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Warren Buffett.

Do I have your attention yet?

Warren Buffett – CEO of Berkshire Hathaway, aka the Oracle of Omaha – has amassed a fortune in excess of US$100 billion through his investing acumen.

One of the reasons that investors’ ears perk up at the mention of his name is that his investing strategies are surprisingly straightforward. With time and patience, anyone can follow in the Oracle’s path.

As a value investor, he likes to buy into quality companies he understands at a fair price. And ones with strong barriers to entry, or ‘moats’, to ward off any would-be competitors.

He’s also well-known for his long-term investing strategies, looking to own companies for decades rather than a year or two. “Our favourite holding period is forever,” he once noted.

And, together with his right-hand man and Berkshire Hathaway vice-chair Charlie Munger, Warren Buffett’s investing strategies have proven highly profitable for investors.

According to Bloomberg, Berkshire’s shares have delivered 9.5% compounded annual returns from 2000 through to the first quarter of 2023. That compares to a 6.5% return from the S&P 500 Index (SP: .INX).

Which brings us to the looming recession in the United States.

Investors fretting about a recession turn to Warren Buffett

Consensus is building that the US economy could slide into a recession within the next 12 months. Should the world’s top economy shrink, the financial headwinds will be felt across the globe. Including here in Australia.

With recession fears building, investors are increasingly eyeing defensive stocks.

And with Warren Buffett’s lengthy track record of successful value investing, the majority believe Berkshire Hathaway will continue to outperform the S&P 500 over the next five years.

The latest Bloomberg Markets Live Pulse survey asked investors “How will Berkshire’s returns compare to the S&P 500 over the next five years?”

53% of professional and 54% of retail investors expect Berkshire will indeed beat the market over five years. Only 13% of professional and 8% of retail investors thought Berkshire will underperform US markets.

That’s in line with what the survey respondents view as the best style of stocks to buy right now.

45% said now is the time to buy defensive stocks, with 20% favouring growth stocks and 17% tipping tech stocks.

Warren Buffett is well known for investing in more defensive stocks and for generally avoiding the tech sector.

Respondents were most united on the question of what will be his biggest legacy.

Their response?

“Buying stocks for less than what they are worth.”

The post Worried about a recession? Here’s why these investors are backing Warren Buffett appeared first on The Motley Fool Australia.

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More reading

• How to get rich by following Warren Buffett’s advice
• Which stocks does Warren Buffett own (and what can ASX 200 investors learn from this)?
• Forget term deposits and listen to Warren Buffett’s advice
• Need passive income? Turn $6,000 into $100 every month
• Warren Buffett is doubling down on these Japanese stocks. How can ASX investors do the same?

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 positions in and has recommended Berkshire Hathaway. The Motley Fool Australia has recommended Berkshire Hathaway. 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 Woolworths Group Ltd (ASX: WOW) share price is sinking on Tuesday despite the company’s sales having soared 8% in the three months ended 2 April.

Right now, shares in the supermarket operator are down 0.64%, trading at $38.65

Woolworths share price lower as quarterly sales surpass $16b

Here are the key takeaways from the S&P/ASX 200 Index (ASX: XJO) giant’s quarterly report:

• Group sales soared 8% on the prior comparable period (pcp) to $16.3 billion
• Sales in its Australian food leg lifted 7.6% to $12.3 billion
• Its Australian business-to-business segment saw sales leap 16.4% to around $1.2 billion
• Big W’s sales rose 5.7% to $1 billion
• Over at New Zealand Food, sales increased 7% to approximately $1.9 billion
• Finally, the group saw its eCommerce sales increase 5.1% to $1.5 billion

Looking to the company’s major businesses, sales at its Australian supermarkets lifted 6.9% last quarter while those of its Metro Food Stores grew 27.9%.

Meanwhile, the newly-acquired MyDeal helped drive sales in the company’s ‘other’ category 37.7% higher to $66 million.

What else happened last quarter?

Woolworths noted its supply chain began to recover last quarter while inflation appeared to moderate slightly in its food businesses.

Average prices at its Australian Food business increased by 5.8% last quarter compared to the pcp.

Meanwhile, those at New Zealand Food rose 9.5%. Many of the company’s Countdown and SuperValue stores were hit with flooding last quarter while Cyclone Gabrielle brought supply challenges and vegetable quality issues.

What did management say?

Woolworths CEO Brad Banducci commented on the news seemingly weighing on the company’s share price today, saying:

Our current focus is on continuing to improve our customer experience, especially value for money and product availability, and we remain cautiously optimistic that Woolworths Group is well placed to navigate and respond to the current trading challenges successfully for all key stakeholders – our customers, our team, our suppliers and community partners, and our shareholders.

What’s next?

While Woolworths didn’t provide any new guidance today, Banducci said sales trends have remained in line with the third quarter in recent weeks. He also noted sales growth has remained solid in its food businesses but moderated in Big W, continuing:

In general, customer spending is stable. However, value-conscious customers are becoming more thoughtful about their discretionary spend, trading into more affordable options such as our own brands and looking for additional ways to save in store or through our digital, rewards, and eCommerce platforms.

Looking ahead, we’re seeing signs of overall inflation moderate in food. However, in many areas inflation remains frustratingly elevated and we need to continue to work hard to provide our customers with great value across their shopping basket.

Woolworths share price snapshot

The Woolworths share price has been outperforming the ASX 200 as of late.

The stock has gained 18% since the start of 2023. It’s also currently 2% higher than it was this time last year.

For comparison, the ASX 200 has gained 6% year to date and is flat over the last 12 months.

The post Woolworths share price slips as sales leap 8% appeared first on The Motley Fool Australia.

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More reading

• This ASX 200 stock is ‘one of the cheapest defensives’ to buy right now
• Buy Woolworths and this ASX share for your retirement portfolio: experts
• My $10-a-day approach to building a second income with ASX shares
• The boosted Woolworths dividend is hitting bank accounts today. Here’s what you need to know
• Brokers say these ASX 200 blue chip shares are buys

Motley Fool contributor Brooke Cooper 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 Qantas Airlines Limited (ASX: QAN) share price is in the red after the company announced the retirement of CEO Alan Joyce.

Joyce will step down from the top job at the national carrier in November. His boots will be filled by the airline’s current chief financial officer Vanessa Hudson.

Right now, the Qantas share price is falling, trading 2.37% lower at $6.58.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is falling 0.35%.

Let’s take a closer look at the changing of the guard at the flying kangaroo.

Qantas names next CEO ahead of Joyce’s retirement

The Qantas share price is slipping as the airline’s thirteenth CEO is named, marking a major milestone in the company’s 103-year history.  

Hudson will take on the top job in the wake of the company’s annual general meeting (AGM), having spent the last 28 years in executive positions across the group.

Qantas chair Richard Goyder said “a lot of thought” went into Hudson’s appointment, continuing:

Vanessa has a deep understanding of this business after almost three decades in a range of roles both onshore and offshore, across commercial, customer and finance. She has a huge amount of airline experience and she’s an outstanding leader.

Joyce will have helmed the company for 15 years by the time he steps down. And it hasn’t always been smooth sailing. He led Qantas through the Global Financial Crisis, the COVID-19 pandemic, and numerous other disruptions.

Commenting on Joyce’s achievements, Goyder said:

Much of the credit for the bright future in front of Qantas goes to Alan …

The company was restructured to deal with a number of external shocks and Alan led it to a several record profits. He’s overseen a lot of investment in aircraft, lounges, the creation of Jetstar, our cornerstone partnership with Emirates and innovations like the Perth-London route and Project Sunrise.

But Joyce’s leadership hasn’t been without critique. He has faced wrath from unions and commentators over the outsourcing of ground crew jobs, working conditions at the airline, lacklustre service, and his pay packet  â€“ coming in at $2.3 million last financial year.

Indeed, Joyce dismissed the Transport Workers Union’s resignation demands last year, telling reporters, as per ABC News:

I think I’ve had more resignation requests than any other CEO and probably any other public figure out there.

The unions typically do this at different times … so that’s not unusual. It’s part of the job.

Qantas share price snapshot

The Qantas share price has been outperforming recently.

Even with this morning’s drop, it’s gained 12% since the start of 2023. It has also risen 17% since this time last year.

Meanwhile, the ASX 200 has lifted 6% year to date and is trading flat year on year.

The post Qantas share price falls on CEO succession news appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why Scott Phillips is begging you to buy ASX shares right now!
• How did the AMP share price manage to surge 8% in April?
• Why did the BHP share price dive 6% in April?

Motley Fool contributor Brooke Cooper 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 mining sector is a great place to look for big dividends. Thanks to the strong cash generation and penchant for returning funds to shareholders, a number of ASX 200 mining shares offer attractive forecast dividend yields.

Two such examples are listed below. Here’s why these ASX 200 mining shares could be buys for their dividends:

Pilbara Minerals Ltd (ASX: PLS)

The first ASX 200 mining share that could be a buy for dividends is lithium miner Pilbara Minerals.

Analysts at Macquarie are very positive on the company and recently reaffirmed their outperform rating on its shares. The broker highlights that the miner is generating significant free cash flow from its operations, which it expects to support some big dividends.

For example, the broker is forecasting fully franked dividends per share of 42 cents per share dividend in FY 2023 and a 30 cents per share dividend in FY 2024. Based on the latest Pilbara Minerals share price of $4.10, this equates to yields of 10.2% and 7.3%, respectively.

Macquarie also sees material upside for Pilbara Minerals’ shares. It has an outperform rating and lofty $7.70 price target on them.

Rio Tinto Ltd (ASX: RIO)

Rio Tinto could be another great ASX 200 mining share to buy now for dividends.

That’s the view of analysts at Goldman Sachs. They believe the mining giant’s shares are great value compared to rivals. This is particularly the case given its production growth, and free cash flow improvement potential.

Goldman also highlights that Rio Tinto has the “[w]orld’s highest margin low emission aluminium business” and sees it as a key earnings (and dividends) contributor in the future.

In the meantime, the broker is forecasting fully franked dividends per share of US$5.36 (A$8.07) in FY 2023 and then US$4.68 (A$7.05) in FY 2024. Based on current exchange rates and the latest Rio Tinto share price of $112.26, this will mean yields of 7.2% and 6.3%, respectively.

Goldman Sachs has a buy rating and $136.20 price target on its shares.

The post 2 ASX 200 mining shares to buy for big dividends: analysts appeared first on The Motley Fool Australia.

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More reading

• How did the Pilbara Minerals share price perform in April?
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Rio Tinto shares: Buy, hold or fold in May?
• Dalio says US and China ‘on brink of war’. Which ASX shares could be impacted?
• ASX lithium shares: Short-term pain for long-term gain?

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 Fortescue Metals Group Limited (ASX: FMG) share price went through a sizeable decline in April 2023. The ASX iron ore share dropped by 7% over the month. That compared to a 1.8% rise for the S&P/ASX 200 Index (ASX: XJO).

It was a rapid decline of 8.7% between 19 April 2023 and 26 April 2023 that affected the performance for the month. Fortescue shares then rose by 1.4% from 26 April to the end of the month.

Iron ore price drops

Fortescue is a very large iron ore miner, so any change in the iron ore price can have an impact on the ASX mining share’s profitability and the Fortescue share price.

The company digs iron ore out of the ground. The cost to mine 1 million tonnes of iron ore doesn’t change much from month to month. So, any extra revenue for that production largely boosts the net profit after tax (NPAT) aside from paying more to the government.

But, a fall in the iron ore price and revenue largely cuts straight into NPAT as well.

The iron ore price had been sitting at around US$120 over the prior two months. But, over the time period of 19 April to 26 April, the iron ore price dropped to around US$105. That’s a fall of over 12% in a short amount of time.

While most of FY23 is already done, if the iron ore price stays at this level then FY24 could see lower monthly profitability.

Knock-on effect to Fortescue Future Industries (FFI)

FFI is the division within Fortescue that is trying to create a global portfolio of projects that produce green hydrogen and green ammonia. This can provide a zero-carbon fuel source for heavy machinery like mining vehicles and boats. This division could have a positive impact on the Fortescue share price in the future as it grows.

However, the idea is that Fortescue allocates 10% of its NPAT each period to FFI to fund its activities. Lower profit for Fortescue could mean that FFI needs more than 10% of NPAT to fund its ambitions.  

But, there is another factor that decides how much iron ore profit Fortescue makes – production.

Iron Bridge starts production

Yesterday, the iron ore ASX share announced that the Iron Bridge project had started production.

This project will produce 22 million tonnes per annum of high-grade magnetite concentrate.

Fortescue explained:

Iron Bridge signifies Fortescue’s entry into the highest-grade segment of the iron ore market, providing an enhanced product range while also increasing annual production and shipping capacity.

The boss of the mining division of the company, Fortescue Metals CEO Fiona Hicks, said:

Iron Bridge is a significant differentiator for Fortescue. It demonstrates our commitment to long-term planning and the sustainability of our iron ore business, while also investing in growth. We are committed through the cycle to delivering robust returns to our shareholders and building an increasingly strong balance sheet.

Fortescue share price snapshot

Between the start of 2023 to the end of April, Fortescue shares had risen by more than 2%.

The post Why did the Fortescue share price tumble 7% in April? appeared first on The Motley Fool Australia.

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More reading

• Dalio says US and China ‘on brink of war’. Which ASX shares could be impacted?
• How I’d generate $400 in monthly passive income from 2 ASX 200 iron ore shares
• Looking to buy ASX 200 iron ore shares? Here are 5 reasons not to
• Did Fortescue really just buy 60,000 sheep?
• Be careful, the Fortescue share price is overvalued: Goldman Sachs

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group. 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 Macquarie Group Ltd (ASX: MQG) share price has been steadily climbing in the past few weeks. It’s up by around 4% since 6 April 2023. At the current valuation, is the ASX financial share a buy before the global investment bank releases its FY23 result?

Macquarie is scheduled to release its full-year result for the 12 months to 31 March 2023 on 5 May 2023, which is this Friday.

The upcoming result could be another strong one. In the FY23 third quarter trading update, Macquarie said that net profit after tax (NPAT) for the nine months to 31 December 2022 was “up slightly” compared to the nine months to 31 December 2021.

Macquarie said that varied conditions for its “diverse businesses” in the three months to 31 December 2022, resulted in a “good quarter” for the group. The commodities and global markets business (CGM) experienced strong profit growth.

Taking that latest update into account, let’s consider whether Macquarie shares are a buy.

Strong profit expected

The FY23 profit estimate on Commsec currently suggests a similar result in earnings per share (EPS) terms compared to FY22. The forecast is $12.91 of EPS for FY23, which puts the Macquarie share price at just 14 times FY23’s estimated earnings.

In the last few months, there has been good news regarding how quickly Macquarie’s banking division has grown. Macquarie’s loan book – its total amount of loans – grew by 4.7% in the three months to 31 January 2023. The loan book grew by 22.6% in the 12 months to 31 January. That was faster than the other major S&P/ASX 200 Index (ASX: XJO) bank shares of Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), ANZ Group Holdings Ltd (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB).

It was also reported yesterday by the Australian Financial Review that NAB was the only major bank not to have lost market share in deposits over the past year. Macquarie reportedly saw growth of household savings in its accounts by 70% to $55.9 billion.

The AFR noted that there is strong demand for household deposits because it’s one of the cheapest funding sources for lenders. This is creating more competition between the ASX 200 bank shares.

The bigger the banking division becomes for Macquarie, the larger the influence will be on the profit and Macquarie shares.

Some analysts and fund managers are worried that banking profitability has peaked and that we may see a fall in the net interest margin (NIM) for banks. A decline in NIM means a bank earns less profit on its lending.

The AFR reported on comments by John Whelan, a portfolio manager at PM Capital, who warned on the competition for customer deposits, slow loan growth because of the uncertain housing market, wage cost pressures due to inflation and a deterioration of asset quality as some mortgage holders face difficulties due to higher interest rates. Whelan said:

The environment for the banks is becoming increasingly difficult, with the biggest risk being policy error by the RBA if they over hike.

It is hard to see [net interest margin] expansion in this environment.

Is the Macquarie share price a buy?

As reported by my colleague James Mickleboro last week, the broker Morgans rates Macquarie as a buy, with a price target of $222.80, implying a possible rise of around 20% over the next year. Why is Morgans positive on the ASX financial share? The broker explained:

We continue to like MQG’s exposure to long-term structural growth areas such as infrastructure and renewables. The company also stands to benefit from recent market volatility through its trading businesses, while it continues to gain market share in Australian mortgages.

I think that Macquarie is an attractive business with a resilient balance sheet and a focus on the long term. I agree with the positive Morgans rating for the long-term. But, it’s possible that FY24 could be bumpy for the business as it navigates the current uncertain period.

The post Should I snap up Macquarie shares ahead of this week’s full-year results? appeared first on The Motley Fool Australia.

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More reading

• Why the Macquarie share price could rise over 20% from here
• Sunk $8,000 into Macquarie shares 5 years ago? Here’s how much dividend income you’ve received
• Banking and mining: Analysts say these ASX 200 dividend shares are buys
• 5 reasons Macquarie shares could be a great investment today
• ‘Buying opportunity’: 2 ASX 200 shares to grab before they rocket

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 positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Westpac Banking Corporation. 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 month of April ended up being a pretty decent one for the S&P/ASX 200 Index (ASX: XJO) and ASX shares. Between 31 March and 30 April, the ASX 200 rose from 7,177.8 points to 7,309.2 points, a healthy rise of 1.8%. But let’s talk about a major ASX 200 constituent – the Commonwealth Bank of Australia (ASX: CBA) share price.

CBA shares had a slightly different experience over April. This ASX 200 banking kingpin started last month out at $98.32 a share. But by the close of trade last Friday, the CBA share price had finished up at $99.36:

That’s still a gain worth 1.06%. But it does mean that the CBA share price was a market lagger last month.

So what might have happened over April that caused investors to have such a lukewarm approach to the ASX 200’s largest bank share?

Well, there wasn’t any ‘headline grabbing’ news out from CBA itself last month. But we did see a number of events that could have influenced investors.

Why did the CBA share price lose to the ASX 200 in April?

Firstly, there was the sobering news that CBA’s management was allegedly aware that the bank had been underpaying staff to the tune of $16.1 million since 2010. As we covered at the time, CBA admitted such in Federal Court. This could leave the door open to additional fines or disciplinary action. Hardly confidence-inspiring stuff.

Then towards the end of the month, ASX investors were greeted with the news that yet another international bank was in trouble. As we dove into on 26 April, First Republic Bank (NYSE: FRC) was unfortunate enough to have to go to its US investors with the news that US$105 billion had been drained from its books over the three months to 31 March 2023.

First Republic joins Silicon Valley Bank, Credit Suisse and Signature Bank in having significant issues in 2023 so far.

This news could have also been weighing on investors’ minds.

It wasn’t all bad news for the CBA share price over April, however. As my Fool colleague Monica reported last month, there were rumours flying around that CBA could be in the market for business lender ScotPac. If CBA did acquire this lender, it could result in up to $1 billion in loans the bank can add to its books.

Another positive development that CBA had in store for shareholders in April was the news that the maximum loan that the bank allows under its Green Loan program will increase from $20,000 to $30,000. The range of products that are eligible for this program is also scheduled to be expanded in mid-2023.

Foolish takeaway

It’s probably a combination of all of these factors that led the CBA share price to post a market-trailing result over April. But still, a gain is a gain. So perhaps investors don’t have too much to complain about. Let’s now see what May has in store for the ASX 200’s largest bank share.

 

The post Why did the CBA share price lag the ASX 200 in April? appeared first on The Motley Fool Australia.

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More reading

• Bought CBA shares in June? Here’s the dividend yield you’re earning now
• What’s happening with ASX 200 banks today as First Republic teeters on the brink of collapse?
• Investing in ASX 200 shares? Here’s what to expect from the RBA tomorrow
• Which is the best ASX 200 bank share to buy right now?
• 5 things to watch on the ASX 200 on Thursday

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 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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ASX gold stocks have, as a whole, smashed the benchmark in 2023.

Since the opening bell on 3 January, the S&P/ASX 300 Index (ASX: XKO) has gained a very respectable 5.5%.

Meanwhile, strong performance by the gold shares has helped drive the S&P/ASX All Ordinaries Gold Index (ASX: XGD) up 22% over that same time.

Or four times the gains posted by the ASX 300.

ASX gold stocks have received some welcome tailwinds from a rising gold price.

On 3 January, the yellow metal was trading for US$1,839 per ounce. Today that same ounce is trading for US$1,982, up 5.1% in 2023.

While you won’t hear many investors complaining about a 22% gain in only four months, that’s nothing compared to the 130% year-to-date gains posted by this leading ASX 300 gold stock.

Any guesses?

If you said Resolute Mining Ltd (ASX: RSG), give yourself a gold star.

As you can see in the chart below, the Resolute Mining share price kicked off 2023 trading for 20 cents per share. Shares closed on Monday trading for 46 cents apiece.

What’s driving the outperformance of this ASX gold stock?

Atop the rising gold price, the Resolute Mining share price has benefited from a series of successes this calendar year.

On 19 January the ASX gold stock reported a 58% increase in the Mineral Resource Estimate at its Syama North gold project, located in the Republic of Mali. The new MRE came in at three million ounces of gold at a cut-off grade of 1 gram per tonne of gold.

Resolute Mining shares got another boost later in January when the miner released its quarterly activity results.

Among the highlights that helped drive investor interest in the ASX gold stock, the miner reported a fifth consecutive quarter of increased production. That helped boost total gold production in 2022 to 353,069 ounces. This exceeded Resolute Mining’s guidance of 345,000 ounces for the 12 months.

Why did the Resolute Mining share price really lift off in March?

The Resolute Mining share price was well into the green for 2023 by the end of February.

But shares in the ASX gold stock really took off in March.

That was driven by two primary factors.

First a promising update on the miner’s Ore Reserve and Mineral Resource estimates.

Resolute reported that its total Ore Reserves had increased to 4.6 million ounces of gold while its Mineral Resources increased to 11.2 million ounces of gold.

A second helpful tailwind in March came when Resolute Mining entered into the ASX 300 on 20 March. That had to do with the S&P Dow Jones Indices March quarterly rebalance. And it will have opened the door to more professional fund managers, limited to investing in larger stocks, to buy the ASX gold stock.

Which brings us into April.

Resolute Mining reported its latest quarterly results on 27 April.

And once again the miner managed to increase its gold production, up 1% from the prior quarter. Resolute also received a higher price for its gold while costs and net debt came down from the prior quarter.

The ASX gold stock finished the day up 4.6%.

The post This ASX gold stock is up a whopping 130% in 2023. Here’s why 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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What if you were told that there is an ASX-listed company that operates the 32nd most downloaded smartphone app in the US?

Surely you would be curious about whether you’ve missed the boat on buying the stock?

Well, this isn’t just a hypothetical.

The team at Firetrail Small Companies Fund recently revealed that it’s backing an ASX technology stock that is on a pleasing upward trajectory.

“Life360 Inc (ASX: 360) is a market-leading family safety and communication application,” read the team’s memo to clients.

“The app’s core features include location sharing, driving safety services, digital safety, and emergency assistance.”

The app also offers safety-related insurance products for roadside assistance, travel, and identity theft.

“The application integrates tools to enhance the safety of all family members and provides parents with peace of mind that their loved ones are safe,” read the memo.

“Life360 is the 32nd most downloaded app in the USA!”

Savaged by the market

The great tech sell-off of 2022 was not kind to Life360.

Between November 2021 to June 2022, the share price plunged more than 80%.

Yikes.

The market was punishing any business that was burning through cash in a quest for customer volume growth.

Fortunately, the management at the Californian software company heeded the message and promised to cut costs.

“Management [is] focused on maintaining financial discipline to deliver expanding margins as the business adds paying users,” read the Firetrail memo.

“For example, the company has implemented a reorganisation of headcount and restrained hiring which will deliver US$15 million annualised savings.”

The market has indeed taken notice, with the Life360 share price doubling since the June trough.

The market still not fully appreciating the turnaround

Now all that work is bearing fruit, with a significant milestone not too far away.

“Management guidance suggests Life360 will be cash flow positive by the 2023 June quarter,” the memo read.

“Reaching positive free cash flow will be a key catalyst for increased investor conviction in Life360’s business model.”

So has the share price had its run already? Hasn’t the market already priced in this remarkable turnaround?

No, say Firetrail analysts, who believe the current valuation still provides excellent value to invest.

“We believe Life360’s medium-term profitability is being underestimated by the market,” the memo read.

“Our conviction has increased following the repricing initiatives, greater cost control, commission savings, and progress on international expansion. Life360 currently trades on 1.5x EV/Sales multiple versus peers on 4x.”

The post This ASX tech company makes the 32nd most downloaded app in the US appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo 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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The Pilbara Minerals Ltd (ASX: PLS) share price was a relatively positive performer in April.

Despite the release of a quarterly update that fell short of expectations, investors bid the lithium miner’s shares 4.1% higher for the month.

Though, it is worth noting that its shares are still down almost 20% over the last six months.

Why did the Pilbara Minerals share price have a strong month?

There were a couple of reasons why investors were bidding Pilbara Minerals shares higher last month.

One was the Liontown Resources Ltd (ASX: LTR) takeover approach from Albemarle Corp (NYSE: ALB) at the end of the previous month which gave the whole industry a major lift.

Especially given that Morgans has tipped Pilbara Minerals as a lithium miner that could also receive a takeover approach. It commented:

PLS remains one of the few independent lithium producers with a globally significant resource. With assets in operation it would offer an acquirer immediate exposure to spodumene and hydroxide.

What else?

Another thing that also appears to have given the Pilbara Minerals share price a boost involves Albemarle again.

Last month, the government of Chile announced plans to nationalise its lithium industry. This shock move will see the government eventually take control of the lithium operations of miners such as Albemarle and SQM.

This appears to have led to some investors selling down their holdings in Albemarle and SQM and loading up on miners in safe jurisdictions like Australia.

Where next for its shares?

The good news is that despite its aforementioned quarterly update falling short of expectations, a number of brokers remain very positive and see a lot of value in the Pilbara Minerals share price.

Macquarie, for example, currently has an outperform rating and $7.70 price target on its shares. This suggests potential upside of almost 90% for investors over the next 12 months.

The post How did the Pilbara Minerals share price perform in April? appeared first on The Motley Fool Australia.

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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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