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Encompass Health Corporation (NYSE:EHC): Time For A Financial Health Check
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Mid-caps stocks, like Encompass Health Corporation ( NYSE:EHC ) with a market capitalization of US$6.0b, arent the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. However, generally ignored mid-caps have historically delivered better risk adjusted returns than both of those groups. EHCs financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns. Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis into EHC here . View our latest analysis for Encompass Health Does EHC Produce Much Cash Relative To Its Debt? EHC's debt levels surged from US$2.6b to US$2.9b over the last 12 months , which includes long-term debt. With this increase in debt, EHC currently has US$56m remaining in cash and short-term investments to keep the business going. On top of this, EHC has produced cash from operations of US$706m in the last twelve months, leading to an operating cash to total debt ratio of 25%, meaning that EHCs current level of operating cash is high enough to cover debt. Can EHC meet its short-term obligations with the cash in hand? With current liabilities at US$768m, the company may not be able to easily meet these obligations given the level of current assets of US$683m, with a current ratio of 0.89x. The current ratio is calculated by dividing current assets by current liabilities. NYSE:EHC Historical Debt, June 18th 2019 Does EHC face the risk of succumbing to its debt-load? EHC is a highly-leveraged company with debt exceeding equity by over 100%. This is not uncommon for a mid-cap company given that debt tends to be lower-cost and at times, more accessible. We can test if EHCs debt levels are sustainable by measuring interest payments against earnings of a company. Ideally, earnings before interest and tax (EBIT) should cover net interest by at least three times. For EHC, the ratio of 4.7x suggests that interest is appropriately covered, which means that debtors may be willing to loan the company more money, giving EHC ample headroom to grow its debt facilities. Story continues Next Steps: Although EHCs debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet debt obligations which means its debt is being efficiently utilised. However, its low liquidity raises concerns over whether current asset management practices are properly implemented for the mid-cap. I admit this is a fairly basic analysis for EHC's financial health. Other important fundamentals need to be considered alongside. I suggest you continue to research Encompass Health to get a more holistic view of the stock by looking at: Future Outlook : What are well-informed industry analysts predicting for EHCs future growth? Take a look at our free research report of analyst consensus for EHCs outlook. Valuation : What is EHC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether EHC is currently mispriced by the market. Other High-Performing Stocks : Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here . We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Palestinian finances near collapse as cuts deepen - monetary chief
By Suleiman Al-Khalidi
AMMAN (Reuters) - Palestinian finances are on the brink of ruin after the suspension of hundreds of millions of dollars of U.S. aid, the head of the Palestine Monetary Authority (PMA) said on Tuesday.
The mounting financial pressures on the Palestinians' self-ruling entity have sent its debt soaring to $3 billion, and led to a severe contraction in its estimated $13 billion GDP economy for the first time in years, Azzam Shawwa told Reuters.
"We are now going through a critical point," Shawwa said with respect to Palestinian President Mahmoud Abbas's Western-backed Authority, which exercises limited self-government in the Israeli-occupied West Bank.
"What's next, we don't know. How we are going to pay salaries next month? How are we going to finance our obligations? How will daily life continue without liquidity in the hands of people?" said the head of the PMA, the Palestinians' equivalent of a central bank.
"I don't know where we are heading. This uncertainty makes it difficult to plan for tomorrow," Shawwa said during a visit to neighbouring Jordan.
The steep cuts in U.S. aid over the past year were widely seen as an attempt to pressure the Palestinian Authority (PA) back to the negotiating table after it cut off political dealings with the Trump administration in 2017.
That move followed President Donald Trump's decision to recognise Jerusalem as the capital of Israel, and to move the American embassy to the city despite its internationally disputed status, reversing decades of U.S. policy and practice.
The White House is eager for Palestinians to engage with a long-delayed Middle East peace plan drawn up by Trump's son-in-law Jared Kushner.
The plan's economic component is due to be unveiled at a conference in Bahrain next week, which the Palestinians are boycotting, citing pro-Israel bias by Washington.
DONOR PLEDGES
Worsening the Palestinian Authority's plight, Shawwa said, Arab countries had failed to honour their donor pledges, providing just $40 million a month, which barely dented the PA's financing gap. Half of that sum came from Saudi Arabia.
The Palestinian Authority has had to increase borrowing from 14 banks to weather the crisis, Shawwa said. Around a third of the $8.5 billion in bank loans and facilities is owed by the PA, and the remainder by the private sector.
"Without that (borrowing) there would have been a financial collapse. I have worries for the first time over financial stability," Shawwa said.
The once flourishing West Bank economy, which saw 3.3 percent average growth in recent years, has now gone into the red, Shawwa said.
The sudden layoff of thousands of people once dependent on U.S.-financed projects worsened government finances through lower tax collections and resulted in higher defaults on bank loans from troubled firms, he added.
"We are being fought by the most important power in the world," Shawwa said, alluding to the Trump administration.
The only thing staving off a major economic crisis was cash earned by the over 100,000 Palestinians who work in Israel, and remittances from Palestinians working abroad.
Shawwa, who has been invited to attend the Bahrain conference, said it was difficult to see how any plan would go ahead without willing Palestinian partners.
"Is it in the interest of America to break the Palestinian economy?" he said.
(Reporting by Suleiman Al-Khalidi; Editing by Mark Heinrich) |
Does The Quad/Graphics, Inc. (NYSE:QUAD) Share Price Tend To Follow The Market?
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If you own shares in Quad/Graphics, Inc. (NYSE:QUAD) then it's worth thinking about how it contributes to the volatility of your portfolio, overall. In finance, Beta is a measure of volatility. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories. The first category is company specific volatility. This can be dealt with by limiting your exposure to any particular stock. The second sort is caused by the natural volatility of markets, overall. For example, certain macroeconomic events will impact (virtually) all stocks on the market.
Some stocks see their prices move in concert with the market. Others tend towards stronger, gentler or unrelated price movements. Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). However, Warren Buffett said 'volatility is far from synonymous with risk' in his 2014 letter to investors. So, while useful, beta is not the only metric to consider. To use beta as an investor, you must first understand that the overall market has a beta of one. A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.
See our latest analysis for Quad/Graphics
Zooming in on Quad/Graphics, we see it has a five year beta of 1.8. This is above 1, so historically its share price has been influenced by the broader volatility of the stock market. If the past is any guide, we would expect that Quad/Graphics shares will rise quicker than the markets in times of optimism, but fall faster in times of pessimism. Beta is worth considering, but it's also important to consider whether Quad/Graphics is growing earnings and revenue. You can take a look for yourself, below.
With a market capitalisation of US$480m, Quad/Graphics is a very small company by global standards. It is quite likely to be unknown to most investors. It takes less money to influence the share price of a very small company. This may explain the excess volatility implied by this beta value.
Beta only tells us that the Quad/Graphics share price is sensitive to broader market movements. This could indicate that it is a high growth company, or is heavily influenced by sentiment because it is speculative. Alternatively, it could have operating leverage in its business model. Ultimately, beta is an interesting metric, but there's plenty more to learn. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as Quad/Graphics’s financial health and performance track record. I urge you to continue your research by taking a look at the following:
1. Financial Health: Are QUAD’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here.
2. Past Track Record: Has QUAD been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look atthe free visual representations of QUAD's historicalsfor more clarity.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Nvidia To Partner With Volvo On Self-Driving Trucks
TheVolvo GroupandNvidiaCorporation(NASDAQ:NVDA) have announced a joint partnership to develop artificial intelligence (AI) for self-driving trucks.
Work will begin immediately in Gothenburg, Sweden and Santa Clara, California.
The announcement comes a week after Volvo, the world's second-largest truck maker after Daimler,said its self-driving truck "Vera" would begin transporting goods from a logistics center to a port terminalin Gothenburg in collaboration with logistics firm DFDS.
Nvidia, along with Intel, dominates the AI chip market. The partnership with Volvo will focus on the development of a flexible, scalable autonomous driving system, which is planned to be used first in commercial pilots and later in commercial offerings from the Volvo Group.
"Automation creates real-life benefits for both our customers and the society in terms of safety, energy efficiency, and as a consequence, productivity. We continue to gradually introduce automated applications in the entire spectrum of automation, from driver support systems to fully autonomous vehicles and machines. This partnership with Nvidia is an important next step on that journey," said Martin Lundstedt, president and CEO of the Volvo Group, in a statement.
The collaboration will be built on Nvidia's full software stack for sensor processing, perception, map localization and path planning, enabling a wide range of possible autonomous driving applications, such as freight transport, refuse and recycling collection, public transport, construction, mining, forestry and more.
"Trucking is the world's largest network – a network that through online shopping puts practically anything, anywhere in the world, quickly within our reach," says Jensen Huang, Nvidia founder and CEO. "The latest breakthroughs in AI and robotics bring a new level of intelligence and automation to address the transportation challenges we face. We are thrilled to partner with Volvo Group to reinvent the future of trucking."
The strategic partnership covers end-to-end computing fundamental to autonomous vehicles. It includes accelerated computing technology in the datacenter for training deep neural networks; large-scale simulation for hardware-in-the-loop testing and validation of autonomous vehicle systems; and finally deployment of the NVIDIA DRIVE platform in the vehicle running the full software stack for 360-degree sensor processing, mapping and path planning.
Image Sourced From Pixabay
See more from Benzinga
• Kango, A Ride-Sharing Service For School-Age Kids, Raises .6M In Series A
• Automatic Routing Is The Secret To Reducing Time-Critical Shipment Delays
• Ocean Rate Report: Tanker Earnings Jump After Attacks
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
Advanzeon Solutions, Inc. Brings Financial Filings Current
TAMPA, FL / ACCESSWIRE / June 18, 2019 /Advanzeon Solutions, Inc. (OTC PINK: CHCR) ("Advanzeon" or the "Company") announced today that on Friday, June 14, 2019, it filed its required SEC 10-Q for the first quarter of 2019. The significance of this filing is that, among other things, it brings the Company current in its financial filings, providing its shareholders with increased liquidity and the ability to more freely trade the Company's stock. The filing also references an agreement signed by the Company with Concentra Health Services, Inc. ("Concentra"), which the Company believes will bring substantial value to the Company on a going-forward basis. To view the Company's 10-Q, go tohttps://www.sec.gov/Archives/edgar/data/22872/000121390019010754/f10q0319_advanzeonsolutions.htm.
Clark A. Marcus, the Company's CEO, stated, "This filing represents the result of a tremendous effort by the Company's staff and, in particular, its accounting department, who worked diligently over the last few years to bring the Company's financial filings up to date. Management believes that effort was well spent in that the Company has experienced a consistent expansion of its national footprint in the sleep apnea universe; has established a premier position in this space; and, has become, what we believe to be, the national leader in sleep apnea screening, testing and treatment - especially in the transportation industry. We are confident that the efforts to bring the Company's financials current and place the Company in an expansion mode, as we have done, will bear fruits for our shareholders in the very near future."
About Advanzeon Solutions, Inc.
Advanzeon Solutions, Inc. (CHCR) through its subsidiary, owns and operates the nation's most complete sleep apnea program known as SleepMaster Solutions™ (the "Program"). Headquartered in Tampa, Florida, the Company's Program is available in all fifty states and Washington D.C. The Program focuses on personalized attention, flexibility, a commitment to high-quality services and innovative approaches that address both the specific needs of clients and changing healthcare industry demands. For more information, visit our website atwww.advanzeon.com.
Safe Harbor Statement
This press release contains forward-looking statements that are subject to risks and uncertainties. These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, results of operations, plans and objectives. In some cases, you may identify forward-looking statements by words such as "may," "should," "plan," "intend," "potential," "continue," "believe," "expect," "predict," "anticipate" and "estimate," the negative of these words or other comparable words. These statements are only predictions. One should not place undue reliance on these forward-looking statements. The forward-looking statements are qualified by their terms and/or important factors, many of which are outside the Company's control, involve a number of risks, uncertainties and other factors that could cause actual results and events to differ materially from the statements made. The forward-looking statements are based on the Company's beliefs, assumptions and expectations of our future performance, taking into account information currently available to the Company. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to the Company. Neither the Company nor any other person assumes responsibility for the accuracy or completeness of these statements. The Company will update the information in this press release only to the extent required under applicable securities laws. If a change occurs, the Company's business, financial condition, liquidity and results of operations may vary materially from those expressed in the aforementioned forward-looking statements.
Contact:
Philip PulverCommunications Director509-607-7229ppulver@pvmsco.com
SOURCE:Advanzeon Solutions, Inc.
View source version on accesswire.com:https://www.accesswire.com/549144/Advanzeon-Solutions-Inc-Brings-Financial-Filings-Current |
Is There An Opportunity With The Brink's Company's (NYSE:BCO) 47% Undervaluation?
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Today we will run through one way of estimating the intrinsic value of The Brink's Company (NYSE:BCO) by taking the foreast future cash flows of the company and discounting them back to today's value. I will use the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward.
We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model.
See our latest analysis for Brink's
We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars:
[{"": "Levered FCF ($, Millions)", "2019": "$218.80", "2020": "$286.30", "2021": "$356.00", "2022": "$413.04", "2023": "$462.74", "2024": "$505.51", "2025": "$542.36", "2026": "$574.47", "2027": "$602.99", "2028": "$628.88"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x3", "2020": "Analyst x3", "2021": "Analyst x1", "2022": "Est @ 16.02%", "2023": "Est @ 12.03%", "2024": "Est @ 9.24%", "2025": "Est @ 7.29%", "2026": "Est @ 5.92%", "2027": "Est @ 4.96%", "2028": "Est @ 4.29%"}, {"": "Present Value ($, Millions) Discounted @ 8.49%", "2019": "$201.69", "2020": "$243.26", "2021": "$278.82", "2022": "$298.19", "2023": "$307.94", "2024": "$310.09", "2025": "$306.67", "2026": "$299.42", "2027": "$289.70", "2028": "$278.51"}]
Present Value of 10-year Cash Flow (PVCF)= $2.81b
"Est" = FCF growth rate estimated by Simply Wall St
The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 2.7%. We discount the terminal cash flows to today's value at a cost of equity of 8.5%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$629m × (1 + 2.7%) ÷ (8.5% – 2.7%) = US$11b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$11b ÷ ( 1 + 8.5%)10= $4.97b
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $7.79b. To get the intrinsic value per share, we divide this by the total number of shares outstanding.This results in an intrinsic value estimate of $156.11. Relative to the current share price of $82.21, the company appears quite good value at a 47% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind.
The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Brink's as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.5%, which is based on a levered beta of 0.966. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For Brink's, I've put together three relevant factors you should further examine:
1. Financial Health: Does BCO have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Future Earnings: How does BCO's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with ourfree analyst growth expectation chart.
3. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of BCO? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing!
PS. Simply Wall St updates its DCF calculation for every US stock every day, so if you want to find the intrinsic value of any other stock justsearch here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
UPDATE 1-Wells Fargo parent is dismissed from lawsuit by Philadelphia, Baltimore
(Adds details on other Wells Fargo entities remaining defendants, other banks in 3rd paragraph)
NEW YORK, June 18 (Reuters) - Wells Fargo & Co was dismissed as a defendant in a lawsuit brought by the cities of Philadelphia and Baltimore, which accused large banks of conspiring to inflate interest rates for variable-rate demand obligations (VRDO), a type of tax-exempt bond.
The dismissal came after Wells Fargo represented that it did not remarket, provide letters of credit for, or manage money market funds that invested in the bonds, according to a Tuesday filing in federal court in Manhattan.
Other Wells Fargo entities remain defendants. Goldman Sachs Group Inc and JPMorgan Chase & Co were previously dismissed from the case, though affiliates of those banks remain defendants, according to court records.
The remaining defendants include Bank of America Corp , Barclays Plc, Citigroup Inc, and Royal Bank of Canada, the records showed.
Philadelphia, which said it issued more than $1.6 billion of VRDOs, and Baltimore, which said it issued $261 million, stated that the collusion enabled banks to collect hundreds of millions of dollars in fees they did not earn.
The cities said this reduced critical funding for hospitals, power and water supplies, schools, transportation and other municipal services. Their proposed class action covers the period from February 2008 to June 2016.
The case is Philadelphia et al v Bank of America Corp et al, U.S. District Court, Southern District of New York, No. 19-01608. (Reporting by Jonathan Stempel in New York; Editing by Bernadette Baum and Jeffrey Benkoe) |
The Last Black Man in San Francisco Reveals the Complexity of Masculinity
To the naked eye, The Last Black Man In San Francisco ’s title may read a bit vague. The film, by newcomer Joe Talbot, explores the friendship of Jimmie Fails (Jimmie Fails) and Montgomery Allen (Jonathan Majors) as they attempt to overcome the personal and structural obstacles against them as black men in an increasingly gentrified San Francisco. By exhibiting their complexity as caregivers and artists, the highly-acclaimed film shows that black men can find home and resolution through the love and truth that they share with each other. But let's give some background context. Inspired by the real-life friendship of Joe and lead actor, Jimmie — who both grew up in San Francisco and often walked through the city together as teenagers — the film shows how gentrification has changed the northern California city but also challenges black manhood when societal roles aren't fulfilled. Both artists and caregivers in their own right, Jimmie and Montgomery are each other’s support systems. Jimmie uses his skills as a carpenter to repair his family’s old home, encourages Montgomery’s writing, and works as an assistant in a retirement home. Montgomery, an aspiring playwright, observes a group of black friends in the neighborhood, sketches the characters and buildings around him — while his day-to-day is working at a fish market and caring for his nearly blind grandfather. The Last Man in San Francisco Isiain Lalime, Antoine Redus, Jeivon Parker, Jordan Gomes, and Jamal Truelove David Moir, Courtesy of A24 "I thought it was fresh, a story about marginalized people within a marginalized culture and community," Jonathan Majors, the actor that portrays Montgomery says in a statement. "Jimmie and Mont are not running around doing things young black men like them typically do." Abandoned emotionally by his father and physically by his mother, Jimmie spends most of the film in the lure of his family’s beautiful, Victorian home in a newly gentrified Fillmore District, instead of fixating on how to be his most authentic self. Story continues The beauty of the film is that beyond gentrification — a hot button issue in the Bay area — it explores how identity is often intimately tied to home or a geographical location. Beautifully lit and slow moving, The Last Man in San Francisco implores viewers to feel how it is to slowly lose everything that’s woven into the fabric of a man. In The Fire Next Time , James Baldwin somewhat describes this dilemma. “Perhaps the whole root of our trouble, the human trouble, is that we will sacrifice all the beauty of our lives, will imprison ourselves in totems, taboos, crosses, blood sacrifices, steeples, mosques, races, armies, flags, nations, in order to deny the fact of death, which is the only fact we have,” Balwin writes. It is friendship and confronting the consequences of how restrictive black masculinity can be that ultimately liberates Jimmie. When a friend is shot and killed, Jimmie tells Montgomery, “I feel that could have been me if not for this house,” clinging on to the old home as a sense of divine privilege that separates him from his peers. All the young black men in the film recognize how performing masculinity works as a shield against hurt, but in a twist of fate, also experience the freedom in giving into vulnerability. “This movie, outside of being about gentrification, that shows black men in a vulnerable sense, but not in the back of a police car,” stated Tichina Arnold, who portrayed Wanda Fails in the film, during a KTLA 5 interview , “I usually say [that] black men are everything because they have so many facets to them that we don’t normally get to see because of the media.” In the canon of recent films like Moonlight , Native Son , and even Blindspotting by fellow Oakland filmmaker Daveed Diggs, The Last Man in San Francisco stands firm in progressing the narrative around black men in an unforgiving world. Originally Appeared on Teen Vogue |
U.S. agency to vote on auctioning key unused parts of 2.5 GHz band for 5G
By David Shepardson
WASHINGTON (Reuters) - The U.S. Federal Communications Commission will vote in July on whether to auction a key band of largely unused 2.5 GHz spectrum to help advance next-generation 5G wireless networks and scrap requirements that it be used for education, the agency said on Tuesday.
The FCC in May 2018 voted to consider releasing additional key 2.5 GHz mid-band spectrum reserved in the 1960s for what is now known as the Educational Broadband Service.
FCC Chairman Ajit Pai said in a statement the proposal would give existing users more flexibility in how they use the spectrum. "Valuable mid-band spectrum available for new mobile services will allow for more efficient and effective use of these airwaves and will advance U.S. leadership in 5G," he added.
Pai said last year the FCC was seeking to ensure that existing users would retain spectrum, give some entities a chance to obtain new licenses "and then auctioning off the remaining white spaces." Reuters reported the auction plans earlier on Tuesday.
Sprint Corp uses leased spectrum in the 2.5 GHz band in its existing 4G network and 5G network that it is being rolled out. That spectrum is a key part of Sprint and T-Mobile US Inc's proposed $26 billion tie-up and 5G plan, and is not directly affected by the auction, FCC officials said.
The U.S. Education Department in a June 7 letter told the FCC it should maintain an "educational use requirement" for that spectrum and suggested setting aside revenue from license sales to help students who lack the internet access required to do their homework.
The FCC proposal would remove that educational requirement, officials told reporters on a conference call. It did not provide an auction timetable but said the proposal would establish a "competitive bidding window." Several FCC auctions are planned this year, the agency added.
FCC Commissioner Brendan Carr last year noted that the 2.5 GHz band is unused in about half the country, and more than 90% of the licenses held by educational institutions are leased to other entities.
Carr said those arrangements show "many educational institutions have contracted with those providers so that each can focus on what it does best: the former can educate
students, and the latter can build wireless networks."
The FCC also plans to vote next month on revising its children's television programming rules, it said in a statement.
(Reporting by David Shepardson; Editing by Richard Chang) |
Did QCR Holdings, Inc. (NASDAQ:QCRH) Insiders Buy Up More Shares?
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares inQCR Holdings, Inc.(NASDAQ:QCRH).
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
See our latest analysis for QCR Holdings
In the last twelve months, the biggest single purchase by an insider was when Director Michael Peterson bought US$670k worth of shares at a price of US$33.51 per share. So it's clear an insider wanted to buy, at around the current price, which is US$33.86. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.
Over the last year, we can see that insiders have bought 22974 shares worth US$771k. On the other hand they divested 1861 shares, for US$78k. In the last twelve months there was more buying than selling by QCR Holdings insiders. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at thisfreelist of companies. (Hint: insiders have been buying them).
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. QCR Holdings insiders own about US$34m worth of shares. That equates to 6.4% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
The fact that there have been no QCR Holdings insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think QCR Holdings insiders are doubting the company, and they do own shares. Therefore, you should should definitely take a look at thisFREEreport showing analyst forecasts for QCR Holdings.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Acting Defense Secretary Patrick Shanahan Steps Down, Citing 'Painful' Family Situation
After months of unexplained delays, Acting Defense Secretary Patrick Shanahan stepped down Tuesday before his formal nomination ever went to the Senate, citing a “painful” family situation that would hurt his children and reopen “wounds we have worked years to heal.”
President Donald Trump announced Shanahan’s departure in a tweet, and said that Army Secretary Mark Esper would be the new acting Pentagon chief.
“It is unfortunate that a painful and deeply personal family situation from long ago is being dredged up and painted in an incomplete and therefore misleading way in the course of this process,” Shanahan said in a statement. “I believe my continuing in the confirmation process would force my three children to relive a traumatic chapter in our family’s life and reopen wounds we have worked years to heal. Ultimately, their safety and well-being is my highest priority.”
He provided no other details.
As a result, he said he asked to be withdrawn from the nomination process and he resigned from his previous post as deputy defense secretary. He said he would work on an “appropriate transition” but it wasn’t clear how quickly he will leave the job.
In his tweet, Trump simply said that Shanahan had done “a wonderful job” but would step aside to “devote more time to his family.”
And, in noting Esper’s move, Trump added, “I know Mark, and have no doubt he will do a fantastic job!”
The post atop the Pentagon has not been filled permanently since Gen. James Mattis retired in January following policy differences with Trump.
Trump announced in May that he would nominate Shanahan but the formal nomination process in the Senate had been inexplicably delayed
Shanahan, a formerBoeingexecutive, has been leading the Pentagon as acting secretary since Jan. 1, a highly unusual arrangement for arguably the most sensitive Cabinet position.
His in tenure at the department he’s had to deal with a wide array of international hotspots, ranging from missile launches by North Korea to the sudden shift of military ships and aircraft to the Middle East to deal with potential threats from Iran.
Shanahan, 56, had extensive of experience in the defense industry but little in government. In more than four months as the acting secretary, he focused on implementing the national defense strategy that was developed during Mattis’ tenure and emphasizes a shift from the resources and tactics required to fight small wars against extremist groups to what Shanahan calls “great power” competition with China and Russia.
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World Bank: China's Belt and Road can speed development, needs transparency
By David Lawder
WASHINGTON (Reuters) - China’s massive Belt and Road infrastructure drive could speed up economic development and reduce poverty for dozens of developing countries, the World Bank said on Tuesday in a new report that called for deep policy reforms and more transparency for the initiative.
The long-delayed report said that the Belt and Road - a string of ports, railways, roads and bridges and other investments connecting China to Europe via central and southern Asia - could lift 32 million people out of moderate poverty conditions if implemented fully.
Still, there are "significant risks," the World Bank said.
"Achieving the ambitions of the Belt and Road Initiative will require equally ambitious reforms from participating countries," Ceyla Pazarbasioglu, World Bank vice president for equitable growth, said in a statement.
"Improvements in data reporting and transparency - especially around debt - open government procurement, and adherence to the highest social and environmental standards will help significantly," she added.
The World Bank's new president, David Malpass, skipped China's second Belt and Road summit in Beijing in April to take his first foreign trip to Africa instead. Malpass was a critic of Belt and Road when he was an official at the U.S. Department of the Treasury, arguing that it was saddling some countries with unsustainable debts.
The report found that for some countries, the costs of new infrastructure could outweigh potential economic gains and the benefits would be unevenly distributed among participating countries.
Real income gains in the Kyrgyz Republic, Pakistan, and Thailand could be above 8 percent, but Azerbaijan, Mongolia and Tajikistan could experience negative welfare gains due to high infrastructure costs, the analysis showed.
The World Bank said real income for Belt and Road corridor economies could be two to four times larger if they ease trade restrictions and institute reforms to reduce border delays.
Increased private-sector participation in Belt and Road, now dominated by China's state-owned banks and enterprises, can help sustain the initiative in the long run, but participating countries would need to institute reforms to improve their investment climates, including stronger legal protections and regulations, the report said.
"Little is known about the processes for selecting firms" for Belt and Road projects, the report said. "Moving toward international good practices such as open and transparent public procurement would increase the likelihood that BRI projects are allocated to the firms best placed to implement them."
There was also a need to increase transparency of debt terms and conditions for Belt and Road projects to allow governments to assess the risks to their ability to sustain debt, the report said.
(Additional reporting by Chris Prentice; Editing by Steve Orlofsky, Cynthia Osterman) |
Analyst Says Facebook’s Crypto Can See Bigger Adoption Than Bitcoin
ByCCN Markets: On June 18,Facebookand the Libra Association formally announced their plans to release Libra, a crypto asset backed by the Libra Reserve to maintain a stable value.
By 2020, Facebook has said itplans to integrateCalibra, a crypto wallet designed to support Libra, into WhatsApp and Messenger, introducing the asset to billions of users worldwide by 2020.
Early preview of Calibra crypto wallet. | Source: Facebook Newsroom
According to Michael Levine of Pivotal Research, Libra could see bigger mainstream adoption than bitcoin, especially among merchants due to its stable value. But, are Libra and bitcoin comparable?
At CNBC’s Closing Bell, Levine indicated that Libra and bitcoin are serving different markets of users and investors.
Read the full story on CCN.com. |
Is Nexstar Media Group, Inc. (NASDAQ:NXST) Excessively Paying Its CEO?
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In 1996 Perry Sook was appointed CEO of Nexstar Media Group, Inc. (NASDAQ:NXST). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Nexstar Media Group
At the time of writing our data says that Nexstar Media Group, Inc. has a market cap of US$4.6b, and is paying total annual CEO compensation of US$15m. (This figure is for the year to December 2018). That's actually a decrease on the year before. While we always look at total compensation first, we note that the salary component is less, at US$1.5m. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$5.3m.
It would therefore appear that Nexstar Media Group, Inc. pays Perry Sook more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Nexstar Media Group has changed over time.
Nexstar Media Group, Inc. has increased its earnings per share (EPS) by an average of 54% a year, over the last three years (using a line of best fit). It achieved revenue growth of 11% over the last year.
This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to checkthis free visual depiction ofwhat analysts expectfor the future.
I think that the total shareholder return of 115%, over three years, would leave most Nexstar Media Group, Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
We examined the amount Nexstar Media Group, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate. So you may want tocheck if insiders are buying Nexstar Media Group shares with their own money (free access).
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Umpires union blasts league, Machado after confrontation
A day after suspending San Diego Padres star Manny Machado, Major League Baseball is now defending him against social media attacks from the umpires union. On Monday, Machado was suspended one game and fined by Major League Baseball after he “aggressively” argued a strike-three call over the weekend, making contact with the umpire and throwing his bat after he was ejected from the game. On Tuesday, the Major League Baseball Umpires Association gassed up its social media accounts to make it known in no uncertain terms that it doesn’t think the one-game suspension for Machado was enough. The umpires union called MLB’s decision a “disgrace to the game.” Hours later, MLB issued its own statement saying it didn’t feel that the umpires union chiming in was appropriate. Machado, meanwhile, is appealing and thinks a review of what happened will nullify his suspension. You can see the entire incident in the video above — including the called third strike with which Machado disagreed. He was certainly upset, but we see players get mad at umpires quite a bit. Machado throwing his bat was in excess of what usually happens in these situations, so that’s likely what contributed to the suspension. Let’s dissect all the fallout from this in order. Here’s the umpires union’s tweet and statement about Machado: #Disappointed #LeadByExample #NotAppreciated #Violence #TemperTantrum #Inaction #NotTolerated #MakeanExampleof #OneGameSuspension #RepeatOffender #Nonsense #MLBUA @MLB @Padres @Buster_ESPN pic.twitter.com/pkcW5O1SnB — Major League Baseball Umpires Association (@MLBUA) June 18, 2019 If all those hashtags weren’t enough, the the umpires union also went into greater detail on its Facebook page , including calling the suspension “a slap in the face of all umpires and a disgrace to the game itself.” Here’s the whole thing: Story continues “Manny Machado was suspended one game for contact to an umpire during an argument over balls and strikes, while violently throwing his bat against the backstop, with absolutely no regard to anyone’s safety. One game..one single game. What kind of precedent is that setting? It is NOT okay to throw a temper tantrum and physically touch someone of authority, just because you don’t agree. Violence in all workplaces is not tolerated. Period. Offenders are made examples of by being dealt with severely; not just for the good of all the employees, but for the good of the company itself. A person is given and granted a level of protection from abusive behavior in any workplace. A one game suspension for this type of behavior is a slap in the face of all umpires and a disgrace to the game itself. Physical contact simply cannot be tolerated, and the penalties need to be swift and harsh. What does this teach the MLB’s immense and ongoing influential youth movement trying to attract young fans to the game? Major League Baseball has to always lead by example in all cases of violent behavior, on and off the field. With that being said, the MLBUA is extraordinarily disappointed in Major League Baseball in its disciplinary ‘inaction’ handed down to Manny Machado.” That led to MLB’s statement, which calls the MLBUA’s social media posts “inappropriate” and said the comparison to workplace violence is unfair. “Manny Machado was suspended by MLB Chief Baseball Officer Joe Torre, who considered all the facts and circumstances of Machado’s conduct, including precedent, in determining the appropriate level of discipline. Mr. Machado is appealing his suspension and we do not believe it is appropriate for the union representing Major League Umpires to comment on the discipline of players represented by the Players Association, just as it would not be appropriate for the Players Association to comment on disciplinary decisions made with respect to umpires. We also believe it is inappropriate to compare this incident to the extraordinarily serious issue of workplace violence.” Meanwhile, Machado disputes that he made contact with umpire Bill Welke, Machado, who elected to appeal the suspension, told MLB.com’s AJ Cassavell on Monday : "I didn't think I touched him," said Machado. "The video says it all. We're going to appeal it, and we think we've got a good case." Machado was in the Padres’ lineup on Monday night and is allowed to play until his suspension is heard. He homered in Monday’s game and, in a bit of coincidence, hit a line drive that struck umpire second-base umpire Chris Segal. That one, he can’t get suspended for. MLB home plate umpire Bill Welke (3) ejects and San Diego Padres shortstop Manny Machado (13) during the fifth inning against the Colorado Rockies at Coors Field. (Ron Chenoy-USA TODAY Sports) ——— Mike Oz is a writer for Yahoo Sports. Have a tip? Email him at mikeozstew@yahoo.com or follow him on Twitter! Follow @mikeoz More from Yahoo Sports: Women’s World Cup about to get tougher for USWNT Report: Kyrie has ‘essentially ghosted’ Celtics Prosecutors identify man allegedly behind Ortiz plot How does Davis trade compare to other NBA mega-deals? |
Should You Be Worried About Insider Transactions At Waters Corporation (NYSE:WAT)?
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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares inWaters Corporation(NYSE:WAT).
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
View our latest analysis for Waters
Over the last year, we can see that the biggest insider sale was by the Independent Director, Michael Berendt, for US$719k worth of shares, at about US$240 per share. That means that an insider was selling shares at around the current price of US$205. While we don't usually like to see insider selling, it's more concerning if the sales take price at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
In the last twelve months insiders netted US$2.2m for 10051 shares sold. In the last year Waters insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Waters insiders own 4.8% of the company, currently worth about US$689m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
There haven't been any insider transactions in the last three months -- that doesn't mean much. While we feel good about high insider ownership of Waters, we can't say the same about the selling of shares. Therefore, you should should definitely take a look at thisFREEreport showing analyst forecasts for Waters.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Boeing signs first deal for 737 Max jet since deadly crashes
PARIS (AP) Boeing is selling its 737 Max planes again. The company announced at the Paris Air Show on Tuesday that International Airlines Group, the parent company of British Airways and other carriers, signed a letter of intent for 200 Boeing 737 aircraft. Boeing said it's the first sale of the jetliner since the crash of an Ethiopian Airlines 737 Max in March. Another 737 Max crashed in Indonesia last year. All planes of the same model are now grounded amid an investigation of problematic software. The letter of intent is subject to final agreement, but is a vote of confidence in Boeing as it struggles to win back trust from airlines, pilots, regulators and the traveling public. The combination of 737-Max 8 and 737-Max 10 planes would cost $24 billion at list prices, though companies usually strike deals for discounts. The planes would be delivered between 2023 and 2027 to airlines owned by IAG. IAG expressed optimism that regulators will allow amended Max jets to fly again soon. But it's unclear when that will be, notably for regulators outside the U.S. The Ethiopian Airlines and Lion Air crashes killed 346 people. Boeing executives started off the Paris Air Show on Monday with a sweeping apology to victims' families and airlines. Analysts had predicted that Boeing might try to announce some Max orders at the air show to demonstrate that the plane - one of Boeing's most popular models - still has support. Boeing depends heavily on the aircraft and has said it is costing at least $1 billion to address problems with the troubled jet. But the company has struggled to get a handle on the Max controversy. The CEO says Boeing botched communication with regulators and is promising more transparency. After lackluster sales in recent months, Boeing's orders picked up Tuesday. It announced a deal with Korean Air and Air Lease Corporation for a total of 30 long-range 787 jets, worth $6.3 billion at list prices. European rival Airbus also announced several orders Tuesday. Before announcing its Boeing Max deal, industry powerhouse IAG signed a firm order with Airbus for new A321XLR long-range jets, for its airlines Aer Lingus and Iberia. Story continues Airbus also reported sales to Delta Air Lines, Saudi Arabian Airlines and Atlantic Airways, and announced a feasibility study for vertical takeoff and landing aircraft that could shuttle visitors to the Paris 2024 Olympics. Both Airbus and Boeing face a slowing economy that tempered the mood at the air show . The companies, along with other manufacturers, came together Tuesday to promise more investment in reducing aviation emissions even as global air travel is expected to rise significantly in the decades to come. Plane makers are under increased pressure from regulators and passengers concerned about climate-damaging emissions. They are looking at hybrid, electric or hydrogen technology to eventually replace existing fuel. ___ David Koenig in Chicago contributed. |
4 Top Marijuana Penny Stocks to Take Seriously in 2019
[Editor’s Note: This story was previously published in February 2019. It has since been updated and republished.]
The 2018 midterm elections made clear that Americans preferred legalization over the continued prohibition of pot, which should bolster the case for the top marijuana penny stocks.
When residents in California voted for full recreational weed, it boded well not just for marijuana penny stocks, but for electoral momentum in other states and the midterms emphatically proved this point.
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In conservative Utah and Missouri, voters approved medical cannabis. But Michigan stood above the rest, becoming thetenth state to legalize recreational marijuana. Significantly, it’s also the first Midwestern state to approve such an initiative.
Previously embattled marijuana stocks likeCronos Group(NASDAQ:CRON),Aurora Cannabis(NYSE:ACB) andCanopy Growth(NYSE:CGC) received a much-needed boost in the markets and really have capitalized on it.
It’s not difficult to understand why many investors believe in weed. Not only does legal marijuana open doors to a previously inaccessible sector, it has proven economic benefits. The commonly cited case study is Colorado. In 2015, one year after green lighting cannabis businesses, the botanical industry nearly hit $1 billion in revenue. In 2016, it breached the threshold, and growth remains strong. Considering that so many states suffer from budget shortfalls, a little green could go a long way.
Plus, the sharp war of words and tariffs in U.S.-China trade relations amps up the case for marijuana penny stocks. Multiple industries, especially agriculture, are hurting. Full legalization provides an easy catalyst for economic activity and growth.
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Under this backdrop, gambling on top marijuana penny stocks is more compelling than jumping on any other speculative venture. While risks abound, these four sector players offer considerable upside possibilities.
A common difficulty in forecasting future price movements for top marijuana penny stocks is separating hype from reality. While almost every sector player advertises significant upside potential, most undercapitalized firms fail to deliver the goods.
I had high hopes forAuxly Cannabis(OTCMKTS:CBWTF) last year due to its unique business structure. Auxly earned bragging rights for becoming the first cannabis streaming company.
Energy and mining companies typically deploy the streaming model to gain full access to an industry’s supply chain without incurring unnecessary risk. In theory, streaming is the way to go for marijuana-related organizations. Even with Canada’s legalization initiative and U.S. electoral momentum, several legal and administrative hurdles exist. Streaming facilitates exposure to a lucrative industry, but with “stop gaps” should things go awry.
Unfortunately, the markets have not been kind to Auxly stock. Since its January opener, shares have lost more than half their equity value.
Nevertheless, I’m still hopeful that Auxly can pull it together. One of the major challenges for the company is that its streaming partners still encounter arguably unreasonable non-cannabis related obstacles. The biggest on the list is securing traditional financing, which stymies expansion efforts.
However, the cannabis industry is making steady steps toward mainstream institutional acceptance. And especially with the U.S.-China trade war heating up, even conservative administrations can’t afford overlooking a key revenue-maker.
A common stereotype about legal-cannabis advocates is that they have ulterior motives for their product evangelism. Although that could be the case, one thing is undeniable: many, if not most top marijuana penny stocks focus on botany’s medicinal aspect.
This is especially true forMPX International(OTCMKTS:MPXOF). MPX operatesthree brandsunder its corporate umbrella: Salus BioPharma, Health for Life and its namesake MPX.
The former two divisions specialize in medical-grade cannabis, while the latter caters to the green lifestyle. Salus is particularly intriguing as it represents a joint venture with Israeli pharmaceutical Panaxia to develop proprietary, smokeless cannabis products.
Another compelling driver for MPXOF stock is its recentpartnershipwith South Africa’sFirst Growth Holdings. Primarily, this is an attractive deal because South Africa provides ample land and inexpensive labor. Moreover, the country recently legalized weed, so it provides MPX with global revenue synergies. Granted, management must make investments to ensure thehigher-quality inventorywhich western connoisseurs desire. Nevertheless, the cost outlay should be very reasonable compared to other locales.
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That’s not to say you should jump on MPXOF stock without worries. The company isn’t what you would consider fundamentally sound. Still, with relatively stable market performance and an impressive growth rate, speculators will want to keep close tabs on MPX.
When Canada became thefirst G7 nationto approve recreational weed in October 2018, it actually forged the path forward for marijuana startups. As a result, the lion’s share of marijuana penny stocks is based in Canada.
A prime example isSupreme Cannabis Company(OTCMKTS:SPRWF). Supreme Cannabis, whose 7ACRES brand of medical-grade cannabis started life as a fatherseeking alternative therapiesfor his daughter.
Eventually, 7ACRES grew to become a gold-standard cannabis facility, offering distinct, high-quality strains.
What makes SPRWF stand out compared to other top marijuana penny stocks is that management is focused on a business-to-business (B2B) strategy. This enables the company to fine-tune its craft, rather than dilute its effectiveness through disparate supply-chain segments.
Over the long run, I think this higher-end focus will distinguish SPRWF stock from the competition. For example, severalmainstream retailstores, includingNeiman MarcusandVitamin Shoppe(NYSE:VSI), have pushed for cannabidiol, or CBD, products.
Obviously, that’s a big plus for the broader marijuana industry. But just selling bottom-shelf weed at large volume isn’t going to cut it. Consumers want differentiation, which is what Supreme Cannabis offers. Therefore, SPRWF stock has a chance to positively surprise.
That said, this is a very volatile market. SPRWF stock is a high-risk, high-reward venture, but a very tempting one due to positive industry-related developments.
Cannabis Science(OTCMKTS:CBIS) is easily one of the most speculative among top marijuana penny stocks. Immediately, you can tell that through either its ridiculously low share price, or its sub-$100 million market capitalization.
Another giveaway is Cannabis Science’s bold declaration to provide innovative therapies forunmet medical needs, including cancer. As the old saying goes, extraordinary claims require extraordinary evidence.
But this is also where CBIS stock becomes interesting. Management claims that cannabis use dates back thousands of years, making it one of the most tried-and-true medicines. Plus, traditional pharmaceutical companies have become more amarketing machinethan a therapy provider. Therefore, the medical-cannabis industry deserves at least some credibility.
Also, I think it’s fair to point out that theopioid crisishas caused mainstream pharmaceuticals to lose credibility. Despite best intentions, the pharmaceutical industry has left a wave of problems in its wake. This could negativelyimpact generationsof Americans. Thus, marijuana penny stocks related to medical cannabis could benefit.
That’s the good news for CBIS stock. The not so great news is that shares continue to struggle.
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Conservative investors should probably stay away from Cannabis Science and marijuana penny stocks in general. But if you’re a speculator, CBIS stock appears to have bottomed after a recent bout of volatility. It’s no guarantee of upside, but it might be worth a shot with gambling money.
As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities.
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The post4 Top Marijuana Penny Stocks to Take Seriously in 2019appeared first onInvestorPlace. |
We Will Not Have an Actual Full-Time Secretary of Defense Anytime Soon
Photo credit: Alex Wong - Getty Images From Esquire As the gang at Camp Runamuck lurches blindly toward some kind of military confrontation with Iran, proving once again that letting the folks from C-Plus Augustus's White House off the hook was an open invitation to the country to wrap itself in perilous historical amnesia, we are now told by the president* that we are not getting a full-time, fully confirmed, actual Secretary of Defense any time soon. From Politico : President Donald Trump said acting Defense Secretary Pat Shanahan will not move forward with the confirmation process so that he can devote more time to his family. He also said in a tweet that Mark Esper, the secretary of the Army, will become acting Defense secretary. Well, I guess that's one way to put it. From the Washington Post : Shanahan spoke publicly about the incidents in interviews with The Washington Post on Monday and Tuesday. Bad things can happen to good families . . . and this is a tragedy, really, Shanahan said. Dredging up the episode publicly, he said, will ruin my sons life. In November 2011, Shanahan rushed to defend his then-17-year-old son, William Shanahan, in the days after the teenager brutally beat his mother. The attack had left Shanahans ex-wife unconscious in a pool of blood, her skull fractured, and with internal injuries that required surgery, according to court and police records. Two weeks later, Shanahan sent his ex-wifes brother a memo arguing that his son had acted in self-defense. Use of a baseball bat in self-defense will likely be viewed as an imbalance of force, Shanahan wrote. However, Wills mother harassed him for nearly three hours before the incident. Jesus, this is awful. For all of them. You'd like to think that Shanahan didn't find out he'd be leaving when the president* tweeted that he'd already left, but who in the hell knows? There's no chance the president* felt a lick of empathy for Shanahan's troubles. Photo credit: Alex Wong - Getty Images And, once again, an acting Cabinet secretary will be replaced by another acting Cabinet secretary, and I wouldn't stand on one leg waiting for the administration* to put Esper's confirmation before the Senate, either. The president* already has said that he "likes acting." From The New York Times : Story continues I like acting. It gives me more flexibility. Do you understand that? Mr. Trump told reporters in January before departing to Camp David. I like acting. So we have a few that are acting. We have a great, great cabinet. This is the most obvious game plan imaginable for an authoritarian simpleton. Hire temp workers and they'll be so concerned about keeping you happy-and, thereby, keeping their jobs-that they won't tell you anything you don't want to hear. This president* doesn't like to hear things he doesn't want to hear, as some of his now-former pollsters recently discovered . The problem with having temp workers heading the departments of the national executive is that it embeds a strong strain of chaos and indecision in the structure of the government. That this might be what the president* wants to do is a madman proposition on the best of days, but with things heating up in the Persian Gulf, my guess is that we'd do a lot better with a Secretary of Defense whose business cards are written in disappearing ink. Respond to this post on the Esquire Politics Facebook page here . ('You Might Also Like',) HOW TO FIND THE PERFECT SUNGLASSES FOR YOUR FACE SHAPE If You Dont Have a Denim Shirt Yet, Whats Stopping You? Why You'll Never Understand Mezcal Like You Understand Scotch |
Did Pivotal Software, Inc. (NYSE:PVTL) Insiders Sell Shares?
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It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares inPivotal Software, Inc.(NYSE:PVTL).
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard Universitystudyfound that 'insider purchases earn abnormal returns of more than 6% per year.'
Check out our latest analysis for Pivotal Software
Over the last year, we can see that the biggest insider sale was by the CEO & Director, Robert Mee, for US$1.5m worth of shares, at about US$20.29 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$11.26). So it is hard to draw any strong conclusion from it.
Over the last year, we note insiders sold 219k shares worth US$4.4m. In the last year Pivotal Software insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
Over the last three months, we've seen significant insider selling at Pivotal Software. In total, insiders dumped US$4.4m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Pivotal Software insiders own 0.3% of the company, worth about US$8.6m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
Insiders haven't bought Pivotal Software stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. When you combine this with the relatively low insider ownership, we are very cautious about the stock. We'd certainly think twice before buying! Therefore, you should should definitely take a look at thisFREEreport showing analyst forecasts for Pivotal Software.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Viasat Modifies Initial ViaSat-3 Satellite Launch Contract
Viasat, Inc.VSAT, which has a long-standing partnership with Arianespace — a satellite launch company — has recently announced of modifying their initial ViaSat-3 satellite launch contract, inked back in 2016.According to the new agreement, the two firms have decided to move the ViaSat-3 satellite from an Ariane 5 launch vehicle to Ariane 64 (A64) launcher. With this, Viasat will become the first commercial customer to launch on the A64.The latest move completes the satellite and wireless networking technology provider’s integrated launch strategy, which is designed to bring an on-time launch to all of the ViaSat-3 spacecraft through launch vehicle diversity.Markedly, Arianespace will launch the ViaSat-3 satellite from the Guiana Space Center, Europe’s Spaceport in Kourou, French Guiana. The A64’s configuration will likely provide added performance to deliver a ViaSat-3 satellite into a high-energy geostationary transfer orbit.Arianespace’s A64 launcher will likely enable Viasat to meet key business objectives, which include bringing high-speed, high-quality broadband connectivity to end-users, around the globe. The A64 vehicle is a highly competitive launcher and has key features to ensure a more cost-effective, dependable ViaSat-3 spacecraft launch.Moreover, the ViaSat-3 class of Ka-band satellites is expected to provide unparalleled capabilities in terms of service speed and flexibility for a satellite platform. While the first two satellites will focus on the Americas and on Europe, Middle East and Africa, respectively, the third one is planned for the APAC region, completing Viasat's global service coverage.Each ViaSat-3 satellite is likely to deliver more than 1-Terabit per second of network capacity, and leverage high levels of flexibility. Viasat is also ramping up investments in the development of its revolutionary ViaSat-3 broadband communications platform, which will boast nearly ten times the bandwidth capacity of ViaSat-2.The ViaSat-3 platform will help to form a global broadband network with sufficient network capacity to allow better consumer choices with an affordable, high-quality, high-speed Internet and video streaming service. Momentous market traction of ViaSat-1 and ViaSat-2 satellites, coupled with strategically planned ViaSat 3 satellites, are expected to provide the company with a solid competitive edge over its peers, thereby bolstering growth in the long-run.Driven by diligent execution of business strategies, shares of Viasat have rallied 47.6% compared with the industry’s rise of 16.2% in the year-to-date period.
Viasat currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Juniper Networks, Inc. JNPR, Motorola Solutions, Inc. MSI and Ubiquiti Networks, Inc. UBNT, each carrying a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Juniper has long-term earnings growth expectation of 6.2%.Motorola has long-term earnings growth expectation of 7.7%.Ubiquiti has long-term earnings growth expectation of 19.8%.Breakout Biotech Stocks with Triple-Digit Profit PotentialThe biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.Zacks has just releasedCentury of Biology: 7 Biotech Stocks to Buy Right Nowto help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of+98%,+119%and+164%in as little as 1 month. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportJuniper Networks, Inc. (JNPR) : Free Stock Analysis ReportUbiquiti Networks, Inc. (UBNT) : Free Stock Analysis ReportViasat Inc. (VSAT) : Free Stock Analysis ReportMotorola Solutions, Inc. (MSI) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Have Insiders Been Selling AxoGen, Inc. (NASDAQ:AXGN) Shares This Year?
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We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares inAxoGen, Inc.(NASDAQ:AXGN).
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard Universitystudyfound that 'insider purchases earn abnormal returns of more than 6% per year.'
View our latest analysis for AxoGen
Over the last year, we can see that the biggest insider sale was by the Chairman, Karen Zaderej, for US$830k worth of shares, at about US$33.42 per share. While we don't usually like to see insider selling, it's more concerning if the sales take price at a lower price. The good news is that this large sale was at well above current price of US$20.99. So it may not shed much light on insider confidence at current levels.
All up, insiders sold more shares in AxoGen than they bought, over the last year. The sellers received a price of around US$29.65, on average. Insider selling doesn't make us excited to buy. However, we do note that the average sale price was significantly higher than the current share price (which is US$20.99). The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
We've seen more insider selling than insider buying at AxoGen recently. In total, David Hansen sold US$453k worth of shares in that time. On the flip side, Amy McBride-Wendell spent US$101k on purchasing shares. Because the selling vastly outweighs the buying, we'd say this is a somewhat bearish sign.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that AxoGen insiders own 3.1% of the company, worth about US$26m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
The stark truth for AxoGen is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. Therefore, you should should definitely take a look at thisFREEreport showing analyst forecasts for AxoGen.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Domino's (DPZ) Partners Nuro for Autonomous Pizza Delivery
Domino's Pizza, Inc.DPZ announced that it is starting driverless pizza delivery services in Houston, TX. To this end, the company has partnered with Nuro — a robotic company for the delivery services.The driverless pizza delivery services can be only be availed by select residents of Texas. It has been underway in the Houston metro area since March 2019 and will further expand Nuro's autonomous delivery operations.After placing the order, customers can track the vehicle via the Domino's app. Kevin Vasconi, Domino's executive vice president and chief information officer, said that “Nuro's vehicles are specially designed to optimize the food delivery experience, which makes them a valuable partner in our autonomous vehicle journey. The opportunity to bring our customers the choice of an unmanned delivery experience, and our operators an additional delivery solution during a busy store rush, is an important part of our autonomous vehicle testing.”Moreover, in 2017, Domino's in conjunction with Ford Motor Co., initiated a research on consumers’ responses to Pizza delivery using self-driving vehicles. Notably, digital leadership is helping the company expand its brand in the domestic market as well as overseas.In a bid to boost sales, Domino’s is investing heavily in technology-driven initiatives like digital ordering. In 2017, the company’s AnyWare suite of ordering platforms, which allow customers to order from various ordering apps and platforms such as Google Home, Facebook Messenger, Apple Watch, Amazon Echo, Twitter and via a Pizza emoji on text, grew significantly. Meanwhile, its digital loyalty program — Piece of the Pie Rewards — continues to contribute significantly toward traffic growth.In the past three months, shares of this Zacks Rank #3 (Hold) company have gained 13.4% compared with the industry’s 10.3% growth.
Bottom LineWith Internet, digitalization and electronics influencing every facet of our day-to-day lives, it is obvious that the restaurant industry has embraced this trend. Per The NPD Group, foodservice delivery services have contributed significantly to restaurant sales over the past few years. Over the last four years, digital orders increased by 23%. As a result, digital sales are no longer a luxurious feature but the dire need of the hour.Key PicksBetter-ranked stocks worth considering in the same space include Denny's Corp. DENN, Noodles & Company NDLS and Yum China Holdings, Inc. YUMC, each sporting a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Denny's have gained 16.1% in the past three months.
The long-term earnings growth rate for Noodles & Company and Yum China is 8.8% and 9.4%, respectively.
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Zacks has just releasedCentury of Biology: 7 Biotech Stocks to Buy Right Nowto help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportDomino's Pizza Inc (DPZ) : Free Stock Analysis ReportDenny's Corporation (DENN) : Free Stock Analysis ReportNoodles & Company (NDLS) : Free Stock Analysis ReportYum China Holdings Inc. (YUMC) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Nio Stock Is Basically a Lottery Ticket at This Point
Nio(NYSE:NIO), the electric automaker dubbed the “Tesla of China” slumped almost 4% on Friday, extending a dismal run, during which Nio stock price has plunged 39% this month and nearly 60% this year.
Source: Shutterstock
Following Friday’s close of $2.42, one share of Nio stock barely costs more than a single Powerball ticket andthere is plenty of debateregarding which might be the better investment. There could be more pain ahead for Nio stock because, although Nio stock price has been plummeting, sell-side analysts have been slow to trim their price targets on the stock.
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The average analyst price target on Nio stockis $7.64, or about triple where the shares trade now. Last month,Bank of America Merrill Lynchanalysts cut their price target on Nio stock to $3, which looked like a good idea at the time. One of the reasons for that reduction was increased competition in the China market fromTesla(NASDAQ:TSLA).
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TSLA is not “perfect.” TSLA stock is down more than 32% this year and there is seemingly alwaysplenty of controversysurrounding the company. That said, Tesla is far better-positioned in the global electric-vehicle market than Nio, and TSLA is probably in better shape even in China.
It is not a good look for Nio stock price to be tumbling to levels that make cups of regular coffee at some establishments more expensive than Nio stock. Certainly not when the electric-vehicle market is growing.
“Battery-powered electric vehicles represent just 2.1 percent of global new auto sales, the equivalent of 2 million vehicles. Sales of EVs are forecastto jump to 2.7 millionthis year,”according to Nasdaq.
Nio stock serves as a reminder that when it comes to thematic investing, picking individual stocks is hard and potentially risky. Investors who have opted for broader approaches to electric-vehicle investmentsare being rewarded this year. For example, theGlobal X Autonomous & Electric Vehicles ETF(NASDAQ:DRIV) is up 10% year-to-date, making Nio stock look dreadful by comparison.
The epic problem with NIO is that the company’s sales are sliding while overall electric-automotive sales are expected to rise. Adding to that, NIO CEO William Li appears blasé about the company’s faltering sales.
“At NIO Inc., the Tesla Inc. wannabe from China, electric vehicle sales are plummeting, losses mounting and the stock price cratering,”according to theDetroit News. “But founder and Chief Executive Officer William Li can’t see what all the fuss is about.”
Li added that NIO will be profitable “in a few years.” The Nio CEO is nothing if not ambitious; even though there are several thousand electric vehicle makers in China, Li is evaluating ways for his company to enter the U.S. market. Ambition is nice, but not at the expense of profitability and share price, two issues NIO is struggling with.
It is easy to be seduced by stocks with low price tags, but a name that appears to have value because of a cheap price can often be a value trap. There are quality stocksout there with single-digit prices. Nio stock is not yet a member of that group.
Remember, stocks have low prices for different reasons, but few, if any of those reasons are positive, as Nio stock highlights. Just because something is cheap does not mean it is a good deal.
As was noted earlier, analysts have been slow to downgrade Nio stock and lower their price targets on Nio, partly because some have been busy denigrating TSLA. They are likely to get around to slamming Nio stock, too. The stock appears to be bereft of catalysts and will likely head lower until it can deliver positive sales and profitability surprises
Todd Shriber does not own any of the aforementioned securities.
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The postNio Stock Is Basically a Lottery Ticket at This Pointappeared first onInvestorPlace. |
Microsoft Corporation (NASDAQ:MSFT): Time For A Financial Health Check
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There are a number of reasons that attract investors towards large-cap companies such as Microsoft Corporation (NASDAQ:MSFT), with a market cap of US$1.0t. Big corporations are much sought after by risk-averse investors who find diversified revenue streams and strong capital returns attractive. However, the key to extending previous success is in the health of the company’s financials. Today we will look at Microsoft’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. Note that this information is centred entirely on financial health and is a high-level overview, so I encourage you to look furtherinto MSFT here.
View our latest analysis for Microsoft
MSFT has sustained its debt level by about US$86b over the last 12 months – this includes long-term debt. At this stable level of debt, MSFT currently has US$132b remaining in cash and short-term investments , ready to be used for running the business. Additionally, MSFT has produced US$47b in operating cash flow during the same period of time, leading to an operating cash to total debt ratio of 55%, meaning that MSFT’s current level of operating cash is high enough to cover debt.
With current liabilities at US$54b, it appears that the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 2.97x. The current ratio is calculated by dividing current assets by current liabilities. Usually, for Software companies, this is a suitable ratio since there's a sufficient cash cushion without leaving too much capital idle or in low-earning investments.
With a debt-to-equity ratio of 83%, MSFT can be considered as an above-average leveraged company. This isn’t surprising for large-caps, as equity can often be more expensive to issue than debt, plus interest payments are tax deductible. Since large-caps are seen as safer than their smaller constituents, they tend to enjoy lower cost of capital.
Although MSFT’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised. This may mean this is an optimal capital structure for the business, given that it is also meeting its short-term commitment. This is only a rough assessment of financial health, and I'm sure MSFT has company-specific issues impacting its capital structure decisions. I suggest you continue to research Microsoft to get a more holistic view of the large-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for MSFT’s future growth? Take a look at ourfree research report of analyst consensusfor MSFT’s outlook.
2. Valuation: What is MSFT worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? Theintrinsic value infographic in our free research reporthelps visualize whether MSFT is currently mispriced by the market.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Dunkin' Brands, Grubhub Tie Up to Boost On-Demand Delivery
Dunkin' Brands Group, Inc.DNKN has partnered with Grubhub Inc. GRUB for rollout of delivery services. This nationwide delivery plan was first launched in New York City.Currently, the new Dunkin' Delivers service is available across 400 Dunkin' restaurants throughout New York City's five boroughs and offered through Seamless — Grubhub’s New York brand. The residents of New York City can now order Dunkin' coffees, espresso drinks, Cold Brew, frozen beverages, donuts, breakfast sandwiches, bagels and more, wherever they want throughout the day.Dunkin' and Grubhub will further expand delivery services in markets like Boston, Chicago and Philadelphia in the coming months. Per Yahoo Finance, Dunkin' aims to expand the latest delivery services to over 3,000 US Dunkin’ restaurants by the end of 2019 and to more than 9,400 by 2020.We believe this partnership will help Dunkin' drive its sales. In the meantime, this Zacks Rank #3 (Hold) company is gaining momentum on the back of various sales-building initiatives, loyalty program and digitalization. Evidently, shares of the company have gained 25.5% year to date compared with the industry’s 20.6% growth.
Digitalization Need of the Hour
With Internet, digitalization and electronics influencing every facet of our day-to-day lives, it is obvious that the restaurant industry has embraced this trend.
Per The NPD Group, foodservice delivery services have contributed significantly to restaurant sales over the past few years. Over the last four years, digital orders increased by 23%. As a result, digital sales are no longer a luxurious feature but are the dire need of the hour.
Moreover, Morgan Stanley predicts the food delivery industry could account for 11% of all restaurant sales by 2020.
Key Picks
Better-ranked stocks worth considering in the same space include Denny's Corp. DENN, Noodles & Company NDLS and Yum China Holdings, Inc. YUMC, each sporting a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Denny's have gained 16.1% in the past three months.
The long-term earnings growth rate for Noodles & Company and Yum China is 8.8% and 9.4%, respectively.
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The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just releasedCentury of Biology: 7 Biotech Stocks to Buy Right Nowto help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportGrubhub Inc. (GRUB) : Free Stock Analysis ReportDunkin' Brands Group, Inc. (DNKN) : Free Stock Analysis ReportDenny's Corporation (DENN) : Free Stock Analysis ReportNoodles & Company (NDLS) : Free Stock Analysis ReportYum China Holdings Inc. (YUMC) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Will Facebook really empower the unbanked and gain traction in Venezuela
You might expect the woeful state of global financial inclusion to be a concern for the UN or a non-profit, but not necessarily a social media giant like Facebook. But banking the unbanked is now apparently a core mission-statement for Mark Zuckerberg's baby, via its cryptocurrency, Libra.
"1.7 billion adults globally remainoutside of the financial systemwith no access to a traditional bank, even though one billion have a mobile phone," Facebook's documents about Libra point out. It's a statistic that is easy to forget in a world of ubiquitous ATMs and credit cards.
One country Facebook could be targeting when it launches the token in 2020 is Venezuela.According to The World Bank's 2017 figures,9.5 million Venezuelan adults are currently unbanked, just under 30% of the adult population. That proportion increases if you count their dependents. Meanwhile, those whoarebanked currently face extreme levels of inflation, meaning the worth of their bolivars, sitting in national vaults, diminish in value every day. No doubt, having access to a stable global currency could help encourage savings and accumulate wealth.
But it's worth unpacking the practical reality at play. What would Facebook need to do to "bank" people, and get them using or storing funds? Or is this just so much PR bromide?
What it takes: on-ramps
The main question here is how the unbanked will get money on to the platform. In other words, if I have Venezuelan bolivars, how do I convert that into Libra?
One solution they might take inspiration from is "Mobile Money", which launched in 2007 in Kenya, masterminded by Vodafone. Here, subscribers simply exchange cash for mobile credit (like from Vodafone) at one of thousands of telecoms kiosks located across host countries. Independent, small agents effectively act as cash depositors, allowing users to digitally store their earnings, receive wages and social welfare. They can also pay their bills with a simple text message thanks to a synergy between regional telecom giants and banks, which allows credit to be transferred into a working currency. In Kenya alone, where Vodafone initiated the service with the launch of “MPESA”, the percentage of unbanked citizens has halved in the ten years hence. In that time, it has spread to 92 countries and counting, with a reported half-billion people from Eastern Africa to Latin America granted banking access through its phones.
Perhaps Facebook plans to let users exchange their bolivars for Libra tokens at kiosk providers? Still, that doesn't solve the issue for the most rural parts of the world however, which evenmobile money providers are struggling to access.
Another theory is that Facebook will reward social media users with Libra, rather than having people solely "cash in". If users can simply "earn" Libra for liking photos and other engagements, then theoretically Venezuelans can pay their local Caracas grocer digitally too - meaning users totally bypass cash and rely solely on Libra. Still, that doesn't seem entirely realistic considering it would take a lot of Facebook engagements to feed a family.
The other option is to partner with existing fintech firms in emerging markets, who can simply integrate Facebook's digital currency. It's not totally crazy; Philippines-based Coins and dLocal, a b2b payments provider for emerging markets, already seem to be ready to embracingcryptocurrencies.Libra may be their next chosen solution, although it'll be a slow process.
What it takes: friendly institutions
Although Facebook says that Libra will be global and therefore without regulation, there are limits to that sentiment, because their associates will have to ensure they implement appropriate KYC (Know Your Customer) procedures.
"It will be very hard for Facebook to launch something like Bitcoin. Think about it – they haven't even done anything yet and they are already getting pushback from the U.S. Senate Banking Committee," saysNevin Freeman, co-founder of Reserve, whose stablecoin is also hoping to lift Venezuela out of disarray.
"Are they going to operate a service that they maintain control of, which can be accessed anonymously by anyone, and withstand pressures from the government to add KYC and exclude high-risk users? Are they going to publish a decentralized system that works like Bitcoin, and then tell the government they should not be held responsible since they can't change it anymore? Both of these outcomes seem unlikely," he added.
That means Venezuelan residents without identification won't be able to be KYC'ed if that's the way local regulators swing. And regulation does have an impact even on the unbanked. Indeed, Mobile Money failed in India in part due tobureaucratic restrictions,where mobile subscribers were forced to register with banks. Conversely, PayPal now shuts down Venezuelan accounts with no warning because they are legally high-risk, according to Freeman.
TheFrench governmenthas already urged an investigation into the possible effects of Libra. Meanwhile, the ever-cautiousFinancial Times warnsthat "the very act of encouraging people to invest in Libra en masse, may spark...local currency depreciation", which if true, could be used by states as a scapegoat or a reason to block it entirely.
The reality
Facebook hasn't got all the answers yet, and that's to be expected considering the news isn't even 24 hours old, but there are clearly practical issues when it comes to the unbanked that no amount of idealism can ignore.
One possible answer here is that Facebook is trying to apply a sweeping solution to a global economy that is diverse in more ways than a single launch, app, or product can grasp.
"It seems likely that Libra will be the next generation of WeChat Pay – a fantastic and convenient product...for people who are already able to access financial services...But for people in countries with capital controls, people who don't have government documentation [] – it just won't apply," Freeman concluded. |
Family of Five! Kate Hudson Shares First Photo of All Her Kids and Boyfriend Danny Together
Kate Hudson is surrounded by love. The actress shared the first photo of her entire family of five — boyfriend Danny Fujikawa and their 8-month-old daughter Rani Rose plus Hudson’s son Bingham “Bing” Hawn , 8 next month, and Ryder Russell , 15 — on Instagram Tuesday, showing the quintet all squeezed together for the smiley selfie. Bing, Ryder and Fujikawa, 33, are all looking at the camera for the photo op, while baby Rani gazes at something off camera and Hudson, 40, looks blissful, pressing her nose up against the side of Bing’s head. “My loves of my life ☀️,” she captioned the cute snapshot . Want all the latest pregnancy and birth announcements, plus celebrity mom blogs? Click here to get those and more in the PEOPLE Parents newsletter . Kate Hudson/Instagram Kate Hudson and family | Ryder Robinson/Instagram View this post on Instagram Oh happy day! 🙏 #MothersDay 💐 A post shared by Kate Hudson (@katehudson) on May 12, 2019 at 6:09pm PDT RELATED: Kate Hudson Posts Photo of Her Boyfriend Cuddling Daughter in Birthday Tribute: “I Love You” While this is the first full family photo Hudson has shared, her son Ryder (whom she shares with ex-husband Chris Robinson ) posted one of his own in a two-image set, in honor of Mother’s Day in May. “Happy Mother’s Day Momma, I’m grateful everyday for you.💜💜,” he captioned the slideshow — the second photo of which showed Hudson, Fujikawa, Ryder, Bing and Rani having an outdoor picnic together. (The actress shares Bing with ex-fiancé Matt Bellamy .) The family has been overseas as of late, jetting off to Italy for a summer vacation that saw the Fool’s Gold star snuggling up with her baby girl aboard a boat in one outing. In another snapshot, presumably from the trip, Ryder leaned down to give his baby sister a kiss on the forehead as both siblings wore swimsuits, Ryder dripping from a recent dip in the water. View this post on Instagram EVERYTHING ❤️@swimswammyslippyslappy #HappyFathersDay #Rani🌹 A post shared by Kate Hudson (@katehudson) on Jun 16, 2019 at 7:42am PDT RELATED VIDEO: Kate Hudson Feels “Love All Around” with Boyfriend Danny Fujikawa and Their Daughter Rani Rose In honor of Father’s Day this past Sunday, Hudson shared a sweet video of her boyfriend showering their daughter with kisses. Making the clip even more adorable, baby Rani had a big smile on her face , which just kept growing as her father gave her more and more love. Story continues “EVERYTHING ❤,” the Fabletics co-founder captioned the video , adding the hashtag, “#HappyFathersDay.” Popping up in the comments section, Hudson’s mother Goldie Hawn went on to praise musician Fujikawa, who was celebrating his inaugural Father’s Day since becoming a dad himself. “What a blessing you are papa. That bundle of joy belongs to you!!” she wrote, adding, “Happy first Father’s Day #1.” |
15 highest-paying tech jobs for Gen Z college grads, according to a new study
Generation Z women launching careers in the tech field are beating the gender pay gap and earning on average more than their male counterparts in several roles, though men still hold more jobs in the industry overall,according to a new study.
Workplace data website Comparably analyzed the best techjobsfor recent college graduates, surveying anonymous salary records from 2,848 employees aged 18 to 24 in tech jobs across the U.S. They found that senior developers and lead engineers typically earn six-figure salaries, making an average of $109,957 and $103,237 respectively.
In eight of the top 15 jobs, women were even averaging more pay than men, including in the three highest-paid positions: senior developer, lead engineer and mobile developer. Meanwhile, women in the U.S. earned just 85 percent of what men earned last year, according to thePew Research Center.
Comparably says there were several factors may have contributed to the higher average pay for some recent female grads in tech. Women included in the study — age 18 to 24 — would have most likely been hired “during the recent era of heightened awareness of social and financial inequality.”
Also, the higher salaries for women represent fewer people, while there are still more men holding the positions overall. More of those men may be working in cities where tech is not the focus and salaries are generally lower, while more women may be in “progressive tech hub cities,” the study suggests.
Regardless of gender, those holding the top 15 job titles were earning on average more than themedian earnings of full-time workersacross the country, according to the study and Bureau of Labor Statistics data. That’s good news for recent grads or students who will soon enter the tech workforce, especially with the unemployment rateremaining at just 3.6percent as of May.
How far those salaries gomay depend on where the workers live.Techemployees in San Francisco and Silicon Valley averaged the highest salaries in 12 of the 15 positions, but also faced the highest average apartment rent, according to the study.
Seattle workers earned the highest average salaries for three positions — senior developer, product manager and business development manager — but had an average apartment rent price lower than San Francisco, Los Angeles and New York, the study found. A senior developer in Seattle earns an average monthly paycheck that's six times the $1,965 monthly average rent in the area.
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In Austin, mobile developers earned an average of $103,100, bringing home eight times the average apartment rent cost there each month.
Here’s the list of the top 15 tech jobs for new grads and their average salaries, according to Comparably:
• Senior developer - $109,957
• Lead engineer - $103,237
• Mobile developer - $92,654
• Data scientist - $88,813
• Product manager - $87,947
• DevOps engineer - $86,094
• UI/UX designer - $71,691
• Business development manager - $68,588
• Marketing manager - $67,687
• Business analyst - $67,364
• QA analyst - $66,358
• Financial analyst - $65,687
• Operations manager - $64,608
• Web/visual designer - $64,478
• Sales manager - $64,412
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Is Artis Real Estate Investment Trust's (TSE:AX.UN) CEO Paid At A Competitive Rate?
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Armin Martens became the CEO of Artis Real Estate Investment Trust (TSE:AX.UN) in 2005. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Artis Real Estate Investment Trust
According to our data, Artis Real Estate Investment Trust has a market capitalization of CA$1.7b, and pays its CEO total annual compensation worth CA$3.1m. (This figure is for the year to December 2018). That's actually a decrease on the year before. We think total compensation is more important but we note that the CEO salary is lower, at CA$800k. When we examined a selection of companies with market caps ranging from CA$1.3b to CA$4.3b, we found the median CEO total compensation was CA$3.1m.
So Armin Martens is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Artis Real Estate Investment Trust has changed over time.
Over the last three years Artis Real Estate Investment Trust has grown its earnings per share (EPS) by an average of 68% per year (using a line of best fit). In the last year, its revenue is up 1.8%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to checkthis free visual depiction ofwhat analysts expectfor the future.
Artis Real Estate Investment Trust has served shareholders reasonably well, with a total return of 14% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
Remuneration for Armin Martens is close enough to the median pay for a CEO of a similar sized company .
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So considering these factors, we think the CEO pay is probably quite reasonable. If you think CEO compensation levels are interesting you will probably really likethis free visualization of insider trading at Artis Real Estate Investment Trust.
If you want to buy a stock that is better than Artis Real Estate Investment Trust, thisfreelist of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Here's Why Unity Biotechnology Dropped as Much as 20.4% Today
Shares ofUnity Biotechnology(NASDAQ: UBX)fell over 20% today, before sharply recovering. This came after the company reported data from aphase 1 clinical trialfor its lead drug candidate, UBX0101, in moderate to severe osteoarthritis. The two-part study demonstrated mixed results.
In part A of the study, patients taking various doses of the drug candidate demonstrated significant improvements in pain reduction compared to placebo at the 12-week mark. In part B of the study, all patients were given the highest dose of UBX0101, but didn't report statistically significant reductions in pain compared to placebo at the four-week mark.
As of 2:09 p.m. EDT, the stock had settled to a 8.9% loss.
Image source: Getty Images.
Today's news suggests that the search for medicines to increase longevity and stave off age-related diseases is far from over. Researchers simply don't have a great understanding of the complex molecular interactions that take place within the body and contribute to age-related diseases. Developing a drug compound that interacts with just one part of those complex systems and chemical cascades -- the infamous "Can a biologist fix a radio?" dilemma -- is unlikely to yield much success.
That doesn't mean it's not worth trying. Unity Biotechnology's approach is to develop therapeutics for cleaning up old, inefficient, and senescent cells (cells that don't divide) that contribute to disease progression.
UBX0101 specifically aims to inhibit the interaction of two proteins in order to trigger the elimination of senescent cells. The results were mixed from the phase 1 trial in moderate to severe osteoarthritis, insofar as pain management is concerned. But the company noted that changes in various biomarkers indicated a reduction in the number of senescent cells in patients receiving the experimental therapy.
Open-minded investors realize that Unity Biotechnology is likely to encounter a healthy amount of failure in the clinic. The question is whether the data generated from those failures deepens the understanding of age-related diseases such that longevity-based medicines can be successfully developed.
Given the complexity involved in this approach, investors shouldn't allocate an irresponsible amount of their portfolios to the company -- if it has a place in their portfolios at all.
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Rite Aid Partners with Adobe, Digital Business to Benefit
Rite Aid Corporation’s RAD recent partnership with Adobe highlights its intent to enhance customer experience across all channels. Through the deal, Rite Aid will deliver seamless, personalized and connected health and wellness experience to customers with the Adobe Experience Cloud.Adobe Experience Cloud is an effective experience creation, marketing, advertising, analytics and commerce platform for end-to-end solutions. With this, Rite Aid’s customers across various touch points will have more consistent and compelling experiences. It will simultaneously integrate pharmacy, retail and online experiences for customers.The partnership is likely to prove crucial for Rite Aid’s digital transformation efforts as well. It will enhance the company’s digital solutions and marketing by providing real-time personalization, deep customer insights, content management and advertising capabilities. Additionally, the company will gain from Adobe’s commerce capabilities which will provide operational support through a specialized team.Furthermore, Rite Aid’s omni-channel platform will benefit from a more intuitive, personalized and seamless shopping experience both online and off-line, in addition to establishing connection between pharmacists and patients.With Adobe Experience Cloud, Rite Aid will provide personalized experience like medication reminders and promotional offers to millions of customers, while enabling pharmacists to deliver clinical services and value-based care.Earlier, from the company has been improving market share through remodeling of wellness stores. This has been a key strategy to adapt to the evolving retail space. Further, this Zacks Rank #2 (Buy) company has shifted e-commerce fulfillment from a third-party provider to its own distribution network to boost customer experience. This has reduced fulfillment lead time, lowered costs and helped increase online offerings by 25%.Further, the company’s own brand program is supporting efforts to build offerings suited for each local market. It is also enhancing home delivery through the partnership with Instacart. This technology-driven, on-demand delivery service should strengthen the company’s omni-channel capabilities, and provide convenience and value to customers. The company is also upbeat about its collaboration with Amazon AMZN to bring Amazon Lockers in roughly 900 Rite Aid stores. This will help provide customers with the choice of pick-up or return of Amazon packages.Price PerformanceShares of Rite Aid have declined 51% in the past three months, wider than the industry’s decline of 11%. This decline is mostly attributed to the company’s soft top and bottom line performance in recent quarters. Further, a soft guidance for fiscal 2020 raise concerns.
Interested in Other Retail Stocks? Check TheseThe Children’s Place Inc. PLCE has an impressive long-term earnings growth rate of 8% and a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.Genesco Inc. GCO has a long-term earnings growth rate of 5%. The company currently carries a Zacks Rank #1.Breakout Biotech Stocks with Triple-Digit Profit PotentialThe biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.Zacks has just releasedCentury of Biology: 7 Biotech Stocks to Buy Right Nowto help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of+98%,+119%and+164%in as little as 1 month. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportAmazon.com, Inc. (AMZN) : Free Stock Analysis ReportChildren's Place, Inc. (The) (PLCE) : Free Stock Analysis ReportGenesco Inc. (GCO) : Free Stock Analysis ReportRite Aid Corporation (RAD) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
U.S-China Trade Buzz Sparks Appetite for Steel Options
UpbeatU.S.-China trade headlinesare creating a boon for the steel sector today, with theSPDR S&P Metals & Mining ETF (XME)up 3% at $27.28. The positive price action has sparked a rush of activity in XME's options pits, with calls crossing at 33 times what's typically seen at this point.
By the numbers, 63,711 XME calls have traded so far, a new annual high and 13 times the number of puts on the tape. The January 2020 series is most active, with speculators possibly selling to open the 28- and 31-strike calls.
Shorter-term traders, meanwhile, may be purchasing new positions at the June 25 put. If this is the case, they are betting on a quick retreat for the metals exchange-traded fund (ETF) by the close this Friday, June 21.
The $25 mark has been notable on XME's chart, and has served as a floor for the fund going back to July 2016. Since dipping below here in late May when they hit a nearly two-year low of $24.25, the shares have gained 12.5%, and are currently on track to close above their 40-day moving average for the first time since April 8.
The upside is being seen in individual steel stocks, too, withUnited States Steel Corporation (NYSE:X)trading 4.7% higher at $14.62. The stock's options pits are bustling, and call traders are dominating the action. Most recently, 48,000 calls and 28,000 puts are on the tape, double the expected intraday amount.
Diving deeper, the June 14.50 and 15 calls are popular, with Trade-Alert suggesting the a potential roll-up of a short call position. In this scenario, the speculator expects X stock to remain below $15 through front-month options expiration at the close this Friday, June 21. Elsewhere, the weekly 6/28 14-strike put and 15-strike call are possibly being used in arisk-reversal strategy.
More broadly speaking, put buying has been accelerated in recent weeks, relative to call buying. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), U.S. Steel's 10-day put/call volume ratio of 0.77 ranks in the elevated 72nd annual percentile.
Thisskepticism is seen elsewhere, and it's not too surprising given X stock's longer-term technical troubles. Year-over-year, the shares are down 40%. And while the equity is up 25% from its May 31 two-year low of $11.67, this rally is running out of steam near U.S. Steel's 10-week moving average, which hasn't been surpassed on a weekly closing basis since early March. |
The Pluralsight (NASDAQ:PS) Share Price Is Up 19% And Shareholders Are Holding On
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If you want to compound wealth in the stock market, you can do so by buying an index fund. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). For example, thePluralsight, Inc.(NASDAQ:PS) share price is up 19% in the last year, clearly besting than the market return of around 1.2% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! Pluralsight hasn't been listed for long, so it's still not clear if it is a long term winner.
See our latest analysis for Pluralsight
Pluralsight isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Over the last twelve months, Pluralsight's revenue grew by 41%. We respect that sort of growth, no doubt. Buyers pushed the share price 19% in response, which isn't unreasonable. If the company can maintain the revenue growth, the share price could go higher still. But before deciding this growth stock is underappreciated, you might want to check out profitability trends (and cash flow)
Depicted in the graphic below, you'll see revenue and earnings over time. If you want more detail, you can click on the chart itself.
You can see how its balance sheet has strengthened (or weakened) over time in thisfreeinteractive graphic.
It's nice to see that Pluralsight shareholders have gained 19% over the last year. We regret to report that the share price is down 1.6% over ninety days. Shorter term share price moves often don't signify much about the business itself. If you would like to research Pluralsight in more detail then you might want totake a look at whether insiders have been buying or selling shares in the company.
We will like Pluralsight better if we see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Google search results will show where song lyrics come from
Google isn't sitting idly by whileGenius accuses it of copying lyrics. As part of a largerdefenseof its lyrics search practices, the company has mentioned that it will "soon" attribute the third parties providing song lyrics. This should "make it clearer" as to where the lyrics come from, the company said. In theory, this would direct any complaints to the third parties instead of making Google shoulder all the blame.
In the broader defense, Google maintained that its workers "do not crawl or scrape" sites to grab lyrics, instead licensing the text from outsiders. They're automatically updated whenever there are new lyrics or corrections, Google added.
LyricFind, a keysupplier for Google's lyrics, recently maintained that it didn't source verses from Genius and even ruled out the firm's lyrics as a "courtesy." The allegedly copied lyrics were available on "many other lyric sites," the company argued. As such, LyricFind may have inadvertently grabbed lyrics from another company that was using Genius' lyrics without permission.
The disclosures and the response won't necessarily calm nerves at Genius' offices. However, they do illustrate the messiness of lyrics search. There's a chain of companies involved in putting those words on your screen, and it's not always easy to see who's being honest. |
Bella Thorne was physically abused as child star
Bella Thorne got her start at 12 when she was cast on Disney Channel’s Shake It Up . And while the transition away from being a child star into a singer, actress and writer — she has a new book of personal poems called The Life of a Wannabe Mogul: Mental Disarray — was “definitely tough,” she admits it was relatively easy compared to having to hide the fact that she was being abused throughout that period. “Being physically abused all the time seems like a much more difficult situation than f***ing having paparazzi following you since you were 12,” Thorne tells Yahoo Entertainment during an interview on the BUILD Series stage. “I was still being molested when paparazzi were still f***ing following me. So it’s pretty hard in my mind to think about these big flash light photographs and everyone thinking they know me and talking about me but having no idea the type of mistreatment that I was still dealing with at that time, that everyone around me saw and did nothing.” “I put anger and sadness and confusion towards a lot of things [in the book],” Thorne admits. “And I hope most of you in this room don’t judge me for it, and if you do, then sucks.” After posting a clip of the interview to her Instagram, it seems that her fans aren’t judging her for her feelings, but instead praising her for being so open. View this post on Instagram A post shared by BELLA (@bellathorne) on Jun 15, 2019 at 10:00am PDT “You are literally the realest celebrity. I’m glad you didn’t let society change your outlook on those types of things,” one person wrote, while another said, “You open up so much and make us stronger by your story.” Many others echoed the support with messages like, “so much respect.” View this post on Instagram A post shared by BELLA (@bellathorne) on Jan 7, 2018 at 1:43pm PST Thorne first opened up about being sexually abused back in January 2018 when she posted on Instagram in support of Time’s Up. And although she’s talked about it since, she admits that her book has become her opportunity for fans to get to know the real her once and for all. Story continues Read more from Yahoo Entertainment: Whoopi Goldberg seemingly blames Bella Thorne over nude photo leak: 'You cannot be surprised someone hacked you' O.J. Simpson denies fathering Khloé Kardashian: 'She's not mine' Cuba Gooding Jr. accused of sexual assault by 'Girl With No Job' star Claudia Oshry Want daily pop culture news delivered to your inbox? Sign up here for Yahoo Entertainment & Lifestyle's newsletter. |
7 Value Stocks to Buy for the Second Half
Value stocks are so out of fashion at the moment that despite being cheaper than they’ve been in the past 30 years, some experts suggest they’restillnot the stocks to buy.
“We could’ve had this story 10 years ago and talked about the 20-year anniversary of it being a bad market for value,” Dave Nadig, managing director of ETF.com,said recentlyonCNBC. “We could go another 10 years and it could be a bad market for value. I’m not sure that value and growth as an investing paradigm makes that much sense anymore.”
Another expert who appeared on the sameCNBCshow as Nadig suggested that you should only buy value stocks heading into a recession or in the first year coming out of one.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Until either of these situations comes around, Datatrek Research co-founder Nick Colas believes investors ought to stick with growth stocks.
I say, not so fast.
• 5 Stocks to Buy for $20 or Less
I’ll select seven stocks to buy for the second half of 2019, all from the top 50 holdings of theVanguard Value ETF(NYSEARCA:VTV),the biggestvalue ETF in the U.S. with$48 billionin assets under management.
Source: Shutterstock
Berkshire Hathaway(NYSE:BRK.A, NYSE:BRK.B) is the largest of the338 holdingsin VTV with a weighting of 5.6%. Warren Buffett’s company continues to have a bad year on the markets, up just 2.2% year to date.
However, when you consider that Berkshire had a total return of 3% in 2018, Buffett’s working on a 17-month losing streak.
That’s why I recently providedInvestorPlacereaders with sevenideasto make Berkshire Hathaway stock more attractive. I’m as enamored with the holding company as the next person, but it is having a hard time convincing investors who’ve never owned its stock why they should get on board.
With all the talk of it underperforming theS&P 500in recent years, its sum-of-the-parts valuation still makes it one of the best value stocks to buy inside or outside the index. Long-time investors know this, hence why they continue to hold despite going into a second year of single-digit returns.
Also, it’s essential to add that its poor performance in 2018 was 739 basis points higher than the index.
Source: Shutterstock
Verizon(NYSE:VZ) is the 10th-largest of VTV’s 338 holdings with a weighting of 1.9%. The second-largest wireless carrier in the U.S. is having a bad year, up just 4% year to date. Worse still, VZ stock is getting pulverized byAT&T(NYSE:T), which is up 14% year to date.
In late May, I highlighted the reasons why I thought Verizon was a better buy than T stock.
For me, it all comes down to the balance sheet. Verizon’s is much healthier due to AT&T’s massive purchase of WarnerMedia. AT&T supporters might view Verizon’s advantage as a temporary one given HBO’s future cash flow generation — and I get that argument.
However, because AT&T has long-term debt that’s71%of its market cap compared to 45% for Verizon — with price-to-cash flow ratios almost identical — if I’m a value investor, I have to go with the smaller of the two companies.
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AT&T might deliver in the long haul, but the bigger margin of safety lies with Verizon.
Source:Anthony via Flickr
Caterpillar(NYSE:CAT) is the 37th-largest of VTV’s holdings with a weighting of 1.1%. The maker of heavy equipment for mines and construction is also having a bad year, up just 4.5% year to date through June 12. That’s on top of a 17.3% decline in 2018.
The problem for Caterpillar is that the construction industry, its most significant revenue source, could be slowing down. Furthermore, the Asia/Pacific market isn’t performing well, and that’s got investors worried about the future.
As a result of these worries, Caterpillar stock lost more than14%in May.
The issues plaguing CAT stock at the moment have little to do with the company itself and more to do with the global economy. It’s something that shareholders can’t control.
However, with a dividend yield of 3.1%, free cash flow of $4 billion, a free cash flow yield of 3.9%, and a forward P/E of 10.1, CAT stock appears to be trading at below fair value, making a bet on its stock a winning one over the long haul.
Source: Shutterstock
Morgan Stanley(NYSE:MS) is the 52nd-largest of VTV’s 338 holdings with a weighting of 0.82%. The global investment bank is having a decent year, up 11% year to date.
When Morgan Stanley reported Q1 2019 results in April, they were nothing to write home about. That said, both its revenue and profits beat analyst expectations. The consensus was for earnings of $1.17a share on $9.94 billion in revenue. MS delivered $1.39 a share in earnings on $10.3 billion in revenue.
More importantly, the company’s wealth management business, the company’s largest, delivered revenues of $4.39 billion in the quarter, $200 million higher than the estimate.
Since taking the reins, CEO James Gorman has focused Morgan Stanley on wealth management and that’s ensuring it continues to generate significant revenues and profits.
• 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019
Yielding 2.8% and trading at 8.1 times forward earnings, MS stock is cheaper than a lot of the mainline banks.
Source:Mike Mozart via Flickr
CVS Health(NYSE:CVS) is the 40th-largest of VTV’s 338 holdings with a weighting of 0.94%. Both CVS and its biggest competitor,Walgreens Boots Alliance(NASDAQ:WBA), are having terrible years on the market.CVS and WBA are down 16% and 22% year to date.
CVS has been bogged down getting approval from regulators for its $69 billion takeover ofAetnain November. The retail pharmacy chain is transforming its business into a one-stop shop for health and wellness. Aetna’s insurance plans will allow CVS to provide its customers with vertically integrated medical care.
A report surfaced June 11 that suggested the federal court judge considering whether to allow the merger is leaning toward blocking it from happening. However, CVS strenuously denied that the rumor had any merit.
IlikeCVS’ transformation plan and fully expect the deal to go through. Trading at just 7 times cash flow and 8 times forward earnings, CVS is too cheap to ignore.
Source:Baron Valium via Flickr
Walt Disney(NYSEDIS) is the 24th-largest of VTV’s 338 holdings with a weighting of 1.56%. After three sub-par years in the markets — up 0.6%, 4.7%, and 3.6% in 2016 through 2018 — DIS stock is delivering like gangbusters for shareholders, up 30.2% year to date.
I was a fan of Disney before it closed its $71-billion acquisition of 21st Century Fox and I’m still a fan. That being said, I didsuggestin March that the Fox deal would do little to boost the company’s share price.
My feeling is that we won’t be able to quantify the success of the deal for at least 3-5 years. In the meantime, Disney’s going to be spending like a drunken sailor to ensure Disney+ is aNetflix(NASDAQ:NFLX) killer.
I’m facetious, of course. No one, not even the world’s largest entertainment company, is going to take Reed Hastings down. At least not overnight.
InvestorPlace’sTom Taulli recently wrote a greatpieceabout Disney and artificial intelligence. I recommend you read it. For me, Taulli’s article exemplifies why you should own Disney stock — its use of technology to entertain people is the best on the planet.
• 7 High-Quality Cheap Stocks to Buy With $10
Disney’s got a lot of moving parts and Bob Iger and the rest of its management team will continue to do what it takes to remain the world’s biggest and best entertainment company.
It’s not dirt cheap, but it’s worth every penny.
Source: Shutterstock
PepsiCo(NYSE:PEP) is the 17th-largest of VTV’s 338 holdings with a weighting of 2.4%. Since long-time CEO Indra Nooyistepped downin October, Pepsi stock is up 26.7%, an annualized total return of 40%.
Before you get any ideas Nooyi was holding back PepsiCo stock; she delivered a cumulative total return of 136% over 17 years in the top job, including a significant stretch through the 2008 recession which saw PEP stock drop to below $20.
The work she did to get the beverage and snack food maker in fighting form in recent years helped her successor, Ramon Laguarta, hit the ground running. Laguarta joined Pepsi Europe in 1996, moving up the ranks until becoming PepsiCo president in September 2017; ascending to the top role when Nooyi retired a year later.
Nooyi built an exceptional bench of talent.
Case in point: PepsiCo chief commercial officer Laxman Narasimhan just took theCEO jobatReckitt Benckiser(OTCMKTS:RBGLY) — whose brands include Lysol, Woolite, Calgon, Scholl and Clearasil — less than three months after being appointed to the newly created role at Pepsi.
Pepsi reached on to its deep bench toappointRam Krishnan to replace Narasimhan. Krishnan currently runs the company’s Greater China business.
Trading near a 52-week high of $134.71, PepsiCo stock looks ready to continue moving higher.
At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities.
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Did You Manage To Avoid Wavefront Technology Solutions's (CVE:WEE) Devastating 74% Share Price Drop?
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As every investor would know, you don't hit a homerun every time you swing. But it should be a priority to avoid stomach churning catastrophes, wherever possible. It must have been painful to be aWavefront Technology Solutions Inc.(CVE:WEE) shareholder over the last year, since the stock price plummeted 74% in that time. While some investors are willing to stomach this sort of loss, they are usually professionals who spread their bets thinly. To make matters worse, the returns over three years have also been really disappointing (the share price is 33% lower than three years ago). Furthermore, it's down 46% in about a quarter. That's not much fun for holders.
See our latest analysis for Wavefront Technology Solutions
Wavefront Technology Solutions recorded just CA$3,920,369 in revenue over the last twelve months, which isn't really enough for us to consider it to have a proven product. We can't help wondering why it's publicly listed so early in its journey. Are venture capitalists not interested? So it seems that the investors focused more on what could be, than paying attention to the current revenues (or lack thereof). For example, they may be hoping that Wavefront Technology Solutions finds fossil fuels with an exploration program, before it runs out of money.
We think companies that have neither significant revenues nor profits are pretty high risk. There is almost always a chance they will need to raise more capital, and their progress - and share price - will dictate how dilutive that is to current holders. While some companies like this go on to deliver on their plan, making good money for shareholders, many end in painful losses and eventual de-listing. Wavefront Technology Solutions has already given some investors a taste of the bitter losses that high risk investing can cause.
Wavefront Technology Solutions has plenty of cash in the bank, with cash in excess of all liabilities sitting at CA$1.6m, when it last reported (February 2019). That allows management to focus on growing the business, and not worry too much about raising capital. But with the share price diving 74% in the last year, it could be that the price was previously too hyped up. The image below shows how Wavefront Technology Solutions's balance sheet has changed over time; if you want to see the precise values, simply click on the image.
It can be extremely risky to invest in a company that doesn't even have revenue. There's no way to know its value easily. What if insiders are ditching the stock hand over fist? I would feel more nervous about the company if that were so. It only takes a moment for you tocheck whether we have identified any insider sales recently.
Investors in Wavefront Technology Solutions had a tough year, with a total loss of 74%, against a market gain of about 0.3%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 13% per year over five years. We realise that Buffett has said investors should 'buy when there is blood on the streets', but we caution that investors should first be sure they are buying a high quality businesses. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought.You can find out about the insider purchases of Wavefront Technology Solutions by clicking this link.
Wavefront Technology Solutions is not the only stock insiders are buying. So take a peek at thisfreelist of growing companies with insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Ex-ICE officials criticize Trump's tweet about upcoming deportation sweep
President Trump issued a public warning Monday night, by tweet, of a mass deportation effort by U.S. Immigration and Customs Enforcement (ICE), to start next week. Next week ICE will begin the process of removing the millions of illegal aliens who have illicitly found their way into the United States, he tweeted . Trump is holding a rally Tuesday in Orlando, billed as the kickoff to his reelection campaign. The president did not offer any other details about how ICE, which is already detaining a record number of immigrants , intends to further ramp up its interior enforcement efforts. However, his tweet seemed to suggest that the agency was preparing to execute a plan that Trump and senior immigration adviser Stephen Miller have reportedly been pushing for months , to arrest and remove thousands of families, prompting sharp criticism from some former ICE officials. Immigration and Customs Enforcement agents enter an apartment complex in Dallas in 2015 looking for an undocumented immigrant convicted of a felony. (Photo: L.M. Otero/AP) There are an estimated 10.5 million undocumented immigrants in the U.S., and deporting all of them is a logistical impossibility, say former Obama administration officials who dealt with immigration issues. The more likely outcome will be a great deal of publicity and the removal of hundreds, not millions, one told Yahoo News, characterizing the tweet as typical Trump braggadocio. Officials added that announcing the operation ahead of time was self-defeating and could put agents at risk. This runs afoul of basic law enforcement 101. You never telegraph operations en masse, said John Amaya, who served as deputy chief of staff at ICE in the Obama administration. On one hand, you alert the target. But on the other, and worse yet, you are putting officer safety at risk. This president doesnt understand the first thing about law enforcement, and he is now showing that he cares about officer well-being even less. Kevin Landy, another former senior ICE official, agreed that Trumps tweet demonstrates once again why his own officials try to avoid briefing him on classified information. Story continues Homeland Security Investigations ICE agents detain a suspected MS-13 gang member and Honduran immigrant in Brentwood, N.Y., in 2018. (Photo: John Moore/Getty Images) Landy, who led the agencys Office of Detention Policy and Planning under Obama, said that ICE periodically plans coordinated enforcement actions against adults, with arrests executed by ICE field offices across the country. Such operations, he said, are conducted partly for PR value. Going after families in one action would probably maximize publicity, which the administration wants, in order to create a deterrent effect. They also hope that mass arrests in one operation will allow for an element of surprise, Landy told Yahoo News. Trump, of course, is unable to keep a secret, and in this case he's spilled the beans on a sensitive law enforcement operation. Not only did Trump warn the entire country, including the potential targets of ICEs upcoming operation, but Landy argued that his claim that ICE is beginning the process of removing millions is also typical Trump braggadocio. Yes, there are millions of undocumented immigrants, but this operation will result in arrests of hundreds. The difference is that ICE will be arresting families, not that the numbers will be larger, said Landy, saying that there are a variety of logistical constraints involved in carrying out such an operation, including limitations on the number of ICE officers available to execute arrests and to process required paperwork, transportation capacity and, most significantly, limits on family detention capacity while the removals are being processed. Last month, the Washington Post reported that in the weeks before they left office in April, then-Homeland Security Secretary Kirstjen Nielsen and acting ICE Director Ronald Vitiello had pushed back against a White House plan to conduct mass arrests of thousands of parents and children in 10 major cities across the country. The former officials had reportedly expressed concern about whether ICE was prepared to conduct such an operation, which would involve targeting migrant families homes and communities, the diversion of resources it would require from the border, and the risk of inciting public outrage with images of agents taking children and parents into custody. In explaining his decision to pull Vitiellos nomination for ICE director in April, Trump expressed a desire to take the agency in a tougher direction. Vitiello has since been replaced by Mark Morgan, a former FBI and Border Patrol official turned cable news proponent of harsh immigration enforcement policies. At a briefing earlier this month , Morgan told reporters in Washington about the agencys plans to step up interior enforcement operations in an effort to deter Central American families who have been traveling to the southern U.S. border to seek asylum in record numbers over the past several months. We will be going after individuals who have gone through due process, who have received final orders of deportation. That will include families, Morgan said at the briefing, explaining that the target of this new focus would be migrants who had either missed a court hearing or received deportation orders for other reasons. Mark Morgan, acting director of ICE, testifies before the Senate Homeland Security and Governmental Affairs Committee. (Photo: Cliff Owen/AP) They seem to take delight in terrorizing families and most vulnerable people, said Jennifer Williams, the deputy attorney-in-charge of the Immigration Law Unit at the Legal Aid Society of New York City. Im getting terrible flashbacks of last summer, when they were separating parents and kids at the border. I would have expected the administration to have learned its lesson after the country responded to the horrors of what they did. Williams, who said she and her colleagues often represent individuals with final orders of removal, said the most common scenario for issuing a deportation order covering an entire family would be if they entered the country together, were released from custody with a notice to appear in immigration court and, for any one of a million reasons, missed their hearing. Missing a court date, even if you show up half an hour late, could result in an in absentia order, which are really hard to undo, said Williams, saying that without the help of an attorney, migrants often dont know that they need to alert ICE of any address changes and may not even be aware that theyve missed a hearing and are now subject to removal. Williams said migrants who arent sure of their court date or if they have a pending final order of removal can check with the Justice Department's Executive Office for Immigration Review at 800-898-7180 using the nine-digit alien number provided to them by ICE upon arrival. In a statement issued Tuesday, the National Partnership for New Americans (NPNA), a coalition of immigrant and refugee rights organizations across 31 states, condemned Trumps warning and announced that with 150 attorneys and legal staff across the nation, NPNA will work to actively teach immigrant families how to protect themselves, use all of their legal rights to avoid deportation, and ensure that our immigrant families and communities are prepared. National organizations like the ACLU, as well as local community groups in places like North Carolina , have already been taking similar action in response to ICE activity and, in response to the latest warning from Trump, have indicated that they intend to continue their efforts . Read more from Yahoo News: Trump wants his next press secretary to be a cable news 'street fighter' For politicians, the D.C. elite and even a presidential candidate, a Navy program has been an attractive fast-track path to military service Trump admits his Cabinet had 'some clinkers' Confronted with multiple errors in his new Trump book, a testy Michael Wolff says, 'You have to trust me' Why are people willing to risk death for a selfie? PHOTOS: Dancing under the stars |
Oil & Gas Stock Roundup: C&J Energy-Keane Merger, Phillips 66 JVs & More
It was a week where oil prices hit its lowest in five months. Meanwhile, natural gas futures erased some of the steep losses that have taken the commodity to lows not seen since June 2016. On the news front, oilfield service providers C&J Energy Services CJ and Keane Group Inc. FRAC have agreed to merge in an all-stock deal worth $746 million, while diversified energy company Phillips 66 PSX unveiled plans to form two pipeline project joint ventures for crudfe oil transportation. Overall, it was a mixed week for the sector. While West Texas Intermediate (WTI) crude futures fell 2.7% to close at $52.51 per barrel, natural gas prices moved up 2.1% for the week to finish at $2.387 per million Btu (MMBtu). (See the last ‘Oil & Gas Stock Roundup’ here: Comstock's Acquisition, Shell's Strategy Update & More) The U.S. crude benchmark hit the lowest settlement level since January following the U.S. Energy Department's latest inventory release. The report showed that crude stockpiles recorded a much bigger-than-anticipated weekly build, ballooning to their highest since July 2017. On a further bearish note, the report revealed that gasoline inventory increased from its previous week level. Analysts and industry watchers are also worried over signs of worsening oil demand growth as the U.S.-China trade spat continue to threaten a major slowdown in global economy. On the other hand, natural gas prices recovered from previous week’s sharp retreat after a government report showed a smaller-than-expected increase in supplies. However, the commodity remained close to the lowest levels in three years because of growing fears that soaring production is outpacing demand growth Recap of the Week’s Most Important Stories 1. In a bid to improve pricing power in the oilfield service space, C&J Energy Servicesand Keane Group Inc. have announced a merger agreement. Energy investors are overwhelmed with the announcement as reflected by the C&J Energy and Keane stock jump of roughly 20% and 7%, respectively, on Jun 17. The combination will create a diversified and leading oilfield services company. The combined firm, where each of C&J Energy and Keane will have 50% ownership, will have a pro-forma enterprise value of $1.8 billion, added C&J Energy and Keane. The all-stock agreement is likely to consummate by the December quarter of 2019 and companies expect the deal to prove immediately accretive to cashflow. Following cheaper rates and intense competition in the oilfield service space, companies are looking for mergers and consolidations to expand market share and improve pricing power. Synergies from mergers will enable oilfield service companies improve operational efficiency and lower capital spending requirements, per an analyst quote. (Read more Can Consolidation Help Revive Oilfield Service Stocks?) Story continues 2. Phillips 66 recently announced that it has formed separate joint ventures (JVs) with Bridger Pipeline LLC and Plains All American Pipelineto create two pipelines in key shale plays. Phillips 66 formed a 50-50 JV with Bridger Pipeline LLC, namely Liberty Pipeline LLC, which will build the 24-inch Liberty Pipeline. The pipeline is designed to provide crude oil shipping services from shale production sites in the Rockies and Bakken regions to Cushing, OK. The Liberty Pipeline, which is backed by long-term volume commitments, is expected to help producers or clients to reach several Gulf Coast markets in Corpus Christi, Ingleside and Houston, TX. The pipeline is expected to come online in first-quarter 2021. The midstream giant also created a 50-50 JV with Plains All American, namely Red Oak Pipeline LLC, to build the Red Oak Pipeline system. This pipeline will connect producers in Cushing and the Permian Basin with the markets in Corpus Christi, Ingleside, Houston, and Beaumont of Texas. Given dearth of takeaway capacity haunting producers in the Permian Basin for the last few quarters, the Red Oak Pipeline system is expected to serve as an oasis.(Read more Phillips 66 Creates 2 JVs for Liberty & Red Oak Pipelines) 3. Canadian energy player Encana Corporation ECA recently provided an update on second-quarter-to-date production, underscoring strength of operations. The Zacks Rank #2 (Buy) company expects second-quarter output within 585-595 thousand barrels of oil equivalent per day (MBOE/d), higher than 338 MBOE/d and 566.6 MBOE/d recorded in the year-ago period and the last reported quarter, respectively. Encana expects liquids to account for 54% of the total output in the second quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here . The Canadian energy behemoth reiterated its 2019 capex and output guidance. The company expects capital spending in the band of $2.7-$2.9 billion. Full-year production is anticipated within 560-600 MBOE/d.(Read more Encana to Gain From Output Growth, Maintains 2019 View) 4. Royal Dutch Shell plc RDS.A recently shipped its first liquified natural gas (LNG) cargo from the Prelude floating liquefied natural gas (FLNG) facility in Australia. The startup of one of the world’s most anticipated LNG projects marks a milestone for the European energy giant. Notably, the flagship project is a joint venture among Shell, Inpex Corporation, Korea Gas Corporation and Taiwan’s CPC Corporation, with Shell being the chief operator, owning a 67.5% stake. The Prelude project will further bolster Australia’s LNG exports, which overtook Qatar as the largest LNG exporting country in 2018. Prelude, on becoming fully functional, will aid Australia in retaining its current position as the world’s largest LNG exporter. Australia’s LNG export is likely to total 80 million metric tons per year. Prelude will handle production, liquefaction, storage and transfer of LNG at sea, along with processing, exporting and condensation of liquefied petroleum gas. The facility has a production capacity of around 5.3 million tons per annum (mtpa) of liquids, with LNG accounting for 3.6 mtpa or 68% of the total capacity. Markedly, Shell dispatched its first NGL cargo from Prelude in March 2019.(Read more Shell Ships 1st LNG From Prelude, To Sell Martinez Refinery) 5. Scarred by corruption scandal and huge debt burden, Petrobras PBR has been making serious efforts to trim its leverage metrics and boost overall performance. Reportedly, the Brazilian oil giant boosted investment and divestment targets of the five-year plan for the 2019-2023 period, unveiled in December 2018, before Roberto Castello Branco became the CEO from Jan 1, 2019. The company now plans to invest $105 billion within 2019-2023 versus previous forecast of $84.1 billion. This represents a 41% hike from its projected investment of $74.5 billion through 2018-2022. Petrobras now aims to raise $35 billion through asset sales within the 2019-2023-time frame versus prior forecast of $26.9 billion. The news comes just a week after the Supreme Court lifted the suspension order on the company that put a pause on its asset divestiture program including the $8.6 billion worth TAG pipeline sale. Marking a major victory for the Bolsonaro government and Petrobras, the court recently ruled that state-held companies do not require congressional approval to jettison their subsidiaries.(Read more Petrobras Ups 5-Year Investment & Divestment Targets) Price Performance The following table shows the price movement of some the major oil and gas players over the past week and during the last 6 months. Company Last Week Last 6 Months XOM -0.3% +4.3% CVX -0.6% +10.6% COP -0.2% -4.7% OXY +3.1% -21.1% SLB +0.9% -3.1% RIG -11% -22% VLO +2.7% +8.3% MPC +2.1% -17.4% Reflecting the weak market sentiment, the Energy Select Sector SPDR – a popular way to track energy companies – edged down 0.4% last week. The worst performer was offshore driller Transocean Ltd. whose stock slumped 11%. But longer-term, over six months, the sector tracker is up 3.4%. Integrated energy major Chevron CVX was the major gainer during this period, experiencing a 10.6% price increase. What’s Next in the Energy World? As usual, market participants will be closely tracking the regular releases i.e. the U.S. government statistics on oil and natural gas -- one of the few solid indicators that comes out regularly. Energy traders will also be focusing on the Baker Hughes data on rig count. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better. See these 7 breakthrough stocks now>> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report Phillips 66 (PSX) : Free Stock Analysis Report Encana Corporation (ECA) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report Royal Dutch Shell PLC (RDS.A) : Free Stock Analysis Report Keane Group, Inc. (FRAC) : Free Stock Analysis Report C&J Energy Services, Inc. (CJ) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research View comments |
Is There An Opportunity With j2 Global, Inc.'s (NASDAQ:JCOM) 30% Undervaluation?
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How far off is j2 Global, Inc. (NASDAQ:JCOM) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by estimating the company's future cash flows and discounting them to their present value. This is done using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward.
Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model.
View our latest analysis for j2 Global
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars:
[{"": "Levered FCF ($, Millions)", "2019": "$369.50", "2020": "$407.67", "2021": "$438.99", "2022": "$466.18", "2023": "$490.22", "2024": "$511.93", "2025": "$531.99", "2026": "$550.94", "2027": "$569.19", "2028": "$587.05"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x4", "2020": "Analyst x4", "2021": "Est @ 7.68%", "2022": "Est @ 6.2%", "2023": "Est @ 5.16%", "2024": "Est @ 4.43%", "2025": "Est @ 3.92%", "2026": "Est @ 3.56%", "2027": "Est @ 3.31%", "2028": "Est @ 3.14%"}, {"": "Present Value ($, Millions) Discounted @ 10.16%", "2019": "$335.41", "2020": "$335.92", "2021": "$328.35", "2022": "$316.52", "2023": "$302.13", "2024": "$286.40", "2025": "$270.17", "2026": "$253.98", "2027": "$238.18", "2028": "$222.99"}]
Present Value of 10-year Cash Flow (PVCF)= $2.89b
"Est" = FCF growth rate estimated by Simply Wall St
After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 2.7%. We discount the terminal cash flows to today's value at a cost of equity of 10.2%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$587m × (1 + 2.7%) ÷ (10.2% – 2.7%) = US$8.1b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$8.1b ÷ ( 1 + 10.2%)10= $3.08b
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $5.97b. The last step is to then divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of $122.03. Compared to the current share price of $85.8, the company appears a touch undervalued at a 30% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind.
We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at j2 Global as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 10.2%, which is based on a levered beta of 1.247. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Although the valuation of a company is important, it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For j2 Global, There are three pertinent factors you should look at:
1. Financial Health: Does JCOM have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Future Earnings: How does JCOM's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with ourfree analyst growth expectation chart.
3. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of JCOM? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing!
PS. Simply Wall St updates its DCF calculation for every US stock every day, so if you want to find the intrinsic value of any other stock justsearch here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
U.S. farmers may need more aid if trade deals stall during election season - lobby
By P.J. Huffstutter
CHICAGO (Reuters) - Farmers may need a third round of government aid next year if political in-fighting during the 2020 U.S. election cycle prevents the Trump administration from landing trade deals and reopening top export markets, the head of the largest U.S. farm lobby said on Tuesday.
If the U.S. Congress cannot ratify the United States-Mexico-Canada Agreement (USMCA), then it and the Trump administration could find it difficult to finalise any trade deals with other large markets, including the European Union and Japan, American Farm Bureau Federation President Zippy Duvall said.
Farmers have struggled to stay afloat this year as top U.S. soybean buyer China curtails purchases. They are counting on other markets like Mexico and Europe to buy their agricultural goods.
"The deeper we get into this campaign season, the more difficult it might become" to get USMCA ratified or any trade deals done, Duvall said in an interview.
"Not because of the treaty itself, not because of the need itself, but just because of the rhetoric around the election," Duvall said.
On Tuesday, President Donald Trump, a Republican, formally kicked off his re-election bid and tweeted that the United States and China would restart trade talks. Trump said he would meet with Chinese President Xi Jinping at the G20 summit later this month, and that talks between the two countries would restart after a long lull.
Democratic lawmakers, who took control of the House of Representatives in the 2018 election, have said they want to see changes to the USMCA trade deal.
Duvall said the Farm Bureau is growing concerned that U.S. farmers could potentially enter a third year with restricted access to key export markets - at a time when the farm economy has been battered by low crop prices and is battling flood damage across the Midwest.
The Trump administration has, so far, pledged as much as $28 billion in support payments to U.S. farmers in two separate rounds, to compensate for lower prices for farm goods and lost sales stemming from trade disputes with China and other nations.
"If we're not going to get USMCA finished, if we're not going to get the solution to our problems in China or Japan, then we need to be talking about another payment to try to hold farmers over until that gets done," Duvall said.
But how that would happen - both on a practical and economic level - is unclear, he said.
The hurdle is where the money would come from, Duvall said.
The first tranche, announced in 2018, provided up to $12 billion in aid to farmers to shield them from repercussions of trade disputes between the United States and China, the European Union and others.
The funds came from the Commodity Credit Corporation (CCC), established during the Great Depression in the 1930s, to compensate farmers for an estimated $11 billion in losses due to the trade wars.
That so-called Trump Bump to farmers was supposed to be a one-time occurrence. But earlier this year, the Trump administration announced plans to tap CCC funds a second time to pay out up to $16 billion in farm support - a move that is being scrutinized by other World Trade Organization members, questions submitted to the WTO's quarterly agriculture committee meeting showed on Monday.
The CCC has the authority to borrow up to $30 billion from the U.S. Treasury, according to the U.S. Department of Agriculture.
Given that cap, the Farm Bureau and the farm community have started questioning whether there would be sufficient funds available for a third round.
"This president has continued to back up his word by saying he's going to stand behind the farmer and he's delivered that so far," Duvall said. "I don't know how much longer he can do that."
(Reporting by P.J. Huffstutter in Chicago; Additional reporting by Mark Weinraub and Karl Plume in Chicago; Editing by Caroline Stauffer and Matthew Lewis) |
Have Insiders Been Selling Natural Gas Services Group, Inc. (NYSE:NGS) Shares This Year?
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares inNatural Gas Services Group, Inc.(NYSE:NGS).
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
View our latest analysis for Natural Gas Services Group
The VP, CFO, G. Lawrence, made the biggest insider sale in the last 12 months. That single transaction was for US$74k worth of shares at a price of US$18.42 each. So what is clear is that an insider saw fit to sell at around the current price of US$15.54. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
We note that in the last year insiders divested 13456 shares for a total of US$231k. In the last year Natural Gas Services Group insiders didn't buy any company stock. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying.
The last three months saw significant insider selling at Natural Gas Services Group. In total, insiders dumped US$231k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Natural Gas Services Group insiders own 5.1% of the company, worth about US$11m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! Therefore, you should should definitely take a look at thisFREEreport showing analyst forecasts for Natural Gas Services Group.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
IBM Notches Another Supercomputer Win
IBM(NYSE: IBM)currently holds the No. 1 and No. 2 spots on the list of the world's most powerful supercomputers. The company'sSummit and Sierra systems, powered by its POWER9 processors and accelerated byNVIDIA's GPUs, were delivered to the U.S. Department of Energy last year.
IBM will lose the crown in 2021, when anAMD-powered supercomputerdesigned byCraygoes online. But the work IBM did to build Summit and Sierra is now being applied to the commercial supercomputer market. IBM announced Tuesday morning that it had built a new supercomputer forTotal, a multinational oil and gas company, that it claims is the world's most powerful commercial system. The Pangea III supercomputer is based on the same technology that powers Summit and Sierra, and it has enough computing power to claim the No. 11 spot among both public and private supercomputers globally.
IBM's POWER9 processor. Image source: IBM.
Like Summit and Sierra, Pangea III is built around IBM's POWER9 processors and accelerated by GPUs from NVIDIA. The system has a total computing power of 25 petaflops, meaning it can do 25 quadrillion floating-point operations per second. For comparison, the top-ranked Summit has a peak computing power of around 200 petaflops.
Pangea III uses 1.5 megawatts of power, one-third the power of its predecessor, and Total reports that energy consumption per petaflop has been reduced by more than 90%. IBM's CPUs are connected to NVIDIA's GPUs using NVIDIA's NVLink technology, which IBM claims has memory bandwidth 5.6 times faster than systems powered byIntelprocessors.
Total will use Pangea III for producing high-resolution seismic images, running advanced reservoir simulation models, and improving how it selects new ventures. "Pangea III's additional computing power enhances Total's operational excellence. It enables Total to reduce geological risks in exploration and development, accelerate project maturation and delivery, and increases the value of our assets through optimized field operations, with all this at lower cost," said Arnaud Breuillac, president of Total exploration and production.
While Intel and AMD get most of the attention when it comes to CPUs, IBM's Power business is enjoying a period of growth. Power sales rose 9% in the first quarter, marking the sixth consecutive quarter of growth. Thefirst systems based on IBM's POWER9 processorswere announced at the very end of 2017.
This supercomputer announcement comes on the heels of another piece of Power-related news. IBM announced on June 17 that POWER9-based virtual servers are now available on the IBM Cloud, allowing customers who run Power systems to more easily adopt a hybrid cloud approach. IBM is betting big on the hybrid cloud, and the data backs up that strategy: IDC expects 90% of the largest enterprises in the world to embrace integrated hybrid and multicloud tools and strategies by 2024.
IBM's supercomputer business represents a small part of its total revenue, but it allows the company to demonstrate the number-crunching power of its hardware. IBM's POWER9 processors are designed for data throughput, positioning them to run artificial intelligence and other data-heavy workloads. New POWER10 processors are expected from IBM sometime in 2020, and this focus on data is likely to remain.
While this Total supercomputer deal won't move the needle for IBM, it's still a meaningful win for the company's hardware business.
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Timothy Greenowns shares of IBM. The Motley Fool owns shares of and recommends NVIDIA. The Motley Fool has adisclosure policy. |
Does The ATW Tech Inc. (CVE:ATW) Share Price Fall With The Market?
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Anyone researching ATW Tech Inc. (CVE:ATW) might want to consider the historical volatility of the share price. Volatility is considered to be a measure of risk in modern finance theory. Investors may think of volatility as falling into two main categories. First, we have company specific volatility, which is the price gyrations of an individual stock. Holding at least 8 stocks can reduce this kind of risk across a portfolio. The second type is the broader market volatility, which you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks on the market.
Some stocks are more sensitive to general market forces than others. Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). However, Warren Buffett said 'volatility is far from synonymous with risk' in his 2014 letter to investors. So, while useful, beta is not the only metric to consider. To use beta as an investor, you must first understand that the overall market has a beta of one. A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.
Check out our latest analysis for ATW Tech
Given that it has a beta of 1.64, we can surmise that the ATW Tech share price has been fairly sensitive to market volatility (over the last 5 years). Based on this history, investors should be aware that ATW Tech are likely to rise strongly in times of greed, but sell off in times of fear. Beta is worth considering, but it's also important to consider whether ATW Tech is growing earnings and revenue. You can take a look for yourself, below.
With a market capitalisation of CA$3.2m, ATW Tech is a very small company by global standards. It is quite likely to be unknown to most investors. It takes less money to influence the share price of a very small company. This may explain the excess volatility implied by this beta value.
Since ATW Tech tends to moves up when the market is going up, and down when it's going down, potential investors may wish to reflect on the overall market, when considering the stock. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as ATW Tech’s financial health and performance track record. I urge you to continue your research by taking a look at the following:
1. Financial Health: Are ATW’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here.
2. Past Track Record: Has ATW been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look atthe free visual representations of ATW's historicalsfor more clarity.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Kings F Barnes to opt out
Harrison Barnes is set to opt out of his contract with the Sacramento Kings and become an unrestricted free agent. Barnes' agent, Jeff Schwartz, told ESPN of the pending move that will allow the 27-year-old to pursue his fourth NBA team since entering the league with the Golden State Warriors in 2012. Traded from the Dallas Mavericks to the Kings in February, Barnes averaged 16.4 points per game between the two clubs. He's open to returning to Sacramento, according to the report, but could find greener pastures as he did when he left the Warriors for a $94 million deal in 2016. Barnes became expendable in Golden State when Kevin Durant chose to sign with the Warriors as a free agent. In a twist of irony, Barnes could be an option for the Warriors should Durant leave in free agency. He said in July 2016 that it was never his plan to leave the franchise. "The decision was more so made for me," Barnes said of the Durant dominoes. "I was not necessarily walking away from the situation. I wasn't saying, I don't want to be here. I want to go there.'" --Field Level Media |
7 Hot Stocks to Buy for a Seemingly Sleepy Summer
Generally speaking, summer is a lethargic time for the market. With investors thinking about vacations, ball games and cookouts, and in the absence of many catalysts, it’s just a slow time of year. On average, theS&P 500gains a very modest 1% between the beginning of June and the end of August, leading into what’s often a rather rough September.
There are always exceptions though.
Granted, these exceptions are often born out of unusual circumstances, and may need the right nudge to realize their full potential. Given how lethargic the summer of 2019 is shaping up to be though, investors looking to add a little extra zip to sleepy portfolios may want to take some strategic action.
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With that as the backdrop, here’s a rundown of seven stocks to buy with the best shot at bucking the brewing stagnation and mustering a respectable summertime gain. They’ve already demonstrated some unusually impressive — and new — bullishness, but more may be in store.
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The ongoing tariff war — and the ensuing economic headwind it has helped create — has prompted investors and analysts alike to identify those names that seem the most vulnerable. In so doing, investors have largely overlooked names that are able to shrug off those woes.
That’sWhirlpool(NYSE:WHR) right now, says KeyBanc’s Kenneth Zener. He suggests the appliance maker is actuallyshelter (of sorts) from the storm, positioned to capitalize on what could turn into lower mortgage rates. It’s also somewhat of a beneficiary of a moderating economy; consumers may buy a dishwasher rather than purchase a new vehicle.
Simultaneously, even if out of necessity, the company’s cost-cutting initiatives are working. This year’s EBIT margin forecast of between 6.5% and 6.8%marks a 40 basis point improvement, though the company anticipates EBIT margins of more than 10% by 2020. That should be enough to drive profit growth of more than 10% this year and next.
The market has finally taken notice. After a rough 2018, WHR stock is up 40% from its late-December low, and up more than 20% since late May. Yet, the bulk of last year’s loss has yet to be reclaimed.
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Given the uncertainty that has kept shares of farming equipment nameDeere & Company(NYSE:DE) from moving forward for well over a year now, it would be easy to assume the same woes apply to smaller rivalAgco(NYSE:AGCO). Indeed, a month ago, BofA Merrill made a point of saying that would be the case,lowering its stance on AGCO stock to “Underperform”in anticipation of falling demand.
AGCO shares took a hit, unwinding a sizeable piece of this year’s 36% rally. Curiously though, AGCO didn’t stay down. It’s almost back to May’s highs, which are within sight of record highs.
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That rebound likely has much to do with the fact that, rather than worrying about what may or may not happen in China, which is out of the company’s control, Agco is focusing on something it can control. That’s improving margins. CEO Martin Richenhagensaid that plainly in a CNBC interview from last month, though recentinvestments in productionas well as outright purchases of complementary companies also set the stage for better margins.
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Medical supply and equipment companyBaxter International(NYSE:BAX) is never going to be a red-hot growth machine. But, what it lacks in explosiveness it more than makes up for in consistency.
Most investors would struggle to name one specific product Baxter offers. Millions of caregivers and patients would struggle withBaxter-made wares though. From infusion systems to surgical tools to kidney dialysis solutions, it does a little of everything for a lot of people.
That diversity is the key to its consistency, and while it would be untrue to suggest the company never fails to grow its business, it would also be untrue to suggest it doesn’t usually drive quarterly top-line growth. That’s a core reason BAX stock has been such a reliable performer. It’s also a key part of the reason BAX stock was able to shrug off last year’s stumble and reclaim all that was lost. Record highs are once again back in sight.
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A recovery of most of the television production industry’s names certainly provided a tailwind, butDiscovery Communications(NASDAQ:DISCA) has emerged from that sweeping turnaround as one of the hot stocks to buy again.
You know the company’s flagship and namesake television channel. But, it’s much more than that. Discovery isalso the studio behind HGTV, Food Network, TLC, Animal Planet and the Oprah Winfrey Network … and more.
It’s a business seemingly with a cloudy future. The advent of all sorts of streaming options against a backdrop of cord-cutting would theoretically work against the company.
But, as few have fully appreciated, Discovery is wisely working with that tide rather than against it. Namely, it’s more likely to partner with the names disrupting the tradition television industry. Discovery’s content isavailable through YouTube, for instance, and Animal Planet is a choice on most so-called skinny bundles.
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This willingness to rethink how to most profitably distribute content in an ever-changing market is a big part of the reason 2018 was so fruitful for DISCA stock after a rocky 2017. Revenue is projected to grow more than 5% this year, and next, accompanied by comparable profit growth. But, there’s still lots of ground for DISCA to make up from years of sub-par performance. A newly developed rising support line (white, dashed) is helping to do just that.
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Cornerstone OnDemand(NASDAQ:CSOD) isn’t a household name, though it would be a nice addition to most household’s portfolios.
Cornerstone OnDemand offers cloud-based human resources management software. It’s not exactly riveting stuff, nor is it high growth. It’s got teeth though, but more than that, the company is currently in the middle of a major pivot. This year is the one where Cornerstone finally achieves enough scale to drive a profit explosion. Last year’s per-share earnings of 74 cents are expected to reach $1.04 this year, and jump 40% next year to $1.46 on sales growth that isn’t nearly as impressive.
Analysts agree that the business model and the recurring revenue it produces makes Cornerstone currently undervalued. The consensus target now stands at $64.11, or 14% above the stock’s current price. The uptrend that’s been in place since early last year, however, says CSOD stock is en route to that level.
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Any new exposure to the retail landscape, particularly in the current environment, isn’t easy to take on, even if the play is acting as a landlord to consumer-facing companies. Retail REITFederal Realty Investment Trust(NYSE:FRT) isn’t nearly as vulnerable as it would be easy to assume it is, however, for a couple of reasons.
Chief among them is where Federal Realty Investment Trust sets up shop. Most of its properties make up an upscale destination for diners and shoppers, and aren’t as impacted as a rural shopping center or less affluent areas might be by economic turbulence.
The second reason FRT is taking shape as one of the best stocks to buy this summer? While the retail apocalypse may still be underway, it has become something more predictable and manageable. ThisREIT’s feel for development and redevelopmentdelivers the experience and mixed-use areas consumers want; much of the retail apocalypse was self-imposed by retailers that failed to keep their finger on the pulse of the market.
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It’s a nuance investors largely missed a couple years back, but the 27% gain from its early 2018 low suggest they’re now remembering. The recent weakness is a chance to get into the bigger-picture uptrend at a bargain price.
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Finally, addIncyte(NASDAQ:INCY) to your list of stocks to buy for the coming summer months.
Incyte is the name behind a drug calledruxolitinib, though it’s better known by its brand name Jakafi. It has proven to be an effective treatment for a handful of blood-related diseases, including a rare cancer called myelofibrosis and a similar condition called polycythemia vera. It may be a one-trick pony, so to speak, but when that pony is Jakafi, that’s ok. That one drug is expected to improve the top line by nearly 10% this year, and more than 16% next year, driving Incyte much deeper into the black.
Although it has been a compelling success story, INCY stock is no stranger to volatility. Those swings, however, have proven relatively predicable. A technical floor near $60 that took shape (again) last year ultimately served as a springboard for this year’s bullishness, and a former ceiling near $74 has since turned into a support level.
Now on solid footing, the bulls are starting to reach for higher highs, not unlike the beginning of the big move seen in 2016.
As of this writing, James Brumley did held a long position in Cornerstone On-Demand. You can learn more about James at his site,jamesbrumley.com, orfollow him on Twitter, at @jbrumley.
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The post7 Hot Stocks to Buy for a Seemingly Sleepy Summerappeared first onInvestorPlace. |
US STOCKS-Wall St rises as mood on trade again turns optimistic, nears record high
(For a live blog on the U.S. stock market, click or type LIVE/ in a news window.)
* Trump says trade talks to restart, will meet with Xi
* Tech boosts S&P 500; trade-sensitive industrials jump
* Defensive stocks decline among 11 S&P sectors
* Two-day Fed policy meeting in focus
* Indexes jump: Dow 1.46%, S&P 1.12%, Nasdaq 1.60% (Updates to afternoon)
By Noel Randewich
June 18 (Reuters) - Wall Street surged on Tuesday and the S&P 500 approached a record high after Washington rekindled trade talks with Beijing, boosting sentiment along with growing investor confidence that the Fed will cut interest rates this year.
President Donald Trump said he would meet with Chinese President Xi Jinping at the G20 summit later this month, and said talks between the two countries would restart after a recent lull.
Global stock markets have rallied and retreated repeatedly in recent months in reaction to comments from Trump about the progress - or lack of progress - in negotiating an end to the trade conflict. Trump's statement on Tuesday pushed up trade-sensitive industrials up 2.0% and technology stocks gained 1.9%. Together, they were the biggest boost to the benchmark index.
Chip companies, which have a sizable revenue exposure to China, led the rally in tech stocks, with the Philadelphia Semiconductor index surging 4.8%.
"We can't discount how big a deal it is for China and the U.S. not to go into a prolonged trade spat. I don't think we're out of the woods yet, though," said King Lip, chief investment strategist at Baker Avenue Asset Management in San Francisco.
"I’d wait for the G20 meeting to see actual discussions coming out of that before we go back into a risk-on mode," he said.
The U.S.-China trade war and its impact on economic growth has investors increasingly expecting the Federal Reserve will cut rates to preserve the U.S. economic expansion, which would be the longest on record this summer.
The Fed is widely expected to leave interest rates unchanged at its two-day policy meeting that ends Wednesday, while laying the foundation for a cut later this year. The Fed is scheduled to release its statement at 2 p.m. (1800 GMT) on Wednesday and Chairman Jerome Powell will hold a press conference shortly after.
The S&P 500 has gained 6% so far this month, and is only about 1% from the all-time high hit in early May.
Comments by European Central Bank President Mario Draghi indicating the possibility of fresh rate cuts or asset purchases also lifted sentiment.
At 2:37 p.m. ET, the Dow Jones Industrial Average was up 1.46% at to 26,494.54, while the S&P 500 gained 1.12% to 2,922.14. The Nasdaq Composite added 1.6% to 7,970.33.
Apple Inc, Amazon.com Inc and Microsoft Corp rose between 1% and 2.5%, contributing the most to gains in the S&P 500 and Nasdaq.
Boeing Co jumped 4.7%, buoying the Dow, after the planemaker received an order for its 737 MAX jets valued at more than $24 billion at list prices; the 737 MAX has been grounded since March after two deadly crashes.
The utilities, real estate and consumer staples sectors, all of which are viewed as defensive, were the only decliners.
Advancing issues outnumbered declining ones on the NYSE by a 3.12-to-1 ratio; on Nasdaq, a 2.73-to-1 ratio favored advancers.
The S&P 500 posted 57 new 52-week highs and one new low; the Nasdaq Composite recorded 82 new highs and 37 new lows. (Reporting by Noel Randewich Additional reporting by Shreyashi Sanyal and Aparajita Saxena in Bengaluru Editing by Leslie Adler) |
Salesforce exec: There is a 'crisis of trust' in big tech
Big tech is under the microscope, now thatU.S. regulators investigatewhether Amazon(AMZN), Apple(AAPL), Facebook(FB), and Google(GOOG)have too much power.
Ascalls for breaking upthese tech titans gainmomentum among lawmakers, at least one Silicon Valley insider says “trust” is at the crux of the increased scrutiny.
“I think regulators are really responding to a crisis of trust in the tech industry,” Bret Taylor, president of Salesforce(CRM), told Yahoo Finance’sThe First Trade.
Taylor, who is credited with creating the “Like” button at Facebook during his time as the company’s chief technology officer, says he’s seen a decrease in the public’s trust in big tech over the past few years.
“Broadly speaking, what I see happening in the marketplace is this theme of trust becoming more important than ever,” Taylor said.
Speaking to Yahoo Finance from the Salesforce developer’s conference in Chicago, Taylor said consumers need to have trust when engaging in platforms like Google and Amazon.
“It comes down to how your data is being used and the transparency around that, and I think it’s up to us in the tech industry to make sure that our platforms are trusted,” he said.
Taylor, who also is the co-creator of Google Maps, says gaining the public’s trust is a “mulit-stakeholder dialogue” that should include not just big tech, but also regulators and our communities. “I do think that it’s really important that we invest in this,” said Taylor.
Alexis Christoforous is co-anchor of Yahoo Finance’s “The First Trade.” Follow her on Twitter@AlexisTVNews.
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These colleges have the highest employment rate after graduating
A new study has determined which of each state’scollegeshad the highest employment rates for graduates.
The analysis byZippiaused data from theU.S. Department of Education’s College Scorecardand found which college in each state had the highest job placement numbers. The analysis then sorted “every college in the country from highest employment levels to lowest that had data on employment counts ten years after graduating.” The report was then further organized by which college had the “highest rate of employment in each state.”
The analysis found that the top 10 schools were: Quinnipiac University in Connecticut with 96.1 percent, Augustana University in South Dakota with 96.05 percent, Ohio Northern University in Ohio with 95.86 percent, Lebanon Valley College in Pennsylvania with 95.63 percent, Western New England University in Massachusetts 95.56 percent, Marquette University in Wisconsin with 95.5 percent, Providence College in Rhode Island with 95.28 percent, Saint John’s University in Minnesota with 95.16 percent, Siena College in New York with 95.13 percent and University of Nebraska Medical Center with 94.96 percent.
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The report comes as the country enjoys alow unemployment rateat 3.6 percent, the lowest since 1969, according to the Bureau of Labor Statistics' statistics for May. The U.S. added a less-than-expected 75,000 jobs in May. Average hourly earnings in May rose 6 cents to $27.83 -- a 3.1 percent increase year-over-year.
Fox Business’ Joe Williams contributed to this report.
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Brokers Just Love These 5 Stocks
Sometimes you come across stocks that are just perfect, companies that seem to be doing everything right, growing revenue and earnings at strong double-digit rates and projecting solid sales and earnings growth ahead. Brokers just love these stocks and end up raising their estimates on them. But even with all these positives, for some reason, prices remain reasonable. There seems to be no reason to remain at the sidelines then. So it makes perfect sense to dive right in-
Malibu Boats, Inc. MBUU
Malibu Boats, Inc. operates as a designer, manufacturer and marketer of sport boats primarily in the United States. The Company sells its boats under two brands: Malibu and Axis Wake Research. Its sport boats used for water sports including water skiing, wakeboarding and wake surfing as well as for general recreational boating use.
Average broker rating 1
Zacks Rank #1 (Strong Buy)
VGM score A
Sales growth in the last fiscal year ending June was 76.28%
Expected sales growth this year 35.85% and next year 12.50%
EPS growth in the last fiscal year was 66.67%
Expected EPS growth this year 40.00% and next year 13.74%
Fiscal 2019 EPS estimate up 4.30%, 2020 EPS up 2.73% in the last 60 days
Valuation: The forward 12 months’ P/E of 9.08X trails the 16.69X for the S&P 500
MEDIFAST INC MED
Medifast is a leading manufacturer and distributor of clinically proven weight loss and healthy living products and programs. Distribution is through websites, telemarketing, franchised weight loss clinics, medical professionals and multi-level marketing.
Average broker rating 1
Zacks Rank #2 (Buy)
VGM score B
Sales growth in the last fiscal year was 66.14%
Expected sales growth this year 47.72% and next year 24.98%
EPS growth in the last fiscal year was 101.75%
Expected EPS growth this year 47.19% and next year 26.91%
Valuation: The forward 12 months’ P/E of 18.25X trails the 16.69X for the S&P 500. But whereas the S&P 500 is trading at its median value, MED is trading well below its median value of 23.68X.
OptimizeRx Corp. OPRX
OptimizeRx Corporation provides marketing and advertising solutions that seek to increase patient awareness and education about its clients’ brands and then helps patients adhere to their routines. It is believed that this approach, facilitated through a platform connecting patients, physicians and pharmaceutical manufacturers, ultimately lowers cost for patients.
Average broker rating 1
Zacks Rank #1
Growth score A
Sales growth in the last fiscal year was 74.87%
Expected sales growth this year 35.17% and next year 29.65%
EPS growth in the last fiscal year was 223.8%
Expected EPS growth this year 61.54% and next year 55.16%
Valuation: The forward 12 months’ P/E of 49.73X is below its median value of 90.67X and is at a significantly higher level than the S&P 500.
Synergy Resources Corporation SRCI
SRC Energy Inc. is an oil and natural gas exploration and production company. It engages in the acquisition, development, exploitation, exploration and production of oil and natural gas properties, primarily located in the Wattenberg field in the D-J Basin of northeast Colorado.
Average broker rating 1.4
Zacks Rank #2
VGM score A
Sales growth in the last fiscal year was 78.1%
Expected sales growth this year 18.27% and next year 10.22%
EPS growth in the last fiscal year was 63.77%
Expected EPS growth this year -11.50% and next year 14.79%
Valuation: The forward 12 months’ P/E of 4.07X is below its median value of 5.82X and trails the S&P 500
Pioneer Natural Resources Company PXD
Pioneer Natural Resources Company is a large, Texas-based independent exploration and production company that is focused on helping to meet the world's energy needs. Pioneer Natural Resources deliver industry-leading production and reserve growth through onshore, unconventional, oil and gas resource development in the United States, while providing opportunities for growth and enrichment for business partners, employees and the communities in which operate. The company provides administrative, financial and management support to United States and foreign subsidiaries that explore for, develop and produce oil, natural gas liquid and natural gas reserves.
Average broker rating 1.19
Zacks Rank #2
VGM score B
Sales growth in the last fiscal year was 72.59%
Expected sales growth this year 6.86% and next year 13.16%
EPS growth in the last fiscal year was 192.13%
Expected EPS growth this year 48.81% and next year 18.69%
Valuation: The forward 12 months’ P/E of 14.18X is below its median value of 17.17X and trails the S&P 500.
Also seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportOptimizeRx Corp. (OPRX) : Free Stock Analysis ReportMEDIFAST INC (MED) : Free Stock Analysis ReportMalibu Boats, Inc. (MBUU) : Free Stock Analysis ReportPioneer Natural Resources Company (PXD) : Free Stock Analysis ReportSynergy Resources Corporation (SRCI) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
National Health Investors, Inc. (NYSE:NHI) Delivered A Better ROE Than Its Industry
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One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. By way of learning-by-doing, we'll look at ROE to gain a better understanding of National Health Investors, Inc. (NYSE:NHI).
National Health Investors has a ROE of 11%, based on the last twelve months. Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.11.
See our latest analysis for National Health Investors
Theformula for return on equityis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for National Health Investors:
11% = US$152m ÷ US$1.4b (Based on the trailing twelve months to March 2019.)
Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. It is all the money paid into the company from shareholders, plus any earnings retained. The easiest way to calculate shareholders' equity is to subtract the company's total liabilities from the total assets.
ROE measures a company's profitability against the profit it retains, and any outside investments. The 'return' is the amount earned after tax over the last twelve months. The higher the ROE, the more profit the company is making. So, all else equal,investors should like a high ROE. That means it can be interesting to compare the ROE of different companies.
One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. As is clear from the image below, National Health Investors has a better ROE than the average (6.2%) in the REITs industry.
That is a good sign. We think a high ROE, alone, is usually enough to justify further research into a company. For example,I often check if insiders have been buying shares.
Virtually all companies need money to invest in the business, to grow profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
National Health Investors has a debt to equity ratio of 0.91, which is far from excessive. I'm not impressed with its ROE, but the debt levels are not too high, indicating the business has decent prospects. Conservative use of debt to boost returns is usually a good move for shareholders, though it does leave the company more exposed to interest rate rises.
Return on equity is useful for comparing the quality of different businesses. In my book the highest quality companies have high return on equity, despite low debt. All else being equal, a higher ROE is better.
But when a business is high quality, the market often bids it up to a price that reflects this. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So I think it may be worth checking thisfreereport on analyst forecasts for the company.
Of courseNational Health Investors may not be the best stock to buy. So you may wish to see thisfreecollection of other companies that have high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
People call out CBS News for 'misogyny' after tweet about soccer star Julie Ertz
People are calling out CBS after referring to soccer star Julie Ertz as Zach Ertz's 'wife.' (Photo: Getty Images) Julie Ertz and the rest of the U.S. women’s soccer team are headed to the next round of the FIFA Women’s World Cup. But her husband, NFL player Zach Ertz, is still seemingly stealing some of her spotlight after CBS News referred to the renowned soccer player as his wife. In a tweet about the Eagles tight end being granted leave from his team’s training camp so that he can attend the World Cup, CBS News failed to refer to Team USA’s defensive midfielder by her name. Eagles tight end Zach Ertz leaves training camp to watch wife in World Cup https://t.co/9fmD1wjd9c pic.twitter.com/5FixB1TrZI — CBS News (@CBSNews) June 13, 2019 Now, days after the tweet was originally posted, people are speaking out about the “misogyny” embedded within the post — from its wording to the photo that was also published. Are you frickin kidding me — Imani Gandy (@AngryBlackLady) June 18, 2019 "wife" is a weird name for a pro soccer player who's made it to the highest level of her sport. — Mads (@madisons_mad) June 18, 2019 She has a name — Lindsay Bostwick🌵 (@Lindsay_Binzy) June 16, 2019 Yo- SHE'S in the damned World Cup, but somehow doesn't even get her name mentioned?! She's Julie Ertz and SHE'S the important one here!!! Goddamned misogyny. Can't even recognize the woman when the woman is the one making history. — Megan ‘Let’s All Punch Nazis’ Regel (@Megalinity) June 17, 2019 Couldn’t you guys have found a better picture? Idk like one of her playing in her jersey 🤯 — Lexxxxxus (@Lexxxx_25) June 16, 2019 Others took it upon themselves to rewrite CBS’s tweet to balance out the bias. Story continues US soccer midfielder Julie Ertz visited by husband, who also plays a sport https://t.co/0AG2IdUyv7 — ryan teague beckwith (@ryanbeckwith) June 17, 2019 Julie Ertz's husband leaves work to watch her in the World Cup. — Amado (@adusman) June 16, 2019 Dude leaves optional practice to support badass wife on the biggest stage she’ll compete professionally* — Danae Monroe (@danaecm) June 17, 2019 Someone even suggested that the tweet could still be compromised to recognize both of the athletes names and occupations. How bout. “Eagles tight end Zach Ertz leaves training camp to support wife, US mid fielder Julie Ertz, in the World Cup.” Why do we need to leave either of them out? — Cowboy (@zwilkerson78) June 17, 2019 But others said that the point wasn’t to make it even, but instead to point out how women are “ almost always marginalized in relation to their husbands.” In fact, it wouldn’t be the first time that accomplished women were referred to as their husband’s wives — the most notable example being Amal Clooney’s birth announcement, where AP referred to the human rights lawyer as George Clooney’s wife. CBS didn’t immediately respond to Yahoo Lifestyle’s request for comment. Read more from Yahoo Lifestyle: Attorneys say jail's new security screening discriminates against women: 'The choice is to remove their bras or not see their clients' School to create new dress code after 11-year-old students say it’s sexist Alexandria Ocasio-Cortez Reveals Chilling Morning Ritual In Face Of Death Threats Follow us on Instagram , Facebook and Twitter for nonstop inspiration delivered fresh to your feed, every day. |
Redskins deny owner Dan Snyder sailed $180M yacht to Cannes to find new stadium sponsor
The NFL’sWashington Redskinsdenied a report Tuesday that ownerDan Snyderwas attempting to find a title sponsor for the team’s new stadium while attending Cannes Lions in France.
Snyder sailed his $180 million yacht to Cannes Lions, an international advertising and communications festival, and is “taking meetings” with brands interested in naming rights, the New York Post reported, citing a source familiar with the matter. The longtime Redskins owner reportedly hosted a dinner on the yacht on Monday for a list of attendees that included NFL marketing executive Julie Haddon and Outfront Media executive Andy Sriubas.
“The storyis false,” Redskins spokesman Tony Wyllie told FOX Business. Wyllie added that Snyder attends Cannes Lions every year and is there this year to meet with industry executives, not to pursue a sponsorship deal.
While the Redskins’ current lease at FedEx Field doesn’t expire until 2027, Snyder is said to be pursuing public funding for a new facility at the site of RFK Stadium, Washington’s longtime home. Naming rights deals for NFL stadiums are among the most lucrative marketing partnerships in sports -- the team’s current naming rights deal with FedEx is worth $205 million over a 27-year period that ends in 2025.
“Dan and his team are here to find a title sponsor for the new stadium for the Redskins, and they are taking meetings with brands and marketers,” the source told the New York Post.
Another source downplayed Snyder’s plans for Cannes Lions, noting that there is “no rush” on a naming rights deal for a new stadium because the team’s current lease is years away from expiration.
“They are here to meet people and be part of the conversation,” the second source said.
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Snyder’s yacht is 93-feet long, weighs 3,000 tons and features an Imax theater, basketball court and helipad, according to the Post. He has a personal net worth of more than $2 billion, according to Forbes.
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Here's Why I Think Teledyne Technologies (NYSE:TDY) Might Deserve Your Attention Today
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Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses.
In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies likeTeledyne Technologies(NYSE:TDY). Even if the shares are fully valued today, most capitalists would recognize its profits as the demonstration of steady value generation. While a well funded company may sustain losses for years, unless its owners have an endless appetite for subsidizing the customer, it will need to generate a profit eventually, or else breathe its last breath.
Check out our latest analysis for Teledyne Technologies
If a company can keep growing earnings per share (EPS) long enough, its share price will eventually follow. It's no surprise, then, that I like to invest in companies with EPS growth. As a tree reaches steadily for the sky, Teledyne Technologies's EPS has grown 20% each year, compound, over three years. As a general rule, we'd say that if a company can keep upthatsort of growth, shareholders will be smiling.
I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. While we note Teledyne Technologies's EBIT margins were flat over the last year, revenue grew by a solid 8.0% to US$3.0b. That's progress.
In the chart below, you can see how the company has grown earnings, and revenue, over time. To see the actual numbers, click on the chart.
While we live in the present moment at all times, there's no doubt in my mind that the future matters more than the past. So why not checkthis interactive chart depicting future EPS estimates, for Teledyne Technologies?
We would not expect to see insiders owning a large percentage of a US$9.2b company like Teledyne Technologies. But we are reassured by the fact they have invested in the company. Notably, they have an enormous stake in the company, worth US$146m. I would find that kind of skin in the game quite encouraging, if I owned shares, since it would ensure that the leaders of the company would also experience my success, or failure, with the stock.
It's good to see that insiders are invested in the company, but are remuneration levels reasonable? A brief analysis of the CEO compensation suggests they are. For companies with market capitalizations between US$4.0b and US$12b, like Teledyne Technologies, the median CEO pay is around US$6.9m.
Teledyne Technologies offered total compensation worth US$3.5m to its CEO in the year to December 2017. That comes in below the average for similar sized companies, and seems pretty reasonable to me. CEO remuneration levels are not the most important metric for investors, but when the pay is modest, that does support enhanced alignment between the CEO and the ordinary shareholders. It can also be a sign of good governance, more generally.
For growth investors like me, Teledyne Technologies's raw rate of earnings growth is a beacon in the night. If you need more convincing beyond that EPS growth rate, don't forget about the reasonable remuneration and the high insider ownership. Each to their own, but I think all this makes Teledyne Technologies look rather interesting indeed. Once you've identified a business you like, the next step is to consider what you think it's worth. And right now is your chance to view our exclusivediscounted cashflow valuationof Teledyne Technologies. You might benefit from giving it a glance today.
Of course, you can do well (sometimes) buying stocks thatare notgrowing earnings anddo nothave insiders buying shares. But as a growth investor I always like to check out companies thatdohave those features. You can accessa free list of them here.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
How to Mix it Up With Top-Notch Bonds
The science, art -- or some would say just plain voodoo -- of finding the right portfolio mix is not unlike hitting the local bookstore and heading for the "diet" section. Whether the tome recommends eating like a wise man, he-man or caveman, every author claims to have found the magic elixir (which sadly, looks nothing like a milkshake). So it goes with finding the right recipe for bonds to place in a portfolio. For while the word "bond" may conjure images of Aunt Bessie handing over a U.S. savings bond with all the earning power of a prune, the truth is that these investments come in as many flavors as there are allocation recipes. And trying to find those ideal bonds, let alone the ideal blend, can prove one heck of a daunting task for an investor. In fact, you could just chuck the gustatory metaphor -- for some of these investing constructs that balance bonds and stocks get downright scientific. Just listen to Marc Rappaport, CEO at DCM Advisors, explain the company's Centaur fund. [ See: 10 of the Best Stocks to Buy for 2019. ] Says Rappaport: "By investing in both asset classes -- the volatility or standard deviation of the Morningstar balanced fund category known as moderate allocation, for example -- investors have historically experienced about half the volatility of 100% stocks (via the) S&P 500 over three-, five-, 10- and 15-year periods." Got that? What's more, the timing for investing in bonds may prove optimal, given the inevitability of change. "As this 10-year bull rally starts to slow, it could be prudent to shift some of your investments to bonds to protect yourself," says Merlin Rothfeld, an instructor at Online Trading Academy. "Sure, you may not gain as much if the market continues to rally, but you'll lock in a positive fixed rate of return. If the markets crash and drop 20%, 30% or more, that small positive rate of return that your bonds are bringing in will be huge." Now, a brief primer: In general, bonds serve three primary purposes in portfolios: to generate income , preserve principal and dampen the volatility of other asset classes. Story continues The most crucial difference between a bond buyer and a shareholder is this: When you buy stock, you essentially purchase a financial stake of a company -- you own a piece of it. But with a corporate bond, you loan money and collect interest payments, just as a bank would, to whichever party issues it. Perhaps most important, bonds and stocks balance themselves out by their very nature. "In general, bonds offer greater stability and lower downside than equities," says Michael DePalma, portfolio manager of the High Yield Exchange-Traded Fund and managing director at MacKay Shields in New York City. "In addition, risk and returns of bonds are often driven by different factors than stocks, so the returns over time have low correlation to stocks." If security is your thing, take a closer look at U.S. Treasury bonds. Treasurys are universally considered battleship-safe investments, though they do have an inverse relationship to Federal Reserve interest rates -- falling in yield as interest rates rise. And yet, some say the Fed is at present mulling an interest rate cut, a stunning reversal of direction considering the signals it gave just a few months ago and the seven interest rate hikes that dominated 2017 and 2018. And in case you're in the mood to try something a little more Vegas, consider junk bonds. These corporate bonds can boast a generous interest rates to those who invest but beware, high roller: The companies that issue them are in somewhat shaky condition. "Lower credit quality bonds -- high-yield corporates, for example -- generally offer higher returns over time," says Matthew Diczok, head of fixed-income strategy at Merrill and Bank of America Private Bank. "But they can also exhibit steep losses in any given year and tend to move in the same direction as stocks, lowering portfolio diversification." [ See: 6 Great Tips to Build an Income-Producing Portfolio. ] If you're open to spanning the globe, "The bond portfolio should be diversified from a sector, geographic, and maturity perspective," says Mayra Rodriguez Valladares, managing principal at MRV Associates, and a bank regulatory and capital markets consultant based in New York City. Specifically, "It should contain a variety of foreign sovereign, corporate, and municipal bonds as well as domestic ones in those categories," Rodriguez Valladares says. "I also think it's important to invest in bonds from multilateral issuers such as the Inter-American Development Bank [focused on Latin America and the Caribbean] or World Bank. They're almost always rated AAA." Another major determinant of bond mix centers on just where an investor stands vis-à-vis retirement. "The prevailing rule of thumb has been that he ideal asset allocation for maximizing portfolio sustainability is around 60% stocks and 40% bonds," says John H. Robinson, co-founder at Nest Egg Guru and based in Honolulu. But given the current low-interest environment -- so long as it lasts -- "this classic allocation is more vulnerable to portfolio depletion and lower remaining balances for heirs." Thus a better formulation to balance major stock market declines in early retirement with longevity risk , Robinson says, "is more like 70-30 to 80-20." And of course, the whole question of whether an investor needs to buy bonds in the first place is open to debate. "We wouldn't dissuade anyone from building a strong portfolio without bonds," Rappaport says. That noted: "We take 'strong' to mean 'sensible' and a portfolio diversifying investors between these two major asset classes is sound." He also cites research from Ibboton & Associates "that supports a balanced portfolio of stocks and bonds for moderate risk investors and our own insight is in line with this." [ See: Stop Believing These 7 Investing Myths. ] And in a neat trick of investment aplomb, bonds can turn into stocks and still remain bonds, thanks to interest payments. "Bonds have provided a consistent level of income to a portfolio and this is important because the income is what can be reinvested, or reallocated, in the asset allocation," says Gregory Hahn, chief investment officer of Indianapolis-based Sanctuary Wealth Partners. "In 1997, a 10-year investment grade security provided a yield of 7.5%, producing meaningful income to reinvest in the portfolio." How you reinvest or spend the interest payments is up to you: It all depends on your firm commitment to solid bonds. More From US News & World Report 7 Reasons to Bulk Up on Bond Investments 7 of the Best Socially Responsible Funds 7 Best Corporate Bonds to Buy and Hold for 2019 |
Is Actuant Corporation (NYSE:ATU) A Financially Sound Company?
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Actuant Corporation (NYSE:ATU) is a small-cap stock with a market capitalization of US$1.4b. While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. Why is it important? Given that ATU is not presently profitable, it’s crucial to assess the current state of its operations and pathway to profitability. Let's work through some financial health checks you may wish to consider if you're interested in this stock. Nevertheless, this is not a comprehensive overview, so I recommend youdig deeper yourself into ATU here.
ATU has shrunk its total debt levels in the last twelve months, from US$547m to US$486m , which also accounts for long term debt. With this debt repayment, ATU currently has US$170m remaining in cash and short-term investments , ready to be used for running the business. Additionally, ATU has generated cash from operations of US$77m in the last twelve months, leading to an operating cash to total debt ratio of 16%, signalling that ATU’s current level of operating cash is not high enough to cover debt.
Looking at ATU’s US$278m in current liabilities, it seems that the business has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 2.35x. The current ratio is calculated by dividing current assets by current liabilities. Usually, for Machinery companies, this is a suitable ratio since there is a bit of a cash buffer without leaving too much capital in a low-return environment.
With debt reaching 83% of equity, ATU may be thought of as relatively highly levered. This is somewhat unusual for small-caps companies, since lenders are often hesitant to provide attractive interest rates to less-established businesses. But since ATU is presently loss-making, sustainability of its current state of operations becomes a concern. Maintaining a high level of debt, while revenues are still below costs, can be dangerous as liquidity tends to dry up in unexpected downturns.
ATU’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow. Since there is also no concerns around ATU's liquidity needs, this may be its optimal capital structure for the time being. This is only a rough assessment of financial health, and I'm sure ATU has company-specific issues impacting its capital structure decisions. I suggest you continue to research Actuant to get a better picture of the small-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for ATU’s future growth? Take a look at ourfree research report of analyst consensusfor ATU’s outlook.
2. Valuation: What is ATU worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? Theintrinsic value infographic in our free research reporthelps visualize whether ATU is currently mispriced by the market.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
The It List: Toy Story 4, Us, Batman, Mark Ronson, Jaws
The It List is Yahoos weekly look at the best in pop culture, including movies, music, TV, streaming, games, books, podcasts and more. Here are our picks for June 17-23, including the best deals we could find for each. WATCH IT: Toy Story 4 There are plenty of Pixar fans out there who, as much as they love the Toy Story series, didn't want a fourth installment. Understandably, the argument was why push it when Toy Story 3 wrapped up the then-trilogy so perfectly? But here's the thing: Toy Story 4 is great. Like really, really, really great. It may actually be one of the very best installments, if not the very best. It's certainly the funniest. It's also another shining example of how effective the animation giant is at making entertainment equally appealing for kids and adults and striking the perfect balance between heart and humor. And while it's no doubt buoyed by a host of new characters (including old sketch buddies Keegan-Michael Key and Jordan Peele as plush carnival prize buddies), it's Tony Hale's makeshift kindergarten plaything Forky that steals the show. Prepare for your kids to be yelling "Trash!" after this one. But in a good way. Get tickets for Toy Story 4 on Fandango . STREAM IT: Batman (30th anniversary) Michael Keaton as Batman in Batman , 1989. (Photo: Warner Bros.) Director Tim Burtons take on the iconic DC Comics character, with Michael Keaton as the Caped Crusader and Jack Nicholson as a deranged Joker, turns 30 this week, providing the perfect opportunity to watch it again for the umpteenth time. And chances are good that youve seen it, since it was one of the top grossing movies in the world the year it was released and continues to be a fan favorite. In fact, this Batman has even been credited with igniting the superhero movie trend thats delighted fans ever since. Batman is available to rent or purchase on Amazon , iTunes and Vudu . WATCH IT: Us Jordan Peele's highly anticipated follow-up to his 2016 horror breakout Get Out didn't capture the zeitgeist to quite the same effect, but it's no small feat that it's still one of the best movies of the year so far. It's also exactly the type of film cinephiles love to get on Blu-ray, since its deep assortment of Easter Eggs and hidden meanings will spell rewards for repeat viewings. And we can now take even more delight in the extraordinary dual performance of Lupita Nyong'o, who like Get Out 's Daniel Kaluuya, might find herself in the Oscar race next year. Story continues Buy Us on DVD, Blu-ray or Digital on Amazon . HEAR IT: Mark Ronson, Late Night Feelings The super-producer, tastemaker and recent Oscar/Golden Globe/Grammy-winner (for his A Star Is Born Shallow co-write) is back with another all-star opus. Following his successful collaborations with Lady Gaga, this time Ronson has enlisted an array of pop goddesses, including Miley Cyrus, Alicia Keys, Camila Cabello, Angel Olsen and Yebba. The Lykke Li-led title track, a fizzy disco jam, is destined to be a song of the summer. Download on iTunes ; buy on CD/vinyl/cassette (yes, cassette) at Amazon . WATCH IT: 2019 BET Awards Actress Regina Hall, one of the six women vying for the nights Best Actress award, emcees the annual, star-studded ceremony. The big story this year is Cardi B, who scored an impressive seven nominations. Will she win them all? Viewers will also see live performances and a few big awards handed out, including the Lifetime Achievement Award to Mary J. Blige and the Icon Award to Tyler Perry. Late artist Nipsey Hussle will be honored with the Humanitarian Award in whats sure to be an emotional moment. The 2019 BET Awards air at 8 p.m. on Sunday, June 23. WATCH IT: The Lavender Scare While the Red Scare was consuming Cold War-era America, another purge was playing out in Washington D.C.s corridors of power. At the behest of incoming president, Dwight D. Eisenhower, federal workers who were known or suspected of being gay or lesbian were summarily forced out of their jobs. Making its PBS debut during Pride Month, Josh Howards insightful documentary reveals how the lavender scare wound up inspiring an equal and opposite reaction, paving the way for the gay rights movement that scored significant victories in the 60s up to the present day. The Lavender Scare premieres June 18 at 9 p.m. on PBS and will also be available on digital channels. PLAY IT: Jaws Board Game (Photo: Ravensburger/Target) Good news: Youre not going to need a bigger table to play this officially-licensed table-top version of Steven Spielbergs beach weather classic. Unleashed by Ravensburger, Jaws packs a lot of human vs. shark mayhem into its compact, dual-sided board, which offers two different modes of gameplay for 2 to 4 people. In Act 1, the trio of Brody, Hooper and Quint strategize to prevent the marauding shark from chowing down on Amity Island tourists. For Act 2, the action moves to the Orca, where the shark devours parts of the boat and, if youre not lucky, your characters, too. For those in a rush, you can choose to play either Act 1 or Act 2 independently, but trust us once you dip your toe in these waters, youre gonna want the full bloody experience. The Jaws board game is available exclusively at Target starting June 23. READ IT: Rocketman: The Official Movie Companion Go inside the making of the hit movie musical inspired by the life of Elton John with exclusive behind-the-scenes photos and commentary from the filmmakers. The Rocketman himself contributes the forward to the book, which features special praise for star Taron Egerton, whom Sir Elton complements for his grace and enthusiasm. Expect to see some of the elaborate costumes modeled in this book again at the Oscars next February. Rocketman: Inside the World of the Movie is available for $40 on Amazon and Barnes & Noble . HEAR IT: The Raconteurs, Help Us Stranger Jack White, the hardest-working multi-tasker in indie rock, returns with the first album in 11 years by his Detroit supergroup. Despite the long hiatus, old friends White, powerpop maestro Brendan Benson and the Greenhorness Patrick Keeler and Jack Lawrence (who also plays in another White side-project, the Dead Weather) sound as tight and fiery as ever. Download on iTunes ; buy on CD/vinyl at Amazon . WATCH IT: 2019 MTV Movie & TV Awards All your favorites, from Tiffany Haddish and Melissa McCarthy to Kumail Nanjiani and Noah Centineo, are set to make appearances at the annual fete to pick up honors in fun categories, such as Best Kiss and Best Villain. Shazam! star Zachary Levi will host, while Lizzo and Bazzi are set to perform. The night's big awards will go to Jada Pinkett Smith (The Trailblazer Award) and Dwayne The Rock Johnson (The Generation Award). While the event typically isnt as buzzy as its sister ceremony, the MTV Video Music Awards, this irreverent ceremony is usually worth a watch just for the stargazing. The MTV Movie & TV Awards air at 9 p.m. on Monday, June 17. HEAR IT: The Hollywood Vampires, Rise View this post on Instagram A post shared by Hollywood Vampires (@hollywoodvampires) on Jun 7, 2019 at 7:05am PDT The Raconteurs arent the only supergroup releasing new music in this super week. Alice Cooper, Aerosmiths Joe Perry and Johnny Depp unleash their sophomore LP, which features nostalgic David Bowie, Jim Carroll and Johnny Thunders covers. In true vampiric rock n roll fashion, the band was named after Coopers infamous 70s drinking club, whose rotating members included Keith Moon, Harry Nilsson, John Lennon and Marc Bolan. Download on iTunes ; buy on CD/vinyl at Amazon . Yahoo Entertainment may receive a share from purchases made via links on this page. |
Consumers Want Futuristic Shopping Experience
It’s hard to find a segment of society that technology has not revolutionized. Shopping is no exception, according to new research that shows consumers are increasingly embracing a sci-fi shopping experience.
Commerce solutions provider Elastic Pathsurveyed1,015 online shoppers to find out what they were looking for from the brands they shopped with, and learned most consumers are looking for new ways to engage with technology that will make their shopping experience easier.
Sixty-seven percent of respondents said they wanted checkout-less payments, a technology in which consumers can enter a store and buy what they want without waiting in line to pay for it. Instead, high-tech devices such as apps, scanners and cameras would track the shopper’s purchase and payment would happen automatically through whichever payment option the shopper has chosen.
Another futuristic service consumers want is voice commerce, a capability that lets shoppers state what they want to buy on a retailer’s website rather than use the keyboard and mouse to move through the shopping experience.
The Elastic Path survey found that 57% of respondents wanted to use voice commerce to make their purchases. It also found that voice technology tends to become a hit with consumers once they’ve tried it. While most consumers — 81% — have not tried voice technology when making purchases, of those who have, 22% use voice technology multiple times per week and 21% use it at least once a week.
More than half of respondents — 55% — said they were interested in using facial recognition technology when shopping, a capability that can ultimately lead to a more secure shopping experience as it could help to root out thieves.
Another 58% of respondents said they wanted to shop with their smart devices, the study found.
But despite consumers’ willingness to embrace a high-tech shopping experience, most brands have been slow to accommodate those wishes, the research showed. To determine what brands have been offering to consumers, Elastic Path collected information from 300 marketers who work at online retailers. Less than a quarter of retailers gave customers access to the most futuristic capabilities.
• Only 18% of brands offered customers the ability to use checkout-less payments
• Just 23% of brands offered the ability to use voice commerce
• Just 25% of brands were equipped to let customers shop using smart devices
• Only 20% of brands gave customers the option to use facial recognition
Technology canmake the shopping experience easierand in some cases, less expensive. Consumers can influence what their retailers offer in terms of technology by letting them know they want access to high-tech services and capabilities. Also, be willing to try new technologies that some forward-thinking retailers are offering; you may find that your shopping experience improves in the process. |
What's Behind The Rally In Small-Cap Biotech G1 Therapeutics?
Shares ofG1 Therapeutics Inc(NASDAQ:GTHX) wereadvancing stronglyon above-average volume Tuesday in reaction to a clinical trial readout.
What Happened
Oncology biotech G1announced preliminary overall survival, or OS, data from a Phase 2 study of trilaciclib.
Women with metastatic triple-negative breast cancer, or MTNBC, lived significantly longer when administered the investigational compound along with the chemotherapy regimen gemcitabine/carboplatin compared to women receiving chemotherapy alone, according to G1.
Myelopreservation results; the objective response rate, or ORR; progression-free survival, or PFS; and safety data were presented at the San Antonio Breast Cancer Symposium.
Trilaciclib is a myelopreservation agent that protects the bone marrow from damage by chemotherapy and improves patient outcomes.
G1 said topline OS improvements were statistically significant in both trilaciclib arms compared with the chemotherapy-only arm. ORR and PFS data as well as safety data were consistent with previously reported data.
Why It's Important
TNBC, according to G1, is the most aggressive type of breast cancer, and mTNBC warrants new treatment options.
"As a company committed to improving the lives, treatment options and outcomes of those living with cancer, we're proud to have a pipeline that now includes three investigational therapies with the potential to become new standards of care for those with breast cancer and benefit women at the earliest stages of their disease," G1 said.
What's Next
G1 intends to submit marketing applications in the U.S. and Europe for myelopreservation in small cell lung cancer in 2020.
It also plans to initiate additional trials to evaluate the myelopreservation and survival benefits of trilaciclib in other tumor types and chemotherapy regimens.
G1 shares were trading higher by 25.57% at $24.80 at the time of publication Tuesday on roughly five times their average volume.
Related Links:
The Daily Biotech Pulse: PhaseBio Pumped Up, Eiger Exults On Breakthrough Therapy Designation, Biohaven Slips On Stock Sale
VBI Shares Plunge On Mixed Late-Stage Hepatitis B Vaccine Trial Results
See more from Benzinga
• The Week Ahead In Biotech: ASCO Presentations In The Spotlight
• The Daily Biotech Pulse: FibroGen Kidney Disease Trial Disappoints, Medtronic To Buy Titan Spine, Puma's Weak Breast Cancer Drug Sales
• The Daily Biotech Pulse: Novartis Goes Shopping, Mixed Trial Results For Provention Bio, 4 Stocks To Debut
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
Don't Sell Northland Power Inc. (TSE:NPI) Before You Read This
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This article is written for those who want to get better at using price to earnings ratios (P/E ratios). We'll look at Northland Power Inc.'s (TSE:NPI) P/E ratio and reflect on what it tells us about the company's share price.Northland Power has a price to earnings ratio of 14.85, based on the last twelve months. That is equivalent to an earnings yield of about 6.7%.
Check out our latest analysis for Northland Power
Theformula for price to earningsis:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for Northland Power:
P/E of 14.85 = CA$24.84 ÷ CA$1.67 (Based on the trailing twelve months to March 2019.)
A higher P/E ratio means that buyers have to paya higher pricefor each CA$1 the company has earned over the last year. That is not a good or a bad thingper se, but a high P/E does imply buyers are optimistic about the future.
Probably the most important factor in determining what P/E a company trades on is the earnings growth. If earnings are growing quickly, then the 'E' in the equation will increase faster than it would otherwise. Therefore, even if you pay a high multiple of earnings now, that multiple will become lower in the future. And as that P/E ratio drops, the company will look cheap, unless its share price increases.
Notably, Northland Power grew EPS by a whopping 43% in the last year. And it has bolstered its earnings per share by 11% per year over the last five years. So we'd generally expect it to have a relatively high P/E ratio.
We can get an indication of market expectations by looking at the P/E ratio. As you can see below, Northland Power has a higher P/E than the average company (13.5) in the renewable energy industry.
Its relatively high P/E ratio indicates that Northland Power shareholders think it will perform better than other companies in its industry classification. The market is optimistic about the future, but that doesn't guarantee future growth. So investors should always consider the P/E ratio alongside other factors, such aswhether company directors have been buying shares.
Don't forget that the P/E ratio considers market capitalization. In other words, it does not consider any debt or cash that the company may have on the balance sheet. Theoretically, a business can improve its earnings (and produce a lower P/E in the future) by investing in growth. That means taking on debt (or spending its cash).
Such spending might be good or bad, overall, but the key point here is that you need to look at debt to understand the P/E ratio in context.
Northland Power has net debt worth a very significant 163% of its market capitalization. If you want to compare its P/E ratio to other companies, you must keep in mind that these debt levels would usually warrant a relatively low P/E.
Northland Power trades on a P/E ratio of 14.9, which is fairly close to the CA market average of 15. While it does have meaningful debt levels, it has also produced strong earnings growth recently. The P/E suggests the market isn't confident that growth will be sustained, though.
Investors have an opportunity when market expectations about a stock are wrong. If it is underestimating a company, investors can make money by buying and holding the shares until the market corrects itself. So thisfreevisualization of the analyst consensus on future earningscould help you make theright decisionabout whether to buy, sell, or hold.
You might be able to find a better buy than Northland Power. If you want a selection of possible winners, check out thisfreelist of interesting companies that trade on a P/E below 20 (but have proven they can grow earnings).
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
What Type Of Shareholder Owns Apollo Commercial Real Estate Finance, Inc.'s (NYSE:ARI)?
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If you want to know who really controls Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI), then you'll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that used to be publicly owned tend to have lower insider ownership.
With a market capitalization of US$2.8b, Apollo Commercial Real Estate Finance is a decent size, so it is probably on the radar of institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about ARI.
View our latest analysis for Apollo Commercial Real Estate Finance
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors own 63% of Apollo Commercial Real Estate Finance. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Apollo Commercial Real Estate Finance, (below). Of course, keep in mind that there are other factors to consider, too.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Apollo Commercial Real Estate Finance is not owned by hedge funds. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our data suggests that insiders own under 1% of Apollo Commercial Real Estate Finance, Inc. in their own names. However, it's possible that insiders might have an indirect interest through a more complex structure. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own US$10.0m worth of shares. It is always good to see at least some insider ownership, but it might be worth checkingif those insiders have been selling.
With a 30% ownership, the general public have some degree of sway over ARI. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Our data indicates that Private Companies hold 6.9%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph.
But ultimatelyit is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look atthis free report showing whether analysts are predicting a brighter future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Experts Cite Specialization as Key to Blockchain’s Incorporation Into Financial Services
Four experts discussed the futureblockchainin financial services, agreeing on the importance of specialization in a panel on crypto derivatives at Synchronise Europe inLondontoday, June 18.
Some of the original conceptualisation of blockchain needs to be available publically to be materially modified to suit the needs of diverse financial services, said Kelly Mathieson, head of enterprise solutions at Digital Asset.
Mathieson argued that enterprise grade versions of blockchain technology are now viable, and that there has been a divergence from the original blockchain concept. Those versions of blockchain are needed to be changed in a way that would enable them to fit for purpose, and in some cases to be legal in certain jurisdictions, she said.
Mathieson further addressed the issue of general purpose language forsmart contracts, stating:
“There has begun a shift away from general purpose language for uses in smart contracts, where we really want to begin to model and represent the legal definition and the market rules. Many of these early languages put all the data out there and then attempted to express financial services entitlements by either imposing confidentiality on it or obfuscation.”
Clive Ansell, head of market infrastructure and technology at ISDA, agreed that the development of blockchain-based solutions needs community engagement with real business challenges. He said that it is necessary to create an environment that allows firms not to vary their smart contracts unless they really have to.
Lee Braine, Investment Bank CTO Office at Barclays, further argued that the process of standardization will ensure long-term viability. Industry players should purportedly define what they have done for their latest technological refresh.
Executive director at UBS, Yunqinq Zheng said that the active DApp ecosystem will appear once everyone is digitized and standardized, highlighting the importance of cultural and mindset transformation.
Earlier in June, Hester Peirce, commissioner at the Security and Exchange Commission’s (SEC),commentedon the SEC’s approach towards this category of highly regulated financial derivatives, noting that the SEC is “still smothering ETFs with personalised attention as if they were infants.”
• Microsoft to Collaborate With Icertis in Enhancing Blockchain-Based Contractual Offering
• Block.One Pays $30M for New Blockchain-Powered Social Media Platform’s Domain Name
• Italy’s Banks to Use Blockchain to Boost Settlements and Improve Transparency
• Global Banking Giant HSBC Launches Tokenization-Based Receivables System for India |
What Kind Of Investor Owns Most Of Nymox Pharmaceutical Corporation (NASDAQ:NYMX)?
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Every investor in Nymox Pharmaceutical Corporation (NASDAQ:NYMX) should be aware of the most powerful shareholder groups. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.'
With a market capitalization of US$112m, Nymox Pharmaceutical is a small cap stock, so it might not be well known by many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about NYMX.
See our latest analysis for Nymox Pharmaceutical
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
As you can see, institutional investors own 5.7% of Nymox Pharmaceutical. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Nymox Pharmaceutical, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Nymox Pharmaceutical. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our most recent data indicates that insiders own a reasonable proportion of Nymox Pharmaceutical Corporation. Insiders own US$50m worth of shares in the US$112m company. I would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You canclick here to see if those insiders have been buying or selling.
The general public holds a 50% stake in NYMX. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.
I like to dive deeperinto how a company has performed in the past. You can findhistoric revenue and earnings in thisdetailed graph.
If you would prefer check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, backed by strong financial data.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Litecoin Foundation to Release Physical Cryptocurrency Debit Card
The Litecoin Foundation has announced a partnership with Bibox Exchange andblockchainfirm Ternio to release a physicalcryptocurrencydebit card, in ablog poston June 18.
Per the post, the companies will jointly roll out a cryptocurrency debit card dubbed “BlockCard” that will purportedly let users spend their cryptocurrency funds both online and in physical store locations around the world. Customers will be able to keep cryptocurrencies such as litecoin (LTC) and Bibox Exchange’s and Ternio’s native tokens bibox token (BIX) and ternio (TERN) respectively.
Within the project, Bibox Exchange will act as the custodian of users’ funds and leverage over $200 million worth of cryptocurrency trading volume. Ternio will provide a dedicated platform. The Litecoin Foundation and Bibox Exchange will integrate the card directly into the Bibox Exchange and Litecoin’s officialwallet, LoafWallet.
“This is an exciting partnership for us as it furthers the Litecoin Foundation’s mission to create more use cases for spending Litecoin in everyday life. Leveraging Ternio’s BlockCard platform with Bibox’s exchange engine gives Litecoin holders unparalleled access to use their LTC at merchants around the world.”
The Litecoin Foundation thus joins several other industry players that have rolled out digital currency debit cards. Just recently,Americancrypto exchangeCoinbaselaunchedits Visa debit card in six European countries. Coinbase’s new offering purportedly allow users to spend cryptocurrencies they hold at any merchant that acceptsVisacards.
In March, Visa itselfpublisheda crypto and blockchain-related job opening. The firm is ostensibly seeking someone to fill the position of Technical Product Manager at Visa Fintech at its Palo Alto office. The position’s description states that a candidate should have an in-depth understanding of distributed ledger technology and the crypto industry.
• Bitcoin Holds $9,100 Support While Top 20 Coins Trade Sideways
• Big Four Auditing Firm PwC Releases Cryptocurrency Auditing Software
• Binance Research: Facebook’s Libra Could Spark Additional Cryptocurrency Volume
• Facebook Releases Cryptocurrency White Paper for Libra Currency |
Tesla to Revamp Asia Business Structure to Focus on China
(Bloomberg) -- Tesla Inc. is revamping its organization in Asia to put more focus on China as the company prepares to start manufacturing in the world’s largest electric-car market, people familiar with the matter said.
The company is dismantling its Asia Pacific business unit and forming a new division for Greater China that will cover the mainland as well as Hong Kong, Taiwan and Macau, the people said, asking not to be named as the plan hasn’t been announced publicly. Tom Zhu, who took over as vice president of APAC operations from Robin Ren in 2018, will head the division, they said.
Chief Executive Officer Elon Musk is betting on China, Tesla’s biggest market after the U.S., to boost sales and restore investor confidence that has slumped along with the company’s stock this year. Tesla is building a factory in Shanghai that is slated to start operating later this year and bolster competitiveness in a country crowded with hundreds of electric-vehicle rivals.
Zhu will continue to lead the Shanghai factory operation, which he took charge of last year after managing other aspects of Tesla’s China business, including the rollout of its supercharger stations. He will also head sales and training for the country and a number of other teams, the people said. The Asia-Pacific region’s other teams will report to Tesla’s head office in Palo Alto, California, they said.
Tesla representatives in the U.S. didn’t respond to multiple requests for comment. Neither did Musk. A Tesla representative in China directed Bloomberg to the company’s U.S. headquarters. Zhu didn’t respond to several attempts to reach him by phone, and Ren didn’t respond to a text message.
The need for Tesla to expand beyond the U.S. was highlighted by its latest quarterly results, which missed analysts’ projections. The halving of a federal tax incentive for Tesla purchases starting in January dragged on U.S. demand in the quarter, and Tesla struggled to offset that drop by starting deliveries of the Model 3 in Europe and China.
Tesla shares climbed as much as 4.3% Tuesday and were up 0.6% to $226.39 as of 3:20 p.m. in New York. The stock is still down 32% this year.
(Updates with Zhu’s background in fourth paragraph.)
--With assistance from Yan Zhang and Dana Hull.
To contact Bloomberg News staff for this story: Haze Fan in Beijing at hfan40@bloomberg.net
To contact the editors responsible for this story: Young-Sam Cho at ycho2@bloomberg.net, ;Craig Trudell at ctrudell1@bloomberg.net, Ville Heiskanen, Emma O'Brien
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
James Holzhauer Final ‘Jeopardy!’ Episode Highest Rated In 14 Years
When Jeopardy! contestant James Holzhauer ended his record-breaking run on the popular game show, his appearance also set another record for the show as it was the highest rated episode in 14 years. His record-breaking streak on June 3 triumphed across key breakouts including the highest rated show in 14 years among homes (9.0, since May 25, 2005 with a 9.2) and in total viewers 14.5 million, since Novemner 30, 2004 with 18.0 million). Related stories 'Grand Hotel' Checks In With So-So Ratings, 'The Bachelorette' Steals Night For ABC USA-Chile Women's World Cup Match Racks Up Another Ratings Win For Fox Sports Fox Tops Ratings With U.S. Open; ABC Dips With Donald Trump Interview Special Across all entertainment programming this season, Jeopardy! holds four of the top ten’s highest audiences which includes episodes of 60 Minutes and Big Bang Theory finale as well as the Game of Thrones series finale. See below: The Big Bang Theory (series finale 5/16/19, 18.5 million total viewers) 60 Minutes (12/16/18, 14.6 million) Jeopardy! (final day of the streak 6/3/19, 14.5 million) The Big Bang Theory (2/7/19, 14.2 million) Jeopardy! (becomes the second winningest player 5/2/19, 14.1 million) 60 Minutes (10/21/18, 14.1 million) Jeopardy! (5/28/19, 13.8 million) Big Bang Theory (13.7 million) Jeopardy! (5/29/19, 13.6 million) Game of Thrones (series finale 5/19/19, 13.6 million) As previously reported, Holzhauer’s highest-rated week remains Week 5, just before the two-week break, which posted 14-year highs. With help from Holzhauer’s streak, which ended June 3, Jeopardy! climbed to the No. 1 spot season-to-date among all syndicated shows in total viewers, averaging 10.1 million viewers. Holzhauer’s 32 episode winning streak came to an end on June 3 when Emma Boettcher took the game. He went on to win more than $2 million, coming in second to Jeopardy! ’s winningest contestant, Ken Jennings, who earned $2,522,700 in a 74-game winning streak in 2004. Sign up for Deadline's Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram . |
Why Fauquier Bankshares, Inc.'s (NASDAQ:FBSS) High P/E Ratio Isn't Necessarily A Bad Thing
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This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). We'll apply a basic P/E ratio analysis to Fauquier Bankshares, Inc.'s (NASDAQ:FBSS), to help you decide if the stock is worth further research. Based on the last twelve months,Fauquier Bankshares's P/E ratio is 12.83. In other words, at today's prices, investors are paying $12.83 for every $1 in prior year profit.
View our latest analysis for Fauquier Bankshares
Theformula for P/Eis:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for Fauquier Bankshares:
P/E of 12.83 = $21 ÷ $1.64 (Based on the trailing twelve months to March 2019.)
A higher P/E ratio means that buyers have to paya higher pricefor each $1 the company has earned over the last year. That is not a good or a bad thingper se, but a high P/E does imply buyers are optimistic about the future.
P/E ratios primarily reflect market expectations around earnings growth rates. When earnings grow, the 'E' increases, over time. That means even if the current P/E is high, it will reduce over time if the share price stays flat. Then, a lower P/E should attract more buyers, pushing the share price up.
In the last year, Fauquier Bankshares grew EPS like Taylor Swift grew her fan base back in 2010; the 86% gain was both fast and well deserved.
One good way to get a quick read on what market participants expect of a company is to look at its P/E ratio. As you can see below Fauquier Bankshares has a P/E ratio that is fairly close for the average for the banks industry, which is 12.7.
That indicates that the market expects Fauquier Bankshares will perform roughly in line with other companies in its industry. If the company has better than average prospects, then the market might be underestimating it. Further research into factors such asmanagement tenure, could help you form your own view on whether that is likely.
The 'Price' in P/E reflects the market capitalization of the company. That means it doesn't take debt or cash into account. The exact same company would hypothetically deserve a higher P/E ratio if it had a strong balance sheet, than if it had a weak one with lots of debt, because a cashed up company can spend on growth.
While growth expenditure doesn't always pay off, the point is that it is a good option to have; but one that the P/E ratio ignores.
The extra options and safety that comes with Fauquier Bankshares's US$4.3m net cash position means that it deserves a higher P/E than it would if it had a lot of net debt.
Fauquier Bankshares trades on a P/E ratio of 12.8, which is below the US market average of 17.6. The net cash position gives plenty of options to the business, and the recent improvement in EPS is good to see. The below average P/E ratio suggests that market participants don't believe the strong growth will continue.
When the market is wrong about a stock, it gives savvy investors an opportunity. As value investor Benjamin Graham famously said, 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' We don't have analyst forecasts, but you might want to assessthis data-rich visualizationof earnings, revenue and cash flow.
Of course,you might find a fantastic investment by looking at a few good candidates.So take a peek at thisfreelist of companies with modest (or no) debt, trading on a P/E below 20.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Cryptocurrency platform HAYVN approved by Abu Dhabi regulator
Cryptocurrency platform HAYVNhas announcedit has received an in-principle approval (IPA) from the Financial Services Regulatory Authority, the regulatory body connected to the Abu Dhabi Global Market.
The platform will offer over-the-counter trading as well as cryptocurrency custody. Both digital assets and fiat will be held in an escrow. The platform targets family offices, hedge funds, and asset managers. The platform also plans to get approvals fromUK regulators.
“Digital currencies have the potential to transform capital markets and offer investors an exciting new asset class to diversify their portfolios,” said Christopher Flinos, HAYVN co-founder. “However, we believe this can only happen if institutional investors get on board, and they won’t do this until our nascent industry embraces effective regulation and compliance.” |
Have Insiders Been Buying Alpha and Omega Semiconductor Limited (NASDAQ:AOSL) Shares?
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It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares inAlpha and Omega Semiconductor Limited(NASDAQ:AOSL).
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia Universitystudyfound that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
View our latest analysis for Alpha and Omega Semiconductor
Lead Independent Director Michael Salameh made the biggest insider purchase in the last 12 months. That single transaction was for US$150k worth of shares at a price of US$10.37 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$8.46). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that in the last year insiders bought 18395 shares for a total of US$189k. In the last twelve months Alpha and Omega Semiconductor insiders were buying shares, but not selling. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably donotwant to miss thisfreelist of growing companies that insiders are buying.
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Alpha and Omega Semiconductor insiders own 22% of the company, worth about US$44m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
The fact that there have been no Alpha and Omega Semiconductor insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Alpha and Omega Semiconductor and their transactions don't cause us concern. Of course,the future is what matters most. So if you are interested in Alpha and Omega Semiconductor, you should check out thisfreereport on analyst forecasts for the company.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Did You Miss Providence Service's (NASDAQ:PRSC) 69% Share Price Gain?
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Stock pickers are generally looking for stocks that will outperform the broader market. And in our experience, buying the right stocks can give your wealth a significant boost. To wit, the Providence Service share price has climbed 69% in five years, easily topping the market return of 38% (ignoring dividends).
View our latest analysis for Providence Service
In his essayThe Superinvestors of Graham-and-DoddsvilleWarren Buffett described how share prices do not always rationally reflect the value of a business. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
During the last half decade, Providence Service became profitable. That would generally be considered a positive, so we'd expect the share price to be up.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. Before buying or selling a stock, we always recommend a close examination ofhistoric growth trends, available here..
Investors in Providence Service had a tough year, with a total loss of 19%, against a market gain of about 3.4%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 11%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. Shareholders might want to examinethis detailed historical graphof past earnings, revenue and cash flow.
If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
NVIDIA Teams With AB Volvo on Self-Driving Trucks
NVIDIA(NASDAQ: NVDA)announced Tuesday it was partnering with Swedish companyAB Volvo(NASDAQOTH: VOLVY)-- the world's second-largest commercial truck manufacturer (also known as the Volvo Group) -- to develop the artificial intelligence (AI) necessary to operate self-driving commercial and industrial trucks.
The companies said in apress releaseit had signed a multiyear agreement "to jointly develop the decision-making system of autonomous commercial vehicles and machines."
The system will employ NVIDIA's "end-to-end artificial intelligence platform for training, simulation and in-vehicle computing," and "the resulting system is designed to safely handle fully autonomous driving on public roads and highways." The pact will cover the computing fundamentals necessary to develop fully autonomous self-driving trucks, built on NVIDIA's DRIVE platform.
The focus of the partnership will be to develop a scalable autonomous-driving system, which the Volvo Group will use first in pilot projects, before offering the technology for sale in its commercial vehicles.
NVIDIA founder and CEO Jensen Huang, and president and CEO of the Volvo Group Martin Lundstedt. Image source: NVIDIA.
The Volvo Group will use NVIDIA's DRIVE autonomous-driving platform in the training, testing, and deployment of a wide range of self-driving vehicles. These will include passenger buses, tractor-trailer trucks, and trash and recycling collection vehicles, as well as the commercial vehicles used in construction, mining, forestry, and more.
Said Martin Lundstedt, president and CEO of the Volvo Group:
Automation creates real-life benefits for both our customers and the society in terms of safety, energy efficiency -- and as a consequence, productivity. We continue to gradually introduce automated applications in the entire spectrum of automation, from driver-support systems to fully autonomous vehicles and machines. This partnership with NVIDIA is an important next step on that journey.
The strategic partnership will cover the end-to-end computing that is fundamental to autonomous vehicles. It will include accelerated computing technology in the data center for training deep neural networks, the large-scale simulations and testing necessary to validate autonomous-vehicle systems. It will also include the deployment of the NVIDIA DRIVE platform in a vehicle running the entire system -- including 360-degree sensor processing, mapping, and route planning.
This would be a big deal for NVIDIA. The Volvo Group said it has built and sold almost 2.1 million trucks, 600,000 construction vehicles, and 100,000 buses over the past 10 years. The potential to automate many of these vehicles with self-driving capabilities powered by NVIDIA technology represents a massive opportunity.
NVIDIA pointed out that there are already more than 35 million packages delivered worldwide each day, and that number is growing by 28% each year. "By 2040, delivery services will have to travel another 78 billion miles each year to handle goods ordered online," the company said on its blog.
Autonomous delivery trucks could potentially help companies meet this soaring demand. Self-driving vehicles can operate 24 hours per day -- without sleep. They can also improve delivery times, increase safety and efficiency, and decrease the cost of logistics in the U.S. by as much 45%, according to data cited by NVIDIA.
There's little doubt that self-driving vehicles will play a big role in future transportation efforts. By supplying the foundational technology to a growing number of manufacturers, NVIDIA is positioning itself to benefit in an increasingly autonomous future.
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Danny Venaowns shares of NVIDIA. The Motley Fool owns shares of and recommends NVIDIA. The Motley Fool has adisclosure policy. |
The best alcoholic beverages to serve this summer instead of cocktails
When it comes to the summer, there is no better way to spend an evening than with a cold drink in hand -- but feeling lazy after 5pm can be very real. So this season, we are all about indulging in canned cocktails and tasty wines that don't make us feel like we're missing out ona cocktailat the bar.
So the next time you are hanging poolside or are spending a long day at the beach, pack a six or a twelve pack of these delicious drinks! From ciders to hard sparkling waters, these drinks will keep you refreshed and give you the convenience of a portable can.
If wine is more your thing, currently we are obsessed with rosé and bubbly. And honestly, what is better than pulling out not only a great tasting wine but one that comes in a summery bottle? Cheers! |
Airbus seeks new partners to expand in U.S. space market
By Andrea Shalal
PARIS (Reuters) - Airbus' defense division is looking for new partners to expand its presence in the growing U.S. space market, and could potentially build components for a lunar program there, Airbus Defense and Space Chief Executive Dirk Hoke told Reuters.
Airbus is ramping up production of more than 640 refrigerator-sized satellites for start-up telecoms services provider OneWeb at a facility in Florida, that Hoke said would already give it some leverage in the U.S. market.
The company could also produce components in the United States for its European Support Module, a critical part of NASA's Orion spacecraft, if that is modified as a module to access the moon, Hoke told Reuters at the Paris Airshow.
"We're also looking for new partners, with whom we could expand our footprint in the U.S.," he said. "We have some very good products and systems so it's worthwhile to look at what we can do beyond what we do currently in Europe."
Airbus's defense and space division has long hoped to expand operations in the U.S. market, but lost out to Boeing Co on a lucrative U.S. Air Force refueling plane contract in 2011.
The company, which builds satellites and works with France's Safran to build rocket launchers, now hopes the projected "new space" economy, which experts say could be worth $1 trillion a year, could give it another shot at a bigger U.S. role.
Hoke faulted European leaders for failing to articulate a clear, unified vision for its ambitions in the space business, and said they were essentially ceding leadership to the United States and billionaire private investors, such as Elon Musk.
"This is more than just a billionaire’s race to Mars. It is about having sovereign access to space, having access to resources in the long term, and of course, unfortunately, it is also a question of defense."
Failing to take action and jump start new research and development program would leave Europe "in the second and third row position," he said, noting that it would also cause a brain drain of top talent.
Rick Ambrose, head of U.S. arms maker Lockheed Martin's space division, the lead contractor on the Orion spacecraft, told Reuters his company was in preliminary discussions with Airbus about possibly the adapting the European Support Module to bring humans to the moon and back to an orbiting lunar station.
Ambrose said no decisions had been made, but it was "a logical conclusion" that some of the items developed by Airbus for the Orion spacecraft could be used to achieve U.S. President Donald Trump's goal of putting humans back on the Moon by 2024.
"Getting to the moon by 2024 means .... we're going to have to reuse everything we can reuse," he said at the air show.
(Reporting by Andrea Shalal. Editing by Jane Merriman) |
Russia, China delay U.S. push for halt to North Korea fuel imports
By Michelle Nichols
UNITED NATIONS, June 18 (Reuters) - Russia and China on Tuesday delayed a U.S. request for a U.N. Security Council sanctions committee to demand an immediate halt to deliveries of refined petroleum to North Korea over accusations Pyongyang violated a U.N. cap, diplomats said.
The United States, backed by dozens of allies, told the committee last week that there had been at least 79 illegal deliveries of fuel in 2019 - mainly through transfers between ships at sea - and concluded that North Korea had breached an annual U.N. cap of 500,000 barrels imposed in December 2017.
North Korea's U.N. mission has not responded to a request for comment on the accusations.
Washington wanted the 15-member U.N. Security Council North Korea sanctions committee to issue a demand for an immediate halt to deliveries of refined petroleum to North Korea.
But the committee operates by consensus and on Tuesday Pyongyang allies Russia and China delayed Washington's request for action by putting a so-called "hold" on it, diplomats said. They told the committee they believed the current situation was still in line with the relevant Security Council resolution, diplomats said.
"We need more details as usual because they provided generalized information," Russian U.N. Ambassador Vassily Nebenzia told Reuters.
China and Russia placed a similar U.S. request in limbo a year ago, saying they needed more details on Washington's accusation then of 89 illicit fuel imports by North Korea in the first five months of 2018.
"The restriction on the DPRK's refined petroleum imports is critical to maintaining pressure on the DPRK, including those parties responsible for its WMD (weapons of mass destruction) program, to achieve the final, fully verified denuclearization of the DPRK," read last week's U.S. complaint, seen by Reuters.
North Korea is officially known as the Democratic People's Republic of Korea (DPRK).
The U.N. Security Council has unanimously boosted sanctions on North Korea since 2006 in a bid to choke funding for Pyongyang's nuclear and ballistic missile programs, banning exports including coal, iron, lead, textiles and seafood, and capping imports of crude oil and refined petroleum products.
The U.S. accusation coincided last week with U.S. President Donald Trump announcing he had received a "beautiful" letter from North Korean leader Kim Jong Un. Washington is seeking to rebuild momentum in stalled talks with Pyongyang, aimed at getting North Korea to dismantle its nuclear weapons program.
Under U.N. sanctions, countries are required to report to the Security Council North Korea sanctions committee monthly sales of refined petroleum to North Korea. According to the committee website, only Russia and China have reported legitimate sales to Pyongyang during the past two years.
While the latest U.S. complaint that North Korea has breached the U.N. cap does not name who it believes is supplying refined petroleum for the transfers at sea, former U.S. Ambassador to the U.N. Nikki Haley accused Russia in September of "cheating" U.N. sanctions on North Korea.
Russia's Ministry of Foreign Affairs rejected the U.S. accusations.
Reuters has also reported that Russian tankers had supplied fuel to North Korea by transferring cargoes at sea. (Reporting by Michelle Nichols; editing by Jonathan Oatis) |
Have Insiders Been Buying West Bancorporation, Inc. (NASDAQ:WTBA) Shares?
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It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares inWest Bancorporation, Inc.(NASDAQ:WTBA).
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard Universitystudyfound that 'insider purchases earn abnormal returns of more than 6% per year.'
View our latest analysis for West Bancorporation
Over the last year, we can see that the biggest insider purchase was by Director Sean McMurray for US$173k worth of shares, at about US$20.66 per share. So it's clear an insider wanted to buy, at around the current price, which is US$21.35. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.
Happily, we note that in the last year insiders bought 17097 shares for a total of US$360k. While West Bancorporation insiders bought shares last year, they didn't sell. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
West Bancorporation is not the only stock insiders are buying. So take a peek at thisfreelist of growing companies with insider buying.
Over the last three months, we've seen significant insider buying at West Bancorporation. Not only was there no selling that we can see, but they collectively bought US$306k worth of shares. This could be interpreted as suggesting a positive outlook.
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 3.3% of West Bancorporation shares, worth about US$11m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Insiders likely see value in West Bancorporation shares, given these transactions (along with notable insider ownership of the company). Of course,the future is what matters most. So if you are interested in West Bancorporation, you should check out thisfreereport on analyst forecasts for the company.
Of courseWest Bancorporation may not be the best stock to buy. So you may wish to see thisfreecollection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Microsoft Windows vulnerable to 'wormable' BlueKeep malware, feds warn
Federal authorities are warningMicrosoftWindows users to update their computers in response to a security vulnerability they said could allow a hacker to view, change and delete data using malware.
The Cybersecurity and Infrastructure Security Agency — overseen by theDepartment of Homeland Security— releasedthe alertMonday about a so-called “BlueKeep” vulnerability for eight different Windows operating systems. It's only the third alert the agency has released this year.
In addition to messing with data stored on a computer, an attacker could potentially add accounts with full user rights and install programs on the computer, according to the agency.
The “wormable” vulnerability would be capable of spreading rapidly, similar to the 2017 WannaCry ransomware attacks, authorities said. That attack affected people around the world, including hospitals, factories and government agencies. A North Korean man, Park Jin Hyok, iswanted by the FBIon charges that he was involved in the attacks.
The new vulnerability affects Windows 2000, Vista, XP, 7, Server 2003, Server 2003 R2, Server 2008 and Server 2008 R2, according to authorities.
Microsoft has already issued its own notice about the security vulnerability. The companyhas patches available on its websiteto fix the issue, including for operating systems that it no longer officially supports.
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The update corrects how Windows’ Remote Desktop Services handles connection requests in order to address the issue, according to Microsoft.
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As the trade war with China heats up this summer, who is feeling the chill?
The U.S. trade war with China is chilling tourism from that country, dampening a major revenue stream for hotels, restaurants and retailers just as the summer season gets in full swing.
Last year, when the trade war began, the number of visitors to the U.S. from China fell 5.7% to 3 million, the first decline in 15 years, according to the National Travel and Tourism Office. Those visitors had totaled 160,000 in 2003 and had climbed every year since.
So far In 2019, the picture isn't any brighter for Chinese tourism. Chinese travel to the U.S. fell another 2.4% the first three months compared with the same period a year ago, according to Tourism Economics, a research firm that studies the tourism industry
“Based on current trends, we expect no growth from China in 2019 if the trade war is resolved soon," says Adams Sacks, president of Tourism Economics. "If it persists, then further declines are likely.”
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The trend is a concern for American businesses because Chinese tourists tend to splurge, making up an outsize share of tourism revenue. China's 3 million visitors last year ranked fifth, well behind Canada's 21.2 million. Yet their $36.4 billion in outlays ranked at the top, far outpacing Canada's $22.1 billion.
Chinese tourists stay an average 18 days and spend an average of almost $7,000 per trip -- about 50% more than other international tourists to the U.S., according to the U.S. Travel Association.
Here's why many Chinese tourists are skipping the U.S.:
The Trump administration has slapped a 25% tariff on $250 billion in Chinese imports and is threatening to impose a similar levy on the remaining $300 billion in shipments from China. China has retaliated with duties on $60 billion worth of U.S. exports to that country.
“The conflict could shift Chinese travel demand away from the U.S.," Sacks says.
Many Chinese tourists are staying away as they adopt a more hostile view of the U.S. and hear a drumbeat of negative messages from China's government.
Earlier this year, the Chinese government asked the country’s state-run companies to avoid business trips to the U.S., according to Bloomberg and Reuters. This month, China’s Ministry of Culture and Tourism issued a travel warning telling tourists to beware of shootings, robberies and high medical costs in the U.S.
China's state-run media outlets also have been postingmessagesto arouse citizens' animosity toward the U.S.
Hongyan Chang, 36, who lives in the city of Dalian in China, says she canceled the family trip to the United States because she feels the country is China's enemy. “America is trying to hurt us. Why should I spend the money over there?”
“This leaves patriotism or, put differently, antipathy toward the U.S. as a main reason that travel had shifted from growing more than 20% per year over a decade to declining in 2018,” says Sacks of Tourism Economics. “While no formal limits have been placed on travel, Chinese government warnings and statements regarding the U.S. are having a chilling effect."
China’seconomic growth has slowedsince last year, largely because of the trade war but also for other reasons. Consumer spending has fallen.
Chinese citizens have written on Weibo, a Twitter-like service, that they feel unwelcome in the U.S. because Chinese applicants for a visa are required to list their social media accounts for the past five years under a State Department policy that began this month.
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Several key industries are feeling the effects:
Li Li, the owner of a large New York City-based travel agency, LLL Travel, books flights and provides visa application and tour services for Chinese visitors. He says he has traditionally sold 1,000 airline tickets a week to passengers and other travel agencies, but that figure has dropped to 600 to 700.
Sixty percent of Li’s Chinese clients are businessmen and government officials from Beijing, Shanghai and Xian who come to the U.S. for business tours and training, but also to shop and do sightseeing. Li books buses, drivers and tour guides and makes restaurant reservations for them, which generates nearly half his revenue.
Panda Gourmet, which provides Sichuan and Shannxi style food and snacks, is one of the most popular restaurants for Chinese tourists in Washington D.C. In the past few years, at least three Chinese tour groups (around 150 people) visited the restaurant every month and brought in considerable revenue.
But since 2018, 90% of the business from Chinese tour groups has disappeared,” said Ah Mei, the restaurant’s operator. In the first half year of 2019, no tour group visited. Panda Gourmet is now focusing on local customers instead of Chinese tourists.
Tiffany & Co., the American luxury jewelry retailer, said this month that purchases by tourists in the most recent quarter fell 25% from a year earlier. The decline was “even sharper for Chinese tourists,” Alessandro Bogliolo, Tiffany’s chief executive officer, said on a conference call.
This article originally appeared on USA TODAY:As the trade war with China heats up this summer, who is feeling the chill? |
How Much Of Impinj, Inc. (NASDAQ:PI) Do Insiders Own?
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If you want to know who really controls Impinj, Inc. (NASDAQ:PI), then you'll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Warren Buffett said that he likes 'a business with enduring competitive advantages that is run by able and owner-oriented people'. So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.
Impinj is not a large company by global standards. It has a market capitalization of US$555m, which means it wouldn't have the attention of many institutional investors. In the chart below below, we can see that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholder can tell us about PI.
View our latest analysis for Impinj
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors own 54% of Impinj. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Impinj's earnings history, below. Of course, the future is what really matters.
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. It looks like hedge funds own 20% of Impinj shares. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
I can report that insiders do own shares in Impinj, Inc.. As individuals, the insiders collectively own US$34m worth of the US$555m company. It is good to see some investment by insiders, but it might be worth checkingif those insiders have been buying.
The general public holds a 20% stake in PI. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow, for free.
Ultimatelythe future is most important. You can access thisfreereport on analyst forecasts for the company.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
'About every 10 seconds now': Why sneaker collabs are on the rise
Walking advertisements are everywhere these days, literally. More and more companies are collaborating with sneaker manufacturers to get their brands out on the streets.
K-Swiss recently collaborated with Footlocker and “Ghostbusters” on a shoe to celebrate the film's 35th anniversary; Adidas (ADDYY) teamed with HBO on a series of sneakers to pay homage to 'Game of Thrones'8-season run; and on June 27th Nike (NKE) will release a collection honoring the (NFLX) hit show 'Stranger Things.'
Even food brands are getting in on the action. Mr. Peanut is featured on the Planters branded “Crunch Force 1” sneaker, and NBA All-Star Anthony Davis recently announced a collaboration with the famedShoe Surgeonon a shoe inspired by Ruffles potato chips.
“Themed sneakers are a conversation starter. They help expand the conversation to be about more than what is on feet. People start to speak about the theme,” says sneaker vlogger Sole De Vida.
Most sneaker collaborations are one-offs, but sometimes they gain so much popularity that the shoes become a part of a company's lineup: Think Kanye West’s Adidas-branded Yeezys.
Most of the time, these sneaker collaborations are all in good fun. However, some in the sneaker world believe companies are going to the well one too many times when it comes to collaborations.
"I feel like we're seeing a collaboration about every 10 seconds now," Matt Powell, NPD Group vice president and senior industry advisor, told Yahoo Finance.
With over 40 years in the retail industry, Powell has seen every trend imaginable. But despite the seemingly endless amount of collaborations popping up, Powell said they seldom move the needle in terms of actual sales. Usually, they are limited editions and are not produced in large enough quantities to move a company's bottom line.
To put a number value on that, he notes that both Adidas and Nike each produced around 400 million pairs of shoes in 2018. Brand collaborations only account for a fraction of either company’s supply.
So why do brands keep the collaboration game going? Sole De Vida says themed sneakers are a win for both the sneaker makers and brands they’re partnering with. “Theme sneakers are a great marketing tool ... They spark interest in the other part of the collaboration."
Some sneakerheads just can’t get enough.Urban Necessitiesfounder Jaysse Lopez thinks the more, the better: "It's never enough, because that's all people want at the moment."
Reggie Wade is a writer for Yahoo Finance. Follow him on Twitter at@ReggieWade.
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Are Investors Undervaluing Pilgrim's Pride Corporation (NASDAQ:PPC) By 44%?
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Does the June share price for Pilgrim's Pride Corporation (NASDAQ:PPC) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by estimating the company's future cash flows and discounting them to their present value. This is done using the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in theSimply Wall St analysis model.
View our latest analysis for Pilgrim's Pride
We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars:
[{"": "Levered FCF ($, Millions)", "2019": "$608.00", "2020": "$601.50", "2021": "$601.91", "2022": "$607.13", "2023": "$615.78", "2024": "$626.97", "2025": "$640.08", "2026": "$654.69", "2027": "$670.51", "2028": "$687.35"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x2", "2020": "Analyst x2", "2021": "Est @ 0.07%", "2022": "Est @ 0.87%", "2023": "Est @ 1.43%", "2024": "Est @ 1.82%", "2025": "Est @ 2.09%", "2026": "Est @ 2.28%", "2027": "Est @ 2.42%", "2028": "Est @ 2.51%"}, {"": "Present Value ($, Millions) Discounted @ 7.6%", "2019": "$565.05", "2020": "$519.53", "2021": "$483.16", "2022": "$452.92", "2023": "$426.93", "2024": "$403.98", "2025": "$383.30", "2026": "$364.35", "2027": "$346.80", "2028": "$330.40"}]
Present Value of 10-year Cash Flow (PVCF)= $4.28b
"Est" = FCF growth rate estimated by Simply Wall St
We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 2.7%. We discount the terminal cash flows to today's value at a cost of equity of 7.6%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = US$687m × (1 + 2.7%) ÷ (7.6% – 2.7%) = US$14b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= $US$14b ÷ ( 1 + 7.6%)10= $6.97b
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $11.25b. To get the intrinsic value per share, we divide this by the total number of shares outstanding.This results in an intrinsic value estimate of $45.09. Compared to the current share price of $25.29, the company appears quite good value at a 44% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.
We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Pilgrim's Pride as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.6%, which is based on a levered beta of 0.817. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn’t be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price to differ from the intrinsic value? For Pilgrim's Pride, There are three pertinent factors you should further examine:
1. Financial Health: Does PPC have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Future Earnings: How does PPC's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with ourfree analyst growth expectation chart.
3. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of PPC? Exploreour interactive list of high quality stocksto get an idea of what else is out there you may be missing!
PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NASDAQ every day. If you want to find the calculation for other stocks justsearch here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
How To Avoid Bank Fees
If you’re looking to find how to avoid banking fees, then look no further. To save money while you bank , it's important to find which banks disregard monthly fees, maintenance fees, and ATM fees. We hope to simplify some of the research for you by showing you how to best avoid bank fees. Avoid Maintenance Fees To best avoid bank fees, try to avoid brick-and-mortar banks. There are several online free banks where this is possible. Online banks issue its banknotes without regulations beyond those applicable to most common enterprises. There is no role at all for a central bank here, which is often a beneficial way to avoid maintenance fees. Central banking in recent years have come to be seen as unnecessary because of these avoidable fees. Avoid Investment Fees Investments fees will also accumulate from central banks. While traditional financial advisors from brick-and-mortar banks will charge anywhere from 1% to 3% of your portfolio, robo-advisors are essentially free. You can get fees as low as 0.15%, which is significantly lower. Avoid ATM Fees ATM fees can often accumulate over time, and if you’re not careful the wrong checking account will penalize you for using out of network ATMs. That’s why we recommend MoneyLion, with zero ATM fees, and available through 55,000 fee-free ATM’s across the globe. Most will be part of an ATM network with thousands of easily acceptable ATMs across the globe. These ATMS can also be located through your mobile device. Avoid International Fees If you’re someone who loves to travel, or is always jetting off for work, then it's essential you avoid international banking fees. You need a bank that offers no foreign transaction fees for using your debit card overseas, otherwise those international fees will rack up. Charles Schwab (NYSE: SCHW ) Bank’s High Yield Investor Checking is a great option if this sounds like you. Schwab is a traditional bank, but has a mobile bank option as well, with mobile checking deposits compatible with Apple Pay and Google Pay. Story continues Avoid Security Fees Again, online banking can be the answer to avoiding bank fees. Many people are hesitant to go ahead with online banking because of a fear that their smartphones or tablets could be easily hacked. If you're downloading applications from the App store, then they are trustworthy. If you keep your device up to date and familiarize yourself with the App’s security features the chances of your money being stolen are quite low. Use technology to your advantage with features such as two-factor authentication, and your thumbprint verification. Fingerprint and facial recognition will not only help keep you and your banking service safe from online hackers, but it will do so at a significantly lower cost than paying security fees to a real brick and mortar bank. See more from Benzinga Where You Can Trade ETFs Commission-Free How To Find The Right Online Checking Account How Artificial Intelligence Can Help With Your Financial Wellness © 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
5 Energy & Oil Stocks to Buy Amid Industry Uncertainty
Energy stocks, especially oil stocks and oil prices, have fallen heavily since the end of April. The decline has been fueled by heightened US-China trade war fears, along with rising tensions surrounding Iran and Venezuela. That being said, let’s look at some oil and energy stocks that are projected to perform well in the coming months and even years despite the current headwinds.
All the stocks on this list currently hold a Zacks Rank #2 (Buy) or better.
Chevron Corp CVX
Zacks Rank:#2 (Buy)
Chevron is a multinational energy company headquartered in California. Chevron works in three of the major sectors in the petroleum industry: upstream (exploration and drilling for oil or natural gas), downstream (refining of oil), and pipeline (long-distance transport of fuels). Chevron boasts an overall “A” VGM (Value, Growth, and Momentum) grade within our Style Score system. CVX is also a Zacks Rank #2 (Buy) right now. Zacks Consensus Estimates call for both revenue and earnings to fall around 3% in fiscal 2019. But, fiscal 2020 is expected to bring 23% earnings growth on top of the fiscal 2019’s projected fall, as well as 6.4% higher revenues. This gives Chevron an expected EPS of $9.80 in fiscal 2020 compared to an estimated $7.96 in fiscal 2019.
Enterprise Products Partners EPD
Zacks Rank:#1 (Strong Buy)
Enterprise Products is a Texas-based energy company that primarily deals with the transportation, storage and wholesale marketing of natural gas and crude oil. Enterprise Products is a Zacks Rank #1 (Strong Buy) and has an “A” grade for Growth in our Style Score system. Revisions for Enterprise Products’ earnings have been very positive over in the past 60 days with 7 upward revisions for both fiscal 2019 and 2020 earnings, against 0 downward revisions. Over the next two fiscal years, Zacks Consensus Estimates expect EPS to increase from $1.91 in fiscal 2018 to $2.10 in fiscal 2019. EPD’s fiscal 2020 earnings are then projected to reach $2.16. Over the past 6 months, EPD stock is up 14% and this expected growth could help boost the stock.
Equitrans Midstream Corp ETRN
Zacks Rank:#1 (Strong Buy)
Equitrans Midstream is a company based in Pennsylvania that deals in the midstream services relating to natural gas and its gathering. Equitrans is the third largest gas gatherer in the US and primarily operates in Pennsylvania, West Virginia and Ohio. Equitrans is expected to have good growth over the next 2 years. Zacks Consensus Estimates call for 10% earnings growth, fueled by a 19.9% top-line surge in fiscal 2019. This growth is not expected to end there. Fiscal 2020 is predicted to bring with it 12.9% earnings growth on the back of 12% revenue growth. All of this gives Equitrans an EPS expectation of $2.09 in fiscal 2020 compared to just $1.67 in fiscal 2018. Additionally, Equitrans is currently trading with a P/E of 10.55, significantly below its industry average of 26.90.
Ecopetrol S.A. EC
Zacks Rank:#2 (Buy)
Based in Colombia, Ecopetrol is a major petrol company in South America. Ecopetrol is up over 7% since closing May 31 as the stock tries to bounce back after falling 20% in the past 3 months. Zacks Consensus Estimates call for revenue to fall 3% in fiscal 2019, but the company’s earnings are still expected to jump 21%. Revenue and earnings are, however, both expected to grow in fiscal 2020, 11.4% and 17%, respectively, above their fiscal 2019 numbers.
Pioneer Natural Resources PXD
Zacks Rank:#2 (Buy)
Pioneer Natural Resources is an Irving, Texas-based company that engages in oil and gas exploration. Pioneer boasts an “A” and “B” for its Growth and Value, respectively. Pioneer’s P/E of 15.41 is less than half of the industry average of 33.70. Additionally, Zacks Consensus Estimates expect Pioneer’s earnings to soar, to the tune of 48% growth in fiscal 2019 and a further 18.6% growth in fiscal 2020. Pioneer’s projected earnings growth and good value may be able to help the stock bounce back after falling over 19% in the past 12 months.
Breakout Biotech Stocks with Triple-Digit Profit PotentialThe biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of+98%,+119%and+164%in as little as 1 month. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportEnterprise Products Partners L.P. (EPD) : Free Stock Analysis ReportEcopetrol S.A. (EC) : Free Stock Analysis ReportChevron Corporation (CVX) : Free Stock Analysis ReportPioneer Natural Resources Company (PXD) : Free Stock Analysis ReportEquitrans Midstream Corporation (ETRN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
Did You Manage To Avoid Alkermes's (NASDAQ:ALKS) Painful 56% Share Price Drop?
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Taking the occasional loss comes part and parcel with investing on the stock market. Anyone who heldAlkermes plc(NASDAQ:ALKS) over the last year knows what a loser feels like. The share price is down a hefty 56% in that time. We note that it has not been easy for shareholders over three years, either; the share price is down 47% in that time. The falls have accelerated recently, with the share price down 36% in the last three months.
Check out our latest analysis for Alkermes
Given that Alkermes didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Alkermes grew its revenue by 17% over the last year. We think that is pretty nice growth. Unfortunately it seems investors wanted more, because the share price is down 56% in that time. It may well be that the business remains approximately on track, but its revenue growth has simply been delayed. To our minds it isn't enough to just look at revenue, anyway. Always consider when profits will flow.
The graphic below shows how revenue and earnings have changed as management guided the business forward. If you want to see cashflow, you can click on the chart.
We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. Thisfreereport showing analyst forecastsshould help you form a view on Alkermes
Investors in Alkermes had a tough year, with a total loss of 56%, against a market gain of about 3.4%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 15% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It is all well and good that insiders have been buying shares, but we suggest youcheck here to see what price insiders were buying at.
Alkermes is not the only stock that insiders are buying. For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
The Latest: UK candidates debate - what else - Brexit
LONDON (AP) — The Latest on the voting to elect Britain's next prime minister (all times local): 8:25 p.m. The five men competing to be Britain's next prime minister are taking part in a televised debate where they traded barbs about who will get Britain out of the European Union fastest. Front-runner Boris Johnson said during the Tuesday night debate that if Brexit doesn't happen on the scheduled date of Oct. 31 there would be a "catastrophic loss of confidence in politics." Both Johnson and fellow contender Sajid Javid said they would opt to leave the EU without an agreement if Parliament hadn't ratified a divorce deal by then. The debate came just hours after Conservative Party lawmakers voted for a second time to winnow to field of candidates competing to replace Theresa May as party leader and British prime minister. Michael Gove said a no-deal Brexit would cause "economic turbulence" but he wouldn't rule it out. Jeremy Hunt said "it should only be a very, very last resort." Gove and Hunt both said they'd delay Brexit for a short time if needed to secure a deal. The fifth contender, Rory Stewart, said "there would never be no-deal" if he was prime minister because it would be too damaging to the economy. ___ 6:05 p.m. Boris Johnson has increased his lead in the race to become Britain's next prime minister, as one of his rivals was eliminated from the contest. Five contenders in all were still in the running after a second-round ballot of Conservative lawmakers on Tuesday. Former Brexit Secretary Dominic Raab failed to reach the threshold of 33 votes needed to go on to the next round. Tory lawmakers will vote again Wednesday and, if needed, on Thursday. The final two contenders will go to a by-mail ballot of all 160,000 Conservative Party members nationwide. The winner will replace Theresa May as party leader and prime minister. __ 9 a.m. Conservative lawmakers in Britain are voting on who should become the party's next leader and Britain's next prime minister. Story continues Six contenders, including front-runner Boris Johnson, remained before the vote on Tuesday. At least one will be eliminated in that vote. All those aiming to replace Prime Minister Theresa May vow they will succeed where May failed and lead Britain out of the European Union, though they differ about how they plan to break the country's Brexit deadlock. Johnson, a former foreign secretary, gained backing from 114 of the 313 Tory legislators in the first round of voting. In Tuesday's vote, the lowest-placed contender will drop out, along with any who fail to get at least 33 votes. Further rounds of voting are set for Wednesday and Thursday if needed. The final two contenders will go to a postal ballot of about 160,000 Conservative Party members nationwide. The winner, due to be announced in late July, will become party leader and prime minister. ___ Follow AP's full coverage of Brexit and the Conservative Party leadership race at: https://www.apnews.com/Brexit |
Michael Avenatti gets trial date over alleged Nike extortion
By Brendan Pierson NEW YORK, June 18 (Reuters) - Lawyer Michael Avenatti, an outspoken critic of U.S. President Donald Trump, is scheduled to go to trial on Nov. 12 in federal court in Manhattan on charges of extorting Nike Inc. U.S. District Judge Paul Gardephe scheduled the trial at a hearing on Tuesday, according to a court record. Avenatti has pleaded not guilty to the charges. "I look forward to a New York jury hearing all of the relevant evidence relating to Nike," the California lawyer wrote in an email. "I have complete confidence in the truth and am confident that I will be exonerated at the end of the trial." Avenatti, 48, was arrested in New York in March on charges of trying to extort more than $20 million from Nike by threatening to expose what he called its improper payments to recruits for college basketball teams it sponsored. Nike has denied wrongdoing. He has been separately charged in two other cases. In one, also in New York, prosecutors claim that Avenatti defrauded porn star Stormy Daniels, the client who propelled him to fame. They say he diverted two $148,750 installment payments from Daniels' $800,000 book advance to himself by forging her signature in a letter to her literary agent and directing that the money be sent to his bank account. In the other case, prosecutors in Los Angeles claim that Avenatti stole millions of dollars from clients to pay for personal and business expenses and lied to the Internal Revenue Service and a Mississippi bank about his finances. Avenatti, who remains free on bail, has pleaded not guilty in both other cases. Trial dates have not yet been scheduled. Daniels, whose real name is Stephanie Clifford, was paid $130,000 by Trump's former personal lawyer Michael Cohen shortly before the 2016 presidential election to keep quiet about a sexual encounter she said she had with Trump in 2006. The president has denied having sex with her. Avenatti began representing Daniels in litigation involving the hush money deal in 2018. He became a fixture on cable news channels as an outspoken critic of Trump, and briefly toyed with running for president in 2020. Daniels fired Avenatti earlier this year. Cohen is about six weeks into a three-year prison term after pleading guilty to campaign finance violations related to the hush money payment to Daniels and other financial crimes. (Reporting By Brendan Pierson in New York; editing by Jonathan Oatis) |
What Kind Of Investor Owns Most Of Oppenheimer Holdings Inc. (NYSE:OPY)?
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The big shareholder groups in Oppenheimer Holdings Inc. (NYSE:OPY) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.'
Oppenheimer Holdings is not a large company by global standards. It has a market capitalization of US$344m, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholder can tell us about OPY.
See our latest analysis for Oppenheimer Holdings
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors own 49% of Oppenheimer Holdings. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Oppenheimer Holdings's earnings history, below. Of course, the future is what really matters.
Hedge funds don't have many shares in Oppenheimer Holdings. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our information suggests that insiders maintain a significant holding in Oppenheimer Holdings Inc.. Insiders own US$99m worth of shares in the US$344m company. This may suggest that the founders still own a lot of shares. You canclick here to see if they have been buying or selling.
With a 22% ownership, the general public have some degree of sway over OPY. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
I like to dive deeperinto how a company has performed in the past. You can accessthisinteractive graphof past earnings, revenue and cash flow for free.
If you would prefer check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, backed by strong financial data.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Why Intrexon Stock Popped Today
Shares ofIntrexon(NASDAQ: XON)rose 11.6% as of 3:29 p.m. EDT on Tuesday. The big jump resulted from the company's announcement of a $100 million deal with privately held medical cannabis company Surterra Wellness to produce cannabinoids using Intrexon's proprietary yeast fermentation technology.
This is the second deal between Intrexon and Surterra. In March, the two companies announced an agreement by which Surterra will use Intrexon's Botticelli next-generation plant propagation technology to improve cannabis crop yield and quality.
Image source: Getty Images.
Investors applauded Intrexon's latest move into serving the cannabis market. Intrexon CEO Randal Kirk stated that "few cannabis companies have the ability to target and produce rare cannabinoids and explore their benefit at a meaningful scale." He's right. Extracting rare cannabinoids from cannabis plants is time-consuming and costly. Intrexon's yeast fermentation technology could change the dynamics in producing high-quality cannabinoids.
Thanks in part to its deals with Surterra, Intrexon has bounced back froma nosedive in March. The company reported dismal fourth-quarter results on the last day of February, which raised questions about its ability to remain a going concern.
While the latest agreement with Surterra has a big amount associated with it, don't look for Intrexon to see a lot of cash soon. Surterra will pay only $10 million upfront plus issue $15 million in its shares to Intrexon. Over the next five years, Intrexon expects to receive around $20 million in reimbursement for research and development expenses. The rest of the $100 million will come from development milestones and royalties as rare cannabinoids are commercialized.
Perhaps the most important thing to watch with Intrexon now is the company's efforts to finance its operations on an ongoing basis. Intrexon had cash, cash equivalents, and marketable securities of $181.6 million at the end of March, but the company is losing over $60 million each quarter.
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Keith Speightshas no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy. |
Does Armada Hoffler Properties's (NYSE:AHH) Share Price Gain of 76% Match Its Business Performance?
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Stock pickers are generally looking for stocks that will outperform the broader market. Buying under-rated businesses is one path to excess returns. For example, long termArmada Hoffler Properties, Inc.(NYSE:AHH) shareholders have enjoyed a 76% share price rise over the last half decade, well in excess of the market return of around 38% (not including dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 22% in the last year, including dividends.
Check out our latest analysis for Armada Hoffler Properties
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
Armada Hoffler Properties's earnings per share are down 5.5% per year, despite strong share price performance over five years. This means it's unlikely the market is judging the company based on earnings growth. Because earnings per share don't seem to match up with the share price, we'll take a look at other metrics instead.
In fact, the dividend has increased over time, which is a positive. Maybe dividend investors have helped support the share price. The revenue growth of about 7.6% per year might also encourage buyers.
Depicted in the graphic below, you'll see revenue and earnings over time. If you want more detail, you can click on the chart itself.
We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. Thisfreereport showing analyst forecastsshould help you form a view on Armada Hoffler Properties
It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Armada Hoffler Properties's TSR for the last 5 years was 136%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments!
It's good to see that Armada Hoffler Properties has rewarded shareholders with a total shareholder return of 22% in the last twelve months. That's including the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 19% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought.You can find out about the insider purchases of Armada Hoffler Properties by clicking this link.
Armada Hoffler Properties is not the only stock insiders are buying. So take a peek at thisfreelist of growing companies with insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Dwyane Wade doubles down on support for son who attended pride parade
Dwyane Wade opened up about supporting his son Zion, who attended Miami Pride. (Photo by Christian Alminana/Getty Images For Cannes Lions) Longtime Miami Heat star Dwyane Wade did not hesitate to show support for his son, Zion, who appeared at a LGBTQ pride parade in Miami in April. Zion, who turned 12 years old in May, attended Miami Beach Pride with his siblings and stepmother, actress Gabrielle Union. Wade could not be there as he played out the end of his final season in the NBA, but did support Zion on social media, posting a photo with the caption , “We support each other with Pride!” In another message that included a rainbow emoji, Wade said he wished he could have been there with Zion to see him smile. In an interview with Variety , Wade explained why he felt it was important to show support for Zion, and do so publicly. Wade said he wants to be supportive of Zion and his interests the same way he helps his son Zaire, a budding basketball star, on the court. “I don’t really talk about it much because it’s Zion’s story to tell. I think as a family, we should support each other. That’s our job. And my job as a father is to facilitate their lives and to support them and be behind them in whatever they want to do. My role is to support my kids and love my kids,” Wade said. Wade surprised his support caused controversy Wade told Variety that he was quite surprised that his support of Zion generated some backlash and controversy. Dwyane Wade was surprised that his love for his son resulted in some backlash on social media https://t.co/yk4kuCE3nA pic.twitter.com/KAWEmQjEGZ — Variety (@Variety) June 18, 2019 “I’m very uneasy about accolades that come from supporting my kids or the negativity that comes with it. I’m doing what every parent should do. Once you bring kids into this world, you have to become unselfish. You’re not important anymore. Your kids become the most important thing. Your family becomes the most important thing,” Wade said. Story continues Growing up in inner-city Chicago, Wade said that level of support wasn’t always there for children. He wants things to be different for his kids. “I’m doing what I feel is right for my family and that’s to support my kids the same way if it’s a sport, or if they come home with great grades. It’s to big them up and let them know they can do anything in this world. I’m from the inner-city of Chicago and I wasn’t told that,” Wade said. “I wasn’t told I could be anybody and do anything, and I wasn’t always shown that. It’s my job to be their role model, to be the voice in my kids’ lives to let them know that you can conquer the world and you have the support of your father and the support of your family every step of the way, so go and be your amazing self and we’re going to sit back and support you all the way.” View this post on Instagram A post shared by dwyanewade (@dwyanewade) on May 29, 2019 at 11:43am PDT More from Yahoo Sports: Women’s World Cup about to get tougher for USWNT Report: Kyrie has ‘essentially ghosted’ Celtics Prosecutors identify man allegedly behind Ortiz plot How does Davis trade compare to other NBA mega-deals? |
Financial Rules of Thumb to Consider Breaking
Financial rules of thumb circle around the internet like flotsam caught in an eddy. We scrutinized five particularly persistent ones to see how they hold up. Our conclusion: Most have merit as a starting point for setting a financial goal. But depending on your personal circumstances, you may benefit from bending the rules. SEE ALSO: 7 Budgeting Tools to Get Your Finances in Order Budget Spend no more than half of your income on living expenses, keep discretionary items to 30%, and save the rest. In her 2005 book, All Your Worth: The Ultimate Lifetime Money Plan, Elizabeth Warren, then a Harvard professor, presented "the balanced money formula," which has since been popularized as the 50/30/20 rule. Under this rule, you allot 50% of your take-home pay to "must haves," 30% to "wants" and 20% to savings. Must haves include housing, utilities, medical care, insurance, transportation, child care and minimum payments on any legal obligations, such as student loans, child support or anything for which you've signed a long-term contract. Why only 50%? Warren says it's sustainable, leaving you with plenty of money for the rest of your life, including fun and the future. When things go wrong, you may be able to cover the basics with an unemployment or disability check or, if you're married, live on one paycheck for a while. The 20% for savings is automatic--debited directly from your paycheck--not an afterthought. Use the money to build an emergency fund, pay off debt and save for retirement. That leaves 30% of your budget for your wants (including charitable giving), which allows you to avoid the cycle of binge spending and crash-diet budgeting, writes Warren. If something goes wrong, this category is the first place you cut. Although 50/30/20 is a good guide, you need to be flexible, says credit expert Gerri Detweiler. If you live in a high-cost area, spending more than 50% of your paycheck on living expenses may be unavoidable, given the cost of housing, child care and health care. Similarly, if staying within the threshold means buying a home that comes with a three-hour-a-day commute, you may choose to stretch beyond the limit to live closer to work and have more free time. If you're carrying high-cost, unsecured debt, Detweiler strongly recommends that you pay it off within three years to avoid digging yourself into a deeper hole. She recommends that you apply a portion of the 20% designated for savings toward debt repayment and consider how you could reduce your living expenses or discretionary spending to meet the goal. Story continues It's also important to reevaluate your budget periodically as your life changes. For example, downsizing or moving to a lower-cost area could allow you to cut your living expenses below 50% and save more for retirement. Home You can afford a home that's two to four times your annual gross income. You can use this rule to start house shopping online, but you won't know what you can really afford to buy--whether more or less--until you get preapproved for a mortgage by a lender. SEE ALSO: 10 Reasons You Will Regret Buying a Home With a Swimming Pool Here's why: Lenders will qualify you for a mortgage based on two ratios. One is the front-end ratio, which restricts your housing expenses (mortgage principal and interest, real estate taxes, insurance, homeowners association dues, and special assessments) to 28% of your gross annual income. It also includes private mortgage insurance if your down payment is less than 20%, hazard (homeowners) insurance and flood insurance. Say you have a household income of $120,000, no other debts, and you want to buy a home in Phoenix, Ariz. With a 4%, 30-year mortgage, a 20% down payment, a property tax rate of 0.58% (according to Attom Data Solutions ) and the state's average annual hazard insurance bill of $1,867 (according to Insurance.com ), you could afford a home worth about $613,000. But in a high-cost area, property taxes and insurance can hit hard--and lower the value of the homes you can afford. For example, in Westchester County, New York, with a property tax rate of 2.29%, an average annual insurance bill of $3,082 and all other things being equal, the price of the home you could afford would fall to about $580,000. To make sure you can pay your mortgage, lenders use the back-end ratio to limit all monthly debt payments (mortgage, second mortgage or home-equity line of credit, student loans, and installment debt) to 36% to 50% of your gross monthly income. The amount depends on whether the loan is backed by Fannie Mae, Freddie Mac or the Federal Housing Administration (FHA), as well as your credit score, down payment and reserves. In 2017, the mortgage giants loosened up on the back-end ratio to assist first-time home buyers who have a lot of student debt. But in 2018, they began to tighten up a bit out of concern that maxed-out borrowers who lose their jobs or are hit with high medical bills will be at greater risk of default. To get a more accurate idea of how much you can afford, use an online mortgage calculator (visit bankrate.com or hsh.com ). Or call a mortgage lender, such as Quicken , to get prequalified (an estimate based on self-reported information) or preapproved (a commitment to lend a certain amount based on documented information). You'll avoid setting your expectations too high or too low and look at houses you can afford. A preapproval will assure home sellers that you can close the deal. The monthly mortgage payment for which you qualify doesn't reflect the total cost of homeownership. You'll also have to pay for maintenance, repairs and replacement of components, such as the roof. To cover these costs, financial planners recommend setting aside 1% to 2% of the market value of your home annually in a high-yield online savings account. Life insurance You need life insurance equal to eight to 10 times your annual pretax income. The basic purpose of life insurance is to replace lost income if your spouse or partner passes away early. But the amount of insurance you need depends on a number of individual circumstances. SEE ALSO: Time to Reassess Your Life Insurance After Tax Reform Decide what expenses or debts you would like to eliminate or goals you would like to meet with a life insurance payout. You may already have a benefit through your employer that will cover your final expenses--about $10,000 for a funeral, burial and related costs. Do you want to relieve your survivor of the burden of a mortgage or other debt? Provide money for your children's education? Leave a legacy for family or charitable beneficiaries? Replace what you would have saved for retirement? "You won't be accumulating money in your 401(k) if you're dead, and that big pile of money that you thought would be available at the end of your working years for you and your spouse won't be there," says David Cordell, a professor of finance and managerial economics at the University of Texas in Dallas. You should also consider how your household's expenses may change if you're not there. They could rise, for example, if your family must pay for services that you formerly provided, such as lawn care, home repair, housekeeping, child care or elder care. To more precisely calculate your needs, use a life insurance calculator, such as the one at lifehappens.org . When you're ready to buy a policy, compare premiums at accuquote.com . Your least expensive option will be a term insurance policy, which provides a guaranteed death benefit for a specific time--typically 20 or 30 years--with no savings or investment component. College Save one-third of the cost of college. Under this rule of thumb, you pay for a third of the cost of college from savings, pay a third from current income and financial aid, and borrow a third using a combination of parent and student loans. Proponents of this rule say you should save a third of the sticker price, which can be daunting for many families. The average sticker price for the 2018-19 academic year at a four-year public institution, including tuition, fees, and room and board, was $21,370 for in-state students and $37,430 for out-of-state students, according to the College Board. The average tab at private colleges was $48,510. In addition, you may have other expenses that take priority. Do you have high-interest debt? Are you making the maximum contribution to your 401(k)? Do you have an emergency savings fund? On the other hand, if you've checked all of these boxes and still have income left over, you may want to save more than a third and reduce the amount your child will need to borrow. (And keep in mind that if your child qualifies for financial aid, the net price will be far less.) To calculate how much you must save each month to reach your goal, use the college savings calculator at SavingforCollege.com . You can customize the result by entering your child's age; choice of public or private, in-state or out-of-state school; what portion of the projected costs you hope to cover; and other factors. For most parents, their state's 529 college-savings plan is the most effective way to save for college. Earnings will accumulate tax-free, and many states offer tax breaks for contributions. Saving for retirement You'll need 70% to 80% of your preretirement income to live on when you retire. If you have 20 years until retirement, that replacement rate is a "very basic starting point" for estimating the total savings you'll need for retirement, says David Blanchett, head of retirement research for Morningstar Investment Management. However, it assumes that your spending will increase by the rate of inflation annually and that your retirement will last 30 years, neither of which is necessarily true. His research shows the actual replacement rate required to maintain your preretirement lifestyle during retirement varies significantly by household, from less than 54% to more than 87% of preretirement income. Once you're within striking distance of retirement--say, three to five years--take stock of your current expenses and try to anticipate what will change. Will you downsize to a less expensive home? Will you still provide some support to your children or grandchildren? How do you want to spend your time in retirement? "Some people will be happy reading a book. But for those who want a really active retirement, their income target could exceed their current income level," says Blanchett. On the other hand, certain expenses will disappear in retirement. You'll probably stop contributing to your retirement accounts, and unless you continue to work, you won't pay Social Security and Medicare payroll taxes. Once you've estimated what you'll spend in retirement, add up your expected sources of income from Social Security, pensions and annuities, as well as withdrawals from savings, to see if you are on track (or use our Retirement Savings Calculator ). Time to update this rule When saving for retirement, a conventional rule of thumb is to subtract your age from 100 to determine how much to invest in stocks. But that could leave you with a portfolio that's too conservative, given longer life spans. If you're 65, for example, you could live another 30 years or more. With just 35% in stocks, your portfolio may not grow enough to last that long. SEE ALSO: 15 Reasons You'll Go Broke in Retirement Wade Pfau, professor of retirement income at the American College, in Bryn Mawr, Pa., and Michael Kitces, director of wealth management at Pinnacle Advisory Group, in Columbia, Md., have tested the guideline against others for an individual who retires during a bear market. They found that you would run out of money sooner using the old rule of thumb than if you maintained a 60%-40% split between stocks and bonds throughout retirement, with annual rebalancing. Some proponents have revised the rule of thumb, recommending that you subtract your age from 110 to 125, depending on other sources of income and your tolerance for risk. At 125, our hypothetical 65-year-old would have 60% in stocks. EDITOR'S PICKS Best States for Low Taxes: 50 States Ranked for Taxes, 2018 27 Best Amazon Prime Benefits Best States to Retire 2018: All 50 States Ranked for Retirement Copyright 2019 The Kiplinger Washington Editors |
Is Orion Group Holdings, Inc. (NYSE:ORN) Excessively Paying Its CEO?
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Mark Stauffer became the CEO of Orion Group Holdings, Inc. (NYSE:ORN) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Orion Group Holdings
According to our data, Orion Group Holdings, Inc. has a market capitalization of US$66m, and pays its CEO total annual compensation worth US$1.7m. (This number is for the twelve months until December 2018). That's just a smallish increase of 6.3% on last year. We think total compensation is more important but we note that the CEO salary is lower, at US$570k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$452k.
As you can see, Mark Stauffer is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Orion Group Holdings, Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Orion Group Holdings has changed over time.
Over the last three years Orion Group Holdings, Inc. has shrunk its earnings per share by an average of 94% per year (measured with a line of best fit). It saw its revenue drop -8.6% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to checkthis free visual depiction ofwhat analysts expectfor the future.
Given the total loss of 57% over three years, many shareholders in Orion Group Holdings, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We compared the total CEO remuneration paid by Orion Group Holdings, Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
We think many shareholders would be underwhelmed with the business growth over the last three years.
Over the same period, investors would have come away with nothing in the way of share price gains. Some might well form the view that the CEO is paid too generously! Shareholders may want tocheck for free if Orion Group Holdings insiders are buying or selling shares.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
Footwear trade group CEO: 'Our members are livid' over tariffs
American Apparel and Footwear Association (AAFA) CEO Rick Helfenbein is not happy with the prospect of new tariffs on Chinese goods. "Our members are livid over tariffs," he told Yahoo Finance’s On the Move.
Helfenbein and the heads of more than 100 apparel, footwear, and accessories companies recentlysent a letter to Trumpurging him not to move forward with the plan. He also testified before a Congressional panel to stress the burden that new tariffs would put not only on footwear retailers but the American people. "Tariffs are not good; they are going to be a tax on the American consumer."
In May, Trump ordered the Office of the United States Trade Representative, to begin the process of raising tariffs on virtually all remaining imports from China, which are valued at approximately $300 billion.
Despite assurances in a Tweet from Trump that he and Chinese President Xi Jinping had “a very good telephone conversation” and will meet next week at the G-20 in Japan, many manufacturers remain on edge.
Helfenbein said that additional tariffs would be "catastrophic" to footwear, apparel and textile retailers. "If we ran my business like this we would get tossed out of the board room ... We are seeing the market go up, up, up, and we are worried our earnings will go down, down, down," he said.
In the letter to Trump, AAFA members implore Trump to consider how much U.S. retailers rely on Chinese goods and the tariff burden that footwear and apparel industries bear:
"As you may know, China currently accounts for about 69 percent of our footwear and about 42 percent of the apparel sold in the United States today … In 2018, our industries paid more than $18 billion in tariffs, representing nearly 40 percent of all tariffs collected by the U.S. government, yet we accounted for only about 6 percent of all U.S. imports."
Reggie Wade is a writer for Yahoo Finance. Follow him on Twitter at@ReggieWade.
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Follow Yahoo Finance onTwitter,Facebook,Instagram,Flipboard,LinkedIn, andreddit. |
Why Marijuana Is About To Mint Millionaires
ByThe Oxford Club’sChief Trends Strategist, Matthew Carr
The end of prohibition is here -You can literally smell it in the air. Year-to-date, theHorizons Marijuana Life Sciences Index ETF(OTC:HMLSF) is up 38 percent. That's more than double the return of the Nasdaq, S&P 500 or the small caps on the Russell 2000.
But the cannabis companies are about to go into overdrive. Many investors already know that pot stocks have yielded some of the biggest stock market gains in recent memory. That's in large part thanks to progressive legalization of both recreational and medical marijuana throughout North America.
And we recently enjoyed a massive boom in Canadian licensed producers (LPs) thanks to the law C-45. It legalized adult use of weed nationwide across Canada.
More importantly, it unlockedbillionsof dollars in capital and paved the way for companies likeAphria(NYSE:APHA),Aurora Cannabis(NYSE:ACB),Canopy Growth(NYSE:CGC) andTilray(NASDAQ:TLRY) to become household names.
American Legalization On The Horizon
During the recentMarijuana Millionaire's Event,hosted by the Oxford Club, I didn’t focus on Canadian legalization. My readers have already pocketed tens of thousands of dollars on our early entry. Instead, I zeroed in on the next inevitability - marijuana legalization here in America.
At the world's largest cannabis conference in Las Vegas, I became convinced a congressional bill that will force the federal government out of the picture will upend the balance of power in the cannabis industry. During the course of the past couple of years, I've met with CEOs, industry insiders and heavy hitters in this burgeoning multibillion-dollar market.
Pair that with my years of stock and trend analysis, and I believe I'm in a unique position to forecast which companies are in the best position to skyrocket. I understand which companies are poised to carve out their own profitable niches in the fastest-growing industry in America.
Consider this, the compound annual growth rate (CAGR) of the cannabis industry will leave beer, wine, spirits and tobacco in the dust. In fact, over the next 10 years, cannabis' CAGR is expected to be more than double that of those other four industries, combined.
Of course, there are a lot of factors at work. But regulation of the cannabis market has momentum on its side. I prepared investors for when Canada legalized adult use in 2018.
I did the same before the farm bill was signed into law here in the U.S., declaring hemp legal once again and sparking our current CBD boom.
But this is just the beginning. More than 30 states and Washington, D.C. have legal weed programs - medical or otherwise. And, it doesn't matter what poll you cite, they all say the same thing. Bipartisan support for legalization rings in at upward of 60 percent. That's more than double what it was just 20 years ago.
Pew Research Center
These are just ripples building up to a much larger wave.
Former head of the Food and Drug Administration Scott Gottlieb said in a televised interview that it's an "inevitability" the federal government will need to reconsider its marijuana policies.
That was five monthsafterthe FDA approved an oral CBD solution for the treatment of seizures. This is the first FDA-approved drug that contains purified drug substances derived from cannabis.
The end of prohibition is near.
And when federal legalization happens in the U.S. - note I said "when," not "if" - there's going to be a massive windfall of profits for companies and investors alike.
The Math Is Simple
The U.S. has roughly 10 times the population of Canada. And the projected marijuana market is about eight times the size of Canada's. But American pot stocks trade at an insane discount to this opportunity...
The Takeaway
Penny pot stocks absolutely exploded when Canada legalized marijuana. When the same happens here in the U.S...those surges are going to be legendary. Investors must get in now, before the new law goes into effect... before recreational marijuana becomes legal nationwide.
If they do, they're setting themselves up for the profits of a lifetime. It's an opportunity you don't want to let go up in smoke.
The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.
See more from Benzinga
• How Cannabis Leaders Can Support Pride Month With A Lifelong Inclusion Mission
• Medical Marijuana For Military Veterans: Where We Stand
• TSA Updates Rules To Allow Hemp-Derived CBD Aboard Flights
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. |
Congress should be investigated for its role in the Steele dossier: Judicial Watch’s Tom Fitton
Judicial Watch president Tom Fitton says Attorney General William Barr should look into the State Department’s role in the Steele dossier that sought to overthrow Donald Trump’s presidency.
"If AG Barr is going to look at this, he needs to not only look at DOJ, FBI, NSA, CIA, State Department's in the center of the storm when it came to these anti-Trump coup efforts,” Fitton said during an interview on FOX Business’ “Lou Dobbs Tonight” on Monday.
He continued, “Steele had an in with the State Department going back years even before the 2016 elections. He knew this Jonathan Winer guy going back some time. Winer was helping him out according to the documents we have. And then once the dossier came up, he conveyed that to the senior State Department official Victoria Nuland, then Nuland is obviously talking about that with House Democrats."
"Other documents we have shown, that the State Department was a key area or a key agency in the anti-Trump efforts. Shepherding the dossier not only to the Congress but to the Justice Department even through Steele. You know, we think that Steele has the one dossier, oh no, the State Department was sending its own material separately to Congress," said Fitton
Jonathan Winer is a former Deputy Assistant Secretary State for International Law Enforcement and former Counsel to Sen. John Kerry. Victoria Nuland is former U.S. Assistant Secretary of State.
Fitton is insisting that Senate Judiciary Committee Chairman Lindsey Graham, R-S.C., ramp up an invitation into all parties involved in the dossier.
“He should crank up the Judiciary Committee and investigate what went on with this the Democratic controlled Intelligence Committee and I don't say that lightly given the Republicans run the Senate are obviously harassing Trump,” said Fitton.
Christopher Steele has yet to be questioned for his role in the dossier that attempted to overthrow a sitting president. Steele, a former British intelligence officer. was hired and paid for by Fusion GPS amd was also hired by the Perkins Coie law firm who in turn was hired by the Democratic National Committee and the Clinton campaign. Steele has reportedly agreed to meet with U.S authorities in the next few weeks to answer questions about his role in the 2016 presidential election.
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“Senator Graham has got to step into the gap here, but quickly on the Democrats. The flack they're throwing up is designed to protect themselves from scrutiny. Forget about investigating the investigators, we need to be investigating Congress about its role in the anti-Trump coup which in my view continues through its abuse of power at the House targeting his IRS forms as confidential IRS data, harassing him generally,” said Fitton.
“The reason they're doing this because they don't want the world to stop and it focus on their misconduct, their political party misconduct in engendering Spygate,” he added.
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Is Oak Valley Bancorp (NASDAQ:OVLY) Excessively Paying Its CEO?
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In 2013 Chris Courtney was appointed CEO of Oak Valley Bancorp (NASDAQ:OVLY). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Oak Valley Bancorp
According to our data, Oak Valley Bancorp has a market capitalization of US$154m, and pays its CEO total annual compensation worth US$746k. (This is based on the year to December 2018). That's a notable increase of 19% on last year. We think total compensation is more important but we note that the CEO salary is lower, at US$349k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO total compensation of that group was US$1.1m.
A first glance this seems like a real positive for shareholders, since Chris Courtney is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Oak Valley Bancorp has changed from year to year.
Over the last three years Oak Valley Bancorp has grown its earnings per share (EPS) by an average of 25% per year (using a line of best fit). Its revenue is up 9.8% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. We don't have analyst forecasts, but shareholders might want to examinethis detailed historical graphof earnings, revenue and cash flow.
Most shareholders would probably be pleased with Oak Valley Bancorp for providing a total return of 108% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
It appears that Oak Valley Bancorp remunerates its CEO below most similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. The strong history of shareholder returns might even have some thinking that Chris Courtney deserves a raise!
It's not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. Whatever your view on compensation, you might want tocheck if insiders are buying or selling Oak Valley Bancorp shares (free trial).
Important note:Oak Valley Bancorp may not be the best stock to buy. You might find somethingbetterinthis list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading. |
The Government Won't Let Huawei Enforce U.S. Patents
Huawei may be looking for an opportunity to talk to government officials, but the government is clearly not in the mood. Not only have officials made it clear that there are going to be no negotiations with the company, but it has also indicated that it will go to lengths to see that the company doesn’t create any mischief.
So when Huawei said Verizon VZ owes it a billion dollars for infringement of 230 patents, Republican Senator Marco Rubio tweeted that the action was an “attempt by (Huawei) to retaliate against the U.S. by setting the stage for baseless, but costly, patent claims.”
He even followed that up with a proposed amendment to the National Defense Authorization Act (NDAA) that was earlier invoked to prevent federal purchases of Huawei products on the basis of national security concerns. The NDAA sets the broad policies for spending by the Department of Defense.
The current amendment seeks to prevent companies like Huawei that are placed on specified U.S. watch lists, from seeking legal resolution or damages in any U.S. court with respect to U.S. patents. While it still hasn’t been signed into law, this could happen quickly since both Republicans and Democrats generally agree on China concerns.
Huawei has of late been amassing U.S. patents, so the company may have been waiting to start claiming its rights anyway. Now that other revenue sources in the U.S. are drying up, it may have been exploring this route.
The truth is, the company is already feeling the pain of U.S. sanctions with officials confirming that international sales are down 40% (according to media reports). And although domestic sales have accelerated, and could see the company through the short term emergency, the inability to include American technology would cripple the company and limit it to second rate offerings for sale in the domestic market. Until it is able to come up with alternatives of its own that is. If at all it is able to create suitable alternatives, it could be several years before such technology is exported for gain.
The Chinese government could step in as part of its trade deal, something the U.S. has said it will entertain. Or it may not, if it is willing to take the risk of Huawei, which is a huge company, somehow battle it out on its own.
Recommendations
National wireless communications stocks are hot right now, so you can take your pick of Verizon, GCI Liberty GLIBA, Gogo GOGO and T-Mobile U.S. TMUS, all of which have a Zacks Rank #2 (Buy). Or you can pick Zacks #1-ranked United States Cellular Corp. USM, or simply check outthe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free reportVerizon Communications Inc. (VZ) : Free Stock Analysis ReportT-Mobile US, Inc. (TMUS) : Free Stock Analysis ReportGogo Inc. (GOGO) : Free Stock Analysis ReportUnited States Cellular Corporation (USM) : Free Stock Analysis ReportGCI Liberty, Inc. (GLIBA) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research |
EMERGING MARKETS-Latam stocks, FX rise; Argentine stocks scale record high
(Updates prices) By Susan Mathew June 18 (Reuters) - Latin American stocks and currencies surged on Tuesday with a dovish boost from the European Central Bank and positive headlines from the U.S.-China trade tensions boosting sentiment. MSCI's index of Latin American stocks jumped 2%, while its index of regional currencies rose for the first time in four sessions, up 0.7% as regional currencies firmed against a steady dollar. Ahead of a U.S. Federal Reserve policy meeting outcome on Wednesday, when the bank is expected to lay the groundwork for a rate cut, ECB President Mario Draghi hinted at the possibility of new rate cuts. This, along with news that China and the United States are rekindling trade talks after a lull ahead of a meeting between Presidents Donald Trump and Xi Jinping at the G20 summit later this month, buoyed markets globally. Regional assets joined the rally with Brazil stocks rising 1.6% to hit a three-month high. Petrochemical company Braskem cut early losses to trade 4.7% higher. A Brazilian judge on Tuesday granted bankruptcy protection to the company's controlling shareholder Odebrecht, and included Braskem in a list of subsidiaries that creditors are not allowed to sell shares in. The real currency firmed 0.7% ahead of the Brazilian central bank's rate meeting on Wednesday, when it is expected to keep its key lending rate on hold. Returning from a three-day weekend, Argentine stocks rose about 2% and scaled an all-time high before trading 0.8% higher, while the currency rose more than 1%. Mexican stocks rose 0.4%, breaking a three-day losing run. The peso traded steady a day after rating agency Moody's had flagged risks from state oil firm Pemex and unpredictable policymaking by its government. A rise in crude oil prices helped Colombian assets. The oil- exporting country's currency rose almost 1%, while stocks rose 1.7% to an over four-week high, with state oil firm Ecopetrol up 2.3%. Copper-exporting Chile's peso rose after four straight sessions of losses. Copper prices hit three-week highs on Tuesday on trade optimism. Santiago-traded stocks rose 0.1%. Chile President Sebastián Piñera said on Tuesday the government will accelerate a $4 billion infrastructure program this year to revive the country's slow-growing economy. The labor minister, Nicolás Monckeberg, also said the government will push pension reform plans through Congress with "extreme urgency." Key Latin American stock indexes and currencies at 1939 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1025.63 1.45 MSCI LatAm 2788.24 2 Brazil Bovespa 99222.15 1.64 Mexico IPC 43182.32 0.51 Chile IPSA 5,031.79 0.14 Argentina MerVal 40820.48 0.82 Colombia IGBC 12450.09 1.62 Currencies Latest Daily % change Brazil real 3.8598 1.04 Mexico peso 19.1380 0.20 Chile peso 696.2 0.57 Colombia peso 3253.1 0.86 Peru sol 3.332 0.45 Argentina peso 43.4000 1.38 (interbank) (Reporting by Susan Mathew in Bengaluru; editing by Jonathan Oatis) |
4 Credit Repair Company Lies — and How to Fix Your Score Without Help
Watch the video of ‘4 Credit Repair Company Lies — and How to Fix Your Score Without Help’ on MoneyTalksNews.com.
Buying new furniture with a credit card, financing a car and agreeing to that variable-rate mortgage all seemed like good ideas. That is, until you couldn’t make your payments. Now, your credit score has dropped through the floor, and it feels like you’ll never get back on your feet.
Never fear! A credit repair company can undo the damage and have your score back to near-perfect condition in no time.
Or can they?
Credit repair scams are rampant. Sure, there are some legitimate companies that will help sort out the details of your credit report, but many others are simply preying on desperate people. Before you fork over what’s left of your hard-earned money, know that these things you might hear from credit repair companies are all untrue:
Wouldn’t a do-over be nice? Some credit repair companies will say you can do just that. They may say you can get a new identification number that will make it easy to rebuild credit and erase past mistakes.
Some companies may refer you to the IRS website to request an employer identification number (EIN). The shadier ones may hand you a stolen Social Security number and tell you it’s a “credit profile number” or “credit privacy number.”
The problem is that it’s illegal to request an EIN under false pretenses. It’s also illegal to lie on a loan application or misrepresent your Social Security number by subbing in an ill-gotten EIN. And we certainly shouldn’t have to tell you that it’s illegal to use a fake Social Security number, regardless of how the credit repair company tries to sell it to you as a different kind of number.
A sketchy credit repair company may tell you it’s OK to inflate your income on an application to boost your chances of approval. No one will ever know, they might say.
But the credit repair company is lying when it says this practice is OK. It’s not. As you may have already guessed, it’s illegal to lie about anything on a credit application.
For more sage advice on deterring fraudsters, check out: “10 Golden Rules to Avoid Getting Scammed.”
If the first thing a credit repair company says to you is “show me the money,” you need to show it the door. You don’t need to pay a retainer or an upfront fee to use a credit repair company. In fact, the federalCredit Repair Organizations Actprohibits companies from collecting fees in advance.
What’s more, federal law requires that you be given a credit repair contract in writing to outline the services to be rendered. If a company doesn’t provide this and insists on being paid upfront, you know you’re dealing with a scam.
This lie makes people think they are trapped into using a company’s service.
The reality is that you don’t need to pay anyone to fix your bad credit. There is nothing a credit repair company can do that you can’t do for yourself.
At Money Talks News, we are always on the lookout for bad actors who take advantage of consumers. You can learn more about all manner of common scams byclicking here.
So how do you repair your credit on your own? It’ll require a little work, but you can do exactly what a legitimate credit repair company would do. Even better, you don’t have to pay a dime.
First, you need to request copies of your free credit reports. You can get them throughAnnualCreditReport.com. That’s the official place to request your reports, and you’re entitled to one free report from each of the three major credit bureaus every 12 months.
Other websites may try to charge you for this information. So, if you’re asked for your credit card information, you’re in the wrong place.
Next, comb through those reports for any incorrect information. Did you pay off that balance? Were you only late on that account once rather than the three times reported? Circle everything that may be wrong.
Finally, send letters of dispute to the credit bureaus asking them to review the info. You can even do this online now.
If the credit bureaus side with you, the negative reports will drop off and your score will rebound. Otherwise, you’ll need to wait seven years for the info to disappear.
Still feeling overwhelmed? We can alsoconnect you with a legitimate companythat may be able to help.
Have you been through a period of bad credit? What was your way out? Share with us in comments below or on ourFacebook page.
This article was originally published onMoneyTalksNews.comas'4 Credit Repair Company Lies — and How to Fix Your Score Without Help'.
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US STOCKS SNAPSHOT-Wall St rises on hopes for trade talks, Fed rate cuts
June 18 (Reuters) - U.S. stocks surged on Tuesday and the S&P 500 approached a record high after Washington rekindled trade talks with Beijing, boosting sentiment along with growing investor confidence that the U.S. Federal Reserve will cut interest rates this year.
The Dow Jones Industrial Average rose 354.74 points, or 1.36%, to 26,467.27, the S&P 500 gained 28.09 points, or 0.97%, to 2,917.76 and the Nasdaq Composite added 108.86 points, or 1.39%, to 7,953.88. (Reporting by Noel Randewich; editing by Jonathan Oatis) |
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