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The Piedmont Lithium Ltd (ASX: PLL) share price is edging lower on Thursday after returning from its trading halt.

At the time of writing the Piedmont Lithium share price is down 2% to 41.2 cents.

Why was Piedmont Lithium in a trading halt?

This morning the US-based lithium miner’s shares returned to trade after completing an underwritten US public offering.

According to the release, the company has issued 2 million American Depositary Shares (ADSs), at an issue price of US$25.00 per ADS, to raise gross proceeds of US$50 million (A$70.6 million).

Each ADS represents 100 of the company’s ordinary shares that are listed on the Australian share market. On a per share basis, this represents a price of 35.3 Australian cents per share, which is a 16% discount to its last close price.

In addition to this, the company has granted the underwriters a 30-day option to purchase up to an additional 300,000 ADSs at the issue price of the offering.

Management advised that the proceeds of the offering will be used to continue the development of its Piedmont Lithium Project. This includes a definitive feasibility study, testwork, permitting, further exploration drilling, and general corporate purposes.

What’s next for Piedmont Lithium?

Now the company has raised its funds, it can start to focus on getting its operation ready to supply material to electric vehicle giant, Tesla.

Last last month the company announced that it had signed a binding sales agreement with Tesla for an initial five-year term for the supply of spodumene concentrate (SC6) from its North Carolina deposit. The deal also includes the option to extend it for a further five years by mutual agreement.

Piedmont and Tesla have agreed a fixed commitment which represents approximately one-third of the lithium miner’s planned SC6 production of 160,000 tonnes per annum. It also includes an option for additional SC6 upon Tesla’s request. Deliveries are expected to commence between July 2022 and July 2023.

More reading

• Why Piedmont Lithium (ASX:PLL) and these ASX shares just hit new highs
• Could these US-based ASX lithium shares land a deal with Tesla (NASDAQ:TSLA)? 
• Forget day trading and buy and hold these fantastic ASX shares
• ASX 200 finishes flat, A2 Milk shares drop 10%
• Is the run over for ASX lithium shares after Tesla’s battery day? 

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.

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Saracen Mineral Holdings Limited (ASX: SAR) is on track to achieve its key FY21 guidance targets for production and financial after a solid September quarter. The gold miner producer 154,388oz at an all-in sustaining cost (AISC) of $1,169 /oz. The company has also added $98 million to the balance sheet in free cash.

Operating costs were lower in the quarter. Largely due to reduced underground mining in July at Carosue Dam following a fatality and consequent restart of the operation. Nonetheless, processing remained in line with forecast, with additional ore sourced from the large Carosue Dam surface stockpile. Mining has since returned to budgeted levels at Carosue Dam.

On track for FY21 guidance

The company’s FY21 guidance of 600–640koz at an AISC of $1300–$1400/oz is unchanged. In addition, the company continues to capitalise on the high gold prices. Leaving FY21 growth capital and exploration budget of $484m unchanged. This strategy involves investing capital in the short term to de-risk production and lower costs in the future. 

Saracen achieved a net profit after tax (NPAT), unaudited, of $70–$80 million while spending $14 million on exploration this quarter. Post quarter, the company agreed a merger of equals with Northern Star Resources Ltd (ASX: NST). The company believes this to be a uniquely accretive transaction which will deliver $1.5 billion in synergies, creating a top 10 global gold miner targeting 2 million ounces per year tier 1 locations. This means the Kalgoorlie super pit will be under one company for the first time in its history.

What did management say

Company managing director Raleigh Finlayson said it was a solid start to the new financial year, though the performance was marred by the tragic death of a colleague at Carouse Dam. He added:

With solid production and costs running slightly below (FY21) guidance, we generated strong free cash flow. This resulted in cash and bullion rising by A$98 million over the quarter to A$467 million, which in turn sets us up well as we prepare to invest A$484 million in development and exploration over the course of this financial year.

The combination of further growth at our existing assets and those of Northern Star, along with the synergies we stand to generate through the planned merger, puts our combined business in an extremely enviable position.

We will be generating substantial growth while most of the global gold industry is shrinking, we will be reducing costs in the process, and all in tier-one locations.

Saracen share price performance

The Saracen share price is up 83.4% in year to date trading due to uncertainty during the COVID-19 pandemic. It is currently trading at a price to earnings (P/E) ratio of 32.44 as the company works towards FY21 guidance.

More reading

• ASX 200 shares hit by multiple takeovers
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• How I’d position my ASX share portfolio for the next market crash
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Daryl Mather 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 LiveTiles Ltd (ASX: LVT) share price has come under pressure on Thursday morning.

In early trade the intranet and workplace technology software provider’s shares are down 2.5% to 21 cents.

Why is the LiveTiles share price sinking lower?

Investors have been selling the company’s shares following an announcement after the market close on Wednesday in relation to legal proceedings.

In mid 2018, the company revealed that the company had been added to proceedings concerning a shareholder dispute in respect to companies unrelated to LiveTiles and involving the cofounders of LiveTiles. The proceedings were brought by CEO Karl Redenbach’s brother, Mr Keith Redenbach.

At that point, LiveTiles advised that it regarded the claim as frivolous and without merit.

Unfortunately, things didn’t stay that way and the company has just announced the settlement of the legal proceedings, at some cost.

What happened?

According to the release, under the terms of the settlement agreement, LiveTiles will pay $8.445 million to the plaintiffs, and the LiveTiles Co-Founders Karl Redenbach and Peter Nguyen-Brown will transfer a total of 16,279,070 ordinary shares in the company to a nominee of the plaintiffs. Approximately 11.9 million of these shares will be subject to voluntary escrow conditions.

At the end of FY 2020, LiveTiles posted a statutory net loss of $31.6 million, leaving it with a cash balance of $37.8 million. This settlement will reduce its cash position to below $30 million, before taking into account any cash burn during the first quarter.

LiveTiles’ Co-Founder and Chief Executive Officer, Karl Redenbach, was pleased to resolve the matter. He also revealed that the company had a strong first quarter.

He commented: “We are pleased to resolve this matter, and to focus all of our attention and energy on the continued growth of LiveTiles. We have just completed a very successful quarter with a strong cash balance and look forward to sharing the results with shareholders in our Appendix 4C update and investor conference call next week.“

More reading

• Why Saracen (ASX:SAR) is on track to achieve FY21 guidance
• Why the Healius (ASX:HLS) share price surged to a record high today
• ASX 200 shares hit by multiple takeovers
• Why the Laybuy Holdings Ltd (ASX:LBY) share price is on watch today
• AMP (ASX:AMP) share price in focus as Wealth business improves

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 LIVETILES FPO. The Motley Fool Australia has recommended LIVETILES 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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The Healius Ltd (ASX: HLS) share price is racing higher today following the release of its first quarter update.

At the time of writing, the healthcare company’s shares are up 7% to a record high of $3.69.

How did Healius perform in the first quarter?

Healius has started FY 2021 in a very positive fashion and delivered strong revenue and profit growth during the first quarter.

According to the release, the company recorded revenue of $492.5 million and underlying earnings before interest and tax (EBIT) of $81.2 million. This represents an increase of 17.5% and 150%, respectively, on the prior corresponding period.

What are the drivers of its growth?

Management notes that its Pathology revenues have been strong in the first quarter and so far in October. Non-COVID revenues are now ahead of the prior corresponding period, community COVID testing is currently plateauing around 7,000-10,000 per working day, and commercial COVID testing is growing rapidly.

Things haven’t been quite as positive for its Imaging business. The release advises that Imaging revenues fluctuated in the first quarter due to the Victorian lockdown and outbreak clusters in other states. Nevertheless, revenues are currently up in all states other than Victoria, where activity is starting to grow in line with the easing of restrictions.

Finally, the company’s Day Hospitals business is performing well. Management notes that revenues were materially ahead of the prior comparable period in the first quarter and the division is continuing to perform strongly in October.

“Critical role” in COVID-19 fight.

The company’s CEO, Dr Malcolm Parmenter, was very pleased with the quarter and the way Healius is helping with the COVID-19 fight.

He commented: “We continue our critical role in the fight against the COVID-19 pandemic and in the delivery of essential healthcare services in this country.”

“In terms of the financials, we are pleased with the strength of our trading across our businesses during the early part of the 2021 financial year, our ability to leverage the learnings and savings from the national lockdown in March and April, and our delivery of operational and support cost efficiencies through the Sustainable Improvement Program, all of which have underpinned a very strong result.”

Outlook.

Dr Parmenter warned that the remainder of FY 2021 is uncertain and that the pandemic could impact its revenue both negatively and positively.

He explained: “Looking to the remainder of FY 2021, our revenue streams may be affected, both positively and negatively, by government responses to further community outbreaks including lock-downs, restrictions on clinical activity, and community testing regimes, as well as by clinical advances in testing capabilities and vaccines.”

In light of this, he cautioned “against extrapolating from this quarter to the remainder of the financial year” as the company does “not expect this level of performance to continue.”

Healius also provided an update on the sale of Healius Primary Care business.

It remains on schedule to complete this calendar year and is expected to deliver significant balance sheet flexibility. Pleasingly, during the first quarter the Dental business recorded three months of results above the level required to receive the earn-out on completion.

More reading

• Ramsay (ASX:RHC) share price firms as its UK hospitals reopen to private patients

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.

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During the pandemic, there has been a rash of takeovers among S&P/ASX 200 Index (ASX: XJO) companies and private equity firms. For instance, the $16 billion merger of two ASX 200 gold mining giants, Northern Star Resources Ltd (ASX: NST) and Saracen Mineral Holdings Limited (ASX: SAR). Furthermore, there have been many other changes to company ownership, some by mutual agreement, others far more hostile. Let’s take a look at a few examples.

WAM Capital Limited (ASX: WAM)

WAM Capital is in the final stages of two hostile bids. In the first instance, Concentrated Leaders Fund Ltd (ASX: CLF) rebuffed its offer, forcing an off market approach. In the company’s announcement, it referred to the appointment of a new investment management firm without shareholder approval. Moreover, the firm is a private company owned by incoming CEO, Dr David Sokulsky, which was cited as a clear case for poor governance. By 21 October, WAM had secured 23.43% of voting rights.

On the second occasion, Contango Income Generator Ltd (ASX: CIE) also rejected an on market offer. In announcing the off market bid, WAM stated that the fund had “delivered deeply disappointing results and failed to provide shareholder value”. It went on to bemoan “illogical changes to investment strategy”, and “poor corporate governance”. On 21 October, WAM declared it had secured 24% of voting rights. 

On both occasions, WAM Capital called out each fund for persistently trading at below net tangible asset value per share. 

Orora Ltd (ASX: ORA)

ASX 200 share, Orora, declared its Q1 results were in line with the previous year, an announcement that ordinarily would be unremarkable. However, the company saw its share price rise by 7.97% on Wednesday after rumours surfaced that private equity firms had been circling the company. The Orora share price is down by 31% in year-to-date trading, valuing it at approximately $2.6 billion. This is a figure that is well within the reach of large funds.

ASX 200 activity by private equity

United States private equity firm, Kohlberg Kravis Roberts (KKR), has been very active in the Australian takeover and buy out scene this year with ASX 200 companies. In May, Commonwealth Bank of Australia (ASX: CBA) announced it would sell 55% of Colonial First State, its wealth management arm, to the firm. In addition, Westpac Banking Corp (ASX: WBC) is believed to have had early conversations with KKR. The private equity firm is also said to have made an informal approach to AMP Limited (ASX: AMP). Notably, AMP currently has a range of potential suitors for its real estate assets, including Vicinity Centres (ASX: VCX).

Moreover, it has been reported that KKR was reviewing the possibility of a bid for church payment company Pushpay Holdings Ltd (ASX: PPH). It remains in active pursuit of listed and unlisted companies in Australia. 

More reading

• AMP (ASX:AMP) share price in focus as Wealth business improves
• 5 things to watch on the ASX 200 on Thursday
• Here’s why Westpac (ASX:WBC) just sold its entire Zip (ASX:Z1P) stake
• Reject Shop (ASX:TRS) share price tumbles but it’s property stocks that should be worried
• Why the Orora (ASX:ORA) share price is the best performer on the ASX 200 today

Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia has recommended PUSHPAY FPO NZX. 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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Laybuy Holdings Ltd (ASX: LBY) has announced its first quarterly business update since its initial public offering (IPO) in September 2020. 

The company had an IPO offer price of $1.41 with an indicative market capitalisation of $246 million. Despite a strong open on its first day of trading, reaching a peak of $2.30, the Laybuy share price has drifted lower to close at $1.71 on Wednesday. 

Quarterly business update 

Laybuy delivered some classic buy now, pay later (BNPL) growth figures with a gross merchandise value (GMV) of NZ$127.1 million or annualised GMV of NZ$508.4 million, up 162% on the prior corresponding period (pcp). The increase in GMV trickled down to its other financial metrics including a 166% increase in revenue compared to the pcp or 21% QoQ. The UK contributed significantly to its uplift with annualised UK GMV increasing from NZ$19 in Q2 FY20 to NZ$231 million in Q2 FY21.

The increased purchasing frequency of its customers combined with better fraud management technology has resulted in a reduction in credit losses. Gross loss as a percentage of GMV has fallen from 3.4% in Q1 FY21 to 2.1% in Q2. Its net transaction margins have also significantly improved from 0.5% to 2.3% over the quarter. 

The business has experienced significant pcp GMV growth across specific sectors including a 313% increase in healthy and beauty, 320% increase in electronics and 183% increase in mixed gender clothes. The only sector which experienced a decrease in GMV was travel, which saw a decline of 51%. 

Interestingly, increased purchasing frequency was seen across from both ANZ and UK regions with repeat customers increasing from 66% of active customers in Q2 FY20 to 70% of active customers in ANZ, and 39% to 56% in the UK. Purchasing frequency in the UK is ahead of where NZ was at a similar maturity indicating the UK market’s growing responsiveness to BNPL products. 

Investing for growth

Laybuy continues to invest for future growth to maintain its BNPL growth status. The company entered into a partnership with Mastercard Asia Pacific which will enable it to issue digital cards to Laybuy customers in New Zealand. In Q2 FY21, Laybuy also formally engaged major payments technology specialist EML Payments Ltd (ASX: EML) to bring a digital card to market in Australia and the UK. This will allow the company to provide a fully functional ‘tap and go’ BNPL offering, much like what Zip Co Ltd (ASX: Z1P) announced this week. 

More reading

• 5 things to watch on the ASX 200 on Thursday
• Here’s why Westpac (ASX:WBC) just sold its entire Zip (ASX:Z1P) stake
• The best ASX shares to buy during a market crash
• The ASX 200 finished 0.1% higher today
• EML Payments (ASX:EML) share price on watch after Q1 update

Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended EML Payments. 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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Shareholders will be hoping that the AMP Limited (ASX:AMP) share price will defy the market sell-off after it put a positive spin to its latest quarterly update.

The futures market is pointing to a 1%+ drop in the S&P/ASX 200 Index (Index:^AXJO) this morning due to weak leads from Wall Street.

But all eyes will be on the embattled AMP share price.

Is the worst over for the AMP share price?

Management reported an average 2% increase in assets under management (AUM) for the third quarter for its Australian Wealth Management (AWM) division to $122.1 billion.

While AWM reported net cash outflows of $1.95 billion during the latest quarter, this is steady from the same period last year.

Quarterly outflows starting to improve

Management even ventured on to state that there were signs of underlying improvements if you accounted for the $692 million of early release of super payments. The early release payments were part of the federal government’s COVID‐19 support package for households to weather the pandemic.

That is a relief! It implies the withdrawals are not linked to clients abandoning AMP for its disgraceful conduct exposed at the Banking Royal Commission.

Further, its North wealth platform reported continued growth. This business received $818 million in net cash inflows, including $196 million from external financial advisers.

The bad news in AMP’s quarterly update

But it isn’t all good news for the AMP share price. The group’s AMP Capital division reported a 0.4% drop in assets under management to $189.2 billion due to cash outflows. Net cash external outflows of $1.1 billion were due to redemptions from public markets products.

Another dark spot is the loss of market share of mortgages from AMP Bank. Its total loan book value fell $303 million to $20.6 billion.

Management blames highly competitive market conditions and the economic impact of COVID-19 for the slide.

Home loan competition to hurt

I believe it’s more the former than the latter. Our major banks, such as Commonwealth Bank of Australia (ASX: CBA) doesn’t seem to be impacted in the same way as its loan book is growing ahead of the broader market.

We also know there’s a pick-up in loan applications, particularly from owner occupiers.

Foolish takeaway on AMP share price

The question AMP investors will be asking is how well placed the company is to stem and reverse the market share loss. Afterall, it is on the money when it pointed to intense competition, which isn’t good news for the AMP share price.

Westpac Banking Corp (ASX: WBC) is the latest big bank to announce a very aggressive campaign offering $4,000 cash back to new home loan customers. National Australia Bank Ltd. (ASX: NAB) is also offering a cash handout of $2,000 for new borrowers.

I believe we are only at the start of a mortgage market war as the Reserve Bank of Australia is tipped to cut rates to just 0.1% on Melbourne Cup Day.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Here’s why Westpac (ASX:WBC) just sold its entire Zip (ASX:Z1P) stake
• Warning: Here’s why keeping your savings in the bank is hurting your financial future
• 5 ASX 200 events to watch for this week
• More royal commission pain: NAB (ASX:NAB) gets a $15 million fine

Motley Fool contributor Brendon Lau owns shares of AMP Limited, Commonwealth Bank of Australia, National Australia Bank Limited, and Westpac Banking. Connect with me on Twitter @brenlau.

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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Many investors are in two minds about buying ASX 200 shares right now. The March bear market spooked investors and there is a feeling a crash is looming once the government life support is switched off.

It’s easy to fall into the trap of market timing. However, I still think there are a few good reasons to buy ASX 200 shares today.

Everyone is waiting for a crash…

Every market commentator seems to know when the market will crash in 2021. But even a broken clock is right twice a day…

Over history, plenty of people have lost more money waiting for an ASX 200 share market crash versus those that invested and lost money in an inevitable correction.

That’s because if I invest $100,000 today, and the market appreciates by 10% per annum, I would have $259,374 in 10 years time. Even if the market crashed 50% in 10 years, I would still have $129,687 in my account.

Market timing can be a dangerous game, as it’s easy to just sit and watch on the sidelines. I’d rather invest in high-quality ASX 200 shares and come along for the ride.

Where else can I get a return?

While the share market may be scary, there aren’t many great alternatives going around.

Interest rates are at all-time lows and potentially pushing towards zero. That means a bank account, term deposit or even many bonds won’t offer much yield.

There are still some strong ASX 200 dividend shares on the market like Telstra Corporation Ltd (ASX: TLS) and Coles Group Ltd (ASX: COL). That means I don’t really have many options if I don’t want to partake in market timing.

Many ASX 200 shares are booming

It’s true that we’re seeing something of a ‘two-speed’ economy emerge in 2020. S&P/ASX 200 Index (ASX: XJO) has slumped 7.5% in 2020 but many ASX 200 shares are booming.

Retailers with a strong online presence like JB Hi-Fi Limited (ASX: JBH) have surged in value while tech-focused shares like Afterpay Ltd (ASX: APT) continue to climb.

Not all ASX 200 shares are created equal and its important to think long-term while investing in the short to medium-term.

More reading

• 5 things to watch on the ASX 200 on Thursday
• The best ASX shares to buy during a market crash
• The ASX 200 finished 0.1% higher today
• How has COVID-19 shaken up the Sydney Airport share price?
• Are US shares a better investment than the ASX 200?

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO and COLESGROUP DEF SET. 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 Selfwealth Ltd (ASX: SWF) share price has struggled to find its mojo lately after falling to a two month low. The investing platform has faced increasing challenges in recent times with growing competition from international players such as eToro and Stake, as well as new domestic platforms such as Superhero. Today, however, the Selfweath share price could be one to watch after the company announced the results of its annual general meeting (AGM) which could provide its investors with some potential much needed good news. 

Why the Selfweath share price is one to watch 

I’ll be keeping an eye on the Selfweath share price today despite the fact that the company’s AGM largely highlighted old news, including a recap of its outstanding FY20 performance. This included a 313% increase in revenue to $8.6 million, a 235% increase in active traders to 46,445 and $147,000 cash burn down from $3.4 million in FY19. This includes the June and September quarters being cash flow positive for the business. 

In what could be positive news for the Selfwealth share price, the AGM did provide some insight to the company’s FY21 performance to date. This included the company achieving 60,000 active traders and $440 million in client cash as of October. These figures represent 29% and 20% respective increases on FY20 figures in just the first four months of the financial year. 

Selfwealth continues to take market share from its competitors and is currently ranked as the sixth most popular brokerage platform. 6% of all online investors use Selfwealth, up from 4% in December 2019. Interestingly, 11% of all online investors changing brokers choose Selfwealth. The company’s main selling point has been its industry-leading, value for money brokerage fees, coming in at a flat $9.50 per trade. 

International trading 

Selfwealth will be launching United States trading in the December quarter. This highly anticipated move could position it as the home of US direct equities trading for Australian investors. The company intends to maintain its competitive brokerage fees of US$9.50 with no account fees or further commissions. It also intends to maintain a competitive foreign exchange spread of 0.60% when transferring to or from US dollars. This compares to banks and other competitors which can charge up to 1.00%. 

Platform enhancement 

Finally, the AGM concluded with commentary on potential enhancements that will be added over the coming 12 to 18 months. These could be good news for the Selfwealth share price moving forward and include: 

• Platform-wide live pricing as a paid-for feature. This is the number one feature requested by clients. 
• Increased independent stock research for both Australian and US equities. 
• Enabling the creation of ‘minor’ accounts for parents wanting to invest on behalf of their children. 
• Delivering unique initial public offering (IPO) opportunities to investors as well as access to capital raisings and the ability to trade options. 

Two-thirds of Selfwealth clients have indicated they would be willing to pay for additional features or services. 

More reading

• 2 ASX tech shares I’d buy with $10,000

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. 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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Thankfully, Australia is now in a position where many COVID-19 restrictions and state borders are starting to lift. I think this could mean good things for domestic tourism. There are some ASX shares that could benefit.

Here are three ideas if you’re wanting to play that domestic tourism theme:

Sealink Travel Group Ltd (ASX: SLK)

This ASX share is the largest (according to Sealink) integrated land and marine, tourism and public transport service provider with international operations in London and Singapore.

Its ferries operates across various regions including Sydney Harbour, Kangaroo Island, the Murray River, Rottnest Island and Stradbroke Island. It also has a large network of bus services under the Transit Systems brand.

In FY20 it grew its underlying net profit after tax and before amortisation by 47.2%, which was a solid result.  

The company has fairly defensive earnings with the bus networks, whilst the tourism side of things could see a recovery in the coming months.

At the current Sealink share price it’s priced at 15x FY23’s estimated earnings.

Ingenia Communities Group (ASX: INA)

Ingenia owns a number of holiday parks around Australia. In August and September it has seen a significant increase of bookings in August 2020 and September 2020 compared to 2019. Revenue booked through the parks and Ingenia Holidays website in the first quarter were up over 50% compared to the prior year.

According to Ingenia, border closures due to COVID-19 have increased demand for intrastate travel. People want coastal locations with driving proximity to capital cities, this is the area experiencing the strongest demand.

Still on the holidays side of things, September occupancy was up to 61.2% with revenue per occupied room (REVPOR) up 11% to $84.31.

At 13 October 2020, 12-month forward bookings were up over 50% compared to October 2019.

The ASX share’s management said that the eventual opening of the Victorian and Queensland borders are anticipated to drive further strong demand, particularly for the NSW south coast, NSW far north coast and tropical Queensland parks.

Another trend that the business is benefiting from is that it’s building an impressive number of retirement rental accommodation. This is helping rental revenue to steadily grow, it has a high occupancy rate and its lifestyle village margins continue to increase.

At the current Ingenia share price it offers a distribution yield of 2.1%.

Star Entertainment Group Ltd (ASX: SGR)

This casino business owns Star Sydney, The Star Gold Coast and Treasury Brisbane. It also owns Sheraton Grand Mirage on the Gold Coast in a joint venture and manages the Gold Coast Convention and Exhibition Centre on behalf of the Queensland government.

Star seems like the safer bet at the moment compared to its main casino competitor that is facing difficulties about its casino licence in NSW. Star’s main casino isn’t suffering from strict COVID-1 restrictions either. 

The ASX share owns some great assets that I expect will see rising activity in the coming months as borders open up again.

The casinos are still missing some VIP visitors from overseas, but at some point those people are going to be able to come back – maybe during 2021.

At the current Star share price it’s still down 23.4% from the price on 16 January 2020. When you consider how low interest rates are, I think its assets may be undervalued for the long-term.

It’s valued at 13x FY23’s estimated earnings.

Foolish takeaway

I think each of these ASX shares look very interesting as short-to-medium buys whilst Australians are stuck in Australia. Ingenia would be the one I’d be happy to own for the longest because of the retirement villages tailwind. In the shorter-term, I think I’d go for Sealink with its diversified growth aspirations.

More reading

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• Why the SKYCITY share price jumped 23% in September

Motley Fool contributor Tristan Harrison 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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