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The WA1 Resources Ltd (ASX: WA1) share price has returned from its trading halt with a bang on Monday.

In afternoon trade, the ASX mining share is up a massive 30% to $2.33.

Why is this ASX mining share rocketing higher?

Investors have been scrambling to buy the company’s shares after it released a very positive update on its drilling program at the 100% owned West Arunta Project in Western Australia.

It is still early days in respect to assay results, with just the first three reverse circulation (RC) holes completed at the Luni carbonatite in late March. However, the results that have been analysed so far have been very positive.

‘Globally significant deposit’

Management notes that drilling at Luni has quickly consolidated a shallow and extremely high-grade mineralised envelope by stepping out on a broad 200m spacing. This means that its confirmed high-grade niobium mineralisation now spans 400m north-south, 400m east-west and is open in all directions.

This is great news for the company given how few niobium mines there are globally and how demand is expected to increase for the critical raw material in the future.

The ASX mining share’s managing director, Paul Savich, commented:

Over 90% of the global supply of niobium is produced from only two operations in Brazil. A third mine in Canada comprises the final existing niobium mine globally. All three operations produce a ferroniobium end-product (~65% Nb) for direct application as a steel alloy with no further downstream processing required. In addition, niobium has exciting developing applications in the fast-growing green energy space.

Luni continues to demonstrate the potential to host a globally significant deposit of one of the world’s most critical raw materials. Our reconnaissance drilling, along with detailed planning for other activities including resource definition and metallurgical test work, are ongoing with further assays due in the coming weeks.

Further samples, including the remaining un-assayed intervals in these holes, have since been submitted for analysis.

The post Guess which ASX mining share is surging 30% on a potentially ‘globally significant deposit’ 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?
• Why Perenti, Pointsbet, ResMed, and Telix shares are rising today
• Bought CBA shares in June? Here’s the dividend yield you’re earning now
• Could buying Domino’s shares at under $55 make me rich?
• Why Scott Phillips is begging you to buy ASX shares right now!

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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Legendary American investor Ray Dalio caused quite a stir last month. In a LinkedIn post on 26 April, Dalio warned that he sees the United States and China “on the brink of war”. Today, we contemplate the unthinkable and assess what such a war might mean for Australia and ASX shares. 

Ray Dalio is one of the most successful hedge fund managers in history. He founded Bridgewater Associates in the 1970s, which was grown into one of the world’s largest hedge funds today. With hundreds of billions of US dollars under its management, Bridgewater counts billionaires and sovereign wealth funds amongst its clients, including our own Future Fund.

Dalio beats the drums

Dalio has stepped back from Bridgewater in recent years. But he still aims to educate investors around the world about lessons from history. And right now, his focus seems to be on the rivalry between the United States and China. In his LinkedIn post, Dalio said the following about how he sees the future of US-China relations:

What I mean when I say that the US and China are on the brink of war is that it appears that they are close to having a sanctions war and/or military war that neither side wants but many believe will probably happen because a) each side is very close to the other’s red lines, b) each side is using brinksmanship to push the other at the risk of crossing each other’s red lines, and c) politics will probably cause more aggressive brinksmanship over the next 18 months.

I want to emphasize that by saying that they are on the brink, I don’t mean to say that they will necessarily go over the brink. I mean to say that they are very close to crossing red lines that, if crossed, will irrevocably push them over the brink into some type of war that damages these two countries and causes damage to the world order in severe and irrevocable ways—like Russia’s invasion of Ukraine did for Russia and the world, just much bigger. 

Just to be clear, Dalio’s definition of ‘war’ does not just include a kinetic war. He also canvasses the possibilities of an economic war (consisting of sanctions and other economic coercion) or a proxy war.

But let’s discuss what any kind of conflict between the US and China could mean for ASX shares.

What would a US-China conflict do to the ASX?

Before we start, it is important to note that wars are abhorrent and tragic events. The human devastation and suffering they too often bring can be immense, especially for the most vulnerable. But since we at The Motley Fool are primarily focused on investing and the share market, this is the lens we will be discussing this potential conflict and its possible ramifications through.

It is my belief that any kind of conflict between the United States and China would be devastating for the Australian economy, as well as the share market. China remains one of our most valuable trading partners. The Australian economy is highly dependent on trade with China, with major exports including iron ore, gold and food.

Australia is a treaty ally of the United States, as codified under the ANZUS Treaty. This stipulates that if either the United States or Australia is attacked by a third party, the other country is bound to assist.

Thus, if the United States is attacked by China, or drawn into a conflict, it is very possible that Australia could immediately halt the vast majority of, if not all, trade with China.

Perhaps the largest immediate casualties of this scenario would be our mining shares. BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG) all export massive volumes of iron ore to China.

That has the potential to immediately cease in the event of a war. As would any gold exports from the likes of Newcrest Mining Ltd (ASX: NCM). Our American allies would probably not take kindly to Australian gold or iron fuelling the Chinese war machine.

Miners, food producers amongst ASX shares that could suffer

Food and consumer staples companies like Treasury Wine Estates Ltd (ASX: TWE) and A2 Milk Company Ltd (ASX: A2M), which are also dependent on the Chinese market, would also feel the pinch.

But any ASX share that has any kind of major export operations or international exposure could suffer immensely, in my view.

It’s not just exporters that might be in the firing line either.

Think about a company like Wesfarmers Ltd (ASX: WES). Wesfarmers owns Kmart, OfficeWorks and Bunnings. All of these businesses are heavily reliant on the Chinese economy in their supply chains.

There is a possibility that China would cease exporting products to Australia in the event of any war, just as we would halt our own exports. This would be an enormously disruptive event for the likes of Wesfarmers, along with most other ASX retailers who rely on the Chinese economy to help produce their products.

Would any ASX shares prosper?

The only companies that I might be willing to consider relatively safe from a US-China war would be those that provide essential services and don’t derive any revenue from the Chinese economy. These might include Telstra Group Ltd (ASX: TLS) or Transurban Group (ASX: TCL).

There would be precious few beneficiaries in my view. But one possible company that could see its fortunes bolstered by a US-China conflict might be Lynas Rare Earths Ltd (ASX: LYC). Lynas is one of the only producers of essential rare earth metals outside China. So if the US forced its bevvy of global allies to decouple from China, Lynas could stand to benefit enormously.

But that said, there is little doubt that a US-China war would be catastrophic for the global economy, as well as Australia. Let’s hope that Dalio is being too pessimistic and that these two counties can sort out their differences peacefully.

That’s certainly the view of another China expert: former prime minister Kevin Rudd. Rudd has just taken up his new post as Australia’s ambassador to the United States. Here are his views on the current situation, given in a recent interview with Politico, to round us out:

The challenge that we all face is to reduce the risk of crisis, conflict and war by accident. And that’s why leaders in both China and the United States have been speaking about the need to stabilize and to manage this competitive relationship.

Because managing it at that level is important if you’re going to reduce the risk of accidental escalation.

The post Dalio says US and China ‘on brink of war’. Which ASX shares could be impacted? appeared first on The Motley Fool Australia.

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More reading

• Transurban share price jumps on dividend boost
• These ASX 200 shares could be top options for your retirement portfolio: experts
• How I’d generate $400 in monthly passive income from 2 ASX 200 iron ore shares
• Why did the BHP share price dive 6% in April?
• Why did the Telstra share price crack new multi-year highs in April?

Motley Fool contributor Sebastian Bowen has positions in A2 Milk, Newcrest Mining, and Telstra 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 positions in and has recommended Telstra Group and Wesfarmers. The Motley Fool Australia has recommended A2 Milk. 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 S&P/ASX 200 Index (ASX: XJO) has started the week in a positive fashion. In afternoon trade, the benchmark index is currently up 0.5% to 7,343.3 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why these ASX shares are rising:

Perenti Ltd (ASX: PRN)

The Perenti share price is up 9% to $1.26. Investors have been buying this mining contractor’s shares after its UMA joint venture won a major underground mining services contract. UMA has been awarded a new ~$630 million, 60-month contract at the Newmont Subika underground gold mine in Ghana.

Pointsbet Holdings Ltd (ASX: PBH)

The Pointsbet share price is up 17% to $1.82. This sports betting company’s shares are rebounding strongly after being sold off on Friday following the release of its quarterly update. Speculation that its North American business could be sold appears to be giving its shares a boost.

ResMed Inc. (ASX: RMD)

The ResMed share price is up 6% to $35.67. A number of brokers have responded very positively to this sleep treatment company’s quarterly update from the end of last week. For example, Citi has retained its buy rating and lifted its price target to $40.50 and Macquarie has retained its outperform rating with an improved price target of $38.00.

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix share price is up 3% to $10.47. This morning, this radiopharmaceuticals company released additional positive results from its completed pivotal Phase III ZIRCON study of TLX250-CDx in clear cell renal cell carcinoma. New data confirms its efficacy in masses 2cm or smaller.

The post Why Perenti, Pointsbet, ResMed, and Telix shares are rising today appeared first on The Motley Fool Australia.

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More reading

• These were the best-performing ASX 200 shares in April
• Why Aeris, Brainchip, Pointsbet, and Syrah shares are falling today
• Pointsbet share price dives 8% amid potential to cash in with an offload
• ResMed share price higher on Q3 ‘solid beat’
• Better ASX 200 healthcare share: CSL vs. Resmed

Motley Fool contributor James Mickleboro has positions in Telix Pharmaceuticals. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended PointsBet and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended PointsBet. 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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Commonwealth Bank of Australia (ASX: CBA) shares are lagging the benchmark over the past 12 months.

Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock are up 1% today but remain down just over 2% since this time last year.

The ASX 200 itself is just about flat over the full year.

Of course, we’re not factoring in the fully franked dividends delivered by CBA shares yet.

Passive income investors have long looked to CBA for the bank’s reliable, twice-yearly dividend payments.

Over the past 12 months, CBA paid out a final dividend of $2.10 per share on 29 September. The interim dividend, also $2.10 per share, will have hit investors’ bank accounts on 30 March.

That comes out to a total full-year payout of $4.20 per share.

At the current CBA share price of $100.40, that equates to a trailing yield of 4.2%. Or $42 a year in passive income from a $1,000 investment.

With the franking credits factored in, that’s a solid second income stream from the big four bank.

Yet not all ASX 200 investors will be earning that same yield.

Some investors will be earning a bit less, while others will be earning a fair bit more.

Bought CBA shares in June?

The broader market downturn last June represented an excellent buying opportunity for many ASX 200 stocks.

CBA shares were no exception.

On 17 June, CommBank closed the day trading for $87.26 per share.

Investors who snapped up some shares on the day will obviously be sitting on some excellent share price gains today. Just over 15%, to be precise.

Atop that, lucky or well-advised investors who bought CBA shares on 17 June will also be earning significantly more yield from the stock.

If you’d bought shares at the end of that day, you’d be earning a fully franked yield of 4.8%.

That’s an extra 0.6% yield to build your passive income from CBA shares every year.

Forever.

Or until you decide to sell your holdings.

The post Bought CBA shares in June? Here’s the dividend yield you’re earning now appeared first on The Motley Fool Australia.

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More reading

• 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
• First Republic Bank shares just crashed 50%. Here’s how ASX 200 bank stocks are responding

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 Domino’s Pizza Enterprises Ltd (ASX: DMP) share price has dropped by around 70% since September 2021. Does this represent an opportunity to make piping-hot returns over the next few years?

Before we answer that question, let’s take a quick look at what’s been going on for the pizza maker over the last couple of years.

It’s somewhat understandable that the Domino’s share price has plunged over the past 20 or so months.

When pandemic-induced lockdowns took effect in early 2020, many food retailers, like cafes and restaurants, were forced to close completely or trade with restrictions. This provided Domino’s with an opportunity to feed loads more hungry people across Australia, New Zealand, Europe, and Japan who had limited dine-in and take-away food options. The locked-down periods saw Domino’s deliver substantial sales growth.

But now that all the cafes and restaurants are open again and inflation is biting, Domino’s isn’t seeing much, if any, sales growth. The first few weeks of the second half of FY23 showed a decline in same-store sales of 2.2%.

Rising food and wage costs have also significantly pressured the company’s profit margins.

In response, Domino’s lifted its prices to help protect franchisee profitability. While this helped unit economics, it led to reduced ordering frequency by customers, which meant that trading for the month of December was “significantly” below expectations, according to Domino’s CEO and managing director, Don Meij.

The company is now working on balancing the ‘value equation’ for customers.

Are Domino’s shares an opportunity?

If Domino’s shares could recover to $100, this would still be around 38% below the peak seen on 10 September 2021. But, from the current price, it would represent returns of around 100%. That would be a very solid gain.

What factors could help deliver that sort of return?

If Domino’s can deliver on two of its key goals, then I believe the company’s share price could well double over the next three or so years.

Domino’s has an annual same-store sales growth target of 3% to 6%, and annual new store openings of between 8% and 10% of the store network. Domino’s had been hitting those targets in earlier financial years. It doesn’t expect to achieve those numbers this year but aims to return to these targets in the “medium term”.

It’s looking to return to same-store sales growth – after reporting a decline of 2.2% in its latest half-year update – by balancing the “value equation” for customers. It said it was testing pricing and voucher initiatives.

Domino’s shares could also be boosted by its future store count goals. It’s aiming to reach 3,050 European stores by 2033, 1,200 ANZ stores between 2025 and 2028, and 3,000 Asian stores by 2033. This would be an almost-doubling of Domino’s locations by 2033. The company also continues to look for acquisitions.

Based on estimates on Commsec, the business is trading at 22 times FY25’s estimated earnings.

If Domino’s can return to its goals of mid-single-digit, same-store sales growth annually (in percentage terms) and high-single-digit annual growth (in percentage terms) of its store network, then I think Domino’s shares could well be a helpful boost to an investor’s wealth.

But, I expect the company’s profit growth in the 2020s will be slower than the 2010s because it’s now a much larger business. It’s harder to keep growing a big business at a very strong pace because there are fewer locations to expand into.

The post Could buying Domino’s shares at under $55 make me rich? appeared first on The Motley Fool Australia.

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More reading

• These ASX 200 growth shares could generate big returns: broker
• Here are the top 10 ASX 200 shares today
• After big falls, these ASX 300 shares look dirt-cheap!
• 2 ASX 200 shares that could be top buys for growth
• Here are the top 10 ASX 200 shares today

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 positions in and has recommended Domino’s Pizza Enterprises. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. 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 ASX share market has been a great place for investors to grow their wealth over the long term. But is right now a good time to invest? The Motley Fool’s Scott Phillips has the answer.

But before we get to that, let’s take a quick look at what’s been happening for ASX stocks in recent times.

You will have seen a lot of negative headlines over the last 12 months about inflation and interest rate rises. There has also been significant share market volatility since the start of 2022.

Going a little further back, we also saw considerable turmoil on global stock markets during 2020 as the world faced shutdowns due to the pandemic. When we look back around 15 years ago, share markets worldwide suffered through the GFC in one of the worst crashes ever. The S&P/ASX 200 Index (ASX: XJO) dropped more than 50% between November 2007 and March 2009.

But over the past century, notwithstanding all the crashes, all the recessions, all the political unrest, and other periods of uncertainty, the ASX share market has achieved an average return per year of between 9% and 10%.

Of course, past performance is not a reliable indicator of future performance but a century’s worth of healthy average returns is pretty compelling!

When is the best time to invest in ASX shares?

No one knows what the share market will do next year, next month, or even next week.

If I had a crystal ball that could tell me when the share market would take a dive, then buying at the lowest point would be easy.

But investing never comes with that level of certainty. If we only ever waited to ‘buy the dip‘ in stocks, we might never invest at all. And whilst this may mean paying a little more for stocks than you would have if you’d bought at the bottom, isn’t this preferable to missing out on years of compounding while waiting and watching from the sidelines?

So while we can’t control the daily movements of stock markets, we can take control of our financial futures. We can do this by saving and realising the magical benefits of compounding by actually taking the plunge and investing.

As Scott Phillips recently wrote to Motley Fool Share Advisor members, the reason many investors don’t achieve their financial goals is that they never actually start investing. Instead, they are constantly waiting for an opportunity to buy at a better price (which incidentally may never come!). Or, perhaps they’ll buy one or two stocks that fall in value, and then they’ll give up altogether.

Scott is passionate about helping all sorts of people grow their wealth, but investors need to actually buy stocks. Writing to Share Advisor members, Scott said:

I can only take you so far.

I can beg. I can plead. I can prostrate myself on the ground in desperation.

But I can’t buy the stocks for you.

Only you can do that.

So my only message to you today is simple.

Please – PLEASE – start buying.

So yes, ASX shares could go down over the next month or year, but they could also go up. The point is that unless the Aussie share market has reached its absolute peak for the first time EVER, by investing in a diversified range of shares now (or any other time!), you stand to grow your wealth over the long term.

And don’t forget, there’s no need to jump in with all your investment funds in one go. Maybe consider dollar-cost averaging to spread your risk but, as Scott says, the key is to start investing.

Which ASX shares to invest in?

Obviously, all investing comes with risks. And not everyone has the appetite for picking stocks. But if you are keen to invest in individual companies, remember to do your research and appreciate the fact that not even the world’s smartest and most successful investors get it right all of the time.

In his recent communication to new members, Scott Phillips conveyed some reassuring advice from Peter Lynch, one of the world’s greatest fund managers who has amassed a $500 million fortune through investing:

Remember Peter Lynch’s line that if you’re good in this game, you’re only going to be right six times out of ten. If you only buy one stock, you’re essentially tossing a coin…and that’s no way to invest!

Diversification is crucial to reducing risk in an investment portfolio. Investors can diversify their portfolios by buying an array of individual stocks across different sectors and/or markets. Index-based exchange-traded funds (ETFs) are also a great way to spread investment risk without the need to buy individual shares.

Foolish takeaway

There will most likely be many trading days later this year when ASX shares are cheaper than today. But there may also be plenty more days in the future when share prices have risen compared to today. Therefore, today could well be the perfect time to buy. Scott finished his message to Share Advisor members with this rallying call:

Please, help me – and you – out.

Buy. Shares. Today.

The post Why Scott Phillips is begging you to buy ASX shares right now! appeared first on The Motley Fool Australia.

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More reading

• How did the AMP share price manage to surge 8% in April?
• Why did the BHP share price dive 6% in April?
• Why did the NAB share price smash the ASX 200 in April?
• 5 things to watch on the ASX 200 on Monday
• Want $300 in monthly passive income? Buy 24,300 shares of this ASX 200 stock

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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Looking to build up some handy passive income from ASX shares in May?

Well, it’s the first of the month. There’s no time like the present.

So, here’s how I’d invest $1,000 in May – for starters – in two high-yielding S&P/ASX 200 Index (ASX: XJO) dividend stocks that both pay fully franked dividends.

Tapping into oil and gas for passive income

The first ASX 200 dividend share I’d buy to begin building my passive income stream is Woodside Energy Group Ltd (ASX: WDS).

Not only does the oil and gas stock deliver outsized dividends, but the Woodside share price has also widely outperformed the benchmark over the past year.

Fuelled by high energy prices, Woodside shares are up more than 9% over the past 12 months.

The ASX 200 is flat over that same period.

As for passive income, Woodside declared a record interim dividend and a record final dividend over the full year. Adding the interim dividend of $1.60 per share to the final dividend of $2.15 per share, Woodside’s full-year dividend payout comes out to $3.75 per share.

At the current share price of $34.13, this equates to a trailing yield of 11%, fully franked.

That’s a juicy yield. But the next ASX 200 dividend share I’d invest in for passive income offers an even bigger trailing yield.

Before we move on to that one, do take note that we are discussing trailing yields here. These are based on the payouts from the past 12 months.

Future dividend payments could be lower or higher, depending upon a range of company-specific and broader macroeconomic factors.

With that said…

Black gold shining brightly

Investing $1,000 for passive income in May, I’d have a hard time not buying shares of New Hope Corp Ltd (ASX: NHC).

Like Woodside, New Hope shares have outperformed the ASX 200 over the past 12 months, though by an even broader margin.

Over the past full year, the New Hope share price has rocketed 56%.

And remember, the ASX 200 is flat over this time period.

Passive income investors who’ve held shares over the past year will also be earning some truly outsized yields.

As with Woodside, New Hope paid out a record high 56 cents per share final dividend. The coal miner will pay a 40 cents per share interim dividend on Wednesday 3 May, having traded ex-dividend on 17 April.

Accounting for Wednesday’s pending dividend payment, New Hope will have delivered 96 cents per share in fully franked dividends over a 12-month period.

At the current share price of $5.43, that works out to a yield of 17.7%.

How much passive income will my $1,000 May investment yield

Working with the trailing yields and assuming I buy an equal number of Woodside and New Hope shares, my combined dividend yield for the two ASX 200 stocks works out to 14.4%.

That equates to a handy $144 in passive income each year, coupled with potential tax benefits and future share price gains, just from my $1,000 May investing plan.

Of course, I likely wouldn’t stop there.

There’s always June, after all. And July. And…

Well, you get the idea.

Happy passive income investing!

The post How I’d invest $1,000 in May to make easy passive income 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 S&P/ASX 200 Index (ASX: XJO) has just concluded what was quite a happy month. Over April, the ASX 200 managed to add a reasonably healthy 1.8%, with the Index rising from 7,177.8 points to 7,309.2 points. But let’s talk about the AMP Ltd (ASX: AMP) share price.

ASX 200 financial stalwart AMP had a cracking month over April, well outshining the broader market. The AMP share price began the month at $1.05. But by the end of last week, AMP shares had closed at $1.14 each. That’s a gain for April of 8.57%, not to mention a gain more than four-fold over the broader market.

So how did the AMP share price, which has a bit of a reputation as an ASX 200 laggard, pull off this impressive performance?

Well, there’s been a few developments with AMP shares over the past month that could have combined to produce this result.

How did the AMP share price rocket 8% in April?

The first is the ongoing share buybacks AMP has been conducting. Back in its February earnings release, AMP committed to keeping its ongoing share buyback program active, which it continued to do over April.

Just this morning, the company confirmed it had removed another 2.22 million shares from the market last week, bringing the buyback program’s total to 37.6 million shares and counting. Share buybacks are generally supportive of a company’s share price. So this probably contributed to AMP’s stellar month.

Then, on 19 April, AMP released its latest quarterly cash flow update. As we covered at the time, investors seemed impressed with AMP’s performance over the three months to 31 March 2023.

The company revealed that its cash outflows came in at $600 million for the quarter. That was a marked improvement over the $900 million of outflows over the prior corresponding period in 2022.

AMP also announced that it has increased its loan books by $200 million over the quarter, while assets under management grew by $2 billion to a total of $126.2 billion.

This release saw the AMP share price spike at the time, and could also be a factor behind its April performance.

Finally, last month saw AMP pay out its first dividend in over two years. Investors bagged a partially-franked payment of 2.5 cents per share back on 3 April. This dividend gives the AMP share price a trailing yield of 2.16% on current pricing (or 4.31% if annualised).

So it’s likely that it was a combination of these events over April which led investors to give the AMP share price such a good showing last month. Let’s now see how this ASX 200 share fares in May.

 

The post How did the AMP share price manage to surge 8% in April? appeared first on The Motley Fool Australia.

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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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The Woodside Energy Group Ltd (ASX: WDS) share price is marching higher on Monday.

Shares in the S&P/ASX 200 Index (ASX: XJO) oil and gas stock closed Friday trading for $33.68 apiece. They are currently swapping hands for $34.06 a share, up 1.13%.

With oil prices ticking up over the weekend, energy stocks are broadly outperforming today.

At the time of writing, the S&P/ASX 200 Energy Index (ASX: XEJ) is up 1.45%, outpacing the 0.55% gains posted by the ASX 200.

Judging by today’s market reaction, the Woodside share price doesn’t appear to be suffering from the decision by Shell PLC (NYSE: SHEL) to divest its stake in the Browse LNG joint venture project, located in Western Australia.

Why is Shell selling and who’s buying?

As The Australian Financial Review reports, Shell will offload its 27% stake in the $30 billion offshore Browse LNG project, which Woodside says is Australia’s largest untapped conventional gas resource.

With mounting pressure from environmental groups concerned about future carbon emissions – and growing regulatory uncertainty for such projects in Australia – Shell said its stake in Browse was “no longer a strategic fit”.

Subject to regulatory approvals, BP plc (NYSE: BP) will acquire Shell’s holdings. It’s not yet clear how much Shell will receive for the sale of its 27% stake, which will bring BP’s holdings in the JV project to 44%.

While Browse may no longer be a good fit for Shell, BP’s commitment to the project could be offering some support to the Woodside share price today.

“Browse, with carbon capture and storage (CCS), can help underpin the energy system of today while we invest in and build the energy system of tomorrow,” a BP spokesman said (quoted by the AFR).

“BP supports the current concept which proposes development of the Browse gas resources using existing North West Shelf (NWS) gas processing facilities,” he added.

Woodside share price snapshot

Despite a retrace in oil and gas prices over the past year, the Woodside share price remains up almost 10% over the past 12 months.

The post Woodside share price in the green as Shell offloads stake in $30 billion JV gas project appeared first on The Motley Fool Australia.

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More reading

• No savings at 30? I’d invest $3 a day in ASX shares to target a second income of $10,824 a year
• 5 things to watch on the ASX 200 on Friday
• 12 ASX dividend shares with yields over 10%. Are they too good to be true?
• Why is the Woodside share price lagging the ASX 200 today?
• Invested in Woodside shares during the May 2022 dip? Here’s the dividend yield you’re earning today

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 BP. 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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A leading investment manager from Plato Investment Management has warned ASX investors of a “big red flag” that they should avoid on the Australian share market.

Plato Investment Management is a Sydney-based investment management firm that specialises in objective-based global and Australian equity investment solutions. It is majority owned by its investment staff and supported by its minority equity partner, Pinnacle Investment Management Group Ltd (ASX: PNI).

What should ASX investors be watching out for?

According to a release, Plato Investment Management’s head of Long Short Strategies, Dr David Allen, is warning ASX investors that there is a high level of companies on the Australian share market with negative operating cash flow.

The investment company’s research indicates that 28% of ASX shares had negative operating cash flow over the preceding 12 months. This is more than any other country in the MSCI World index.

Dr Allen explains why this is a red flag. He said:

Net income is so easy to manipulate. A company can have negative underlying earnings, but this can be easily manipulated to give a positive result. Unfortunately, in my view this practice is rife, particularly in Australia.

All the historical data suggests over the long term, companies with negative operating cashflow perform very poorly on average.

Don’t let that put you off investing

Dr Allen doesn’t think ASX investors should be put off from investing, though. Rather, they should use this knowledge to avoid investments that could underperform. They could even use it to short shares if they are brave enough! He adds:

In a market with so much negative operating cash flow, investors need to be discerning and those who can sidestep the landmines can be well placed.

On the other hand, it also highlights the benefits of shorting – negative operating cash flow is a powerful red flag that can present great short opportunities.

Food for thought for ASX investors.

The post A ‘big red flag’ for ASX investors to avoid at all costs 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 positions in and has recommended Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. 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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