Today's acquisition news and subsequent share price boost follow a challenging period for the employment and human services business as low unemployment rates chipped into client flows.

Let's take a look at the news.

Takeover bid accepted

In today's announcement, APM advised it has entered into a scheme implementation deed with Ancora BidCo Pty Ltd, an entity controlled by US-based private equity outfit Madison Dearborn Partners (MDP).

The accepted agreement means MDP will buy all remaining APM shares it doesn't already own for $1.45 cash per share, valuing APM at $1.3 billion.

While a previous bid from CVC Asia Pacific in February of $1.60 per share was higher than today's accepted offer, APM rejected it for being too low at the time, and CVC walked away.

In the latest deal, eligible APM shareholders will have the option to receive either 90% or 100% of their takeover consideration in unlisted shares in the acquisition entity.

If the scheme is implemented, executive chair Megan Wynne and APM CEO Michael Anghie intend to receive 100% unlisted shares in the acquisition entity for their APM shares.

Why is APM accepting this offer?

The APM independent board committee (IBC) unanimously recommends that shareholders vote in favour of the takeover in the absence of a superior proposal. This recommendation is subject to an independent expert concluding and continuing to conclude that the scheme is in the best interests of APM shareholders.

The IBC is positive on the offer, saying it provided a "significant premium" to the undisturbed APM share price and delivered certainty of value. It noted the APM share price may trade at a significantly lower price in the absence of the takeover offer, and there were no alternative viable proposals.

The IBC cited the "uncertainty of the near-term outlook" as a key reason to accept the offer. It added that the ASX All Ords stock "continues to operate in an environment of extended low levels of unemployment and client flows, with increased support provided to achieve sustainable employment."

While APM thinks these factors will "normalise over time" and that its other businesses can continue to grow, it is uncertain when this will occur.

The IBC also noted this offer allowed for shareholders to remain invested in APM, if they chose to do so.

Trading update

Also in a short trading update today, APM revealed it had experienced low client flows in Australia and the United Kingdom during April and May this year.

The company expects its FY24 profit to be "around the bottom" of its profit guidance range. FY24 underlying net profit after tax (NPATA) had been guided at between $95 million and $105 million, and underlying earnings before interest, tax, depreciation and amortisation (EBITDA) was previously guided to between $280 million and $290 million.

Additionally, APM expects the activity levels in the second half of FY24 to be "likely to continue into FY25." It also noted that the completion of the refinancing of certain existing bank facilities was expected to result in a higher interest expense in FY25 compared to FY24.

What next?

APM will send shareholders a scheme booklet in July 2024, which will include information about the offer, the reasons for the IBC recommendation, an independent expert's report, and details of the scheme meeting.

A meeting will likely be held in September 2024 for shareholders to vote on the proposal. If accepted, implementation is expected to occur in October 2024.

APM share price snapshot

The APM share price has lifted more than 9% since the start of 2024, but it's been a bumpy ride for shareholders this year, as we can see in the graph below.

The post Guess which ASX All Ords stock is leaping 10% on a $1.3 billion bid appeared first on The Motley Fool Australia.

Four ASX shares that are rising more than most today are listed below. Here's why they are storming higher:

APM Human Services International Ltd (ASX: APM)

The APM Human Services International share price is up 10% to $1.37. Investors have been buying the human services company's shares after it accepted a takeover offer. According to the release, APM has entered into a scheme implementation deed with Madison Dearborn Partners. Under the scheme, APM shareholders will receive $1.45 cash per share. The APM Independent Board Committee unanimously recommends that shareholders vote in favour of the scheme. This is in the absence of a superior proposal and subject to the independent expert's report.

Fletcher Building Ltd (ASX: FBU)

The Fletcher Building share price is up almost 4% to $2.95. This morning, this building materials company announced amendments to its banking agreements which will extend the tenor of its debt facilities. In addition, the amendments will allow Fletcher Building to rely on more favourable terms for covenant testing through to the end of calendar 2025 if required. The company's acting CEO, Nick Traber, said: "Given the current market environment and outlook, we have taken pre-emptive steps to reinforce the Company's resilience for the medium term to position ourselves to navigate the tougher trading conditions."

Navigator Global Investments Ltd (ASX: NGI)

The Navigator Global Investments share price is up 13% to $2.09. Investors have been buying this investment company's shares after it upgraded its earnings guidance for FY 2024. Full year adjusted EBITDA is now expected to be between US$85 million to US$89 million, representing an increase of between 76% and 84% on FY 2023's adjusted EBITDA. Management advised that strong profit distributions from its partner firms is driving a significant second half earnings uplift. The company's CEO, Stephen Darke, believes "this underscores both the resilience and earnings potential of NGI's diversified portfolio of global alternative investment managers."

Strike Energy Ltd (ASX: STX)

The Strike Energy share price is up 6% to 21.2 cents. The catalyst for this has been an update on the Walyering-7 (W7) well within the Perth Basin. According to the release, W7 has intersected a high-quality conventional gas accumulation to the north-east of the currently producing Walyering gas field. A total of 23m of net gas pay with an average porosity of 16% has been measured.

The post Why APM, Fletcher Building, Navigator Global, and Strike Energy shares are storming higher appeared first on The Motley Fool Australia.

The international employment services company requested the trading halt pending the release of an update on the non-binding takeover offer it received from Madison Dearborn Partners last month.

APM asked for the trading halt to remain in place until it released an announcement or until the commencement of trading next Tuesday 4 June.

The APM share price closed yesterday's session at $1.25. APM shares are down 0.79% in the year to date and down 39.6% over the past 12 months.

Let's find out what's happening with that takeover offer.

APM share price frozen as investors await news

Last month, APM received a "disappointing offer" of $1.40 per share from United States private equity firm Madison Dearborn Capital Partners (MDP).

MDP already owns 29% of the company and has three directors on the APM board.

The offer was well below an earlier conditional, indicative, non-binding takeover offer of $2 cash per share received from CVC Asia Pacific in February.

CVC originally offered $1.60 per share but revised it upwards. On this basis, APM granted CVC access to its books to undertake due diligence.

However, after CVC completed its due diligence in March, it advised APM it did not want to proceed.

After the CVC deal collapsed, Madison Dearborn put forward its own indicative non-binding offer to buy all the shares it did not own for $1.40 per share via a scheme of arrangement.

That was back on 8 April.

The offer on the table

The proposal included a rollover election for APM shareholders to receive all or part of the
consideration in unlisted shares in MDP.

It also required certain shareholders, including executive chair Megan Wynne and key management personnel, to elect to receive all of their consideration in scrip.

MDP requested a period of due diligence on a non-exclusive basis to finalise its debt financing.

APM told investors it intended to engage with MDP and any other suitors on the horizon.

To this end, it set up an Independent Board Committee (IBC) comprising four independent board directors to lead the negotiations with MDP and any other parties.

The IBC chair, Nev Power, described the $1.40 offer as "disappointing" and said the IBC would strive to achieve "an outcome that is fair and reasonable and in the best interests of all shareholders".

And that brings us up to date.

Investors haven't heard anything further about the deal until today's trading halt request.

But it appears APM will have some news for the market very soon.

APM share price snapshot

The APM share price has fluctuated enormously this year.

On 18 January, APM shares spiralled by just over 40% to a new all-time low of 79 cents. That was after the company released its 1H FY24 trading update.

The price went lower to 68 cents on 23 January. This remains the stock's 52-week low.

On 19 February, the APM share price leapt 48.2% after news broke of CVC's original $1.60 per share offer.

The APM share price moved 13.5% higher on 28 February when CVC upped its offer to $2 per share.

APM shares went into a trading halt on 27 March upon news that CVC was walking away.

The company then requested a voluntary suspension from trading and told the market it was in discussions with other parties.

On 8 April, it announced MDP's offer and was reinstated to trading.

Investors were displeased with the substantially lower per-share price offered compared to the CVC deal, and the APM share price tanked 29.4% to close at $1.15 per share.

APM shares were listed in November 2021 at $3.55. As the chart below shows, it's been a tough road for investors ever since.

The post APM share price grinds to a halt as investors await update on takeover offer appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling on Monday:

APM Human Services International Ltd (ASX: APM)

The APM Human Services share price is down 29% to $1.16. Investors have been selling this human services provider's shares today in response to a takeover update. According to the release, CVC Asia Pacific has pulled the plug on its non-binding $2.00 per share offer following the completion of due diligence. And while APM has received another offer from Madison Dearborn Partners, the company has described it as "disappointing." Nevertheless, the board intends to engage with Madison Dearborn Partners to see if it is possible for an improvement to its $1.40 per share offer.

Azure Minerals Ltd (ASX: AZS)

The Azure Minerals share price is down almost 9% to $3.26. Today the lithium explorer is holding its scheme meeting relating to the proposed takeover by SQM and Hancock Prospecting. The offer is $3.70 per Azure share with a fall-back conditional off-market takeover offer of $3.65 per Azure share. However, ahead of the meeting, the company revealed that the Foreign Investment Review Board has requested more time to decide on the deal. The company remains positive that approval will be granted. It said: "This is a standard extension request and Azure is not aware of any reason that the required FIRB approval will not be received."

Beach Energy Ltd (ASX: BPT)

The Beach Energy share price is down 15% to $1.61. Investors have been selling the energy producer's shares after it revealed a series of quality issues at its Waitsia joint venture project in the Perth Basin. Beach is now working to update the production schedule and cost estimates for Waitsia, advising that "the extent of additional quality issues is to a point where current guidance on schedule and cost needs to be updated."

Elders Ltd (ASX: ELD)

The Elders share price is down 24% to $7.49. This agribusiness company's shares have come under significant pressure today after it released a trading update. Elders notes that first half trading in FY 2024 has been significantly below expectations due to a number of drivers. This includes subdued client sentiment following an El Niño declaration by the Bureau of Meteorology. As a result, Elders expects EBIT to fall 18% to 30% in FY 2024 to between $120 million and $140 million.

The post Why APM, Azure Minerals, Beach Energy, and Elders shares are crashing today appeared first on The Motley Fool Australia.

In morning trade, the human services company's shares are down 30% to $1.14.

Though, it is worth noting that its shares still remain up 40% over the last two months even after today's decline.

Why are APM shares collapsing?

Investors have been selling the company's shares this morning after the collapse of one takeover offer and news of another that was well short of expectations.

As a reminder, in February APM revealed that it received a revised conditional, indicative, non-binding offer of $2.00 cash per share from CVC Asia Pacific.

This was up from an initial offer of $1.60 cash per share and was enough for the company to grant CVC Asia Pacific with due diligence access.

However, as it recently revealed, following the conclusion of its due diligence, CVC Asia Pacific advised that it was unable to proceed to finalise a transaction on terms consistent with the aforementioned non-binding offer.

But the takeover news wasn't over. Although CVC Asia Pacific pulled the plug on a deal, Madison Dearborn Partners (MDP), which currently holds an interest of approximately 29% in APM and has three directors on the APM Board, indicated its intention to put forward an indicative non-binding proposal to acquire the company.

This brings us to today. the company's shares are in freefall today after MDP put forward an offer to acquire all APM shares which it does not already hold for $1.40 cash per share by way of a scheme of arrangement.

This is 30% lower than CVC Asia Pacific's proposal and 14% below where APM shares were trading prior to their halt and suspension.

What now?

APM advised that its Independent Board Committee (IBC) will be responsible for engaging with MDP in relation to its proposal and other potentially interested parties.

Though, the proposal will be lucky to be given the thumbs up from the IBC after being described as "disappointing" by its lead independent director, Nev Power. He said:

The IBC is focused on achieving an outcome that is fair and reasonable and in the best interests of all shareholders. The IBC notes that the offered price per share under the MDP Proposal is disappointing.

The MDP Proposal does not require exclusivity and allows the Company to engage with other potential acquirers. The IBC together with its Advisors intend to engage with MDP and any other interested parties to determine whether an appropriate proposal can be put to shareholders having regard to other alternatives including remaining listed and pursuing the growth opportunities available to the Company.

Trading update

Based on early management accounts for the third quarter, and assuming that historical seasonal trends do not occur in FY 2024, the company anticipates FY 2024 underlying EBITDA and underlying NPATA to be in the range of $280 million to $290 million and $95 million and $105 million, respectively. This is based on no change in the operating environment for the balance of the year.

Positively, APM notes that it expects significant incremental earnings growth in FY 2025 through announced contract awards and corporate initiatives.

The post APM shares collapse 30% as 'disappointing' bid lands in its lap appeared first on The Motley Fool Australia.

This follows last week's revelations that CVC Asia Pacific was walking away from its revised takeover bid to acquire APM for a price of $2 per share.

The employment and health services provider had granted CVC a four-week exclusivity period until 27 March with the offer conditional on several factors including due diligence and debt financing.

The APM share price has been frozen at $1.63 since last Wednesday when the exclusivity period ended.

APM requested a trading halt and advised investors of "the receipt of a letter from CVC advising that they are unable to proceed to finalise a transaction on terms consistent with their non-binding Offer as disclosed to the ASX on 28 February 2024, and the ending of CVC's exclusivity period".

APM asked for the trading halt to remain in place until it released an update or until the commencement of trading on Tuesday this week.

A new suitor comes to the party…

Since then, a new potential buyer has surfaced.

On Tuesday, the company asked the ASX for a voluntary suspension of trading and advised it had "received approaches from parties to assess the potential for a transaction".

APM said those discussions were continuing and a suspension was therefore appropriate until it could release an update, or until the start of trading today.

Before the market open this morning, APM asked the ASX to extend the suspension until Monday.

It explained that it had received a letter from United States private equity firm Madison Dearborn Capital Partners (MDP).

The letter states MDP's intention to submit a non-binding indicative offer (NBIO) to acquire 100% of APM shares.

APM is expecting to receive MDP's NBIO this evening and needs time to "consider the terms of the NBIO and disclose those terms to the ASX …".

What's next for the APM share price?

If things go to plan, we'll find out at the commencement of trading on Monday.

Presumably by then, we will have an update from APM on the NBIO and the potential price on offer to buy up all its shares.

The APM share price has been on a rollercoaster this year.

Overall, it's up 29.4%. But it's been a bumpy ride.

On 18 January, APM stock plummeted by just over 40% to a new all-time low at the time of 79 cents after the company released its 1H FY24 trading update.

The price fell further to a new low of 68 cents on 23 January.

The next month, everything changed.

On 19 February, the APM share price leapt 48.2% after press speculation led to the company confirming it was in discussions with CVC. At the time, CVC was offering $1.60 per share.

The APM share price moved 13.5% higher on 28 February when CVC upped its offer to $2 per share.

That same day, APM released its 1H FY24 results.

APM reported a 31% lift in revenue to $1,116.8 million but a 12% decline in underlying EBITDA to $147.8 million. Its statutory net profit after tax and amortisation (NPATA) plummeted 41% to $43.6 million.

The company cited ongoing low unemployment and higher interest rates as drags on its business.

APM shares were listed in November 2021 at a share price of $3.55.

The post APM share price freeze extended amid new takeover bid appeared first on The Motley Fool Australia.

Stationary at $1.63 apiece, the employment and health services provider's shares are locked down until the company responds to the latest development in its pursuit by a private equity firm.

Currently, APM shares are up 29.4% for the year. Meanwhile, the S&P/ASX 300 Index (ASX: XKO) — which APM is a member of — is up a meagre 2.2%.

Pulling the plug

CVC Asia Pacific is now walking away from acquiring APM after serving up a more generous bid on 28 February of $2.00 per share.

Details are sparse right now. All that was said in this morning's trading halt request was APM had been advised, by way of letter, that it is 'unable to proceed to finalise a transaction on terms consistent with their non-binding offer as disclosed to the ASX on 28 February 2024'.

This doesn't give investors much insight into why CVC has chosen to walk back its takeover intentions. One would hope that APM will give clarity when it delivers its response to the decision. However, there is also a chance the private equity firm didn't elaborate to APM either.

CVC outlined several conditions for its revised takeover bid in February. These included key APM personnel accepting most of the payment as shares. Furthermore, the deal was subject to due diligence and debt financing.

At this stage, it is unclear which of the above items (if any) were the stumbling block for the takeover.

What could it mean for the APM share price?

APM shareholders could be slightly worried about how the share price fares once trading resumes. For context, APM shares were hovering around 84 cents before rumours of an approach surfaced last month.

If the company's shares were to head back to 84 cents it would represent a 48% fall from its current stature.

However, at that price, APM would trade on a trailing price-to-earnings (P/E) ratio of 10.5 times. Meanwhile, the average P/E ratio for the global professional services industry sits at 21.3 times earnings.

The post APM share price placed on ice as $1.8 billion deal goes dud appeared first on The Motley Fool Australia.

A price target is where a broker thinks a share price could be in 12 months from today. The higher the target, the more the brokers expect the company to deliver in terms of share price growth. Of course, there's no guarantee any share price will rise a certain amount in 12 months – it might not rise at all.

Having said that, let's look at two of the ASX 300 shares that brokers are more optimistic about.

Boss Energy Ltd (ASX: BOE)

Broker Bell Potter raised its rating on the energy company to a speculative buy with a price target of $6.34.

At the current Boss Energy share price, that implies a possible rise of around 30% from here.

As reported by my colleague James Mickleboro, Bell Potter said this about the ASX uranium share:

Our valuation is reduced slightly to $6.34/sh (previously $6.41/sh) on changes to our corporate expenditure and associated earnings. With the recent sell-off in BOE we have decided to move to a Speculative Buy (from Speculative Hold) in-line with our ratings structure.

Uranium fundamentals continue to support our thesis being 1) advancement in Nuclear energy across the globe (60 reactors currently under construction) filtering through to a growing demand for U3O8 and 2) a lack of near-term supply as producers exited the market post Fukushima.

The recent acquisition of a 30% interest in the Alta Mesa joint venture, diversifies BOE's operations and revenue streams, making BOE one of only two geographically diversified uranium producers in CY24.

Thanks to a $62.3 million gain on its "investment in uranium and financial assets", Boss Energy was able to report an accounting net profit of $57.6 million in the FY24 first-half result, up from a loss of $2.4 million in the prior corresponding period.

The ASX 300 share also announced it has passed another critical milestone in the development of its Honeymoon project, with the start of commissioning the first ion-exchange circuit within the processing plant. The business added it had seen successful modification and refurbishment of the re-agent systems.

Those achievements mean Honeymoon is now running 24 hours a day, seven days a week, accelerating its push towards production and ramp-up.

In the past year, the Boss Energy share price has risen by 90%.

APM Human Services International Ltd (ASX: APM)

The broker Jefferies has raised its price target on the ASX 300 share to $1.80. That would be a rise of around 12% from the current APM Human Services International share price.

Yesterday, the business reported its FY24 first-half result and announced it had received an enlarged bid from CVC of $2 per share, which was 25% higher than the $1.60 per share bid.

Jefferies' price target is roughly halfway between the current price and the bid price.

However, there's no guarantee there will be a binding bid submitted, though CVC has been granted a four-week exclusivity period until 27 March 2024. The offer is conditional on several elements, including due diligence, debt financing and regulatory approvals.

Since the start of 2024, the APM share price has risen close to 30%.

The post These 2 ASX 300 shares were just upgraded by brokers appeared first on The Motley Fool Australia.

Shares in APM are fetching $1.63 as we approach the end of the trading day, up 15.6%. The upward move means the company's share price is now 33% below its 52-week high.

Boosted bid catapults APM share price

If shareholders were concerned about first-half figures, the increased non-binding offer from CBC Asia Pacific Limited has provided a backstop, taking the pressure off today's results.

Nonetheless, here are the important numbers from the release:

• Revenue up 31% on the prior corresponding period to $1,116.8 million
• Underlying EBITDA down 12% to $147.8 million
• Statutory net profit after tax and amortisation (NPATA) down 41% to $43.6 million
• Diluted earnings per share (EPS) of 1.8 cents per share, down from 5.5
• Dividend determination postponed until financial year-end

According to the release, the board has opted to defer a dividend amid the proposed bid from CVC. However, the existing policy of paying out 40% to 60% of NPATA still stands.

What else happened during the half?

For the six months ended 31 December 2023, APM experienced a soft market for its services in Australia and New Zealand (ANZ) and its 'Rest of World' geographies. The ANZ region saw its top line grow 9% to $$24.6 million while underlying NPATA fell 61% to $17.3 million.

The company's saving grace was its North American operations, benefitting from Equus's full integration and inclusion. As a result, revenue more than doubled (119%) to $494 million versus the prior corresponding period, becoming the largest source of revenue.

Australia's prolonged low unemployment rate was listed as a drag on the region's earnings in the half. The situation has stemmed the flow of clients into APM's employment services, suppressing performance-based income.

On 18 January 2024, the APM share price plunged 41% after delivering its first-half trading update. Shares have since been on a recovery amid takeover interest from private equity firm CVC.

What did management say?

AMP Group CEO Michael Anghie touched on the difficult set of conditions the company is facing, stating:

As previously stated, we have been operating in an environment with extended and historic low levels of unemployment which has impacted client flows and the intensity of support required to be provided for those clients in programs.

Adding,

Whilst we are seeing early signs of stabilisation in unemployment data and caseloads in employment programs, the current environment remains subdued.

The road ahead for APM

APM reiterated its previously advised guidance regarding what the next half could look like. EBITDA and NPATA in the second half are expected to be higher than the first. Management believes North American operations will contribute more as contracts 'mature'.

Elsewhere, the next steps on CVC's revised proposed bid will be in the spotlight. Today, the private equity firm stepped up its offer to $2.00 per share, representing a 25% increase from its previous $1.60 bid.

CVC has been granted a four-week exclusivity period until 27 March 2024. Furthermore, the offer is conditional on several matters, including due diligence, debt financing, and regulatory approvals.

The APM share price is down 30% over the past year.

The post APM share price leaps 16% on enhanced takeover bid and results appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

APM Human Services International Ltd (ASX: APM)

The APM share price is up 15% to $1.63. This morning, the human services provider revealed that it has received an improved takeover offer from CVC Asia Pacific. The company advised that a new conditional, indicative, non-binding offer of $2.00 cash per share has been tabled. This is up from a $1.60 per share offer last week, which was rejected by the company. The board is willing to discuss the revised offer with CVC.

DroneShield Ltd (ASX: DRO)

The DroneShield share price is up 16% to 88 cents. This follows the release of the counter-drone technology company's FY 2023 results. Droneshield reported a 226% increase in revenue to $55.1 million and an inaugural profit after tax of $9.3 million. This is up from a $900,000 loss last year.

Electro Optic Systems Holdings Ltd (ASX: EOS)

The EOS share price is up 17% to $1.87. This morning, this technology company released its half-year results and revealed a 59% increase in revenue from continuing operations to $219.3 million. But the real highlight was its underlying EBITDA from continuing operations, which came in at $5.7 million. This represents an increase of $48.6 million from a loss of $42.9 million a year earlier.

Nextdc Ltd (ASX: NXT)

The NextDC share price is up 10% to $16.70. Investors have been buying the data centre operator's shares following the release of its half-year results. NextDC reported a 31% jump in revenue to $209.1 million and a 5% lift in underlying EBITDA to $102.0 million. Looking ahead, it continues to expect total revenue of $400 million to $415 million and underlying EBITDA in the range of $190 million to $200 million for FY 2024.

The post Why APM, DroneShield, EOS, and NextDC shares are charging higher appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is up 14.5% to $5.78. This has been driven by the release of the infant formula company's half-year results. A2 Milk reported a 3.7% increase in revenue to NZ$812.1 million and a 15.6% jump in net profit after tax to NZ$85.3 million. Looking ahead, management has upgraded its FY 2024 revenue guidance to low to mid single-digit growth.

APM Human Services International Ltd (ASX: APM)

The APM share price is up 50% to $1.24. Investors have been buying this human services provider's shares after it received and rejected a takeover approach. CVC Asia Pacific offered to acquire APM by way of a scheme of arrangement for $1.60 per share. This represented a 93% premium to its last close price and valued the company at approximately $1.5 billion. Its board believes the proposal does not sufficiently reflect the fundamental value of APM.

Boral Ltd (ASX: BLD)

The Boral share price is up 4% to $6.08. This follows news that its largest shareholder, Seven Group Holdings Ltd (ASX: SVW), has made a takeover offer. The investment company is looking to acquire the building materials company for up to $6.25 per share in scrip and cash.

Reliance Worldwide Corporation Ltd (ASX: RWC)

The Reliance Worldwide share price is up 6% to $4.67. This morning, this plumbing parts company released its half-year results and revealed a 2% decline in sales but a modest lift in net profit after tax. This appears to have been better than the market was expecting.

The post Why A2 Milk, APM, Boral, and Reliance Worldwide shares are pushing higher today appeared first on The Motley Fool Australia.

At one stage today, the human services provider's shares were up as much as 73% to $1.44.

They have since pulled back a touch but remain up 53% to $1.27 at the time of writing.

Why are APM shares rocketing?

Investors have been scrambling to buy the company's shares this morning after it confirmed that it has received a takeover approach.

According to the release, the company has been in discussions with CVC Asia Pacific and received a conditional and non-binding indicative proposal on Friday.

CVC has offered to acquire APM by way of a scheme of arrangement for $1.60 per share. This represents a 93% premium to its last close price and values the company at approximately $1.5 billion.

The release notes that the proposal was received following a period of engagement between APM and CVC, including the provision of information and due diligence under the terms of a non-disclosure agreement.

Thanks but no thanks

Despite the significant premium on offer with this proposal, the APM board has unanimously decided to reject it.

They believe the proposal does not sufficiently reflect the fundamental value of APM and the potential of its market leading platform globally.

The board also highlights that although APM is currently operating in a challenging environment at a historic low point of the unemployment cycle, they are confident in the company's outlook.

APM's executive chair, Ms Megan Wynne, said:

APM remains focused on supporting our people, continuing to deliver the highest-quality services globally for our clients and stakeholders, and executing on our strategy. The Board and I have full confidence in APM's management team to deliver long-term value to our shareholders. I am confident in the outlook for APM.

The post APM shares rocket 73% after rejecting $1.5b takeover appeared first on The Motley Fool Australia.

The international employment services company was thrashed by the market yesterday after releasing its 1H FY24 update after the market close on Wednesday.  

APM reported preliminary unaudited revenue of $1.14 billion for the six months ended 31 December, up from $853.7 million in 1H FY23.

However, its underlying NPATA plummetted 35% from $85.4 million in 1H FY23 to $55 million in 1H FY24.

Investors delivered a walloping to APM shares yesterday, with the share price falling 40%.

APM shares spiralled to an all-time low of 79 cents and a closing value of 80 cents.

This is a stunning turn of events for the company, which was only listed a little over two years ago at $3.55 per share. The chart below documents the decline of the APM share price.

The company said the weak first-half performance was due to continuing low unemployment.

This meant reduced client flows into employment services programs and fewer job placements, especially in Australia and the United Kingdom. It also cited higher interest rates and taxes.

APM expects things to improve in 2H FY24, noting that a second-half skew is consistent with prior reporting periods.

APM's update comes amid the sixth consecutive quarterly fall in job vacancies in Australia.

The unemployment rate is also steadying at 3.9% for both November and December.

David Taylor, head of labour statistics at the Australian Bureau of Statistics (ABS), said:

In trend terms, many of the key indicators still point to a tight labour market.

However, the increasing unemployment rate since November 2022, along with the rising underemployment rate and slowdown in the growth of employment and hours worked, suggest that the labour market is starting to slow.

The post APM shares rebound on Friday following 40% thrashing on weaker profit news appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Ampol Ltd (ASX: ALD)

The Ampol share price is down 2.5% to $35.02. This morning, the fuel retailer released an update which appears to have fallen short of expectations. It is expecting its unaudited Replacement Cost Operating Profit (RCOP) EBIT for the full year to be "slightly ahead" of the record results delivered in 2022, on a continuing basis. This appears to suggest that fourth quarter earnings were below expectations.

APM Human Services International Ltd (ASX: APM)

The APM share price is down a massive 40% to 80 cents. Investors have been selling the international human services provider's shares after it released an update on its first half performance. It expects to report revenue of $1.14 billion and underlying NPATA of $55 million for the six months ended 31 December. While the former is an increase on last year, the latter is down sharply on the underlying NPATA of $85.4 million it reported a year earlier.

Liontown Resources Ltd (ASX: LTR)

The Liontown share price is down 12.5% to $1.19. This has been driven by reports that lithium giant Albemarle Corp (NYSE: ALB) has sold its stake in the company. The lithium developer hasn't commented on the news, but approximately 96.26 million Liontown shares were traded before the market open for a discount of $1.26 per share.

Wildcat Resources Ltd (ASX: WC8)

The Wildcat Resources share price is down 9.5% to 48 cents. This appears to have been driven by broad weakness in the lithium industry. It also doesn't help that Albemarle has announced that it is scrapping the development of the Kemerton lithium expansion in Western Australia because of weak lithium prices. Clearly it isn't a great environment to be developing lithium assets.

The post Why Ampol, APM, Liontown, and Wildcat shares are dropping today appeared first on The Motley Fool Australia.

Let's dig deeper and find out what's going on. Here are the shares in question:

Ampol Ltd (ASX: ALD)

The Ampol share price is down 2.5% to $35.11 today after fuel retailer provided guidance for the full year.

According to the release, the ASX All Ords share is expecting its unaudited Replacement Cost Operating Profit (RCOP) EBIT for the full year to be "slightly ahead" of the record results delivered in 2022, on a continuing basis.

While this looks positive on paper, the market was expecting a stronger result after its stellar third quarter performance, which saw its RCOP EBIT increase 65% on the prior corresponding period.

Management notes that growth in earnings from non-refining divisions offset a reduction in refinery earnings from the historically high levels in the prior year.

In addition, the company revealed that the Lytton Refiner Margin (LRM) averaged US$10.52 per barrel in the fourth quarter. This is down sharply from US$19.69 per barrel in the previous quarter. This reflects a rise in landed crude premiums and reduced product crack spreads compared to the third quarter.

APM Human Services International Ltd (ASX: APM)

The APM share price is also sinking today and is down 35% to 85 cents. Investors have been hitting the sell button today after the international human services provider released an update on its first half performance.

The ASX All Ords share expects to report revenue of $1.14 billion and underlying NPATA of $55 million for the six months ended 31 December. This compares to revenue of $853.7 million and underlying NPATA of $85.4 million a year earlier.

Management blamed this on tough labour market conditions and higher interest costs and taxes.

It expects things to improve in the second half, noting that "2H24 EBITDA and NPATA to be higher than 1H24 with a second half earnings skew consistent with prior periods."

The post Guess which ASX All Ords shares are sinking after poor updates appeared first on The Motley Fool Australia.

APM isn't a well-known business on the ASX, though it has a market capitalisation of over $1 billion.

It operates in 11 countries, including Australia, the UK, Canada, the US and Germany. Each year, it supports more than 2 million people of all ages through its service offerings which include assessments, allied health and psychological intervention, medical, psycho-social and vocational rehabilitation, vocational training and employment assistance, and community-based support services.

There are three reasons why I think this ASX 300 share looks good value right now.

The APM share price is significantly down

I'm interested in investing in growing businesses. I'm particularly interested in those companies when the share price falls heavily.

The APM share price is down 60% since August 2022 and it's down 35% since 9 November 2023.

The company said it's expecting first-half earnings in FY24 to be lower than the first half of FY23 because of "continued record low levels of unemployment in Australia and the UK, resulting in lower client flows into employment programs, together with higher comparable interest costs and taxes."

However, it is expecting a stronger FY24 second-half earnings performance compared to the first half, based on "operational efficiencies implemented during the first half, continued growth of the health businesses, timing of new contracts and the historic second half skew."

According to the estimate on Commsec, the APM share price is valued at just 8 times FY24's estimated earnings and under 7 times FY25's estimated earnings.

Good revenue prospects

The employment market can't really get much stronger than it is, whereas there's a fair chance that unemployment could tick upwards amid the current conditions which could be a boost for the ASX 300 share's revenue and earnings.

APM also noted the UK has extended and expanded its 'restart scheme' in England and Wales for two years to June 2026. APM delivers two "prime restart" contracts in Greater Manchester and Central and West London and a further sub-contract in West Central.

The company has noted there are no major contracts due for renewal in FY24 or FY25, which suggests to me that its existing revenue is fairly supported.

I think there's also potential for it to expand in its existing markets and potentially expand into new markets.

Strong dividend income from the ASX 300 share

I like the cheap valuation, and this has a bonus effect of significantly increasing the dividend yield.

The estimate on Commsec shows a possible dividend yield of 9.2 cents per share, which would translate into a grossed-up dividend yield of 9.4%. That's with a dividend payout ratio of just 51%, so that would leave plenty of profit and cash flow within the business to improve itself.

Hopefully, the APM share price can rise from here, but I can receive large dividends until then.

The post This ASX 300 share just hit a 52-week low, here's why I just invested appeared first on The Motley Fool Australia.

Certainly, investors may be worried when an insider sells their shares – is there bad news coming? There can be legitimate reasons for selling down shares though, such as buying properties or for tax purposes.

However, there may be only one reason for a director's investment– they think it's good value. With that in mind, let's look at three ASX 300 shares where insiders recently invested.

Challenger Ltd (ASX: CGF)

Challenger is the leading provider of annuities in Australia. It also has a large funds management segment. As we can see on the chart below, the Challenger share price is down around 22% in 2023 to date.

It was recently announced that director Duncan West had made an on-market trade to buy 17,500 Challenger shares at a cost of $5.86 per share. That's a total cost of $102,550.

This ASX 300 share investment was made on 16 November 2023, and the Challenger share price is currently trading slightly lower than it was at that time.

APM Human Services International Ltd (ASX: APM)

APM operates in 11 countries, including Australia, the UK, Canada, the US, and Germany. Each year, it supports more than two million people of all ages through its service offerings which include medical assessments, allied health and psychological intervention, psycho-social and vocational rehabilitation, vocational training and employment assistance, and community-based support services.

The APM share price is down 31% since 9 November 2023 after an update at the company's annual general meeting (AGM), as we can see on the chart below.

Executive chair and founder Megan Wynne recently made huge investments to buy some more APM shares.  On 15 November, she bought 1.5 million shares for $2.26 million and on 16 November, she bought 1.1 million shares for almost $1.7 million. These were huge votes of confidence in the ASX 300 share.

Ramsay Health Care Ltd (ASX: RHC)

Ramsay is one of the largest private hospital operators in Australia and Europe. The ASX 300 share has suffered following the COVID-19 pandemic, aside from a brief period of takeover excitement.

Since the start of 2023, the Ramsay share price has fallen by 22%, as we can see on the chart below.

On 15 November, director Karen Penrose bought 665 Ramsay shares for a price of $52.59 each (costing around $35,000) and then on 20 November, Penrose acquired another 195 Ramsay shares for $50.95 each (costing around $10,000).

The post Insiders have recently been buying these ASX 300 shares appeared first on The Motley Fool Australia.

A company isn't necessarily a buy just because it has fallen. However, if an ASX share has an attractive long-term future, then a share price fall can be an opportunity to buy the dip.

One bonus is that when a dividend-paying company drops, it increases the prospective dividend yield. I'm thinking about adding one or both of these ASX 300 shares to my portfolio. Let's dive into the details.

APM Human Services International Ltd (ASX: APM)

Over the past year, the APM share price has declined by around 40%, as we can see in the chart below.

This company operates in 11 countries, including Australia, the United Kingdom, Canada, the United States and Germany.

Each year, it supports more than 2 million people of all ages through its service offerings. They include assessments, allied health and psychological intervention, medical, psycho-social and vocational rehabilitation, vocational training and employment assistance, and community-based support services.

APM Human Services had a solid year in FY23, with underlying net profit after tax (NPATA) growing by 7%. Total profit from ordinary activities soared 166.8% to $108.7 million. The dividend doubled to 10 cents per share.

It's gaining market share and advised it has a strong pipeline of new opportunities. The ASX 300 share won a number of new contracts in FY23, so the full revenue and earnings from these will flow through in FY24. No key contracts are due for renewal in FY24 or FY25.

According to Commsec, it's priced at under 10x FY24's estimated earnings with a forecast grossed-up dividend yield of 7.5%.

Accent Group Ltd (ASX: AX1)

Accent Group is an ASX retail share that sells shoes. It has its own brands including The Athlete's Foot and Glue Store, and it also acts as the distributor for a number of brands like Skechers, Kappa and Vans.

As we can see on the chart below, the Accent share price is down around 30% from April 2023.

It's understandable that investor sentiment about the company changes as trading conditions shift over time. But, I'm confident in Accent's long-term outlook, partly because it's expanding the store networks of the various brands and partly because I think there are better times ahead for retailers when Australian economic conditions improve, even if that's a year or two away.

The ASX 300 share has done well at growing its margins over time, with increased scale helping substantially.

Based on the FY25 projections on Commsec, the Accent share price is valued at 11x FY25's estimated earnings with a forecast grossed-up dividend yield of 10.9%.

The post I rate these two extraordinarily cheap ASX 300 shares as buys appeared first on The Motley Fool Australia.

It's understandable why investors have been feeling nervous. Inflation and interest rates are causing uncertainty regarding the medium-term outlook. As Warren Buffett has told us – be greedy when investors are fearful.

After seeing share price declines, I'd rate the following two as buys.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle is heavily involved in the funds management sector. It helps investment professionals launch their own funds management businesses and helps them in a number of different ways, including seed funding, distribution services and infrastructure support.

Since the start of August, The Pinnacle share price is down by around 20% and it has fallen by over 50% from November 2021. I think the ASX share now looks very cheap.

Sentiment about funds management businesses, the fund inflows for Pinnacle's investments, and the underlying investment returns of the fund managers' funds have all deteriorated compared to a couple of years ago. But, I'd call this an opportunistic time to invest when times aren't looking good.

The end of FY23 was positive. Pinnacle's aggregate FUM grew 10% over the six months to June 2023, with $3.1 billion of FUM inflows in the six months to June 2023. It was able to report that 81% of 5-year affiliate strategies had outperformed as at 30 June 2023.

It's trading at 22 times FY23's estimated earnings and I think earnings can return to good growth sooner rather than later.

APM Human Services International Ltd (ASX: APM)

APM says that each financial year, it supports more than 2.1 million people of all ages and stages of life through its service offerings that include assessments – allied health, psychological intervention, medical, psycho-social and vocational rehabilitation, vocational training and employment assistance, and community-based support services. It's in 11 countries, including Australia, the UK, Canada, the US, Germany and South Korea.

FY23 was a solid year despite all of the economic uncertainty – underlying net profit (NPATA) rose 7% to $178.2 million and it generated operating cash flow of $264.3 million.

The company doubled its annual dividend per share to 10 cents, up from 5 cents in FY22.

Over the past year, the APM share price has fallen 44% and it's close to a 52-week low. That means it now has a price/earnings (P/E) ratio of 16 and it has a trailing grossed-up dividend yield of 7.7%. This ASX share now looks cheap to me.

The business has won a number of contracts in recent history, and FY24 will see that revenue and earnings flow through the financials. It's looking to expand its business further in areas like the NDIS market and the allied health sector.

Projections on Commsec suggest that the business is going to grow its earnings per share (EPS) significantly to 20.8 cents in FY24, which would put its forward P/E ratio at just 9. This seems too cheap for a strong listed business like APM which is predicted to grow earnings again in FY25.

The post I think these two cheap ASX shares are too good to ignore appeared first on The Motley Fool Australia.

Companies trading on a low price/earnings (P/E) ratio with a generous dividend payout ratio can deliver yields as much as 9% or even higher.

Dividends aren't guaranteed, and the possible payments are just projections at this stage. If profit keeps rising, though, the below businesses could have a good chance at delivering excellent passive income.

APM Human Services International Ltd (ASX: APM)

APM offers services for people with injury, illness or disability, children and older adults, unemployed people, and those facing hardship. According to the company, it helps people "find employment, improve their health and wellbeing and participate in their community".

The ASX dividend share had a solid FY23, with revenue rising 43%, underlying earnings before interest, tax, depreciation and amortisation (EBITDA) growing 19% to $365 million and statutory net profit after tax (NPAT) jumping 161% to $107.4 million.

In FY23, its annual dividend doubled to 10 cents per share. Commsec estimates currently suggest that the dividend yield could be around 9% in FY25.

The business is expecting growth in a number of areas in FY24. For example, revenue from contracts it won before today can now flow through to the company's future financials.

At the current APM share price, it's valued at 8x FY25's estimated earnings, according to Commsec.

GQG Partners Inc (ASX: GQG)

GQG is one of the largest fund managers on the ASX. Based in the United States, the company is steadily growing its funds under management (FUM). This is an important earnings driver because a vast majority of its revenue comes from management fees rather than performance fees.

Fund managers can be particularly scalable because the same investment team can manage a $108 billion portfolio almost as easily — and without much increase in costs — as one worth $107 billion. So extra revenue can boost profit nicely.

GQG's main fund strategies have outperformed their benchmarks, and it's attracting strong fund inflows. As of August 2023, the business had experienced US$7.3 billion in the first eight months of 2023.  

The ASX dividend share has committed to pay 90% of its 'distributable earnings' as a dividend to shareholders. This is a generous dividend payout ratio.

In FY25, GQG is projected to pay an annual dividend per share of 16.5 cents, according to Commsec, which is a forward dividend yield of 11.3%.

The post These 2 ASX dividend shares could pay dividend yields of at least 9% in FY25! appeared first on The Motley Fool Australia.