Why the Corporate Travel Management Ltd (ASX:CTD) share price is in a trading halt again

The Corporate Travel Management Ltd (ASX: CTD) share price won’t be going anywhere today after the embattled corporate travel specialist requested another trading halt this morning.

Why was the trading halt requested?

According to the release, Corporate Travel Management has requested the granting of an immediate trading halt so that it can review and respond to a further report issued by VGI Partners.

The release explains that the company became aware of a 52-page report from VGI Partners on Monday night, six days following its response to the original report.

Management has stated that it believes “that VGI Partners’ further report raises no substantive new issues but it is not possible for CTD to fully review the further report or comprehensively respond by the time the market opens today.”

It has requested that its shares remain halted until the earlier of the release of a response to the report or the commencement of trade on Thursday November 8.

What was in the new report?

The report has not been made public so it is unclear what it contains. However, the AFR is reporting that VGI Partners has challenged the company’s claim that the hedge fund concealed the extent of its inquiries.

Corporate Travel Management suggested that it had been caught off guard by the allegations, but an email chain allegedly shows this not to be the case.

In addition to this, the AFR report confirms that VGI Partners has not closed its short position. In fact, the short seller has actually increased its “short bet against Corporate Travel Management by 23 per cent to more than 2.5 million shares.”

What now?

As I mentioned earlier, I think Corporate Travel Management’s shares are trading at a very attractive level given its strong long term growth potential.

However, things like this don’t tend to blow over very quickly. Because of this, I’d suggest investors stick with Helloworld Travel Ltd (ASX: HLO) or Webjet Limited (ASX: WEB) until the dust settles.

Alternatively, these top mid cap growth shares have been tipped as market beater in FY 2019 and could be great options.

3 exciting tech shares to back in FY 2019

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Atlassian.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

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. The Motley Fool Australia owns shares of Helloworld Limited. The Motley Fool Australia has recommended Webjet Ltd. 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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.