue to be elevated with Victoria’s COVID-19 restrictions. In the first quarter, supermarket sales rose 9.8% and total first quarter sales grew 10.5% after it was helped by liquor sales going up 17.4%.

That quarter came after FY20 sales increased by 6.9% and underlying net profit grew by 7.1%.

At the current Coles share price, it has a trailing grossed-up dividend yield of 4.6%. It’s also trading at 23x FY21’s estimated earnings according to Commsec.

GPT Group (ASX: GPT)

GPT is one of the largest property groups on the ASX, with a market capitalisation of approximately $9.2 billion.

It’s rated as a buy by at least nine analysts, though there are also two that believe it’s a ‘sell’.

GPT has a mix of retail, office and logistics buildings in its property portfolio.  

In its recent FY20 first half result it reported negative property valuation movements of $711.3 million as a result of effects of the pandemic on its retail assets. However, it still generated funds from operations (FFO) – net rental profit – of $244.5 million which allowed it to pay a distribution of 9.3 cents per unit.

In its latest quarterly operational update for the three months to 30 September 2020, it said that its rent collection rates averaged 90% of third quarter billings, up from 67% in the second quarter.

Whilst it still wasn’t able to provide distribution guidance, Commsec has a distribution forecast of 18.8 cents for 2020, which translates to a distribution yield of 4% at the current GPT share price.

More reading

• These ASX dividend shares offer 4.5%+ dividend yields
• The Readytech (ASX:RDY) share price has doubled since March
• The Incitec Pivot (ASX:IPL) share price is lower today on full year results
• Why Coles, Incitec Pivot, Kogan, & Northern Star shares are crashing lower
• ASX 200 hits 8-month high. Here’s why we could go higher from here

The post 3 compelling ASX shares rated as buys by brokers appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2UlcEMt

The AMP Limited (ASX: AMP) share price has had a dismal 2020. In fact, it really has had a dismal performance its whole listed life, if this share price graph is anything to go by:

AMP shares closed at $1.70 yesterday. That’s not too bad considering the company’s 52-week low is $1.08. But it’s not great if you consider that, in the 23 years AMP has been a public company (it demutualised in 1997), its all-time low is also $1.08, whereas its all-time high is approximately $10.84, which it hit way back in 2007.

AMP’s reputation as one of Australia’s oldest and most trusted wealth managers took a potentially fatal hit during the 2018 Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. The subsequent appointment of a new CEO in Francesco de Ferrari was supposed to herald a turnaround for the company. However, AMP seemed to raise the white flag earlier this year when it declared all parts of its business open for a possible sale. The company is already sitting on a potential takeover offer of $1.85 per share from the United States-listed Ares Management Corp (NYSE: ARES). AMP’s flagship life insurance business has already been offloaded. We also got the news last month that AMP is closing its range of exchange-traded fund (ETF) offerings. And that was on top of revelations of a sexual harassment scandal at the company.

AMP’s true worth?

So what are AMP shares worth today? The market tells us around $1.70 per share, which values AMP at a market capitalisation of $5.83 billion. But new reporting from the Australian Financial Review (AFR) has a different take.

The AFR reports that number crunchers at Swiss investment bank UBS Group AG (NYSE: UBS) have calculated that AMP shares could be worth as much as $2.45 (with a market cap of $8.4 billion). Before AMP shareholders get too excited though, there’s a catch.

That price comes from valuing a broken up AMP. That is, if AMP is dismembered into its various parts and sold off, AMP shareholders could receive as much as $2.45 per share in cash. But the range UBS gave was actually $1.45-$2.45.

That upper range comes from an estimation that AMP’s most profitable division – AMP Capital – could be worth as much as $1.31 per share. It gives the AMP Bank division a potential valuation of 37 cents a share, and its New Zealand wealth management arm 12 cents. The Australian wealth management division receives an estimated value of 74 cents a share.

With this estimation, AMP shareholders might happily accept a breakup, even if it means the dismal end of a 171-year-old institution.

More reading

• ASX 200 Weekly Wrap: US election special
• AMP (ASX:AMP) shuts down ETFs
• Why the Boral (ASX:BLD) share price is up 6% today
• AMP (ASX:AMP) share price up another 7% on top of last week’s record rally
• Takeovers will continue to rock ASX shares

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Is the AMP (ASX:AMP) share price really worth $2.45? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3kjmHMH

There are some ASX small cap shares worth buying and owning according to fund manager Naos Asset Management.

What is Naos Asset Management’s investment approach?

Naos is led by chief investment officer (CIO) Sebastian Evans. NAOS Small Cap Opportunities Company Ltd (ASX: NSC) is one of the listed investment companies (LIC) operated by Naos.

That particular LIC looks at businesses with market capitalisations between $100 million and $1 billion.

The fund manager has a number of investment focuses. It looks for businesses that are good value with long term growth potential. With its portfolio, Naos believes it’s better to have a quality portfolio rather than numerous holdings. That’s why it only holds around 10 positions in each fund, with each ASX share representing a high-conviction position.

Naos invests in the small cap ASX shares for the long-term. It considers the performance and the liquidity of its positions whilst ignoring the index. Performance can sometimes be quite variable when compared to the index.

It looks to invest purely in industrial companies whilst also considering the ESG factors (environmental, social and governance).

What are some of the small cap ASX shares that it thinks are opportunities?

In its latest monthly update for 31 October 2020, Naos gave the latest commentary for some of its small cap ASX share positions:

Eureka Group Holdings Ltd (ASX: EGH)

Naos says that Eureka Group is a provider of quality and affordable rental accommodation for independent seniors within a community environment. Eureka owns 30 villages and manages a further nine villages with a total of 2,147 across Queensland, Tasmania, South Australia, Victoria and New South Wales.

Eureka recently completed the acquisition of two affordable rental seniors accommodation villages – one is in Cairns and the other is in Hervey Bay. The acquisition price was a total of $13 million.

Naos believes that, in a world of record low interest rates together with a highly fragmented industry, the asset portfolio that the small cap ASX share owns will command a significantly reduced cap rate and therefore have the capability to increase the net tangible assets (NTA) going forward. Eureka may not need to issue more shares to fund its bolt-on acquisitions as it can continue to sell non-core assets. Naos also thinks there are other ways for Eureka to build scale in what remains a very attractive asset class for certain investors.

MNF Group Ltd (ASX: MNF)

Naos describes MNF as a founder led software company, which specialises in proprietary digital network infrastructure for voice communications.

The fund manager says that MNF provides voice carriage and value-added software services to some of the world’s largest software companies and wants to expand into the APAC region.

Naos noted that MNF recently provided FY21 earnings before interest, tax, depreciation and amortisation (EBITDA) guidance of $40 million to $43 million, with the mid-point implying year on year growth of 8.6%. The wholesale business continues to perform well, with volumes remaining elevated and is expected by Naos to remain so during the rest of FY21.  

The new Singapore network will launch commercially in March for the small cap ASX share but is not expected to benefit the FY21 earnings profile, though customers are already being brought on board.

However, headwinds continue for its audio-conferencing business and volume has been lost on minutes trading because of the reduction of international roaming.

Naos believes that a significant amount of shareholder value can be realised if the direct and wholesale divisions are split either through a divestment or demerger by the small cap ASX share.

More reading

• 2 top ASX small cap shares to buy according to this fundie
• Eureka (ASX:EGH) share price climbs higher on AGM update
• These exciting small cap ASX shares could smash the market in the 2020s

Motley Fool contributor Tristan Harrison owns shares of NAO SMLCAP FPO. The Motley Fool Australia owns shares of and has recommended MNF Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post 2 little-known ASX small cap shares rated as buys by fundie appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2UeGgv8

Insider buying is generally seen as a bullish indicator by investors.

After all, few people should know a company better than its own directors. So, if they have the confidence to buy shares, it could be a sign that things are going well and they expect them to appreciate in value.

One company which has just revealed some significant insider buying is Westpac Banking Corp (ASX: WBC).

According to a change of director’s interest notice, the banking giant’s new chairman, John McFarlane, has been adding to his holding this month.

What did the notice reveal?

The notice shows that Mr McFarlane was making purchases through on-market trades between 3 November and 10 November.

In total, the company’s chairman picked up 20,000 shares over the seven days, which has tripled his holding to a total of 30,000 shares.

Mr McFarlane paid a total of approximately $355,000 for the shares, which equates to an average price of $17.75 per share.

This certainly has proven to be a good move by the chairman. The Westpac share price is currently trading at $18.68, which is up 5.2% from the average price paid for these shares.

Not the only buyer.

Westpac’s chairman wasn’t the only one buying shares last week.

As I mentioned here yesterday, Australia’s oldest bank was very popular with retail investors last week.

CommSec investors were trading Westpac shares following its full year results release. So much so, the bank accounted for 1.7% of trades on the brokerage platform.

The vast majority of these trades came from the buy side, which appears to be an indication that they believe the worst is now behind the bank.

One broker that would agree is Morgans. Last week it put an add rating and $21.50 price target on Westpac’s shares. This price target implies potential upside of 15% over the next 12 months excluding dividends.

More reading

• Vaccine hopes cause ASX 200 to rise on Tuesday
• Zip and Flight Centre were among the most traded shares on the ASX last week
• The 5 best-performing ASX 200 shares so far this year
• Afterpay (ASX:APT) share price up 4% in today’s trading
• ASX 200 Weekly Wrap: US election special

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post An insider just bought $355,000 worth of Westpac (ASX:WBC) shares appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2UkKWiV

Times really are hard for income investors following a series of cash rate cuts over the last few years.

At present, a 60-month term deposit from Commonwealth Bank of Australia (ASX: CBA) will yield just 0.70% per annum on amounts of $50,000 or greater.

This means that a $50,000 investment will provide investors with interest of just $350 per year.

The good news is that the Australian share market is home to a large number of companies that offer far greater yields for investors.

Two ASX dividend shares with yields above 4.5% are listed below:

BHP Group Ltd (ASX: BHP)

This mining giant is the owner of a collection of world class, low cost assets which are generating significant free cash flows. This is certainly the case at the moment thanks to high iron ore and copper prices. And given the company’s penchant for returning excess free cash flow to shareholders, this bodes well for dividends in FY 2021.

In fact, analysts at Macquarie are forecasting that BHP will pay a ~$2.80 per share fully franked dividend this year. Based on the current BHP share price, this would mean a very generous 7.8% dividend yield.

Rural Funds Group (ASX: RFF)

Rural Funds is an agriculture-focused property group that owns a large number of properties across several agricultural sectors. These high quality properties are leased on long term agreements to some of the biggest operators in the industry such as wine giant Treasury Wine Estates Ltd (ASX: TWE). At the end of FY 2020, Rural Funds had a weighted average lease expiry (WALE) of 10.9 years.

And with these leases having rental increases built into them, the company has great visibility on its future earnings. This means it can provide distribution guidance to investors even during these volatile times. In FY 2021 the company intends to increase its distribution to 11.28 cents per share. Based on the current Rural Funds share price, this works out to be a 4.6% yield.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• COVID-19 over? Credit and debit card spend surges
• The Readytech (ASX:RDY) share price has doubled since March
• Here are the US shares that CommSec customers are buying
• The Incitec Pivot (ASX:IPL) share price is lower today on full year results

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and Treasury Wine Estates Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post These ASX dividend shares offer 4.5%+ dividend yields appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/35icHit

On Tuesday the S&P/ASX 200 Index (ASX: XJO) was on form again after COVID-19 vaccine news gave investor sentiment a major boost. The benchmark index rose 0.65% to 6,340.5 points.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 expected to rise.

The Australian share market is expected to continue its positive run on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 63 points or 1% higher. This is despite a mixed night of trade on Wall Street which late on sees the Dow Jones up 0.7%, the S&P 500 down 0.1%, and the Nasdaq 1.1% lower.

Commonwealth Bank Q1 update.

The Commonwealth Bank of Australia (ASX: CBA) share price will be on watch today when the banking giant releases its first quarter update. In addition to its financial result, the bank is likely to release an update on its COVID-19 temporary loan repayment deferral data. Last month Commonwealth Bank revealed that approximately 93,000 home loans remained in deferral, with 52,000 of these due to expire and exit in October.

Oil prices continue to rise.

Energy producers including Beach Energy Ltd (ASX: BPT) and Oil Search Limited (ASX: OSH) could be on the move again today after oil prices continued to rise. According to Bloomberg, the WTI crude oil price climbed 2.2% higher to US$41.17 a barrel and the Brent crude oil price is up 2.3% to US$43.38 a barrel. The prospect of a COVID-19 vaccine being released soon has given oil prices a boost.

Gold price rebounds.

Gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a better day on Wednesday after the gold price rebounded. According to CNBC, the spot gold price has risen 1.1% to US$1,875.40 an ounce.

Annual general meetings.

Another group of shares are due to hold their virtual annual general meetings on Wednesday and could provide trading updates. These include Computershare Limited (ASX: CPU), Fortescue Metals Group Limited (ASX: FMG) and Newcrest Mining.

More reading

• Enjoying your ASX 200 gains? Here’s why you should watch out for January
• Vaccine hopes cause ASX 200 to rise on Tuesday
• COVID-19 over? Credit and debit card spend surges
• Why the JB Hi-Fi (ASX:JBH) share price is down 7% today
• ASX energy shares blast off after COVID-19 vaccine news

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post 5 things to watch on the ASX 200 on Wednesday appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2JPEZbP

The Flight Centre Travel Group Ltd (ASX: FLT) share price will be one to watch on Wednesday after the release of a late announcement.

What did Flight Centre announce?

This afternoon the travel agent giant announced that it has launched an offering of $400 million senior unsecured convertible notes due 2027, which are convertible into fully paid ordinary shares.

In addition to this, the company has entered into commitment letters with its existing bank lenders for the refinancing of its existing debt facilities. This is conditional on the completion of the notes offering.

As part of the refinancing, the banks will waive Flight Centre’s compliance with its existing operating leverage ratio, fixed charges ratio, and shareholder funds ratio covenants until 31 December 2022. After which, its covenants will be calculated based on the six month period from 1 July 2022 to 31 December 2022.

If the offering completes successfully, it will mean Flight Centre’s total liquidity at 30 September 2020 on a pro-forma basis increases to $1.3 billion and its total cash and cash equivalents increase to $2 billion.

Why did Flight Centre make this move?

Flight Centre’s Managing Director, Graham Turner, expects the capital management initiatives to substantially enhance its funding position and support it in the event of a prolonged downturn.

Mr Turner commented: “The capital management initiatives we are taking today substantially enhance our funding position with longer tenor, extended covenant relief and greater liquidity. While trading conditions continue to improve, we continue to reduce our cost base and we remain prepared for almost all scenarios including a prolonged downturn.”

“We are seeing gradual improvement in revenue trends albeit from a modest level and importantly, we continue to win key customers in our corporate business notwithstanding the difficult conditions,” he added.

The managing director also spoke about the recent easing of lockdowns in Victoria and today’s COVID-19 vaccine news.

He said: “The recent easing of lock-down restrictions in Australia, our largest market, gives us confidence of further improvement in the near term. While we remain cautious given the environment in the Northern Hemisphere, we welcome the recent news of Pfizer’s positive COVID-19 vaccination trial data and look forward to further developments, given their potential to fast-track the recovery in travel activity.”

More reading

• Vaccine hopes cause ASX 200 to rise on Tuesday
• Why the Sydney Airport (ASX:SYD) share price rocketed 24% higher today
• Zip and Flight Centre were among the most traded shares on the ASX last week
• ASX 200 up 1.6%: COVID-19 vaccine news sends Flight Centre, NAB, & Qantas surging higher
• Flight Centre (ASX:FLT) and Webjet (ASX:WEB) shares surge higher on vaccine news

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Flight Centre (ASX:FLT) share price on watch amid notes offering and debt refinancing appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3kdqXxf

Virgin Australia Holdings Ltd (formerly of the ticker symbol VAH) was one of the most high-profile casualties of the coronavirus pandemic that gripped the world in 2020.

It is a well-accepted fact that the global pandemic has been disastrous for every airline on the planet. As we revealed back in May, air travel plummeted by 99% in April 2020 compared with April 2019.

It’s almost literally impossible to travel overseas even today, with only Australian citizens and residents permitted to fly home. In addition, you need a pretty good reason to be permitted flight out of Australia as well. The Department of Foreign Affairs and Trade currently maintains a ‘travel ban’ on all international destinations. That still includes New Zealand incidentally. Further, domestic travel has had tight restrictions surrounding it for most of 2020 so far. Victoria has been a no-go zone for months now, whereas Queensland, Tasmania and Western Australia have effectively ‘shut their borders’ for most of the year.

All of these events have proven absolutely terrible for all airlines, and in Australia, it hit both Virgin and Qantas Airways Limited (ASX: QAN) hard. Qantas has managed to hang on, with the help of some government assistance and massive cost cutting. But unfortunately, we can’t say the same for Virgin.

Out with the old, in with the new for Virgin

Virgin went into administration in April. It was then sold to United States-based private equity firm Bain Capital in October for approximately $3.5 billion.

Devastated shareholders had hoped to recoup at least some of their losses. But reporting in today’s Australian Financial Review (AFR) reveals these hopes have been effectively dashed.

According to the AFR, a Federal Court has given the green light to Virgin’s administrators to transfer shares of Virgin to the new owner Bain. This transfer will be completed “without reimbursement to investors”. The AFR reports that some investors:

…chose to fight this at a Federal Court hearing on Tuesday, arguing there should be at least some residual value assigned to the shares given Virgin’s assets like the Velocity Frequent Flyer scheme. They also claimed there was not enough time to fully understand a 700-page independent report on the sale distributed by administrators to shareholders late last month.

But this view was thrown out of court, and has resulted in former Virgin shareholders receiving essentially nothing but regret for their shares. The AFR reports, however, that “secured creditors and employees will get all of their money back. While unsecured creditors will get between 9 cents to 13 cents in the dollar”.

No doubt a disappointing end for Virgin investors in what has been a disastrous year to hold ASX travel shares.

More reading

• Vaccine hopes cause ASX 200 to rise on Tuesday
• Why the Sydney Airport (ASX:SYD) share price rocketed 24% higher today
• ASX 200 up 1.6%: COVID-19 vaccine news sends Flight Centre, NAB, & Qantas surging higher
• Qantas (ASX:QAN) to replace airport service desks with kiosks, app
• Qantas (ASX:QAN) and Jetstar add 48,000 seats, 282 flights a week

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Virgin shareholders left high and dry appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2UfxBIE