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A little-known ASX lithium share just lit up the boards on Monday morning.

Shares in the junior ASX lithium stock closed on Friday trading for 5.5 cents. In morning trade today shares rocketed to 7.2 cents apiece, up a whopping 31% after the miner reported on hitting an “outstanding” lithium intersection.

Any guesses?

If you said Cygnus Metals Ltd (ASX: CY5), go to the head of the virtual class.

Formerly known as Cygnus Gold, the ASX minerals explorer dove into the lithium space back in July 2022. At the time of writing, shares have given back some of those outsized gains, currently trading for 5.7 apiece.

Here’s what the explorer just reported.

ASX lithium share soars on drill results

Investors are bidding up the Cygnus Metals share price after an update on the first assays from diamond drilling at its Auclair lithium project, located in Quebec, Canada.

The results were said to confirm thick mineralisation within 50 metres of the surface at the Pegasus discovery in Auclair.

Top results include an intersection of 43.7 metres (true width) at 1.15% Li2O from 46.4 metres, including 4 metres at 3.0% Li2O, which includes 1 metres at 5.9% Li2O.

These substantial grades were returned from a zone of “intense spodumene mineralisation”.

The assays confirm the explorer’s visual estimates reported in February, which estimated significant intervals of up to 10-12% spodumene mineralisation.

The ASX lithium share is attracting investors’ attention after management highlighted that significant widths and grades received from one of the diamond drill holes indicate “substantial potential” for the larger system at Auclair.

What did management say?

Commenting on the results sending the ASX lithium share soaring on Monday morning, Cygnus managing director David Southam said:

This outstanding intersection shows exactly why we are on the hunt for lithium in James Bay. Despite its immense lithium potential, the area is still heavily underexplored when compared to more mature lithium terranes like Western Australia.

Southam said the assays results “puts Auclair on the map as potentially the next breakthrough lithium discovery in James Bay”.

According to Southam:

Auclair clearly demonstrates all the key ingredients for a significant discovery, with regional scale, high grades and significant thick intersections.

We have only scratched the surface through recent programs and look forward to getting back on the ground in May and continuing with prospecting around Pegasus and Lyra, which were discovered just days before the end of the season.

Lyra is only 1.6 kilometres north of Pegasus, and will be one of the high priority drill targets in June 2024.

The ASX lithium share only discovered the outcrops at Pegasus and Lyra in late 2023 during the final days of prospecting.

The post Guess which ASX lithium share just rocketed 31% on an ‘outstanding’ find appeared first on The Motley Fool Australia.

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More reading

• This ASX All Ords small-cap is soaring 33% on a takeover bid
• Ansell share price hits pause as company gloves up for $975 million acquisition
• APM shares collapse 30% as ‘disappointing’ bid lands in its lap
• Guess which ASX 200 energy share is imploding 18% today on cost blowouts
• Why is this ASX 200 share plunging 29% after a trading update?

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Qoria Ltd (ASX: QOR) shares are catching the eye on Monday with a very strong gain.

The ASX All Ords small-cap share is up 33% to a 52-week high of 42 cents.

Why is this ASX All Ords small-cap share soaring?

Investors have been fighting to get hold of the cyber safety company’s shares this morning after it received a takeover offer.

Qoria, previously known as Family Zone Cyber Safety, revealed that it has received an unsolicited, conditional and non-binding indicative proposal from K1 Investment Management to acquire 100% of the issued share capital of Qoria for $0.40 cash per share by way of scheme of arrangement.

According to the release, the indicative proposal is subject to a number of conditions. This includes satisfactory completion of due diligence and exclusivity over a 6-week time frame, a unanimous Qoria Board recommendation, a commitment from all Qoria directors to vote in favour of the proposed transaction, final approval from K1, and entry into a binding scheme implementation agreement subject to numerous conditions including FIRB approval.

K1 Investment Management has advised that it has entered into call option arrangements with two Qoria shareholders owning approximately 169 million Qoria shares. This equates to approximately 14.4% of the ASX All Ords small-cap’s outstanding shares. These arrangements can be exercised in the event that a competing proposal is announced.

Offer rejected

The ASX All Ords small-cap revealed that its board has concluded that the indicative proposal “significantly undervalues Qoria and has unanimously rejected the Indicative Proposal as not being in the best interests of shareholders.”

It believes the proposal does not reflect Qoria’s position as the global leader in both enterprise and consumer markets in child safety and wellbeing.

It also feels it ignores Qoria’s strong growth prospects in a highly supportive regulatory environment and is opportunistically timed. The latter relates to the company being at a cash profit inflection point and in the midst of its most productive annual sales quarter.

Overall, the ASX All Ord small-cap stock’s board does not intend to engage with K1 Investment Management and advised shareholders that they do not need to take any action in relation to the indicative proposal.

The board also warned that there is no certainty that a further proposal will be received from K1 Investment Management or any other third party. As a result, it urged shareholders not to place undue reliance upon such a proposal emerging.

The post This ASX All Ords small-cap is soaring 33% on a takeover bid appeared first on The Motley Fool Australia.

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More reading

• Ansell share price hits pause as company gloves up for $975 million acquisition
• APM shares collapse 30% as ‘disappointing’ bid lands in its lap
• Guess which ASX 200 energy share is imploding 18% today on cost blowouts
• Why is this ASX 200 share plunging 29% after a trading update?
• 3 lesser-known ASX dividend shares to buy for income

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The trading week has kicked off on a positive note so far this Monday. At the time of writing, the ASX 200 has gained a decent 0.21% and is up to around 7,789.3 points at present. But Ansell Ltd (ASX: ANN) shares aren’t joining the party today.

Ansell shares closed at $23.89 each last Friday. And that’s where they’ll be staying, at least for a while. This morning, the ASX 200 glove and bodywear manufacturer announced that its shares would be placed in a trading halt.

The purpose of this halt was to allow Ansell to reveal a new acquisition, and accompanying capital raise to fund it.

ASX 200 stock announces major acquisition and capital raise

Yes, Ansell has revealed that it has entered into a binding agreement to acquire 100% of the assets of Kimberly-Clark‘s Personal Protective Equipment (KCPPE) business.

Kimberly-Clark is the US-based consumer staples giant behind popular products like Kleenex and Huggies.

Ansell will reportedly acquire this company’s PPE business for US$640 million ($974.6 million) in cash. This business includes brands like Kimtech and KleenGuard. As well as glove, mask, apparel and eyewear manufacturing facilities.    

This acquisition will be funded by a $400 million institutional share placement. That’s in addition to a $65 million share placement plan for retail investors.

Assuming all goes to plan with this acquisition, Ansell estimates that the merger will be completed by the first quarter of the 2025 financial year.

The company is expecting significant synergies to result from this merger. Ansell is estimating net cost synergies of approximately US$10 million per annum by the third year. That’s in addition to an expectation that it will provide a significant boost to the company’s earnings per share (EPS) and earnings margins.

According to Ansell, it will also see the company’s annual revenues double from roughly US$140 million to around US$300 million.

Ansell also told investors that its earnings guidance of 94-110 US cents in EPS for the 2024 financial year remains unchanged, “excluding the impact of the Acquisition and Transaction Funding”. Ansell is anticipating that the acquisition will see its EPS over the 2024 financial year reduced by 1-2 US cents though.

Here’s some of what Ansell CEO Neil Salmon had to say on this news today:

For many years, we have assessed a combination with KCPPE as one of our most attractive acquisition opportunities and I’m delighted that we have now reached agreement with K-C that the optimal path forward for this business is under Ansell ownership…

Our existing footprint, in addition to our global organisation and supply chain, creates the opportunity to generate significant synergy value from the acquisition while also enhancing our combined organic growth potential and we are excited about the benefits this will create for Ansell’s customers and shareholders.

Ansell share price snapshot

Ansell shares may be suspended today, but investors have not enjoyed a lucrative 2024 so far this year. Year to date, the Ansell share price remains down by 5.42%. Those losses stretch to 13.32% over the past 12 months.

The company also remains down around 44% from its 2021 highs of over $42 a share:

At the last Ansell stock price of $23.89, this ASX 200 stock had a market capitalisation of $2.98 billion, with a dividend yield of 1.92%.

The post Ansell share price hits pause as company gloves up for $975 million acquisition appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ansell. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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APM Human Services International Ltd (ASX: APM) shares have returned from suspension and crashed deep into the red.

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.

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More reading

• APM share price freeze extended amid new takeover bid
• APM share price placed on ice as $1.8 billion deal goes dud

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended APM Human Services International. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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S&P/ASX 200 Index (ASX: XJO) energy share Beach Energy Ltd (ASX: BPT) is having a day to forget on Monday.

The Beach Energy share price closed on Friday at $1.89. In late morning trade today, shares are swapping hands for $1.55 apiece, down 18.2%.

For some context, the ASX 200 is up 0.1% at this same time.

In a better comparison of apples to apples, of ASX 200 energy shares to ASX 200 energy shares, Santos Ltd (ASX: STO) shares are down 1.3%. Meanwhile, the Woodside Energy Group Ltd (ASX: WDS) share price is down 1.1%.

Here’s what’s happening.

ASX 200 energy share hammered on rising costs

The Beach Energy share price is getting smashed today after the company reported on a series of quality issues at its Waitsia joint venture project in the Perth Basin.

Beach Energy owns 50% of the JV project; Mitsui E&P Australia owns the other half.

In February, the ASX 200 energy share reported on various quality issues during the pre-commissioning of systems at its Waitsia Gas Plant, including rebuilding compressors and replacing valves and flanges.

Beach Energy said those earlier problems have now largely been rectified.

However, in news that has investors scrambling for the sell button, management today said that “further quality issues are emerging as pre-commissioning activities progress”.

Beach and Mitsui are now working to update the production schedule and cost estimates for Waitsia. But the partners said that even before that’s completed “the extent of additional quality issues is to a point where current guidance on schedule and cost needs to be updated”.

And those, as demonstrated by the sharp share price fall today, have been revised significantly higher.

In the guidance updates for Waitsia Stage 2, Beach Energy now expects first gas from the Waitsia Gas Plant by early 2025. That’s been pushed back from the previous expectations of first gas production by mid-2024. The partners plan a three-month ramp-up of production thereafter.

And costs are up significantly. Beach forecasts total capital expenditure of $600 million to $650 million, up from $450 million to $500 million previously.

Additionally, the ASX 200 energy share noted that unavoidable processing costs based on its revised first gas target will also be incurred in FY 2025. Management said they will continue to assess options to partially mitigate unutilised capacity until production kicks off.

The JV partners also are looking to capitalise on potential time swap opportunities with Western Australia gas market participants who have excess gas prior to completion of the Waitsia Gas Plant, in exchange for returning these volumes when they need them most.

What did management say?

Commenting on the cost blowout pummelling the ASX 200 energy share today, Beach CEO Brett Woods said:

It is extremely disappointing to be continually encountering quality and execution issues given the late stage of the project. Having to redirect existing onsite labour to remedial works is slowing the progress of pre-commissioning activities, resulting in further delay and cost increases.

Beach is committed to driving the construction of Waitsia Gas Plant to its conclusion and will work closely with the operator and contractor to deliver this strategically important project.

The post Guess which ASX 200 energy share is imploding 18% today on cost blowouts appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Thursday
• Is now the time to invest in these ASX 200 energy shares?
• 5 things to watch on the ASX 200 on Wednesday
• Why is the Beach Energy share price racing higher on Thursday?

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Elders Ltd (ASX: ELD) share price is having a very tough start to the week.

In morning trade, the ASX 200 share crashed as much as 29% to $7.00.

The agribusiness company’s shares have recovered slightly since then buy remain down 25% at the time of writing.

Why is this ASX 200 share crashing?

Investors have been hitting the sell button in a panic on Monday in response of a trading update.

According to the release, first half trading in FY 2024 has been significantly below expectations due to a number of drivers.

The first is subdued client sentiment following an El Niño declaration by the Bureau of Meteorology. This has had a particularly negative impact during the first quarter of 2024.

Also weighing on its performance has been lower crop protection prices compared to the prior corresponding period. This is impacting sales revenue and margins.

But it doesn’t end there. Elders also highlights that cattle and sheep prices are significantly below the 10-year mean, which also impacted the first quarter.

Furthermore, subdued trading in March due to a later start to winter crop in Western Australia, which is a key broadacre market, and margin pressure in some key agricultural chemical products has weighed on its performance.

It isn’t all doom and gloom, though. Looking ahead, management advised that the outlook for the FY 2024 winter crop in most regions is improved. It notes that there are favourable soil moisture profiles across many winter cropping areas in the Eastern and Southern states.

Conditions remain dry and warm in some parts of Western Australia, which is expected to push sales to the second half of FY 2024 (April to September).

Earnings estimates

In light of the above, the ASX 200 share advised that underlying earnings before interest and tax (EBIT) is expected to be between $120 million and $140 million for FY 2024.

This represents a decline of 18% and 30% year on year from $170.8 million in FY 2023. Interestingly, that itself was down from $232.1 million a year earlier in FY 2022, meaning two consecutive years of sharp declines.

This poor performance means that its leverage is forecast to be above its target of 1.5 to 2.0 times through FY 2024. Though, it is forecast to return to within target in the first half of FY 2025.

One small positive is that Elders’ target cash conversion of greater than 90% of underlying net profit after tax is forecast to be achieved at 30 September 2024.

This ASX 200 share is down 14% over the last 12 months.

The post Why is this ASX 200 share plunging 29% after a trading update? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why Aurelia Metals, Elders, GQG, and Telix shares are storming higher today
• Here are the top 10 ASX 200 shares today
• 7 ASX small-cap shares that are cheaper than the ASX 200 in March 2024
• Why Beach Energy, Elders, Lake Resources, and Premier Investments are rising today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Elders. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Big ASX dividend shares like the Commonwealth Bank of Australia (ASX: CBA), for example, typically get a lot of attention. That’s why I’m going to tell you about three compelling picks with smaller market capitalisations.

A company can provide a good dividend yield, whether it’s worth $100 million or $100 billion.

The dividend yield depends entirely on how much of the profit the business pays (the dividend payout ratio) and its valuation. If the price/earnings (P/E) ratio is higher, then the dividend yield is pushed lower. If the P/E ratio is lower, then the dividend yield is usually higher.

Of course, there’s more to an investment than just its dividend yield. I want to show how less popular ASX dividend shares can also be great passive income ideas. So, let’s take a look at these three.

Duxton Water Ltd (ASX: D2O)

This company owns water entitlements that can be leased to farmers at various lease lengths. I view this business as an indirect investment in the agricultural sector.

Water prices can go up and down, so we can be tactical when we decide to buy at a point when Duxton Water shares seem to be at a weaker point.

Pleasingly, the company has grown its half-yearly dividend every six months since 2017. It’s trading at a discount to its net asset value (NAV) and expects to pay a grossed-up dividend yield of around 7%.

Bailador Technology Investments Ltd (ASX: BTI)

Bailador invests its millions in unlisted technology businesses that have several appealing elements, including a proven business model and international revenue generation.

The idea is that long-term capital growth of the value of the portfolio can help fund dividend payments to shareholders.

The ASX dividend share has committed to a dividend payout ratio of 4% of pre-tax net tangible assets (NTA).

However, the Bailador share price is valued at a discount of almost 30% to the February 2024 pre-tax NTA. That means the cash yield on the share price is 5.6% or 8% grossed-up.

Bapcor Ltd (ASX: BAP)

Bapcor is an auto parts company with several brands that service customers and a variety of other businesses.

It owns brands such as Burson Auto Parts, Precision Automotive Equipment, BNT (NZ), Truckline, WANO, Autobarn, Autopro, Midas, ABS, Shock Shop, and Battery Town.

Bapcor has grown its annual dividend in most years over the past decade, which is quite impressive considering the economic challenges that have occurred during that time. Having said that, the company advised a reduction in its latest dividend payout in the latest half-year results.

The number of vehicles on Australia’s roads continues to grow, which helps grow the number of potential customers for Bapcor’s various businesses.

According to the estimates on Commsec, the business is projected to pay a grossed-up dividend yield of 4.8% in FY24 and 6.1% in FY26.

The post 3 lesser-known ASX dividend shares to buy for income appeared first on The Motley Fool Australia.

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More reading

• 4 ASX All Ords shares with ex-dividend dates next week
• 2 ASX shares I have been buying in 2024!
• Brokers say these ASX 200 dividend stocks are buys
• These are my top high-yield ASX dividend share buys right now
• Why does Morgans rate these ASX dividend stocks as buys?

Motley Fool contributor Tristan Harrison has positions in Bailador Technology Investments and Duxton Water. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bailador Technology Investments. The Motley Fool Australia has recommended Bailador Technology Investments and Bapcor. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Qantas Airways Ltd (ASX: QAN) share price is lifting off today.

Shares in the S&P/ASX 200 Index (ASX: XJO) airline stock closed on Friday trading for $5.43. In morning trade on Monday, shares are changing hands for $5.58 apiece, up 2.8%.

For some context, the ASX 200 is up 0.2% at this same time.

This comes as Qantas unveils what it labels “one of the biggest ever expansions” of its frequent flyer program.

Here’s what we know.

Qantas share price soars on frequent flyer upgrade

In a move intended to boost customer satisfaction following a turbulent year, Qantas is adding 200 million more reward seats with the launch of Classic Plus Flight Rewards.

Commenting on the revamped frequent flyer points scheme lifting the Qantas share price today, CEO Vanessa Hudson said, “The Qantas Frequent Flyer program is an integral part of Qantas and has always been about recognising our customers for their loyalty.”

Hudson added, “It’s one of the biggest expansions we’ve made to the Frequent Flyer program in its 35-year history.”

“The widespread availability of Classic Plus means that frequent flyers have more options to fly where they want, when they want and more often, using their points,” Qantas Loyalty CEO Andrew Glance said.

The ASX 200 airline will continue to offer more than five million existing Classic rewards seats across Qantas, Jetstar and 45 partner airlines.

This financial year, Qantas said it will invest $60 million in more flight rewards for its frequent flyers.

Costs and benefits

Looking at the potential impact on the Qantas share price, the airline expects to spend around $120 million on its Classic Plus product in FY 2025. That includes the value of displaced seat revenue, as well as the non-cash impact applied to future sale of points in its loyalty segment.

This falls within Qantas’ existing planned customer investment of $230 million for FY 2025.

In new guidance, the airline said it now expects Qantas Loyalty to deliver between $500 million to $525 million underlying earnings before interest and taxes (EBIT) in FY 2024 before returning to growth of around 10% in underlying EBIT in FY 2025.

That could be taking some of the lift out of the Qantas share price today, with the airline previously having forecast underlying EBIT of up to $550 million for its loyalty program.

However, management expects the new program will deliver a “substantial improvement in member engagement”. They said it will help drive the long-term growth of Qantas Loyalty as it continues to target $800 million to $1 billion underlying EBIT by FY 2030.

Qantas share price boosted as buyback back on

Also likely boosting the Qantas share price, today management announced that the on-market share buyback of up to $448 million Qantas shares will commence.

The airline had previously said it would wait on launching the buyback until it had finalised all the details of its revamped Frequent Flyer program.

Subject to market volumes, management expects the buyback to be completed by 30 June.

The post Qantas share price takes off on ‘biggest ever expansions’ of core loyalty program appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Life360 Inc (ASX: 360) share price is having a stunning start to the week.

In morning trade, the location technology company’s shares are up a massive 22% to a record high of $14.84

This latest gain means that its shares are now up 96% since the start of the year.

To put this into context, a $20,000 investment at the end of last year would now be worth over $39,000.

Why is the Life360 share price rocketing today?

Investors have been scrambling to buy the company’s shares this morning following the release of a market update.

According to the release, Life360 has started FY 2024 in a very positive fashion and revealed strong operating metrics today.

The company’s global Monthly Active Users (MAU) were 66.4 million at the end of the first quarter. This is an increase of 4.9 million since the end of the fourth quarter, which represents a record for a first quarter. It is also more than double the net additions of 2.2 million the company recorded in the prior corresponding period.

That isn’t the only record that has been broken, which explains why investors are getting very excited today.

The company also revealed that it achieved record first quarter net additions to global paying circles of approximately 96,000 during the quarter. This was split approximately 65%/35% between its U.S. and International operations.

In the prior corresponding period, Life360 added 73,000 net additions to its global paying circles.

These metrics are materially ahead of what the market was expecting from the company during the first quarter. This goes some way to explaining the impressive performance by the Life360 share price on Monday.

One thing that wasn’t available with today’s release is the company’s revenue and earnings for the three months. As a result, management warned that it “cannot yet determine whether these quarterly operating metrics will have a material positive impact on revenue, net income (loss) or any other financial results for CY24 Q1.”

But investors won’t have to wait too long to find out. Life360 advised that it expects to release its first quarter results next month on 10 May 2024.

US listing

In other news, Life360 has revealed plans for a potential listing in the United States. This follows a proposal to amend its Certificate of Incorporation to bring the company in line with typical U.S. corporate practices.

In respect to the potential dual listing, the company said:

While there are many factors that would impact the Company’s decision to pursue a U.S. IPO, including U.S. market conditions, the Board believes that the resolutions included in the preliminary proxy statement provide flexibility to pursue a dual listing should the Company determine that conditions are favourable.

The post Why is the Life360 share price rocketing 22% to a record high? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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BHP Group Ltd (ASX: BHP) shares have had a mixed start to the year.

Since the launch of 2024, the BHP share price has plunged by 12%, as we can see in the chart below. But, it has lifted almost 6% from the 13 March 2024 low.

We can’t predict precisely what company share prices will do, particularly in the short term. So, let’s look at some of the positives and negatives that may influence the performance of this iron ore mining giant.

Challenges impacting BHP shares

According to Trading Economics, the iron ore price recently fell to a 10-month low of US$102 per tonne because “muted demand in China was magnified by ample supply”.

Why does that matter? Iron made up 62% of BHP’s FY24 first-half earnings before interest and tax (EBIT). Any weakness in the iron ore price can hurt upcoming profitability.

Trading Economics says demand concerns about the Chinese construction sector, stemming from the prolonged debt crisis for major developers, may have “long-lasting effects on commodity bidding”.

Here’s what it had to say:

A slow start to Chinese construction activity drove steel blast furnaces and smelters to pare input buying of iron ore, with new data showing that pig iron ore output in the country dropped by nearly 7% so far this year.

This was magnified by a fresh surge in iron ore exports out of Australia, supporting the view that a batch of mine maintenance programs have reached their conclusion following the end of the first quarter. Consequently, ore inventories at major Chinese warehouses soared to a one-year high of 130 million tonnes.

Meanwhile, the broker UBS has forecast that BHP’s profit could decline over the long term compared to the net earnings of US$12.9 billion in FY23. In FY26, net profit is forecast to drop to US$12 billion, decline again to US$10.4 billion in FY27, and drop to US$9.7 billion in FY28.

Profit has a very important influence on the BHP share price – the more profit the ASX mining share makes, the higher the valuation can be. But, the opposite can be true when profit is falling.

BHP also continues to face the fallout of the Samarco disaster in Brazil, with a recently updated provision of US$3.2 billion after tax, which UBS described as the current “best estimate” of settlement costs with public authorities.

And some positives

Forecasts are just educated guesses – analysts can be wrong. Experts have been forecasting the demise of the iron ore price for a number of years. It’s possible that the iron ore price could surprise again, if Chinese demand picks up.

Interestingly, according to UBS, BHP’s profit is actually expected to increase in FY24 to US$13.5 billion, which would put the forward price/earnings (P/E) ratio at around 11.

The relatively low earnings multiple means the company can have a fairly appealing dividend yield. UBS suggests the BHP FY24 annual dividend could be US$1.47 per share, which would equate to a grossed-up dividend yield of 7.2%.

Another positive to keep in mind is that the ASX mining share is growing its exposure to ‘green’ commodities, which could see stronger demand as the world works on decarbonisation. Copper is important for electrification, and potash is a greener form of fertiliser.

Foolish takeaway

At the moment, I’d say it’s finely balanced between the positives and negatives – the share price of the ASX mining stock has fallen, but only back to where it was six months ago.

If I were looking to buy BHP shares to beat the market, I’d wait for a weaker iron ore price, which could send the BHP share price to US$40 or below. Until then, I’d look at other ASX dividend shares that could pay bigger yields or deliver more growth.

The post The pros and cons of buying BHP shares right now appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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