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Household furniture retailer Nick Scali Limited‘s (ASX: NCK) shares had jumped 3.92% higher by today’s market close. The surge in the Nick Scali share price came after the release of the company’s AGM address to shareholders this morning.

The share price reacted positively after managing director, Mr. Nick Scali, delivered an announcement that the company has revised its earning predictions previously announced in August 2020. It now expects company earnings before interest and taxes (EBIT) and net profit after tax (NPAT) in FY21 to be materially higher than previously reported. This is on the back of strong sales orders both in-store and on the company’s online platform. 

The rise in the Nick Scali share price today erased the decline seen yesterday when the company announced a trading update.

What else moved the Nick Scali share price?

Investors drove the Nick Scali share price higher after Mr. Scali also noted in his address today that, despite the difficulties faced this year with COVID-19 restrictions, the company still managed to deliver a flat profit growth in FY20 compared to FY19.

He highlighted that when stores were re-opened in late April, sales orders jumped by 70% compared to last year as pent-up demand and working-from-home arrangements encouraged consumers to purchase more household items.

The launch of the company’s e-commerce platform in April has also brought a windfall for Nick Scali. The average sale per customer on the platform is $1,800, where high-margin items like coffee tables and bedroom furniture continue to be best sellers.

Online orders have increased by 47% for the first quarter of FY21 compared to the last quarter of FY20. Also, due to the lead time of 8-11 weeks in fulfilling orders, sales orders made in the 4Q20 will be reported in the first quarter of FY21. 

Mr. Scali mentioned that after excluding figures from physical stores closed in Melbourne and Auckland as a result of COVID-19 restrictions, in-store sales orders actually grew by 59% in the first quarter this year.

Considering this strong growth in sales, the company has revised up its NPAT growth for the first half of FY21 from 50-60% to 70-80% more than FY20.

Mr. Scali also re-iterated the company’s strategy of buying retail properties and opening stores as owner-operators, as opposed to being tenants. The opening of a store in Auckland and the buying of a new property in Adelaide bring the company’s total network to 58 stores.   

More reading

• ASX 200 was mixed today, ends down 0.2%
• Why is the Nick Scali (ASX:NCK) share price falling today?
• Why Advance NanoTek, Macquarie Telecom, Nick Scali, & Viva Energy shares are dropping lower
• 3 ASX shares poised for huge growth in FY21

Motley Fool contributor dsunarto 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.

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The Tyro Payments Ltd (ASX: TYR) share price was out of form on Tuesday and dropped lower with the rest of the market.

The payments company’s shares ended the day 2.5% lower at $3.72.

Why did the Tyro share price drop lower?

Although Tyro released its annual general meeting update today, I suspect this decline had less to do with that and more to do with a selloff of tech shares.

After all, the S&P/ASX All Technology Index (ASX: XTX) dropped a sizeable 2.8% today, compared to a 1.7% decline by the benchmark ASX 200.

What about Tyro’s update?

Tyro’s update revealed that its solid growth has continued in FY 2021 despite the pandemic.

According to the release, the company’s Payments business has maintained its merchant acquisition momentum with 33,200+ merchants on its platform at 30 September 2020. This is up 8% on the prior corresponding period.

In addition to this, despite lockdowns and restrictions, the company has delivered growth in transaction value year to date.

As of 23 October, Tyro’s transaction value stood at $6.8 billion, up 5% on the same period last year. Impressively, that’s despite the company recording a 34.5% decline in transaction value in Victoria over the period.

Finally, the company recorded eCommerce transaction value of $6.7 million for the first quarter.

Over in the Banking business, things have been a bit quieter. Loan originations to 30 September 2020 were just $0.9 million, down a massive 95% on the prior corresponding period. Deposit balances stood at $76.6 million at the end of the quarter.

Outlook.

Due to the uncertain environment, the company isn’t providing any specific profit guidance for FY 2021.

However, management did speak about the future and particularly its recent alliance with Bendigo and Adelaide Bank Ltd (ASX: BEN).

It commented: “We expect to deploy more than 26,000 Tyro terminals in calendar 2021 for the alliance, increasing our terminal fleet to just above 89,000 terminals.”

“It is our expectation that Bendigo Bank’s business customers will generate approximately $5 billion in transaction value in FY22. Our gross profit share (after gross profit share to Bendigo Bank and before operating costs) from the Bendigo Bank cohort will be approximately $19 million in FY22,” management added.

More reading

• 5 major ASX 200 events this week
• 3 star ASX shares to buy for the rest of 2020
• 3 ‘opening up’ recovery ASX shares
• Why the Tyro (ASX:TYR) share price is sinking 6% lower today
• Why IDP Education, Perseus Mining, Lovisa, & Tyro shares are dropping lower

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 Tyro Payments. 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.

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Ainsworth Game Technology Limited (ASX: AGI) shares closed the day up 1.8%. There looks to have been some late afternoon profit taking, with the Ainsworth share price up more than 10% only an hour before market close at at 3pm AEST. This rollercoaster followed the release of the company’s 2020 annual report to the market this morning.

Still, Ainsworth’s share price gains today while the All Ordinaries Index (ASX: XAO) lost 1.7% demonstrates the old investor axiom that it’s not so much a share market but a market of shares.

Despite today’s gains, the Ainsworth share price remains down 62% year to date.

What does Ainsworth Game Technology do?

Ainsworth Game Technology develops, manufactures, sells and maintains gaming machines, or ‘pokies’ to you and me. Headquartered in Sydney, Ainsworth has operations across New Zealand, the United States, Europe and Asia.

The company manages all facets of its product’s life cycle, from conceptualisation and design through to production, distribution, installation, service and support.

Ainsworth shares first began trading on the ASX in 2001.

What’s moving the Ainsworth share price?

Ainsworth Games’ 2020 annual report confirmed some of the negative impacts the company has been suffering due to the fallout from COVID-19. These included a 37% decline in revenues and a 46% fall in profit in North America as well as a 26% decline in revenue in Australia. Also reported was a 39% drop in revenue and 59% fall in profits across the rest of the world, excluding Latin America.

On the positive front, the company reported it has made additional progress in accelerating the monetisation of its online, real money and social gaming. Ainsworth also reported it has gone live with several leading operators in the US state of New Jersey.

Addressing the results, chair Danny Gladstone said:

Our opportunities to operate and sell new machines were inhibited [by the pandemic] as customers temporarily closed venues and cut capital expenditure programs. The Loss after Tax for the year was $43 million. On a pre currency basis and excluding one-off items, the Loss before Tax was $35 million.

We closed the year with cash on hand of $26.5 million and a net debt position of $17.5 million. This followed the payment for the acquisition of MTD assets announced in early March 2020. MTD has performed resiliently and we remain confident that this acquisition will provide good returns over coming periods.

Our balance sheet and liquidity are also in a strong position. The current financing facilities have been re-negotiated with the previous financial covenants being replaced for the remaining term to de-risk the potential for breach.

With the Ainsworth share price enjoying a 10% intraday surge and closing 1.8% higher, investors look to have mostly priced in the bad news and focused instead on the good.

More reading

• Why the Corporate Travel Management (ASX:CTD) share price sank 7.5% lower today
• The ASX 200 sank almost 2% today
• $418 million logistics deal confirms strong outlook for REITs like this one
• Do you have to pay tax on your ASX shares? – A common question answered
• Why the Atomo (ASX:AT1) share price is flying 9% higher today

Motley Fool contributor Bernd Struben 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.

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The worst performer on the S&P/ASX 200 Index (ASX: XJO) on Tuesday by some distance was the Corporate Travel Management Ltd (ASX: CTD) share price.

The corporate travel specialist’s shares fell almost 7.5% to $16.68.

Why did the Corporate Travel Management share price sink lower today?

As well as being caught up in the market selloff, investors were selling Corporate Travel Management’s shares following the release of its annual general meeting presentation.

At the meeting, the company released an update on its performance during the first quarter of FY 2021.

According to the release, during the first quarter, Corporate Travel Management averaged revenue of $9.6 million and an underlying earnings before interest, tax, depreciation and amortisation (EBITDA) loss of $2.4 million per month. This led to an average cash burn of $5 million per month for the period.

Pleasingly, trading conditions have been improving, with the month of September its best since COVID-19. During the month, the company’s underlying EBITDA loss reduced to $1.6 million and its cash burn lowered to $3.5 million. But judging by the share price reaction, investors may have been expecting an even stronger month.

How are its operations performing?

Management revealed that its Australian operations have been performing positively during FY 2021 and were profitable during the first quarter.

Elsewhere, the company’s European operations are close to breakeven now and its US operations are experiencing positive activity. 

Finally, its Asia operations have been struggling, but look set to be boosted by a Singapore-Hong Kong travel bubble in the near future.

Despite its cash burn, Corporate Travel Management’s balance sheet remains strong. It has $120 million net cash and an additional $181.8 million in an unused committed facility.

Travel and Transport acquisition.

The company also provided the market with an update on its acquisition of US-based Travel and Transport.

The A$274.5 million acquisition of the leading North American corporate travel business is expected to complete on 30 October.

Management continues to expect it to be earnings per share accretive on a pro-forma calendar year 2019 basis. Pre-synergies it expects 10% accretion, post-synergies it is forecasting 30% accretion.

Outlook.

No guidance was given at the event, but the company’s Chairman, Ewen Crouch AM, spoke positively about the future.

In his closing remarks, he commented: “This turbulent year has highlighted the benefits of CTM’s highly flexible and resilient business model. The period ahead will undoubtedly present many challenges and opportunities. We have a clear purpose and a sound strategy and we are well positioned to return to profitability with a modest recovery of domestic travel this year.”

More reading

• The ASX 200 sank almost 2% today
• 5 things to watch on the ASX 200 next week
• 3 reasons I like the Corporate Travel (ASX:CTD) share price today
• Brokers name 3 ASX shares to buy right now
• ASX 200 sinks 2%, Corporate Travel (ASX:CTD) soars 8%

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management 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.

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The S&P/ASX 200 Index (ASX: XJO) dropped by around 2% today, falling by 1.7% to 6,051 points.

Here are some of the highlights from the ASX today:

Widespread selling

Overnight there was a selloff in international markets, seemingly on worries about a resurgence of global COVID-19 cases. The US election is also getting very close.

Investors sold off some ASX 200 shares quite heavily. The Avita Therapeutics Inc (ASX: AVH) share price dropped more than 4.5%, the Credit Corp Group Limited (ASX: CCP) share price fell more than 4.75% and the Regis Resources Limited (ASX: RRL) share price also dropped another 4.4%.

Some of the most popular buy now, pay later shares also got sold off. The Zip Co Ltd (ASX: Z1P) share price fell more than 5% and the Afterpay Ltd (ASX: APT) share price dropped more than 4.5%.

Corporate Travel Management Ltd (ASX: CTD)

At its AGM, the travel business announced a trading update for the first quarter of FY21.

It said that it had generated revenue of $9.6 million per month. Corporate Travel generated an underlying earnings before interest, tax, depreciation and amortisation (EBITDA) loss of $2.4 million per month. The company said that the cash burn was an average of $5 million per month.

However, September was the best month since the onset of COVID-19 with an underlying EBITDA loss of $1.6 million and the cash burn was down to $3.5 million.

Corporate Travel said that its Australia and New Zealand business was profitable for the quarter with positive signs of borders opening. In Europe the lockdowns are reducing activity but close to breakeven. The integration of Transport & Travel has started. In Asia the company pointed to the Singapore – Hong Kong travel bubble with more to come.

The ASX 200 travel business has zero drawn debt, with $120 million of net cash after the successful capital raising.

Corporate Travel’s share price dropped by around 7.5% today.

Bendigo and Adelaide Bank Ltd (ASX: BEN)

The share price of Bendigo Bank rose around 2% after giving an update for the first quarter of FY21.

Bendigo Bank said that its total lending continues to be a strength with year to date growth at 11% and residential lending at 16.1%, both of those rates being well above the system.

Management were pleased to report that the net interest margin (NIM) continues to be well managed, the bank saw the NIM rise by one basis point to 2.3%.

The regional bank also gave an update about its loan book. It said that 6,797 customer accounts remain on deferral, which was down 69% from the peak on 31 May 2020. The value of the accounts where repayments have been deferred is approximately $2.5 billion, down from the peak of $6.9 billion in June.

Customers transitioning away from deferral arrangements will continue to occur through the remainder of October and November as repayment deferral periods expire.

Blackmores Limited (ASX: BKL)

Blackmores also held its AGM today. One of the main bits of news from it was that Blackmores is going to divest its Global Therapeutics business for $27 million. It’s going to be sold to McPherson’s Ltd (ASX: MCP).

The business was only acquired in May 2016. Its product range draws upon traditional Chinese medicine in combination with contemporary herbal treatments.

Blackmores’ CEO Alastair Symington and his team has been reviewing Blackmores’ various brands to decide to what to divest. Global Therapeutics was deemed to be a non-core brand.

As part of the sale, the Fusion Health and Oriental Botanicals brands will also be sold. The transaction is scheduled for completion on 30 November 2020.

In reaction to the AGM update and the sale, the Blackmores share price rose 0.1%. 

More reading

• Do you have to pay tax on your ASX shares? – A common question answered
• Why the Probiotec (ASX:PBP) share price is trading higher
• Douugh and Ioupay were among the most traded shares on the ASX last week
• Will COVID-19’s second wave crash share markets a second time?
• Why Alcidion, Blackmores, Boral, & CogState shares are pushing higher

Tristan Harrison 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 and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Blackmores Limited and Corporate Travel Management Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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.

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Marking one of the largest Australian industrial transactions of the year, Singapore-listed ARA LOGOS Logistics Trust (SGX: K2LU) has acquired $418 million of logistics assets on Australia’s eastern seaboard. Sydney-based logistics specialist Logos, which runs the trust, managed the deal.

Why did ARA LOGOS Logistics invest in Australian facilities?

As the Australian Financial Review reports, the trust’s manager – ARA Logos Logistics Trust Management Limited (a subsidiary of Logos) is bullish on the outlook for Australia’s industrial and logistics markets:

Australian industrial and logistics market, especially the eastern seaboard cities, continues to be highly sought after by investors due to its strong market fundamentals, limited supply and favourable demographics.

Industrial and logistics investment volumes for the year-to-date ending August 2020 have exceeded $3.5 billion… and 83 per cent of these transactions had taken place during the COVID-19 period since mid-March.

The outlook for Australia’s industrial market remains stable over the long term, underpinned by the fundamental role of logistics in keeping basic day-to-day necessities of Australians in supply, unprecedented infrastructure investment and growth in defensive downstream industries such as e-commerce.

Advantage ASX logistics shares

There were no ASX listed shares involved in the Logos deal. But the $418 million transaction does highlight the strength of shares involved in the Australian logistics sector while many office, residential and retail property-related shares remain under pressure.

One of the shares that’s currently on my radar is the APN Industria REIT (ASX: ADI).

The Australian real estate investment trust (REIT) owns a portfolio of 32 industrial and business park assets in Sydney, Melbourne, Brisbane and Adelaide.

The APN Industria share price is up more than 52% since the 23 March post-panic selling lows but is still down nearly 9% year to date. That puts it right on par with the performance of the All Ordinaries Index (ASX: XAO). Although today, APN Industria outperformed, with the share price falling 0.76% compared to a 1.77% loss from the All Ords by market close.

Now, the APN Industria share price is highly unlikely to see another 51% gain over the next 6 to 7 months. But with the growth of e-commerce continuing to drive demand for well-positioned warehouse and logistics facilities, I believe this is one ASX share to keep an eye on.

APN Industria also pays a 6.5% annual dividend yield, unfranked.

More reading

• Why AREITs like this one stand to gain from the rapid growth of e-commerce
• Looking to invest in ASX real estate shares? Read this first
• Could industrial REITs be the best ASX shares to buy for dividends?

Motley Fool contributor Bernd Struben 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.

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Some of the biggest misconceptions surrounding investing in ASX shares come from tax – and how much you have to pay. I once heard someone say they didn’t want to invest in shares because “then I’d have to pay tax on them”.

Like they say, along with death, tax is one of the inescapable facts of life, and the share market is not immune from this reality. But that doesn’t mean we shouldn’t invest at all, or else make silly investment decisions based on the tax ramifications alone.

So let’s answer a common question ASX investors (and potential investors) might have on tax.

Do you have to pay tax on ASX shares?

There are 2 types of taxes most people will normally have to pay in the course of investing in ASX shares: capital gains tax (CGT) and income tax.

Normally, income tax is only payable on any dividends you receive. These dividends are attached to any other income you make (such as your salary or wages) when you fill out your tax return. If a company pays no dividends, you normally don’t have to pay income tax. Further, if your dividend comes with franking credits, you can use those franking credits to reduce your taxable income (or receive a cash refund if you don’t pay tax).

In contrast, CGT is only payable if you sell your ASX shares. If you bought $1,000 worth of Afterpay Ltd (ASX: APT) shares back in March for around $8, you’d today be sitting on roughly $12,000 worth of Afterpay shares today, seeing as the Afterpay share price is currently $96.08 (at the time of writing).

If you haven’t sold any of these shares to date, then you won’t have a tax bill. Simple. However, if you do decide to sell these shares, you will have to pay CGT on the profit you’ve made (not the whole invested amount). That amount is simply added to your income tax bill at the end of the year. Further, if you sell shares for a loss, you can normally roll-over that loss to deduct against any future gains.

One more perk, under current tax laws, if you own a share or investment for longer than 12 months, you get a 50% discount on those gains for CGT tax purposes.

Foolish takeaway

We all have to pay tax, and the share market isn’t a free ticket to ride. However, you should never let the tax consequences of investing put you off. In fact, investments are often taxed at concessional rates (franking and the CGT discount) compared to other forms of income you can earn.

Of course, this is all general advice, and you should always seek the counsel of a licensed tax professional for your own affairs. But remember this: a wise investor once told me, “If you have a massive tax bill from your shares, you’re doing something right”. Wise words indeed!

More reading

• Why Afterpay, LiveTiles, PointsBet, & Santos shares are tumbling lower
• How did ASX buy now, pay later shares perform in the latest quarter? 
• ASX 200 Weekly Wrap: ASX snaps winning streak… just
• Top brokers name 3 ASX shares to buy next week
• The best time to invest may feel uncomfortable

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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.

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Atomo Diagnostics Ltd (ASX: AT1) provided a market update today in relation to its COVID-19 rapid antigen test.

During early morning trade, shares in the medical device company were relatively flat. However, since the release of the news, the Atomo share price has flown 9.68% higher to 34 cents at the time of writing.

Let’s take a closer look at Atomo’s product and what was announced.

What is the COVID-19 rapid antigen test?

The nasopharyngeal swab test is designed to screen for antigens produced in response to COVID-19 infections at the point of testing. This differs to the current nasal swab testing in Australia, which uses molecular PCR assays to test for coronavirus.

Atomo’s rapid test provides results after 10 minutes, as opposed to the general test kit, which is sent to a central laboratory for processing. The company said that the early identification is a breakthrough in controlling outbreaks.

In addition, Atomo noted that its rapid antigen test has the potential to work alongside its COVID-19 rapid antibody test. The latter detects whether a patient has developed antibodies to the virus, most accurately after 15 days of exposure.

Atomo receives approval stamp

According to the release, Atomo advised that the Therapeutic Goods Administration (TGA) has approved its rapid SARS-CoV-2 antigen blood test. The milestone achievement will allow Atomo to commence supplying the test kit to medical professionals across Australia.

The new registration of the COVID-19 rapid antigen test will require Atomo to submit additional evidence in the following 12 months. TGA requires all approved distributors to provide evidence of ongoing safety and performance. The Peter Doherty Institute for Infection and Immunity (Doherty Institute) has been selected to assist in the post-market validation.

In addition, Atomo secured a partnership with Health Solutions Group Australia to provide rapid antigen and antibody test kits. The deal will see Atomo’s combined products used to detect COVID-19 at point of care.

What did management say?

Commenting on the test, Atomo co-founder and managing director Mr John Kelly stated:

Atomo can now offer, in a single 15-minute window, rapid testing for both COVID-19 antigen and antibody responses. This comprehensive rapid screen will help determine acute active infection and also indicate those patients who may have had prior exposure to the virus and built up an antibody response.

Up to 20% of infections are asymptomatic and this has led to many countries now establishing regular, proactive testing regimes. Antigen tests have been proven to provide good detection of COVID-19 infection in the early stages of exposure.

He added:

We are delighted to be partnering with Health Solutions for the provision of COVID-19 screening services to our clients. Having a large national service provider with experience in professional testing to help rollout this service is very important.

More reading

• Top ASX growth shares to buy in October 2020
• Why the Atomo (ASX:AT1) share price is moving higher today

Motley Fool contributor Aaron Teboneras 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.

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The FBR Ltd (ASX: FBR) share price is trading flat today despite a positive announcement released to the market today.

At the time of writing, shares in the robotics company are flat at 5.6 cents. In comparison, the All Ordinaries Index (ASX: XAO) is 1.8% lower at 6,244 points.

So, what does FBR do and what did it update the market with?

FBR overview

FBR is a robotic technology company that builds robotic arms to assemble structure walls. It is considered faster, safer, more accurate and with less wastage than traditional bricklaying methods.

Its flagship product, the Hadrian X is an automated bricklaying system that can lay an estimated 1,000 bricks per hour as opposed to the output of two human bricklayers for the whole day.

The Hadrian X also provides a ‘wall as a service’ and can adapt quickly to builder demands.

Completed construction

FBR advised it has completed construction of its first two-storey structure using its flagship Hadrian X robot.

The structure was built within the premises of FBR, in a building format similar to key markets that the company is developing. Regions include the Middle East and North Africa, the Gulf region, Asia, and Mexico.

In addition to building the two-storey structure, the crane also worked with other design elements complementing the foundations. This included steel reinforced concrete columns, suspended concentre slabs and rebar.

FBR said that in large greenfields developments, the Hadrian X would complete first levels buildings while secondary slabs were formed. This would optimise efficiency and allow cost saving measures.

What did management say?

FBR managing director and CEO Mike Pivac said completing the company’s first two-storey build was a significant step in commercialising its robotic construction technology:

In many parts of the world our customers want to be able to build two-storey structures safely, quickly and efficiently, and we have now demonstrated that the Hadrian X can deliver on those customer needs.

We have also taken this opportunity to demonstrate our ability to work a range of design elements like steel reinforced concrete columns, which may be required in certain geographies due to factors such as seismic activity, weather patterns or custom.

More reading

• Why the Evans Dixon (ASX:ED1) share price is up 7% as the All Ords slides
• Is the Wesfarmers (ASX:WES) share price a buy for growth or dividends?
• Why the Probiotec (ASX:PBP) share price is trading higher
• Why investors should keep an eye on Alliance Aviation (ASX:AQZ) shares
• Douugh and Ioupay were among the most traded shares on the ASX last week

Motley Fool contributor Aaron Teboneras 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.

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The Evans Dixon Ltd (ASX: ED1) share price is bucking the wider selling trend on the All Ordinaries Index (ASX: XAO) today. Evans Dixon’s share price is up more than 7% while the All Ords is down almost 2%.

This comes following this morning’s announcement of a takeover offer from 360 Capital Group Ltd (ASX: TGP).

Today’s rise will come as welcome news to Evans Dixon shareholders, who’ve watched the share price fall 37% year-to-date. That’s despite a 20% share price gain since 17 March.

Meanwhile, 360 Capital Group’s shares are trading flat in late afternoon trading, after posting gains of more than 1% earlier today. Year-to-date, 360 Capital Group’s share price is down 25%.

What do Evans Dixon and 360 Capital do?

Evans Dixon is a financial adviser providing advice to private and institutional clients, as well as corporates. The company employs over 475 staff across Sydney, Melbourne, Canberra, Brisbane and New Jersey.

360 Capital Group is an investment and funds management group. The company is predominantly focused on the strategic and active investment management of alternative assets. It invests in real estate, credit strategies, and public and private equity in Australia and around the world.

Why is the Evans Dixon share price up on the takeover offer?

This morning’s takeover announcement from 360 Capital Group – made via its wholly owned subsidiary, 360 Capital ED1 Pty Limited – stated its intent to acquire via off-market takeover all of the shares in Evans Dixon that it does not already own.

As of this morning, 360 Capital ED1 owned 19.55% of Evans Dixon’s shares.

The takeover offer price amounts to 61 cents per share. That’s just under the share price Evans Dixon is currently trading for. The current Evans Dixon share price represents a 7.83% gain from the opening bell.

360 Capital noted it has the available cash as well as the ability to issue its securities to finance the acquisition. It stated that its offer is not subject to a minimum number of acceptances.

360 Capital also highlighted that its 61 cent per share offer price represents a 54% premium to Evans Dixon’s share price after it had disclosed ASIC was taking corporate action against one of its subsidiaries, Dixon Advisory.

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Motley Fool contributor Bernd Struben 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 Why the Evans Dixon (ASX:ED1) share price is up 7% as the All Ords slides appeared first on Motley Fool Australia.

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