For example, just the United States of America has 330 million people. That means there could be 13 Australias and there would still be more Americans on the globe!

So it's an exciting prospect when a local business starts expanding overseas.

Sure, there are many risks. But if the product or service was compelling enough to get Australians to spend, there is no reason why those ASX companies can't do the same in a bigger pond.

Recently analysts at Wilson Asset Management named two ASX shares to buy that might just take off with international growth:

Revenue will impress in 2023

Wilson senior equities dealer Cooper Rogers rates Johns Lyng Group Ltd (ASX: JLG) as a buy at the moment.

The business takes on repair work commissioned by insurance companies. That industry has seen an increase in claims in recent times arising from extreme weather events.

"While we never like to celebrate catastrophic events, it's definitely an opportunity for Johns Lyng Group," he said in a WAM video.

"They recently acquired Reconstruction Experts in the US."

The American arm will be operated out of Florida, and Rogers reckons the expansion "is a great opportunity".

"It's also no secret that cat [catastrophic] events are also contributing to the revenue line for JLG in Australia," he said.

"We think the cat revenue is going to impress in FY2023."

Investment in the US expansion will be required in the current financial year, but Rogers expects revenues from that division will start flowing in during FY2024.

"So JLG is a buy for us."

The Johns Lyng share price is down more than 21% year to date.

Kiwi takes flight

Tourism Holdings Ltd (ASX: THL) is a New Zealand company that only this month listed on the ASX after a merger with Apollo Tourism & Leisure Ltd (ASX: ATL).

Wilson senior equity analyst Shaun Weick urged investors to "get out there and get amongst it".

"Tourism Holdings is a buy for us," he said.

"They're the largest RV [recreational vehicle] operator across Australia and New Zealand following the recent regulatory approval of the merger."

Despite rising interest rates, Weick's team reckons both domestic and international tourism demand will remain strong over the next 12 or 18 months.

"You look at the combination of the softer Australian dollar and the ongoing shift we believe will occur from goods towards services, we think this business can generate over $80 million profit after tax."

And what's more, the share price seems to be a bargain.

"It's trading on a sub-10 times PE," said Weick.

"The balance sheet's in great shape, great management team. We see expansion into North America as a medium-term opportunity for these guys." 

The post 2 ASX companies about to explode in the US market: experts appeared first on The Motley Fool Australia.

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Forager Funds Management portfolio manager Alex Shevelev names the three ASX shares he would pick up at the moment.

Investment style

The Motley Fool: How would you describe your fund to a potential client?

Alex Shevelev: Forager funds, we're a nimble, contrarian and valuation-focused investor and we mostly look at small stocks. I work on the Australian Fund, and I've got colleagues that do the same for international stocks, the Forager International Shares Fund. 

We try to get an analytical edge in the things that we're doing and we try to get a psychological edge. On the analytical side, we try to do work to better understand the future cash flows of a business and where there's potential for those cash flows to be missed by other investors. Then on the psychological side, that's where we can be buying while others are selling for reasons that are different to the fundamentals — that could be market, sector or stock distress. And there's been a fair amount of that this year.

MF: There seems to be some debate among investors as to whether Forager is value or growth orientated.

AS: We don't see those as mutually exclusive groups.

Growth has always been part of value. And I think you've seen in our portfolio, [there are] quite a lot of businesses that may have been traditionally regarded as growing businesses. But we think those businesses present a lot of value and that's why we own them.

MF: Fair enough. Especially this year, when they've been discounted so much.

AS: That's right.

MF: How do you see the market at the moment? Where do you see it heading?

AS: Because it's been a very difficult time over the last couple of years, especially for smaller industrial companies in Australia, it actually is a pretty good setup for the next couple of years.

There are a lot of businesses that have come down quite dramatically in price to levels that are very, very attractive. There are a handful of stocks that we feel are some of the best in our portfolio and some of the better opportunities out there.

Hottest ASX shares

MF: That leads to the next question — what are the three best stock buys right now?

AS: Last time we spoke, we were talking about RPMGlobal Holdings Ltd (ASX: RUL) and it's still one of our largest positions. 

It's a mining technology business. It has very low churn with its revenue. It does a lot of very important tasks for mining companies. Some of their products are actually industry standards like, for the maintenance of equipment, for example.

The last couple of years, they've overachieved in terms of revenue growth — they've done a very good job selling more subscription software. This year, they'll actually start to see that come through to profit. 

The company's given guidance for the current financial year of profits tripling. And that's quite conservative guidance by a management team who we regard as top notch. And that guidance actually assumes that the new revenue additions, which are an important metric for RPM, will be below last year. But the business looks to be tracking better than that.

We, in fact, got an AGM update just this morning that confirms that the business is doing a good job continuing to sign on its subscription revenue. And all of that is trading at about 17 times earnings next year. That earnings stream is high quality and will continue to grow over time. 

Now, it's been an interesting space, as well, for corporate attention. Two of their larger competitors have recently been taken out. Those two transactions imply for RPM… more than double the current share price. This is a business that can garner a lot of attention from potential bidders over time.

MF: And your second pick?

AS: The next one's Tourism Holdings Limited (NZX: THL) and Apollo Tourism & Leisure Ltd (ASX: ATL). These businesses are actually merging and we have owned both of them and continue to own both of them. 

These businesses are engaged in the production, the rental and the selling of RVs. This whole space has been decimated by COVID, but both actually came through very well because, instead of raising equity when things got difficult and international tourism stopped, they actually sold the fleet that they had on their books and continued operating. 

Now tourism is coming back. Domestic tourism has been very strong for a while. International tourism is starting to come back. Both companies have seen the benefit of that. So, both have upgraded their earnings expectations for the current year recently. Apollo is actually talking about numbers that are higher than pre-COVID, on the strength of higher yields in Australia and their sales of recreational vehicles to consumers in their retail business.

When these businesses come together, which should be in December, this merged entity has a lot of synergies. So, over the last few days, they've confirmed that those synergies are due to be worth NZ$27 to NZ$31 million dollars, which is significant. That's NZ$10 million more than was first anticipated when the deal was put together late last year. So, by the time we get to FY2025 in a couple of years, all the synergies will have come through, the international tourism factor should be back, and the business should be trading on seven to eight times earnings by that point, be much larger and more liquid. And THL, previously only listed in New Zealand, will actually also be listed in Australia.

MF: I see that Apollo's share price has really spiked up in the last month or so? 

AS: The merger had to get clearance from both New Zealand and Australian competition regulators — that has come through reasonably recently.

There's also been an improvement in the number of THL shares that Apollo shareholders will get through this process because the Apollo business has been performing particularly well. And generally, the THL share price, in anticipation of all the synergies and the strength of the combined entity, has also been rising during this period. 

MF: Your third ASX share to buy?

AS: ReadyTech Holdings Ltd (ASX: RDY) is the third one. It's a bit of a rarity in the tech space: it's a consistently profitable business.

It's been operating in education, employment and government software. They do some very important tasks for the respective verticals that they operate in. And given the difficulty of actually replacing this software, revenue churn is very low. So, once they win a client that client usually stays with them for quite a long time. 

The company has talked about growing organically into [the] 2026 financial year, which is some years away, at a rate of 15% plus, a very significant organic growth rate.

The business can increase pricing, that's a part of that. They can sell more to their existing customers. And they've also been winning new customers with the high-quality products that they have for those three spaces. 

They've made some really interesting acquisitions in the government space recently, which gives them a bit of a push into the local government space. Then the business has been quite acquisitive historically. So there is the ability to acquire smaller businesses into the existing verticals and potentially push into new software verticals as well. 

All of that for, again, a high teens multiple, approximately 17 times earnings next year.

MF: I see that, for a tech stock, its share price has been pretty resilient this year. It's only down like 10% or 15%.

AS: That's right. Mostly that is because this business has remained profitable over that period and has been underpinned by some solid free cash flow.

The post Fundie reveals 3 'top notch' ASX shares to buy right now appeared first on The Motley Fool Australia.

Four ASX shares that have managed to avoid the selloff are listed below. Here's why these ASX shares are rising:

Apollo Tourism & Leisure Ltd (ASX: ATL)

The Apollo Tourism share price is up a massive 34% to 69 cents. This follows news that the New Zealand Commerce Commission has cleared the company's proposed merger with Tourism Holdings. Though, the clearance is subject to both parties divesting certain assets in New Zealand. The deal also still requires ACCC and FIRB approval.

OZ Minerals Limited (ASX: OZL)

The OZ Minerals share price is up 1% to $26.35. Investors have been buying this copper producer's shares after the miner revealed that its board has given the thumbs up to the West Musgrave project. OZ Minerals will spend $1.7 billion to develop the copper and nickel project. Management highlights that this is part of its transition to be a modern minerals miner.

SSR Mining Inc (ASX: SSR)

The SSR Mining share price is up almost 2% to $21.10. This morning this gold miner revealed that it has received the required approvals to restart the Copler mine in Turkey. Management also highlights that while the operation was suspended, it accelerated and completed all planned maintenance. This means no maintenance work is scheduled for the remainder of 2022.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price has continued its charge and is up a further 1.5% to $9.10. Investors continue to buy this coal miner's shares on the belief that very big dividends will be paid to shareholders in the coming years thanks to strong coal prices. The Whitehaven Coal share price even hit a record high today despite the market selloff.

The post Why Apollo Tourism, OZ Minerals, SSR Mining, and Whitehaven Coal shares are rising appeared first on The Motley Fool Australia.

The Alliance Aviation Services Ltd (ASX: AQZ) share price is down nearly 9% since market close on 31 December. In the same time frame, Apollo Tourism & Leisure Ltd (ASX: ATL) also fell nearly 9% and Experience Co Ltd (ASX: EXP) descended nearly 3%.

In comparison Qantas Airways Limited (ASX: QAN) has soared nearly 8% since 31 December, Webjet Limited (ASX: WEB) has surged nearly 18% and Flight Centre Travel Group Ltd (ASX: FLT) has also climbed 18%.

Omicron variant woes

Alliance Aviation is a Queensland airline operating both domestic and international flights in the mining, government, tourism, corporate, and private sectors.

In its HY 1FY22 results released after the market closed on Wednesday, this ASX travel share reported COVID-19 had caused a "significant ongoing delay" to its wet lease deployment. Alliance Aviation reported an underlying profit before tax of $20.7 million, a $6 million decline. The Alliance Aviation share price fell by 5% the following day.

Commenting on the results, Alliance managing director Scott McMillan said:

It is well known that there have been numerous impacts on the national economy brought about by COVID-19 and various government responses. As a result, the company has suffered a delay on wet lease flying activity.

Alliance maintains a very confident outlook and is of the view that significant additional flying will commence in April this year.

Alliance will continue to invest in fleet, equipment, spare parts and personnel to ensure the company has the required capacity to satisfy its contracted wet lease routes and other future growth post COVID-19.

Apollo and Experience have not released any price-sensitive news to the market this year. However, COVID-19 Omicron travel disruptions appear to have impacted investor sentiment.

Apollo is an Australian tourism leisure company operating in New Zealand, North America, Germany, the UK, and Ireland. Meanwhile, Experience is an adventure tourism and leisure company offering fun activities including sky-diving, reef and rainforest tours and island day trips.

Could better days be ahead?

Despite the tough start to the year, Experience and Apollo have made major gains this week on the back of the international borders opening. The Experience Co share price has surged 6% since the market closed on 4 February, while Apollo has gained nearly 11%.

As Motley Fool Australia reported this week, Australia's international borders will open to tourists on February 21 which could benefit ASX travel shares.

Forager Funds management analyst Alex Shevelev said tourism operators will now have more confidence to prepare for international arrivals. He added:

Companies like skydive and Great Barrier Reef tour operator Experience Co and recreational vehicle owners Tourism Holdings (NZE: THL) and Apollo have struggled through the COVID travel decimation for two years while working to improve their businesses.

When tourists return they will be well positioned to finally benefit.

While the recovery will be gradual, the industry will be hoping that the initial trickle of tourists will be followed by a torrent of arrivals. Importantly, many operators have lowered their cost bases and will be more profitable when arrivals approach pre-COVID levels.

ASX travel shares summary

The Alliance Aviation share price has slipped 14% over the past year while Apollo has skyrocketed 69%. Meanwhile, Experience has surged 82% in the last 52 weeks.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned 5% over the past year.

The post Why are some ASX travel shares recovering slower than others? appeared first on The Motley Fool Australia.

Few ASX investors will forget the 33% fall in the All Ordinaries Index (ASX: XAO) from late February through to late March 2020.

Since then, many ASX shares have rocketed back, propelling the All Ords back above pre-COVID levels.

But with international borders having remained all but shuttered, ASX tourism shares have broadly lagged behind that recovery.

But that all may be changing.

Yesterday the government reported that Australia's international borders will reopen to all fully vaccinated travellers commencing on 21 February.

Well positioned to finally benefit

Commenting on the lifting of border restrictions and the impact on ASX shares in the tourism sectors, Alex Shevelev, senior analyst at Forager Funds Management, said:

This move continues the reopening of Australian borders to the world. Tourism operators, large and small, will now have more confidence to begin preparing for international arrivals. While the recovery will be gradual, the industry will be hoping that the initial trickle of tourists will be followed by a torrent of arrivals.

Shevelev pointed to cost cutting measures undertaken by many of the companies in the sector as potentially boosting their profit margins.

"Importantly, many operators have lowered their cost bases and will be more profitable when arrivals approach pre-COVID levels," he said.

So which ASX shares are looking set to benefit?

According to Shevelev:

Companies like skydive and Great Barrier Reef tour operator Experience Co Ltd (ASX: EXP) … and Apollo Tourism & Leisure Ltd (ASX: ATL) have struggled through the COVID travel decimation for 2 years while working to improve their businesses. When tourists return, they will be well positioned to finally benefit.

How have these 2 ASX shares been performing?

The Apollo Tourism share price is up 47% over the past 12 months, but has fallen 17% so far in the new year.

Experience shares have gained 89% over the last 12 months and are flat so far in 2022.

As international tourists return to Australia, both ASX shares, as Shevelev says, look well positioned.

The post 2 ASX shares primed for Australia's reopening: fund manager appeared first on The Motley Fool Australia.

And 2021 proved to be in many ways more devastating than 2020 for ASX shares in that industry.

That's because fortunes in the past 12 months have swung wildly through pandemic-related twists and turns.

First, the travel sector started 2021 with high hopes — coronavirus vaccines were to be rolled out globally and a new US president would guide the world to stability.

Then mid-year, the Delta variant crushed the world's optimism, forcing many trip cancellations and triggering anti-travel lockdowns.

By November, most states seemed to accept that reopening must happen and the phrase "living with COVID" came into vogue.

Then the world became paralysed with fear in the final 5 weeks of the year as a new variant of the virus, dubbed Omicron, spread like a bushfire.

Phew, that's a decade's worth of drama in one calendar year.

The star performers of 2021

So it's no wonder that the market saw a wide variety of returns from travel shares in 2021.

Here are the 5 that performed the best:

Recreational vehicle provider Apollo has put massive smiles on the faces of its investors, with its shares doubling in 2021.

Credit must go to the team at Forager, who was spruiking the stock as a buy from early in the year.

Forager Funds chief investment officer Steve Johnson said back in August that the market did not properly appreciate Apollo's pandemic-recovery tailwinds.

"Mr Market is anticipating a recovery, but he's underestimating the amount of structural change [Apollo has] made."

In a quiet year for plane rides, Sydney Airport shares raked in more than 35% over 2021.

The stock did most of its heavy lifting over just a couple of days in July, when a takeover bid was revealed to the public.

The consortium that wanted to acquire the infrastructure eventually came back with a higher offer, which meant Sydney Airport shares steadily climbed the past 5 months.

The $23.6 billion deal still needs approval from Sydney Airport shareholders in February. But regulatory authorities have given their blessing already.

A takeover-a-thon for this ASX share

Rounding out the top 3 is Corporate Travel Management, which was praised by more than one analyst for acquiring cheap assets during 2020 after COVID-19 first hit.

It followed up this year with a bid for fellow ASX-listed business Helloworld Travel Ltd (ASX: HLO).

Apparently, the 2021 returns are just the start for this ASX share with 8 out of 11 analysts still recommending it as a buy, according to CMC Markets.

The Motley Fool listed Corporate Travel as one of the top shares to buy this month.

"Morgan Stanley noted that Corporate Travel's Australia and New Zealand business peaked in the 2019 calendar year," reported The Motley Fool's Brendon Lau.

"Adding Helloworld's CY19 total transaction value of around $1.1 billion provides meaningful change in scale. The broker's 12-month price target on Corporate Travel shares is $23.50."

Corporate Travel stock closed Thursday at $22.20 a share.

The post 5 best ASX 200 travel shares of 2021 appeared first on The Motley Fool Australia.

Apollo is looking to merge with fellow campervan and RV rental, sales, and manufacturing company Tourism Holdings Ltd (NZE: THL).

At the time of writing, the market has bid the Apollo share price up to 69 cents. That's 23.42% higher than its previous close. Simultaneously, the Tourism Holdings share price is surging 5.6% higher on the New Zealand exchange.

Let's take a closer look at the proposed merger and what the resulting company might look like.

Apollo share price soars on merger news

The Apollo share price is surging due to its plan to exit the pandemic stronger by merging with a peer.

The merger will be all-scrip. Apollo shareholders will receive 1 Tourism Holdings share for every 3.68 (approximately) Apollo shares they own.

That implies a 32.6% premium on each company's shares as of market close on 9 December. It also represents an 18.9% premium on the 1-month volume-weighted average price for each company's stock for the same date.

The merger will leave Apollo shareholders with a 25% ownership of Tourism Holdings.

According to the company, combining the two will create a leading diversified travel company serving Australia, New Zealand, North America, the United Kingdom, and Europe.

Apollo anticipates cost synergies will bring an earnings before interest and tax boost of between approximately $16.2 million and $18.1 million annually.

About 69% of those synergies are fixed costs relating to the duplication of corporate costs or properties.

Additionally, a fleet rationalisation of about 1,250 vehicles should bring a net debt benefit of more than $38 million. There also could be another one-off debt reduction worth about $28.5 million, subject to operational efficiency improvements.

It also expects to face one-off implementation costs of between $3.8 million and $6.7 million.

The merger is subject to Tourism Holdings being able to list on the ASX. It's also conditional on the approval of the Australian Competition and Consumer Commission and the New Zealand Commerce Commission.

They'll also need the okay from the Australian Foreign Investment Review Board, the Supreme Court of Queensland, and Apollo shareholders.

Apollo expects to complete the merger by the end of this financial year.

Major shareholder to vote in favour

About 53% of Apollo's shares are held by its founders, the Trouchet family.

The Trouchets are planning to vote in favour of the merger. They have also volunteered to put 90% of the Tourism Holdings shares they receive in escrow for at least a year.

What did management say?

Apollo Managing Director, Luke Trouchet, commented on the merger:

The two businesses have similar operations and like-minded cultures, and we both strongly believe in the potential of the global RV market. The proposed merger would give us a better platform to meet the ongoing impacts of COVID-19, continue to offer our guests the best combination of products, services and prices possible, and better leverage the re-opening of global travel.

With a more diverse portfolio of brands, strong presences in the key RV travel markets and a more robust balance sheet, the combined business will be better able to capitalise on near-term growth opportunities as borders re-open and cross-border tourism begins to return to pre-pandemic levels.

Still no FY22 guidance

In news that could weigh on the Apollo share price today, the company once again refused to provide guidance. It stated:

While earnings to date in [financial year 2022] gives the Apollo board confidence that Apollo will achieve improved results when compared with [financial year 2021], an underlying loss is still anticipated.

Apollo said it won't provide earnings guidance due to the uncertainty of the trading environment. However, its board noted the merger will place it in a better position to restart its dividend payments.

The post Apollo Tourism & Leisure (ASX:ATL) share price roars 23% higher. Here's why appeared first on The Motley Fool Australia.

With more than half of Australia's population in coronavirus lockdown, you're likely not the only one missing a holiday to an exotic location.

So you'd reckon ASX travel shares would be a good bet, right? Surely when border closures lift, the pent-up demand will be a bonanza?

No, because Mr Market isn't an idiot.

Mr Market is pretty smart most of the time

Forager Funds chief investment officer Steve Johnson likes to remind everyone of a character from Ben Graham's classic book The Intelligent Investor.

Mr Market is an anthropomorphic metaphor for the share market.

"Some days Mr Market is depressed and wants to sell you his stocks at absurdly low prices," Johnson wrote in Money Magazine.

"On other days he is wildly optimistic and wants to buy your shares for a fortune."

But despite those occasional mood swings, he's actually pretty smart most times.

"He might be capable of irrational behaviour. We have seen plenty of that over the past 18 months. But he's not stupid," said Johnson.

"In fact, most of the time, Mr Market is an incredibly prescient character."

Mr Market already knows travel will recover

Why is Mr Market so smart? It's because stock prices are formed as a result of "hundreds of thousands" of investors doing their own analysis with all the information available.

It's the old efficient market hypothesis.

"There's plenty of research, best summarised in James Surowiecki in his book The Wisdom of Crowds, showing that the crowd gets it right far more often than any individual expert," Johnson said.

"As a general rule, you won't make any money predicting things that Mr Market already knows. And a travel recovery is the perfect example."

He took travel shares Flight Centre Travel Group Ltd (ASX: FLT) and Webjet Limited (ASX: WEB) as examples of this.

"Travel is going to recover, but the market prices of these companies already assume that this is the case," said Johnson.

"The total market value of online travel agent Webjet, for example, is higher than it was prior to any mention of COVID-19. Flight Centre, too, is trading back near peak valuation levels."

But here are 2 shares with structural advantages

However, Johnson reckons his funds have found 2 lesser-known travel shares that aren't just relying on recovery in tourism to boost their fortunes.

"Successful investments… don't just require an insight. They require an insight that is unique."

They are adventure tourism provider Experience Co Ltd (ASX: EXP) and recreation vehicle rental company Apollo Tourism & Leisure Ltd (ASX: ATL).

Johnson's team bought into Experience Co several years ago when it was experiencing financial difficulties.

"Previous management made a number of large investments in far north Queensland which predictably soured. The share price tumbled and we started buying some shares."

But with new leadership at the helm, net debt has been slashed from $30 million to $2 million. This allowed the business to endure bushfires and COVID-19 without raising new cash.

"Experience Co is surviving off domestic tourism alone. And the share price, too, has recovered to the levels of early 2020," said Johnson.

"But when international tourists return en masse, hopefully in 2023, it's our belief that this lean, restructured business will be significantly more profitable than ever before."

The thesis for Apollo is similar, he added.

"Mr Market is anticipating a recovery, but he's underestimating the amount of structural change both companies have made to their businesses."

With the market so inflated now compared to a year ago, it's harder to find gems that Mr Market hasn't woken up to.

"There are pockets of opportunities. Most of our Australian Fund portfolio consists of businesses that we think have made permanent structural improvements that have been masked by the impact of COVID. But most prices today reflect a fairly sensible view of the future," Johnson said. 

"He will get depressed again, but for now Mr Market should be getting the respect that he deserves."

The post 2 obscure ASX travel shares to soar after COVID-19 appeared first on The Motley Fool Australia.

The shares of the vertically integrated manufacturer, rental fleet operator, wholesaler and retailer of recreational vehicles (RVs) sank 18% to 30 cents.

This means the Apollo Tourism & Leisure share price has now wiped out all its 2021 gains.

Why did the Apollo Tourism & Leisure share price sink lower?

Investors were heading to the exits in their droves on Tuesday following the release of a disappointing half year result.

According to the release, for the six months ended 31 December, the company reported an 18.8% decline in revenue to $160.2 million.

Management advised that COVID-19 materially impacted its rental operations during the half, with Government-imposed lockdowns and travel restrictions occurring in each region.

Furthermore, although the company's focus on domestic markets has resulted in a notable increase in domestic guest revenue, ongoing lockdowns and snap border closures continue to disrupt domestic consumer confidence.

In respect to earnings, Apollo Tourism & Leisure reported a loss before interest and tax of $4.9 million and a net loss after tax of $7.5 million. This compares to $24.9 million and $11.3 million, respectively, a year earlier.

Management commentary

Apollo's CEO and Managing Director, Luke Trouchet, commented: "The global tourism industry continues to be impacted by COVID-19 and its associated government-imposed travel restrictions. While we have seen some recovery through increased domestic activity, the ongoing closure of international borders and snap lockdown or border closure decisions domestically, have created a challenging landscape for the business."

Nevertheless, Mr Trouchet appears cautiously optimistic on the future.

He explained: "However, we recognise that while the timing of the journey to recovery may be uncertain, the global vaccine roll-out and gradual decline in global COVID-19 cases is extremely positive. We have continued to implement our COVID-response plan initiatives, including reducing our operating cost base and investing in technology to adapt to the ever-changing environment in which we operate. I believe Apollo is in a strong position to thrive when tourism activity recovers."

Unsurprisingly, due to the ongoing uncertainty of the current trading environment, Apollo was not in a position to provide earnings guidance for FY 2021.

The post Why the Apollo Tourism & Leisure (ASX:ATL) share price crashed 18% lower today appeared first on The Motley Fool Australia.

All US Main Event centres to close 

Ardent Leisure has announced that all of its Main Event entertainment centres across the US will close through to the end of March. This is following the US government's decision to adopt harsh guidelines to stop the spread of the virus nationwide. The company said that it would continue to closely monitor the situation, but at this stage I think it appears unlikely that the centres will re-open anytime soon.

This announcement follows a withdrawal of the company's earning guidance, only 2 days ago.

Main Event entertainment currently has 43 centres across the US. As the coronavirus outbreak in America quickly escalates, there has been a significant reduction in attendance and revenue at its centres.

Some of the strategies that both Ardent Leisure's Main Event and Theme Parks division are undertaking to mitigate the fallout from this crisis include deferring non-essential investments and reviewing other non-critical business activities.

The US entertainment industry is now under enormous pressure. Just within the last 24 hours, all of US cinemas across the country (totalling more than 40,000) are now closed. I wouldn't be surprised if Australia follows similar measures very soon.

This comes as the US government has dramatically ramped the restrictions on its citizens as the coronavirus outbreak spreads further. For example, San Francisco is now in virtual lockdown, with all its residents ordered to stay at home and only go out for high priority activities such as visiting a doctor, and buying groceries and medicine. This restriction is in place until at least 7 April.

It is unknown how long the virtual shut down of a large part of US entertainment industry will continue for, however judging by the escalation of lockdown measures in Europe, it is very likely to last at least for another few months, putting enormous strain on the entertainment and hospitality industries as well as travel and tourism.

Other ASX leisure shares impacted

The coronavirus situation in Australia is yet to reach the severity of what we are seeing in Europe and the US, however the Australian government is now preparing for the likelihood of a similar trend to occur here over the coming weeks and months.

Ardent Leisure is not the only ASX leisure share being impacted by the fallout from the coronavirus crisis. Other companies being impacted include Event Hospitality and Entertainment Ltd (ASX: EVT), Crown Resorts Ltd (ASX: CWN), Star Entertainment Group Ltd (ASX: SGR), and Apollo Tourism & Leisure Ltd (ASX: ATL).

The post Ardent Leisures shares down 10% as US centres close appeared first on The Motley Fool Australia.

Here we take a look at ASX shares that have abandoned their profit guidance in the face of the unprecedented epidemic. 

Qantas Airways Limited (ASX: QAN)

Back in February, Qantas estimated coronavirus would have a negative impact on earnings before interest and tax (EBIT) of $100 million to $150 million. Since then, successive capacity cuts have meant the impact will be significantly greater. 

Today, the airline announced much larger cuts to domestic and international flying schedules across Qantas and Jetstar in response to significant falls in travel demand and increasing government restrictions. Total group international capacity is to be cut by 90% until the end of May, up from the previously announced 23% cut. 

Total group domestic capacity will be cut by 60% due to government containment measures, corporate travel bans, and general pullback from everyday activities across the community. This is a significant step up from the 5% reduction previously announced. The effect of the cuts is equivalent to the grounding of 150 aircraft. 

Qantas believes travel demand is unlikely to rebound for weeks or even months. It emphasised that it is in a strong financial position but due to the evolving situation, is unable to provide meaningful guidance on impacts of the group's earnings in FY20. 

Qantas has $1.9 billion in cash and a further $1 billion in undrawn facilities, but to maintain its financial position has opted to cancel its share buyback, preserving $150 million in cash. 

Auckland International Airport Limited (ASX: AIA)

Auckland International Airport suspended its FY20 guidance on Monday in the face of strict new border controls introduced in New Zealand. The unprecedented scale of the new border restrictions and uncertainty over the impact on the business forced the airport to withdraw earnings and capital expenditure guidance for the current financial year. 

Chief Executive Adrian Littlewood said, "Auckland Airport is a strong, diverse, and resilient business, but these are unprecedented times." 

Auckland Airport is working to communicate the border changes to the 30 airlines that fly routes to the airport, but it is too early to judge the impact on future passenger and cargo air services. The focus has been on maintaining airfield operations and supporting front line workers and the government in protecting New Zealand against the spread of coronavirus. 

"Aviation and tourism are vitally important to New Zealand, supporting thousands of businesses and jobs," Littlewood said. "The future is very uncertain and our industry and government are pulling together so we can manage our way through this period and ensure we are in a strong position to rebuild," he added. 

Serko Ltd (ASX: SKO)

Serko withdrew its full-year guidance on Monday due to uncertainty surrounding the duration and scale of the coronavirus outbreak, and the impact related border control restrictions were having on corporate travel. 

The company had previously advised (in late February) that it expected to come in at the lower end of its guidance range of achieving total operating revenue growth of 20% to 40% for the year ending 31 March.

The subsequent spread of the virus and increase in border access restrictions have made it difficult to predict the impact the virus is likely to have on Serko's year-end position, prompting the company to withdraw its guidance. 

Serko's priority during this period is to maintain its current balance sheet strength and position. It presently has a strong cash balance following a successful capital raising late last year. Serko is also focused on continuing its growth following the current challenging trading period. The board and management are thus carefully managing the allocation of capital during this time to optimise the business for long term growth. 

Cochlear Limited (ASX: COH)

Cochlear withdrew its earnings guidance on Monday as the spread of coronavirus saw a growing number of health authorities recommend or enforce a deferral of surgeries. A substantial short-term negative impact is expected on cochlear implant surgeries, particularly in the US and Western Europe, both major markets for Cochlear. 

In response to the expected slowing in surgeries, Cochlear is reducing non-essential expenditure and capital expenditure for the balance of the financial year. The company has a conservatively geared balance sheet, headroom in existing debt facilities, and is confident it can arrange increased debt facilities if required. 

oOh!Media Ltd (ASX: OML) 

Ooh!media advised on Monday that its performance has been consistent with delivering FY20 earnings guidance provided in late February. Nonetheless, deteriorating macroeconomic conditions and the market uncertainty caused by coronavirus has made forecasting full-year revenue difficult, particularly as the company's financial year runs to December. 

Given the circumstances, Ooh!media has withdrawn its FY20 earnings guidance for the time being. Action is being taken to proactively manage the business through this period to ensure it remains well-positioned for when conditions stabilise. Ooh!media continues to make every effort to achieve prior earnings guidance. 

Capital expenditure is being re-prioritised and will be materially below the bottom of the previous guidance of $60 million to $70 million. Ooh!media is maintaining strict cost and cash-flow discipline throughout the business. Once conditions stabilise, it will seek to reinstate earnings and capital expenditure guidance. 

Apollo Tourism & Leisure Ltd (ASX: ATL)

Last week, Apollo Tourism advised that the spread of coronavirus into Europe, North American other parts of the world meant there was too much uncertainty around its future earnings to maintain its FY20 underlying net profit after tax guidance. 

Europeans make up a significant portion of Apollo's USA guests. With the US Government suspending all travel from Europe to the USA, Apollo expects cancellations to materially increase for US travel, although it notes that the US high season is not until June to September. 

This week, Apollo released another trading update noting travel restrictions had been escalated in Apollo's rental destinations of Australia, New Zealand, and France. In addition, government advice against large gatherings meant the cancellation of RV expos in Australia and the US at which Apollo would normally sell vehicles. These restrictions will further impact the company and its FY20 results, but it is not possible to quantify the extent in a rapidly evolving situation. 

Apollo is taking steps across its global business to mitigate the impact of coronavirus, reviewing operating and capital expenditure spend as well as fleet life cycles across the globe. Additional cost-saving measures include having executive and non-executive board members forgo 20% of their salaries and fees for the remainder of FY20. 

The post Which ASX shares have withdrawn guidance due to coronavirus? appeared first on The Motley Fool Australia.

Here we take a look at how the ASX leisure shares are faring in these unprecedented conditions. 

Crown Resorts Ltd (ASX: CWN)

Crown shares have fallen more than 40% from highs of above $12.50 in January and are currently trading at $7.22. The casino operator was one of the first to feel the effects of the coronavirus outbreak with the flow of gamblers from China reducing to a trickle. 

Crown advised in February that it had been experiencing softer trading conditions as a result of travel restrictions and community uncertainty, particularly over the Lunar New Year period. Since then the situation has escalated considerably and yesterday Crown announced the introduction of social distancing measures at its Melbourne Casino complex. 

In response to the pandemic, Crown has deactivated every second gaming machine and electronic gaming table. It has instituted distancing at seated table games between players, with no standing players. At stand-up table games the number of players has been restricted to five. No more than 450 patrons will be permitted at food and beverage, banqueting, and conference facilities. 

The impact of coronavirus will no doubt come as a further blow to Crown which has been struggling under the weight of adverse publicity and regulatory enquiries. During the first half Crown saw revenue from its Australian resorts fall 5.2% to $1,457.5 million due to softer market conditions which were exacerbated by recent negative publicity. 

Normalised revenue at Crown Melbourne was down 8.3% on the prior corresponding period to $1,025.6 million. Group earnings before interest tax depreciation and amortisation (EBITDA) declined by 14% to $446.8 million, leading to an 11% drop in normalised net profit after tax (NPAT) which fell to $172.7 million. 

Star Entertainment Group Ltd (ASX: SGR)

Star Entertainment Group shares have fallen from the sky, dropping more than 50% since February to just $2.04. Star Entertainment Group yesterday introduced similar social distancing measures to Crown. 

The group has deactivated every second electronic gaming table and gaming machine. Capacity at table games has been reduced, increasing the distance between players at seated games and restricting the total number of players at stand up games. Patrons in food and beverage, banqueting, conferencing, and theatre facilities have been restricted to under 500 with limited density for each outlet. 

Like Crown, Star Entertainment Group was struggling even before the pandemic, with statutory net revenue down 8.4% in the first half to $1,054 million. EBITDA declined 26.5% to $243 million, while statutory NPAT fell by 48.5% to $77 million. 

Ardent Leisure Group Ltd (ASX: ALG)

Shares in Ardent Leisure have plummeted from over $1.50 in January and were trading at 17.5 cents yesterday. Today, however, shares shot up more than 28% to 22 cents before a trading halt was called. Last week it withdrew its earnings guidance for FY20 as a result of the coronavirus outbreak. 

Attendance and revenue at Ardent's Main Event entertainment centres has been reduced across the United States. As a result, Main Event no longer believes it will achieve constant centre revenue growth of between 1.5% and 2.5% as previously guided. As a consequence, Main Event's EBITDA margin is expected to be below the 20% guidance previously issued. 

For Ardent's Theme Parks division, the impact of the coronavirus outbreak is expected to continue for longer than initially anticipated. A range in mitigating actions are being explored by both Theme Parks and Main Events in response to the downturn in guest attendance. These include adjusting operating costs, deferring non-essential capital investment, and reviewing non-critical business activities and discretionary expenses. 

The Theme Parks division is focusing marketing efforts on the domestic market in the short to medium term. The board still intends to pursue potential partnership arrangements to support the growth of Main Event while at the same time continuing to monitor its capital requirements. 

Given the uncertainty around the nature and duration of the coronavirus, Ardent Leisure is unable to provide any meaningful guidance on the impact to its earnings for the remainder of FY20. 

Apollo Tourism & Leisure Ltd (ASX: ATL)

Shares in Apollo Tourism & Leisure have plummeted some 67% since their 34 cent high in late February and are now trading at just 12 cents. The company has withdrawn its FY20 guidance due to the uncertainty created by coronavirus and associated travel restrictions. 

Last week, the company advised that the spread of coronavirus into Europe, North American other parts of the world meant there was too much uncertainty around its future earnings to maintain its FY20 underlying net profit after tax guidance. 

Europeans make up a significant portion of Apollo's US guests. With the US Government suspending all travel from Europe to the USA, Apollo expects cancellations to materially increase for US travel, although it notes that the US high season is not until June to September. 

Apollo is taking steps across its global business to mitigate the impact of coronavirus, reviewing operating and capital expenditure spend as well as fleet life cycles across the globe. 

Apollo CEO Luke Trouchet said, "in our experience tourism activity recovers and returns to previous growth trends after major travel disruptions. Apollo will benefit when this occurs and realize the investment undertaken in guest experience, leadership, and systems."

This week, Apollo released another trading update noting travel restrictions had been escalated in Apollo's rental destinations of Australia, New Zealand, and France. In addition, government advice against large gatherings meant the cancellation of RV expos in Australia and the US at which Apollo would normally sell vehicles. These restrictions will further impact the company and FY20 results, but it is not possible to quantify the extent in a rapidly evolving situation. 

Apollo is implementing additional cost saving measures, including having executive and non-executive board members forgo 20% of their salaries and fees for the remainder of FY20. 

The post How are ASX leisure shares faring in the face of coronavirus? appeared first on The Motley Fool Australia.

What is insider buying?

Insider buying is the purchase of shares in a company by an officer or executive of that company, such as a director. Insiders usually have exclusive insights into the companies they manage and are likely to purchase shares when they view them as undervalued.

Insiders must only buy based on publicly available information and must inform the ASX of the trade by lodging an Appendix 3Y. Depending on the circumstances, the purchase by an insider of shares can be seen as a vote of confidence in a business. Buys by multiple insiders can act as a stronger signal, as can larger, rather than smaller, share purchases.

Which ASX share had director buys?

We have studied recent insider buys to bring you an ASX travel share with multiple insider buys this week: Apollo Tourism & Leisure Ltd (ASX: ATL).

Three Apollo Tourism directors acquired an aggregate of 1,478,228 shares in the company last week. Apollo Tourism manufactures, rents, sells, and distributes a range of recreational vehicles including motorhomes, campervans, and caravans. The company operates in Australia, New Zealand, the USA, Canada, UK, Ireland, and Germany. 

The Apollo Tourism share price has fallen from a high of 47 cents in January this year and is currently trading at 27 cents at the time of writing. Zooming out further, Apollo Tourism shares have a 52-week high of $1.02 which was achieved in April last year.

The company has recently been a victim of the bushfire crisis with domestic last minute bookings over the peak summer holiday period impacted. Apollo Tourism warned in January that the reduction in bookings combined with subdued global RV sales markets would make it challenging for the company to reach FY19 profit of $14.7 million in FY20. 

Recent 1H20 results

In first-half results released last week, Apollo Tourism announced revenue for the half of $197.2 million, up 7.4% on 1H19. Guest rental days increased 7% to 536,562, while RV sales in Australia increased 11.3% to $80.5 million. Underlying net profit after tax (NPAT) was $12 million while statutory NPAT was $11.3 million.

CEO Luke Trouchet said, "the first half underlying result for FY20 of $12 million was a solid result in a soft market which shows that Apollo is heading in the right direction after a transitional FY19. Record revenue was achieved despite global events impacting the RV industry."

Apollo advised that forward-looking bookings for FY21 remain strong at this stage. The bushfires in Australia and coronavirus have, however, impacted the 2H20 outlook.

Foolish takeaway

While a single director buy may not be telling, several can provide a good indication that those best placed to know consider shares good value. 

The post Insiders have been snapping up this ASX travel share appeared first on The Motley Fool Australia.

Four shares that have fallen more than most are listed below. Here's why they have sunk lower:

The Apollo Tourism & Leisure Ltd (ASX: ATL) share price has crashed 32% lower to 41.5 cents after the recreational vehicle company downgraded its guidance for the second time this month. On May 2 Apollo Tourism & Leisure downgraded its net profit after tax guidance to between $17.5 million and $19.5 million. Since then there has been a further deterioration in trading conditions, leading to management downgrading its guidance to between $14 million and $15.5 million.

The Costa Group Holdings Ltd (ASX: CGC) share price been smashed and is down almost 25% to $3.91 after the horticulture company downgraded its calendar year 2019 earnings guidance at its annual general meeting. Due to a number of issues, Costa expects NPAT-SL to be in the range of $57 million to $66 million. This will be an increase of between 0.7% and 16.6%, compared to its previous guidance of at least 30% growth.

The GUD Holdings Limited (ASX: GUD) share price has fallen 4.5% to $10.49 after being downgraded by Credit Suisse. According to the note, the broker is concerned about increasing competition among part suppliers. Due to its reliance on its Auto segment, the broker appears concerned that there is downside risk to its earnings. Credit Suisse has a neutral rating and $12.00 price target on its shares.

The Zip Co Ltd (ASX: Z1P) share price has fallen 4.5% to $3.22 despite there being no news out of the buy now, pay later provider. However, with the tech sector sinking lower today and its shares up significantly in 2019, I suspect that profit taking could be weighing on Zip Co's shares. After all, even after today's decline its shares are up almost 200% this year.

The post Why Apollo Tourism & Leisure, Costa, GUD, & Zip Co shares sank lower today appeared first on The Motley Fool Australia.

Four shares that have failed to follow the market higher today are listed below. Here's why they are ending the week in the red:

The Apollo Tourism & Leisure Ltd (ASX: ATL) share price has crashed a further 14% lower to 55.5 cents. This latest decline means the recreation vehicle (RV) company's shares have now fallen over 35% in the space of just two days. Investors have been heading to the exits in their droves after the company downgraded its full year profit guidance. Due to tough trading conditions, management expects NPAT to be between $17.5 million and $19.5 million in FY 2019. This compares to its previous guidance of between $22 million and $24 million.

The Bravura Solutions Ltd (ASX: BVS) share price has returned from its trading halt and dropped 4% to $5.98. The fintech company's shares were in a trading halt whilst it undertook a fully underwritten $165 million institutional placement. The placement had a floor price of $5.50 per share, but the company revealed this morning that it managed to raise the funds at $5.75 per share. In other news, shareholders of takeover target GBST Holdings Limited (ASX: GBT) voiced concerns over its proposal this morning.

The Janus Henderson PLC (ASX: JHG) share price has crashed 11% lower to $31.39 after the release of a disappointing first quarter update. The asset manager reported first quarter net income of US$94.1 million, which was down a sizeable 43% on the prior corresponding period.

The Macquarie Group Ltd (ASX: MQG) share price has tumbled 5.5% lower to $128.50 after the release of the investment bank's full year results. Although Macquarie reported an impressive 17% increase in full year profit to a record of $2,982 million, its guidance for next year appears to have disappointed the market. Management warned that the bank's profit is expected to be slightly lower in FY 2020.

The post Why Apollo Tourism, Bravura, Janus Henderson, & Macquarie dropped lower today appeared first on The Motley Fool Australia.

Four shares that have fallen more than most today are listed below. Here's why they have dropped lower:

The AMP Limited (ASX: AMP) share price has tumbled 4% lower to $2.22 following the release of a first quarter cash flow update. AMP reported net cash outflows of A$1.8 billion during the quarter, up 800% from A$200 million in net cash outflows in the first quarter of FY 2018. The AMP share price is now down around 47% since this time last year.

The Apollo Tourism & Leisure Ltd (ASX: ATL) share price crashed 20% lower to 69 cents after the recreation vehicle (RV) company downgraded its full year profit guidance. Following the results of recent RV shows in Australia and recent industry statistics, it has become apparent that its expected retail results will not be achieved. Management now expects NPAT to be between $17.5 million and $19.5 million in FY 2019, compared to $19.2 million for FY 2018 and its previous guidance of between $22 million and $24 million.

The Australia and New Zealand Banking Group (ASX: ANZ) share price has dropped 2.5% to $27.24 after being downgraded by two leading brokers following yesterday's half year results. ANZ's shares were taken off Goldman Sachs' conviction buy list and downgraded to neutral, whereas Credit Suisse went a step further and downgraded them to an underperform rating with a lowly $25.55 price target.

The Pendal Group Ltd (ASX: PDL) share price has fallen 12% to $8.14 after the asset manager reported a 26% decline in first half cash earnings to $84.5 million. Management blamed the poor result on significantly lower performance fees, which fell a massive 91% to $4.4 million. One small positive was that its funds under management closed the period at $100.9 billion, up 2% on the same time last year.

The post Why AMP, ANZ, Apollo Tourism & Leisure, & Pendal shares dropped lower today appeared first on The Motley Fool Australia.

For the past five years, Aveo has been transforming itself from a diversified property business into one focussed solely on the retirement sector. The intent behind the change in strategy seems to have been to create a leaner, more robust business model, but the market hasn't responded as positively as the company had hoped for. A softening property market has only compounded Aveo's woes, and its shares are now trading at their lowest point since 2013.

However, at Aveo's recent AGM, its CEO Geoff Grady flagged that the company was considering remixing its property portfolio through a disposal of some of its regional assets while expanding its developments in suburban Melbourne and Sydney. He also indicated that the company was considering capital partners from overseas as a means to grow their business.

This is what the update released to the market on Friday related to. While light on details, the update noted that there were a "significant number" of parties from Asia, North America and Australia who had indicated they would be interested in partnering with Aveo. Actual bids aren't due to be submitted to Aveo until January, and even then they are only indicative and non-binding – but the fact that Aveo has got a bunch of overseas parties willing to provide them with extra capital definitely helps with their potential growth prospects.

There are a number of reasons to be quietly optimistic about Aveo, especially if they have increased capital at their disposal to grow their business. The company delivered solid underlying profit growth for FY18, with NPAT up 17% to $127.2 million. Aveo's shares also currently trade at around a 50% discount to their net asset value per share, meaning they could represent good value.

I see Australia's ageing population trend as a potential source of long-term value to investors. The Australian Government's Institute of Health and Welfare projects that by 2057 22% of the population, or 8.8 million people, will be aged 65 and over. These shifting demographics will increase the need for healthcare, residential retirement facilities, certain financial products and services, and even tourism services.

This could be a boon for healthcare companies like Cochlear Limited (ASX: COH) and annuity specialists Challenger Ltd (ASX: CGF). Even caravan companies like Fleetwood Corporation Limited (ASX: FWD) and Apollo Tourism & Leisure Ltd (ASX: ATL) that appeal to the growing legions of "grey nomads" could be set to benefit over the longer term.

Aveo will have to do a fair bit more before I'm assured of its long-term investment value. At present, there is a little too much uncertainty around its FY19 earnings – in the same speech to the AGM in which the CEO provided an update on Aveo's strategic review he failed to confirm the company's FY19 EPS guidance. This doesn't inspire a great deal of confidence in the company's shareholders.

However, if Aveo is able to find some capital partners willing to fund the business' growth its fortunes could turn around very quickly.  I would say Aveo might at least be an interesting company to add to your watch lists for FY19.

The post Why Aveo Group (ASX:AOG) was among the big winners on the ASX on Friday appeared first on The Motley Fool Australia.

Four shares that have defied the market today are listed below. Here's why they are pushing higher:

The Apollo Tourism & Leisure Ltd (ASX: ATL) share price is up 3% to $1.40 on the day of its annual general meeting. This morning the recreational vehicle company's chairman stated that he was "pleased with how we are going on all fronts so far this financial year." This appears to have eased concerns that the company was struggling amid higher fuel costs. Management has maintained its net profit after tax guidance of between $22 million and $24 million.

The Collection House Limited (ASX: CLH) share price has pushed 4.5% higher to $1.35 despite there being no news out of the debt collector. But with its shares down significantly this year and trading on extremely low multiples, I suspect that value investors may have been snapping up shares today.

The Mesoblast Limited (ASX: MSB) share price is up 2.5% to $1.89 after the biotech company announced the expansion of its partnership with JCR Pharmaceuticals in Japan for wound healing in patients with Epidermolysis Bullosa (EB). Management has advised that under the expanded license agreement covering EB, Mesoblast has provided JCR with access to its broad patent portfolio for the use of mesenchymal stem cells in wound healing. Mesoblast will receive royalties on TEMCELL product sales for EB.

The WPP Aunz Ltd (ASX: WPP) share price has bounced back from yesterday's massive decline with a 5% jump to 52.5 cents. The marketing company's shares were smashed on Tuesday after announcing the resignation of its CEO and downgrading its full year guidance. WPP had previously stated that it expected earnings per share growth of 3% in FY 2018, but this has now been downgraded to a decline of 12% to 15% due to the underperformance of certain production businesses and creative agencies.

The post Why these 4 ASX shares are pushing higher today appeared first on The Motley Fool Australia.

Will the market be able to bounce back on Wednesday? Here are five things to watch:

ASX futures flat.

According to the latest SPI futures, the Australian share market is expected to open the day flat on Wednesday. This isn't a bad result for local investors considering the disappointing night of trade on Wall Street which saw the Dow Jones fall 0.5%, the S&P 500 fall 0.55%, and the Nasdaq drop 0.4%. Things had been far worse for U.S. markets in early trade but a late rally narrowed declines.

Oil prices sinking.

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) are likely to see their shares come under pressure today after oil prices fell heavily overnight. According to Bloomberg, the WTI crude oil price fell 4.3% to US$66.39 a barrel and the Brent crude oil price tumbled 4.3% to US$76.41 a barrel. News that Saudi Arabia has pledged to produce as much oil as it can sent prices tumbling.

Bellamy's annual general meeting.

All eyes will be on the Bellamy's Australia Ltd (ASX: BAL) annual general meeting in Launceston today. The infant formula company's shares have come under significant pressure in the last couple of months amid concerns over slowing growth and delays to its CFDA accreditation. The market is expecting an update on both.

More annual general meetings.

It isn't just Bellamy's holding its annual general meeting today. Recreational vehicle company Apollo Tourism & Leisure Ltd (ASX: ATL), property group Stockland Corporation Ltd (ASX: SGP), gold producer St Barbara Ltd (ASX: SBM), and retail conglomerate Super Retail Group Ltd (ASX: SUL) are also holding meetings and expected to provide trading updates.

Bank of Queensland shares go ex-dividend.

The Bank of Queensland Limited (ASX: BOQ) share price is likely to trade lower again on Wednesday after going ex-dividend for its fully franked final 38 cents per share dividend. Eligible shareholders can look forward to receiving this dividend in their nominated accounts on November 14. The shares of airline operator Regional Express Holdings Ltd (ASX: REX) are also going ex-dividend this morning.

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

Some shares even sank to 52-week lows or worse on Wednesday. Are they in the bargain bin now?

The Apollo Tourism & Leisure Ltd (ASX: ATL) share price fell to a 52-week low of $1.35 on Wednesday. It has been quite a fall from grace for the vertically integrated manufacturer, rental fleet operator, wholesaler, and retailer of a broad range of RVs. Just six months ago its shares were at all-time high, but have been tumbling lower since it announced the acquisition of the Coromal and Windsor Caravan brands from Fleetwood Corporation Limited (ASX: FWD). These businesses had previously been a major drag on Fleetwood's performance. I think Apollo Tourism & Leisure's shares do look good value now, but I would like to see how the acquired businesses are performing before picking up shares.

The Estia Health Ltd (ASX: EHE) share price tumbled to a 52-week low of $2.36 yesterday as investors continue to ditch the aged care operators following the announcement of a Royal Commission. Although its shares look dirt cheap on paper, I wouldn't be a buyer of them until after the Commission has taken place. As we have seen with the likes of AMP Limited (ASX: AMP) and the company listed below, such inquiries can drag even cheap-looking shares significantly lower.

The Freedom Insurance Group Ltd (ASX: FIG) share price continued its decline and hit an all-time low of 9.4 cents on Wednesday. Shareholders have been hitting the sell button in a hurry after the insurance seller's poor practices were brought to light at the financial services Royal Commission. While Freedom may potentially be able to reinvent itself, I feel the brand damage and forced changes to its business model have put it in a precarious position. In light of this, I don't believe it is anywhere near investment grade.

The post Should you buy these cheap ASX shares? appeared first on The Motley Fool Australia.