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If there’s one thing shareholders hate, it’s seeing leadership dish out big dollars while the company underperforms. AMP Ltd (ASX: AMP) has been in the firing line for this very issue for years, with today’s annual general meeting (AGM) bringing it front and centre.

At the time of writing, the AMP share price is 2% lower to $1.11 a share. 

Aside from discussing turnaround plans, the main focus of the AGM was whether the remuneration report would pass on shareholder’s votes.

A win for AMP, kind of

We reported on the potential for AMP to face a shareholder revolt earlier in the week. As the AMP share price continues to decline on less-than-optimal performance, the Australian Shareholders’ Association (ASA), along with other proxies and shareholders, looked to vote against the remuneration report.

The reason for a no vote is centred around the lack of long-term incentives. Only 25% of the proposed payments were built around longer-term milestones. On top of that, there was pushback on retention-based schemes that essentially involve paying leadership just for ‘showing up’.

Now, that might float the boat for companies that have been delivering exceptional performance, but AMP doesn’t fit that description in the minds of many shareholders. Hence, the expectation was that the 25% vote against had a high chance of being hit. Which would have meant further modifications to the report.

Luckily (arguably unlucky for some) the no vote narrowly missed the 25% required, at 23.82%. That means the remuneration will stay as it is, allowing leadership to collect their retention awards.

The vote is a win for AMP in a way, enabling it to avoid the embarrassment of receiving a second strike. However, it does little to rebuild the relationship between shareholders and the company.

AMP looking for a share price reprieve

AMP is no doubt hoping for better things to come under the guide of chair Debra Hazelton and new CEO Alexis George. The disrupted incumbent is undertaking a major transformation to reinvigorate what was once a beaming financial services business.

However, as Hazelton states, “Transformations of this scale are difficult. They take time to get right, and it is often hard to see progress in the earlier stages.”

Progress is exactly what AMP shareholders will be looking for in the near future. From some of the questions in the AGM, it’s not hard to tell some are nearing the end of their patience. Considering the 72% AMP share price erosion in the last 3 years, it’s not hard to see why.

More reading

• Why the AMP (ASX:AMP) slumped to a new 52-week low
• AMP (ASX:AMP) share price down, facing shareholder revolt this week
• Could value finally be emerging for the embattled AMP (ASX:AMP) share price?
• History is on the side of the battered AMP (ASX:AMP) share price as it plans its demerger
• AMP (ASX:AMP) is the most traded ASX 200 share today

Motley Fool contributor Mitchell Lawler 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 Bruce Jackson.

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The Estia Health Ltd (ASX: EHE) share price has jumped 7.5% higher in today’s trade. Shares in the Aussie aged care operator have finished the week on a good note by climbing to a new 52-week high.

Why is the Estia Health share price surging?

Shares in the Aussie aged care operator have surged 7.5% higher despite no new announcements from the ASX company since February.

One factor that could be driving the aged care operator is actually what’s happening to a rival, Japara Healthcare Ltd (ASX: JHC). The Japara share price shot 25% higher today after receiving a takeover proposal valued at $1.04 per share.

Not-for-profit group Cavalry Health Care has today lobbed a takeover offer at Japara. Cavalry is proposing to acquire all Japara shares under a scheme of arrangement which would value it at $277.9 million

Japara shares have rocketed to $1.00 per share on the news and hit a new 52-week high of their own. It looks like that’s causing a ripple effect through the aged care sector as investors wonder about other potential takeover targets.

That has sparked a surge in the Estia Health share price on Friday. The company’s shares have rocketed to a new 52-week high as we approach the end of the trading week.

Foolish takeaway

Aged care operators saw their valuations get smashed in 2020. The coronavirus pandemic and subsequent outbreaks and lockdowns put pressure on ASX shares like Japara and Estia.

The Estia Health share price has recovered in 2021 and currently sits at $2.50 per share. That gives the company a $653 million market capitalisation ahead of Friday’s close.

Conditions such as these are prime for potential takeovers. A struggling sector with depressed valuations could mean others such as Cavalry sniff an opportunity for a good buy.

Investors seem to think that may be the case, with the Estia Health share price shooting higher following the Japara news.

More reading

• Why the Japara (ASX:JHC) share price is rocketing 23% in morning trade

Motley Fool contributor Ken Hall 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 Bruce Jackson.

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With interest rates likely to remain low for some time to come, the dividend shares listed below could be top options for anyone seeking a passive income stream.

Here’s why these dividend shares are rated as buys:

Coles Group Ltd (ASX: COL)

This supermarket operator could be a good option for investors. Particularly given the weakness in the Coles share price in 2021.

Since the start of the year, the company’s shares have lost 12% of their value. This compares to a 5% gain by the ASX 200 over the same period.

One broker that sees this as a buying opportunity is Goldman Sachs. Earlier this week the broker responded to Coles’ third quarter update by retaining its buy rating and trimming its price target slightly to $20.50.

Goldman is also forecasting dividends per share of 62 cents in FY 2021 and 66 cents in FY 2021. Based on the current Coles share price of $16.34, this will mean fully franked yields of 3.8% and 4%, respectively, over the next two years.

Sonic Healthcare Limited (ASX: SHL)

Another ASX dividend share to look at is Sonic Healthcare. It is a global healthcare provider with specialist operations in laboratory medicine, pathology, diagnostic imaging, radiology, general practice medicine, and corporate medical services.

Sonic has been performing very positively in FY 2021. While this has been driven largely by COVID testing globally, the rest of the business has been on form as well.

Positively, COVID testing isn’t going anywhere soon, even with vaccines rolling out. As a result, Sonic looks well-placed to continue its strong growth into FY 2022.

Credit Suisse expects this to be the case and has put an outperform rating and $40.00 price target on its shares.

It is also forecasting partially franked dividends of 93 cents per share in FY 2021 and 97 cents per share dividend in FY 2022. Based on the current Sonic Healthcare share price of $35.77, this will mean yields of 2.6% and 2.7%, respectively.

More reading

• What happened to the Coles (ASX:COL) share price over April?
• Is the Woolworths (ASX:WOW) share price a buy after its Q3 update?
• Are Woolworths (ASX:WOW) shares too expensive?
• What are brokers saying about the Coles (ASX:COL) share price?
• Brokers name 3 ASX shares to buy now

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool Australia has recommended Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Novonix Ltd (ASX: NVX) shares are plummeting today and (so far) news of the company’s quarterly results hasn’t boosted its share price back into the green. At the time of writing, the Novonix share price is down 5%, trading for $2.31.

So, what has the graphite miner and battery maker been up to over the last quarter? Let’s take a look.

Novonix’s third quarter

Novonix released both its cash flow report and its activities report for the quarter ended 31 March early this afternoon.

While they contained mostly positive news, it hasn’t been enough to bring the Novonix share price out of its slump just yet. 

The company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) was a loss of around $2.4 million.

During the quarter, it completed director placements worth a total of approximately $16.5 million. It also completed an oversubscribed institutional placement worth $115 million. The funds will go towards Novonix’s anode material productions and the commercialisation of its cathode materials.

At the end of the quarter, the company had around $131 million in the bank.

Novonix also made a number of positive announcements over the third quarter. The company entered into a five-year research sponsorship agreement with Dalhousie University and partnered with Emera Technologies to innovate residential energy storage technology.

It was awarded around US$5.5 million from U.S. Department of Energy for its furnace technology development with Harper International. This quarter Novonix has continued working with Harper to create specialised furnace technology, which allows it to enhance its synthetic graphite manufacturing process.

As a result of this process, Novonix has been able to begin production of material, leading it to the next steps of customer qualification programs for Samsung Electronics Co Ltd, Sanyo and other cell and automotive manufacturers.

Finally, it listed on the OTCQX International Index. Novonix is now listed on the ASX, the OTCQX and the Frankfurt Stock Exchange.

Novonix share price snapshot

Despite a poor day on the ASX, the Novonix share price has had a brilliant year so far.

Currently, the Novonix share price is up 86% year to date. It’s also up a whopping 824% over the last 12 months.

The company has a market capitalisation of around $970 million, with approximately 396 million shares outstanding.

More reading

• What’s happening with the Novonix (ASX:NVX) share price today?
• Why is the Novonix (ASX:NVX) share price up 8% this morning?

Motley Fool contributor Brooke Cooper 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 Bruce Jackson.

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If you don’t have the funds to build a truly diverse portfolio, then exchange traded funds (ETFs) could be worth considering. This is because ETFs give investors access to a large number of different shares through just a single investment.

With that in mind, I have picked out two ETFs that trade on the ASX that could be good options. They are as follows:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The BetaShares Asia Technology Tigers ETF provides investors with exposure to many of the biggest tech shares in the Asia market.

Among the companies included in the fund are Alibaba, Baidu, JD.com, Meituan Dianping, NetEase, and Tencent.

Tencent is a multinational technology conglomerate and one of the largest companies in the world. Its communication and social platforms, Weixin (WeChat) and QQ, connect over a billion users with each other and with digital content and services. It also has a rapidly growing games business.

Another company in the fund is Alibaba. It is often referred to as the Amazon of China. It has close to a billion customers across its Alibaba, Taobao, and Tmall brands. From these platforms, the company is estimated to control a sizeable 56% of China’s e-commerce market.

A third company in the fund is Meituan Dianping. It is a bit of a hybrid of Uber Eats and Expedia. Its apps connect consumers with local businesses for food deliveries, hotel bookings, movie tickets, and many other services. During FY 2020 the company was making 24.5 million food deliveries per day and reached almost 500 million active customers.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

The VanEck Vectors Morningstar Wide Moat ETF gives investors easy access to a diversified portfolio of fairly priced US companies with sustainable competitive advantages.

At present there are a total of 49 shares included in the fund. These includes well-known companies such as Amazon, Bank of America, Berkshire Hathaway, Constellation Brands, Intel, McDonalds, and Microsoft.

Warren Buffett looks for moats (sustainable competitive advantages) when he’s picking shares to invest in and it’s not hard to see why. This ETF has smashed the market over the last five and ten years.

In respect to the last five years, the ETF has generated an average return of 19.3% per annum. This compares to a 16.4% per annum return by the S&P 500.

More reading

• 2 outstanding ETFs for ASX growth investors to buy
• 2 outstanding tech ETFs for ASX investors to buy this month
• 3 high quality ETFs for ASX investors to buy
• 2 highly rated ASX tech shares to buy this month
• Love tech shares? This ASX ETF is a great buy today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Artemis Resources Ltd (ASX: ARV) share price has surged more than 14% today. Shares in the gold and copper miner are rocketing higher today after its latest quarterly update.

Why is the Artermis share price rocketing higher?

Artemis reported that further batches of assays from its 42-hole, multi-rig Q4 2020 drilling at the Carlow Castle Gold Copper Project were received in the March quarter. Those results highlighted the success seen in the December quarter drilling program.

That includes a New Northern Discovery Zone with shallow reconnaissance RC holes ~250 metres north of the main Carlow Castle resource area. That contains 5 metres at 4.36 grams per tonne of gold (g/t), 1 metre at 3.03 g/t gold and 2 metres at 2.28 g/t.

The Main Carlow Castle zone also returned positive results with the deep hole drilling. The solid result includes hitting economic grade intersections ~630 metres below surface and 400 metres below the Main Eastern Zone.

Artemis said its knowledge of the structural, alteration and mineralogical controls at Carlow Castle has “increased immensely”. The Artemis share price has rocketed higher today on the back of the positive update.

The results are returning high-grade gold, copper and cobalt assays on the main shoots. As a result, Artemis has started a new Mineral Resource Estimate (MRE). The company has engaged CSA Global who calculated the previous MRE in November 2019. Those updated estimates should be completed in May 2021.

The Artemis share price has been on fire throughout the day’s trade as investors pile into the Aussie mining stock.

Artemis reported net operating cash outflows of $653,000 for the quarter. Total net cash used during the period across all activities totalled $3.37 million.

Foolish takeaway

Today’s gain of 14.3% has pushed the Artemis share price to $0.12 with a $133.7 million market capitalisation. It means the Aussie gold and copper miner’s value has quadrupled in the last 12 months thanks to strong drilling results at the flagship Carlow Castle site.

More reading

• Nufarm (ASX:NUF) share price rises ahead of next month’s profit results
• How to find the best ASX shares on the share market
• The Fortescue (ASX:FMG) share price is rebounding today
• Why supply and demand is the enemy of ASX resources shares
• The BetMakers (ASX:BET) share price is up 28% this month. Here’s why

Motley Fool contributor Ken Hall 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 Bruce Jackson.

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The Nufarm Ltd (ASX: NUF) share price is bucking the broader market weakness as expectations build ahead of its profit results in May.

The Nufarm share price jumped 1.4% during lunch time trade to $5.21 while the S&P/ASX 200 Index (Index:^AXJO) fell 0.8%.

The market is likely anticipating a pleasing first half result when the agribusiness hands in its report card on 20 May.

What the Nufarm share price is worth

Morgans is beating the drum for the company as the broker lifted its price-target on the Nufarm share price to $6.15 from $5.10 a share.

“We expect a strong result lead by its ANZ and European businesses which have benefited from much improved operating conditions,” said Morgans.

“NUF is also benefitting from its Performance Improvement Program (PIP) which is lowering its cost base.”

High expectations for Nufarm’s profit results

What’s also lifting expectations was management’s recent update. While it didn’t provide guidance, it reported that sales were up 17% in the first four months when compared to the same time last year.

High soft commodity prices are certainly helping and Nufarm added that the positive momentum was continuing into February.

“We forecast a strong 1H21 result with operating EBITDA up 73% to A$185.3m, albeit the company is cycling a weak comp,” added Morgans.

“Improved trading reflects a return to more normal seasonal conditions which has seen increased demand for NUF’s products across all of its regions.”

Positive outlook for agriculture

Nufarm isn’t the only ASX agriculture shares that’s enjoying tailwinds. The Graincorp Ltd (ASX: GNC) share price and Elders Ltd (ASX: ELD) share price have also attracted investors.

The other good news for Nufarm is that profit margins should be expanding thanks to the PIP program.

Then there are also high hopes for its new omega-3 enriched canola seed offering. But low salmon prices due to the impact of COVID-19 could have a negative impact on demand.

Operating leverage drives buy recommendation

“Reflecting the company’s operating leverage and with a higher AUD likely to reduce both USD D&A and interest expense on translation, the upgrades at the NPAT level are much more material,” said Morgans.

“We forecast strong earnings growth over FY21-23 driven by improved seasonal conditions in Australia and Europe, PIP benefits, reduced supply constraints and cost pressures, recovery in T&O sales as COVID restrictions ease and a contribution from Omega-3 canola oil and carinata as they scale.”

Morgans has an “add” recommendation on Nufarm.

Let’s hope the Nufarm share price can carry the weight of high expectations.

More reading

• How to find the best ASX shares on the share market
• Why supply and demand is the enemy of ASX resources shares
• ASX 200 down 0.6%: ResMed lower on Q3 update, Beach Energy crashes 23%
• Why ASX lithium shares like Orocobre (ASX:ORE) soared in April
• Not too late to buy these small ASX mining shares for the commodities boom

Motley Fool contributor Brendon Lau owns shares of Elders Limited and Nufarm Limited. The Motley Fool Australia has recommended Elders Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Investing in ASX shares is hard. For every ‘best ASX share’ out there that might give you stellar returns year in, year out, there are 5 that will only deliver mediocre returns. 

Some of these ‘mediocre return’ companies are amongst the biggest ASX shares on the S&P/ASX 200 Index (ASX: XJO) too. Take Westpac Banking Corp (ASX: WBC). Its share price today (around $25 at the time of writing) is at the same level it was back in 2007. The same can be said for AGL Energy Limited (ASX: AGL), only replace 2007 with 2004 for that one. 

Investors who picked up Rio Tinto Limited (ASX: RIO) in May 2008 had to wait until this year to see their pricing positions break even. And Super Retail Group Ltd (ASX: SUL) has yet to break its all-time high from way back in 2013. Now I’m not saying that these companies are mediocre businesses. But their share price performances for long-term investors have certainly been mediocre, and hardly the best ASX shares to own.

It’s a good reminder that there are a lot of shares that haven’t done all that much for their owners over the past decade or two. It’s easy to forget about those kinds of returns if one has an Afterpay Ltd (ASX: APT) or a CSL Limited (ASX: CSL) in one’s portfolio. CSL and Afterpay might have both had a rough couple of months. But they are also up almost 150% and 4,000% respectively over the past 5 years. 

So how does one pick the best ASX shares like CSL or Afterpay from the ocean of mediocrity out there?

Finding the best ASX shares in an ocean of mediocrity

Well, let’s look at what these companies have in common. Both have managed to form what Warren Buffett might call a ‘moat’. Afterpay arguably has ‘the brand’ in the by now, pay later space, as well as an ability to maintain a first-mover advantage in the space against a plethora of competition. CSL has managed to dominate industries with extremely high barriers to entry in blood medicines and vaccines. Both have been able to compound growth over a number of years, as well as dominate not just the Australian market, but the global one. 

All of this adds up to a certain something, a je ne sais quoi if you will, that leads to success. The best ASX shares tend to have something like this. But it’s tricky because each business’s ‘special something’ will be different. But if a company can demonstrate an ability to grow and compound revenues, earnings and/or customers over multiple years, that’s a good start

More reading

• Why supply and demand is the enemy of ASX resources shares
• ASX 200 down 0.6%: ResMed lower on Q3 update, Beach Energy crashes 23%
• Why ASX lithium shares like Orocobre (ASX:ORE) soared in April
• Not too late to buy these small ASX mining shares for the commodities boom
• These ASX 200 shares are tracking the Aussie economy higher in 2021

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Fortescue Metals Group Limited (ASX: FMG) share price is currently up 0.3% at the time of writing as investors and brokers have their say on the iron ore miner’s quarterly production for the three months to 31 March 2021.

What happened to the Fortescue share price?

Yesterday, Fortescue gave its update which said that for the three months it shipped 42.3 million tonnes (mt), in line with record third quarter shipments last year. Year to date shipments of 132.9mt were 2% higher than the comparable period in FY20.

The iron ore price was a particular highlight. Average revenue of US$143 per dry metric tonne (dmt) increased 17% compared to the previous quarter with revenue realisation at 86% of the average Platts 62% CFR Index.

The C1 cost of US$14.90 per wet metric tonne (wmt) increased 16% compared to the second quarter due to seasonally lower volumes and the strength of the Australian dollar, with year to date C1 costs of US$13.45 per wmt.

The broker Morgan Stanley said that the revenue realisation and shipments were both lower than the broker was expecting.

Fortescue CEO Elizabeth Gaines noted a few different things with some of her comments:

The commissioning of the Eliwana mine has contributed to an increase in both ore mined and processed during the quarter, despite the impact of significant rainfall across our operations in the Pilbara.

Significantly, Fortescue announced during the quarter a target to achieve carbon neutrality by 2030, positioning us as a global leader in the battle against climate change. We have set out clear priorities for our pathway to decarbonisation, including the establishment of a green mining fleet through the development and assessment of hydrogen and battery electronic solutions.

How is Chinese steel production going?

Fortescue said that Chinese crude steel production was 1,065mt for the 2020 calendar year and 271mt in the first quarter of 2021, an increase of 15.6% compared to the prior corresponding period in 2020.

The miner said that underlying demand for iron ore remains strong and in conjunction with seasonally weaker supply, index prices strengthened during the March quarter. Despite, or because of, COVID-19 impacts. 

Financial position

Fortescue finished the quarter with US$3.6 billion at 31 March 2021 after paying US$3.5 billion for the FY21 interim dividend and US$909 million of capital expenditure.

Fortescue Future Industries (FFI) continues to assess renewable energy and green hydrogen opportunities globally. It’s going through a number of decarbonisation projects right now. One is developing a ship design powered by green ammonia and trialling that design in new ammonia engine technology, at scale. Another is testing large battery technology in Fortescue’s haul trucks.

What to make of the Fortescue share price

Different brokers have different thoughts on the iron ore miner.

UBS has a price target on Fortescue of $18, with expectations of a lower iron ore price in the coming months and years.

Morgan Stanley thinks the miner is a sell with a price target of $16.10.

However, at the other end, Ord Minnett has a price target of $28. But, the broker notes that cost pressures are emerging. Even so, the amount of shipping for this quarter was below the analyst’s estimate.

More reading

• Why supply and demand is the enemy of ASX resources shares
• Brokers name 3 ASX shares to buy now
• The Fortescue (ASX:FMG) share price has boosted 13% this month
• Not too late to buy these small ASX mining shares for the commodities boom
• Top broker slaps sell rating on Fortescue (ASX:FMG) share price

Motley Fool contributor Tristan Harrison owns shares of Fortescue Metals Group Limited. 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 Bruce Jackson.

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ASX resources shares like BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) are uber-popular right now. And very understandably so. Over just the past month, Fortescue has added more than 13% to its market capitalisation, and BHP 6%. 

These ASX resources blue chips have also been some of the S&P/ASX 200 Index (ASX: XJO)’s best performers over the past year or so, well outperforming other blue chip shares like Woolworths Group Ltd (ASX: WOW) and the big four banks.

But the performance of Beach Energy Ltd (ASX: BPT) today has brought the viability of investing in ASX resources shares into focus today. Beach shares have shed a nasty 20% today. That’s a fifth of its value gone in just a few hours.

Why the drop? Well, it was a response to Beach’s quarterly update, which we pulled apart this morning. In a nutshell, oil production dropped 5% quarter-on-quarter, and 15% in the same quarter last year. 

Supply and demand: The master of ASX resource shares

It’s part of a problem all ASX resources shares face: supply and demand. All miners and drillers are beholden to these same forces. Companies have to ensure their own supply streams for one. If production falters, there’s simply less money in the bank. Contrast that to a company like Apple Inc (NASDAQ: AAPL). If iPhone supplies diminished, it would likely result in a supply squeeze, which may even spark higher prices. Beach, or BHP, or Fortescue, cannot do the same because, unlike Apple, they have no control over the global market of their products.

Further, supply and demand always ensure that the prices of the commodities remain balanced to a degree. Apple can raise its iPhone prices every year, compounding on each other over time. Commodities don’t work like that. If iron ore prices are high (as they are now), the market pricing mechanism encourages producers to open up new mines and expand production. Over time, this inevitable increase in supply tends to bring the price back to a median. Once again, we see that resources companies are not in control of their own destiny like Apple is. Once the cycle comes full circle and prices are depressed, it does encourage the uncompetitive players to get out of the market, helping the largest incumbents. But waiting for this process to play out while prices are low is a long and costly endeavour. 

Foolish takeaway

Supply and demand are factors that are always at play with ASX resources shares – and often work against the shareholder. Of course, if an investor can time a commodity cycle well, or find a truly top-notch producer at a good price, there’s plenty of upside in this space to take advantage of. But it can often be a tricky path to walk.

More reading

• Why Beach Energy, Bigtincan, Pointerra, & ResMed are sinking today
• Brokers name 3 ASX shares to buy now
• The Fortescue (ASX:FMG) share price has boosted 13% this month
• The Beach Energy (ASX:BPT) share price has imploded, down 22%
• ASX 200 down 0.6%: ResMed lower on Q3 update, Beach Energy crashes 23%

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple and recommends the following options: short March 2023 $130 calls on Apple and long March 2023 $120 calls on Apple. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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