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Read This Before Judging Cerebra Integrated Technologies Limited's (NSE:CEREBRAINT) ROE
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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. To keep the lesson grounded in practicality, we'll use ROE to better understand Cerebra Integrated Technologies Limited (NSE:CEREBRAINT).
Cerebra Integrated Technologies has a ROE of 2.1%, based on the last twelve months. That means that for every ₹1 worth of shareholders' equity, it generated ₹0.021 in profit.
Check out our latest analysis for Cerebra Integrated Technologies
Theformula for return on equityis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Cerebra Integrated Technologies:
2.1% = ₹14m ÷ ₹2.7b (Based on the trailing twelve months to March 2019.)
Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is the capital paid in by shareholders, plus any retained earnings. Shareholders' equity can be calculated by subtracting the total liabilities of the company from the total assets of the company.
ROE looks at the amount a company earns relative to the money it has kept within the business. The 'return' is the profit over the last twelve months. That means that the higher the ROE, the more profitable the company is. So, all else equal,investors should like a high ROE. Clearly, then, one can use ROE to compare different companies.
By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. If you look at the image below, you can see Cerebra Integrated Technologies has a lower ROE than the average (9.4%) in the Electronic industry classification.
That certainly isn't ideal. We prefer it when the ROE of a company is above the industry average, but it's not the be-all and end-all if it is lower. Still,shareholders might want to check if insiders have been selling.
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 case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the use of debt will improve the returns, but will not change the equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
Cerebra Integrated Technologies has a debt to equity ratio of just 0.013, which is very low. Its ROE is rather low, and it does use some debt, albeit not much. That's not great to see. Judicious use of debt to improve returns can certainly be a good thing, although it does elevate risk slightly and reduce future optionality.
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. 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 thisfreethisdetailed graphof past earnings, revenue and cash flow.
Of courseCerebra Integrated Technologies 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. |
Bitcoin Cash – ABC, Litecoin and Ripple Daily Analysis – 19/06/19
Bitcoin Cash ABC fell by 4.48% on Tuesday. Reversing a 1.1% gain from Monday, Bitcoin Cash ABC ended the day at $412.0.
A particularly bearish day saw Bitcoin Cash ABC slide from a start of a day intraday high $431.31 to a late intraday low $403.61.
Falling short of the major resistance levels, Bitcoin Cash ABC fell through the first major support level at $424.75 and second major support level at $418.18.
The third major support level at $403.99 prevented heavier losses on the day.
At the time of writing, Bitcoin Cash ABC was up by 0.34% to $413.40. A mixed start to the day saw Bitcoin Cash ABC rise to a morning high $415.0 before easing to a low $411.12.
Bitcoin Cash ABC left the major support and resistance levels untested early on.
For the day ahead, a move back through the morning high $415 to $418 levels would support a run at the first major resistance level at $427.67.
Bitcoin Cash ABC would need support from the broader market, however, to break out from $420.
In the event of a broad-based crypto rally, Bitcoin Cash ABC could return to $430 levels before any pullback.
Failure to move back through the morning high could see Bitcoin Cash ABC hit reverse. A slide through the morning low $411.12 to sub-$410 levels would bring the first major support level at $400 into play.
Barring a crypto meltdown, Bitcoin Cash ABC will likely steer clear of sub-$400 levels on the day.
Litecoin rose by 0.67% on Tuesday. Partially reversing a 2.04% fall on Monday, Litecoin ended the day at $135.1.
A relatively choppy day saw Litecoin slide to a mid-morning intraday low $128.91 before finding support.
Litecoin fell through the first major support level at $131.71 to test the second major support level at $129.2.
An early afternoon rebound saw Litecoin strike an intraday high $136.98 to come within range of the first major resistance level at $137.06.
A pullback to $131 levels was short-lived, with Litecoin managing to move back into positive territory late in the day.
At the time of writing, Litecoin was up by 0.13% to $135.28. A mixed start to the day saw Litecoin rise from a morning low $133.59 to a high $135.6.
Litecoin left the major support and resistance levels untested early on.
For the day ahead, a hold above $133 levels through the morning would support a bullish day ahead. A move through Tuesday’s high $136.98 would bring the first major resistance level at $138.42 into play.
Litecoin would need support from the broader market, however, for a break out from $137 levels.
In the event of a broad-based crypto rally, Litecoin could take a run at $139 levels before any pullback.
Failure to hold above $133 levels could see Litecoin slide back through the morning low $133.59 to $130 levels.
Barring a crypto meltdown, the first major support level at $130.35 should limit the downside on the day.
In the event of a sell-off, the second major support level at $125.59 could come into play before any recovery.
Ripple’s XRP slid by 4.83% on Tuesday. Reversing a 4.79% rally from Monday, Ripple’s XRP ended the day at $0.42724.
A bullish start to the day saw Ripple’s XRP rise to an early intraday high $0.457 before hitting reverse.
Falling well short of the major resistance levels, Ripple’s XRP slid to a late afternoon intraday low $0.41874.
The reversal saw Ripple’s XRP fall through the first major support level at $0.4288, whilst avoiding the 23.6% FIB of $0.4164.
A return to $0.43 levels was short-lived late on in the day.
At the time of writing, Ripple’s XRP was up by 0.78% to $0.43057. A relatively bullish start to the day saw Ripple’s XRP rise from a morning low $0.4250 to a high $0.43116.
Ripple’s XRP left the major support and resistance levels untested in the early hours.
For the day ahead, a move through to $0.4345 levels would support upward momentum on the day.
Ripple’s XRP would need to move through to $0.40 levels, however, to take a run at the first major resistance level at $0.4499.
Barring a broad-based crypto rally, Ripple’s XRP would likely come up short of Tuesday’s high $0.457. In the event of a breakout, Ripple’s XRP could touch $0.46 levels before any pullback.
Failure to move through to $0.4345 levels could see Ripple’s XRP hit reverse. A fall through to $0.42 levels could bring the first major support level at $0.4117 into play before any recovery.
Please let us know what you think in the comments below
Thanks, Bob
Thisarticlewas originally posted on FX Empire
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Is Kridhan Infra Limited's (NSE:KRIINFRA) 1.4% Dividend Sustainable?
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Today we'll take a closer look at Kridhan Infra Limited (NSE:KRIINFRA) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations.
With a 1.4% yield and a six-year payment history, investors probably think Kridhan Infra looks like a reliable dividend stock. A low yield is generally a turn-off, but if the prospects for earnings growth were strong, investors might be pleasantly surprised by the long-term results. Remember that the recent share price drop will make Kridhan Infra's yield look higher, even though recent events might have impacted the company's prospects. When buying stocks for their dividends, you should always run through the checks below, to see if the dividend looks sustainable.
Click the interactive chart for our full dividend analysis
Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. In the last year, Kridhan Infra paid out 4.4% of its profit as dividends. Given the low payout ratio, it is hard to envision the dividend coming under threat, barring a catastrophe.
Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. Last year, Kridhan Infra paid a dividend while reporting negative free cash flow. While there may be an explanation, we think this behaviour is generally not sustainable. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.
As Kridhan Infra has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A quick way to check a company's financial situation uses these two ratios: net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and net interest cover. Net debt to EBITDA measures a company's total debt load relative to its earnings (lower = less debt), while net interest cover measures the company's ability to pay the interest on its debt (higher = greater ability to pay interest costs). With net debt of more than twice its EBITDA, Kridhan Infra has a noticeable amount of debt, although if business stays steady, this may not be overly concerning.
Net interest cover can be calculated by dividing earnings before interest and tax (EBIT) by the company's net interest expense. Interest cover of less than 5x its interest expense is starting to become a concern for Kridhan Infra, and be aware that lenders may place additional restrictions on the company as well.
We update our data on Kridhan Infra every 24 hours, so you can always getour latest analysis of its financial health, here.
From the perspective of an income investor who wants to earn dividends for many years, there is not much point buying a stock if its dividend is regularly cut or is not reliable. Looking at the data, we can see that Kridhan Infra has been paying a dividend for the past six years. Although it has been paying a dividend for several years now, the dividend has been cut at least once by more than 20%, and we're cautious about the consistency of its dividend across a full economic cycle. Its most recent annual dividend was ₹0.20 per share, effectively flat on its first payment six years ago.
Modest growth in the dividend is good to see, but we think this is offset by historical cuts to the payments. It is hard to live on a dividend income if the company's earnings are not consistent.
Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. Over the past five years, it looks as though Kridhan Infra's EPS have declined at around 5.2% a year. Declining earnings per share over a number of years is not a great sign for the dividend investor. Without some improvement, this does not bode well for the long term value of a company's dividend.
We'd also point out that Kridhan Infra issued a meaningful number of new shares in the past year. Regularly issuing new shares can be detrimental - it's hard to grow dividends per share when new shares are regularly being created.
When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. Kridhan Infra has a low payout ratio, which we like, although it paid out virtually all of its generated cash. Earnings per share have been falling, and the company has cut its dividend at least once in the past. From a dividend perspective, this is a cause for concern. With this information in mind, we think Kridhan Infra may not be an ideal dividend stock.
See if management have their own wealth at stake, by checking insider shareholdings inKridhan Infra stock.
If you are a dividend investor, you might also want to look at ourcurated list of dividend stocks yielding above 3%.
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. |
CNN cuts away from Trump rally over insults
Some four years after Donald Trump took that famous trip down the escalator and announced his run for the presidency, he held a rally in Orlando to announce his bid for re-election . Unsurprisingly, Trump took a shot at his favorite target , the media, and the crowd happily joined in, singling out CNN . 2016 was not merely a four-year election, this was a defining moment in American history, Trump said. Then, pointing to the press pit, he added, Ask them right there. The crowd booed loudly, then began chanting CNN sucks for nearly 20 seconds, to Trumps obvious delight. Trump went on to point out the fake news one more time and referenced the Academy Awards before CNN had heard enough and cut away to John Berman, who was filling in for Anderson Cooper. Alright, weve been watching the president kick off his re-election bid, Berman said. Hes been on stage for about six minutes. Within two minutes he did talk about the economy, but within four minutes it was attacks on the media. While CNN showed just a few minutes of Trumps speech, Fox News aired it in its entirety, and MSNBC all but ignored it. Anderson Cooper 360 airs weeknights at 8 p.m. on CNN. Watch Jon Stewart accuse Mitch McConnell of playing politics with 9/11 fund : Read more from Yahoo Entertainment: Dwayne Johnson shares message of inclusion and kindness during MTV acceptance speech Cystic fibrosis survivor auditions for SYTYCD: I want to live now, because I may not be able to do it later John Oliver equates conservative news to O.J. Simpsons Twitter account Tell us what you think! Hit us up on Twitter , Facebook or Instagram , or leave your comments below. And check out our host, Kylie Mar, on Twitter , Facebook or Instagram . Want daily pop culture news delivered to your inbox? Sign up here for Yahoo Entertainment & Lifestyle's newsletter. |
What To Know Before Buying Mohota Industries Limited (NSE:MOHOTAIND) For Its Dividend
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Dividend paying stocks like Mohota Industries Limited (NSE:MOHOTAIND) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations.
Investors might not know much about Mohota Industries's dividend prospects, even though it has been paying dividends for the last six years and offers a 0.3% yield. A 0.3% yield is not inspiring, but the longer payment history has some appeal. Some simple analysis can reduce the risk of holding Mohota Industries for its dividend, and we'll focus on the most important aspects below.
Explore this interactive chart for our latest analysis on Mohota Industries!
Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Mohota Industries paid out 34% of its profit as dividends, over the trailing twelve month period. This is medium payout level that leaves enough capital in the business to fund opportunities that might arise, while also rewarding shareholders. Besides, if reinvestment opportunities dry up, the company has room to increase the dividend.
As Mohota Industries has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A quick way to check a company's financial situation uses these two ratios: net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. Mohota Industries has net debt of more than 3x its EBITDA, which is getting towards the limit of most investors' comfort zones. Judicious use of debt can enhance shareholder returns, but also adds to the risk if something goes awry.
We calculated its interest cover by measuring its earnings before interest and tax (EBIT), and dividing this by the company's net interest expense. Mohota Industries has interest cover of less than 1 - which suggests its earnings are not high enough to cover even the interest payments on its debt. This is potentially quite serious, and we would likely avoid the stock if it were not resolved quickly.
We update our data on Mohota Industries every 24 hours, so you can always getour latest analysis of its financial health, here.
Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. Mohota Industries has been paying a dividend for the past six years. The dividend has been quite stable over the past six years, which is great to see - although we usually like to see the dividend maintained for a decade before giving it full marks, though. During the past six-year period, the first annual payment was ₹0.057 in 2013, compared to ₹0.10 last year. This works out to be a compound annual growth rate (CAGR) of approximately 9.8% a year over that time.
Mohota Industries has been growing its dividend at a decent rate, and the payments have been stable despite the short payment history. This is a positive start.
Examining whether the dividend is affordable and stable is important. However, it's also important to assess if earnings per share (EPS) are growing. Over the long term, dividends need to grow at or above the rate of inflation, in order to maintain the recipient's purchasing power. Over the past five years, it looks as though Mohota Industries's EPS have declined at around 18% a year. If earnings continue to decline, the dividend may come under pressure. Every investor should make an assessment of whether the company is taking steps to stabilise the situation.
When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. First, we like that the company's dividend payments appear well covered, although the retained capital also needs to be effectively reinvested. Earnings per share have been falling, and the company has a relatively short dividend history - shorter than we like, anyway. In sum, we find it hard to get excited about Mohota Industries from a dividend perspective. It's not that we think it's a bad business; just that there are other companies that perform better on these criteria.
Are management backing themselves to deliver performance? Check their shareholdings in Mohota Industries inour latest insider ownership analysis.
We have also put together alist of global stocks with a market capitalisation above $1bn and yielding more 3%.
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. |
Asian shares up on trade optimism as Trump hints of Xi talks
TOKYO (AP) — Asian shares were mostly higher Wednesday on optimism about trade after President Donald Trump said he will talk with the Chinese leader later this month in Japan.
Japan's benchmark Nikkei 225 added 1.7% to 21,321.17 in early trading. Australia's S&P/ASX 200 rose 1.0% to 6,637.70. South Korea's Kospi was also up 1.0% at 2,119.80. Hong Kong's Hang Seng gained 2.4% to 28,158.85, while the Shanghai Composite added 1.2% to 2,925.68.
Markets also got a boost after the head of the European Central Bank said it was ready to cut interest rates and provide additional economic stimulus if necessary.
The remarks put the spotlight on the U.S. Federal Reserve, which has its own decision on interest rates scheduled later in the day. Many think the U.S. central bank may be headed for its first interest rate cut in over a decade sometime later this year.
On Wall Street, the S&P 500 index climbed 28.08 points, or 1% to 2,917.75. The Dow gained 353.01 points, or 1.4%, to 26,465.54. The Nasdaq jumped 108.86 points, or 1.4%, to 7,953.88.
The Russell 2000 index of smaller companies added 17.48 points, or 1.1%, to 1,550.23.
It was the second straight gain for the market, extending a strong rebound for stocks in June after a steep sell-off last month.
The benchmark S&P 500 is now less than 1% below its all-time high set on April 30. The Dow is 1.4% below its record high set October 3. The Nasdaq is about 2.5% below its record close set on May 3.
Trump stirred fresh optimism among investors when he said he will hold talks with Chinese President Xi Jinping at an international summit in Japan. U.S. businesses have implored Trump to stop escalating the trade war and refrain from expanding his tariffs to $300 billion on goods from China.
Analysts acknowledged an immediate resolution to the trade conflict isn't expected, but the confirmation that Trump and Xi plan to talk at the G-20 in Osaka was cause for some optimism while warning that risks remain.
"While this certainly is a near-term boost for markets, the question as to what can be resolved by the two leader's meeting that had not been done so despite months of discussions keeps this as a risk factor," said Jingyi Pan, market strategist at IG in Singapore.
Two weeks ago, Fed Chair Jerome Powell set off a rally on Wall Street after he signaled that the central bank is willing to cut interest rates to help stabilize the economy if the trade war between Washington and Beijing starts to crimp growth. Any continued escalations could put the brakes on what is poised to be the longest economic expansion in U.S. history.
Investors collectively envision a Fed rate cut by July and possibly further cuts after that. Some even expect a rate cut this week. Many economists, though, think the Fed will wait until September at the earliest to announce its first drop in its benchmark short-term interest rate since 2008 and might not cut again in 2019. A few Fed watchers foresee no rate cut at all this year.
ENERGY:
Benchmark crude oil rose 6 cents to $53.96 a barrel. It rose 3.8% to $53.90 a barrel Tuesday. Brent crude oil, the international standard, fell 4 cents to $62.10 a barrel.
CURRENCIES:
The dollar rose to 108.48 yen from 108.27 yen on Tuesday. The euro weakened to $1.1193 from $1.1191.
___
AP Business Writers Damian J. Troise and Alex Veiga contributed to this report. |
BTN Rocket Announces Its Upcoming Biggest Event - Vietnam Digital SEO Summit 2019
BTN Rocket will be organizing the Vietnam Digital SEO Summit of 2019 in Vietnam. This event will include SEO experts and Senior Digital Marketing experts from all over the world and attract more than 500 audiences
HO CHI MINH, VIETNAM / ACCESSWIRE / June 18, 2019 /BTN Rocket Agency (Diep Nguyen) & SEOCongHuong (Ha Tuan Khang) announces itsVietnam Digital SEO Summitto be held on 6th July 2019 at Vietnam. The marketing and SEO experts from around the world will deliver the speeches on SEO techniques so that a business can increase its sales and thus earn more revenue. This will be an advantage for young entrepreneurs to enhance their business functions in the digital market.
This summit will focus on sharing the techniques for optimizing the rates of conversion on websites, which will, in turn, help to increase organic traffic from Google and SEO. Many digital marketers will also be able to sharpen their knowledge about SEO.
The SEO experts will distribute the updated knowledge and trends of SEO. This will enable the users to know about the advanced techniques for enhancing their online businesses. This summit will help people to learn the strategies of marketing.
Affiliated marketers will share their knowledge about different ways one can maximize commissions by increasing organic traffic from Google.
They will also discuss various forms of marketing a business online. Different marketing managers from around the world will meet in this event to discuss the integrated digital marketing and SEO solution to increase their competitive advantage.
This summit will include many more interactive sessions. There will be gatherings of many senior SEO experts and Marketing managers who will interact with the audience and share their knowledge about online marketing and SEO techniques with them.
After gaining knowledge from this summit, online shop owners will be able to expand their means of sales online and will be able to increase their sales by SEO. The beginners in SEO field will be able to gain knowledge about the techniques and strategies of improving SEO.
The duration of this summit will be for two days, that is Saturday, 6th July from 1 PM to 7 PM and Sunday, 7th July, from 7 AM to 7 PM. The venue selected for the event is White Palace Wedding and Convention Centre, 108 Pham Van Dong Str., Thu Duc Dist., HCMC.
For more information about this event:Click here.
About the event:
Vietnam Digital SEO Summit 2019is held once every year by BTN Rocket, a leading digital SEO marketing agency, in Vietnam. In this event, the top best Digital Marketers and SEO experts of national as well as international market will gather to bring SEO knowledge to audience. There is also a panel discussion on given topic.
Contact details:
Website:https://btnrocket.com/vietnam-digital-seo-summit-en/FB event:https://www.facebook.com/events/728035124282704/2018 trailer:https://www.youtube.com/watch?v=s-aFxetoUOo
Contact Info:
Name: Diep NguyenEmail:Send EmailOrganization: BTN RocketAddress: 5th floor, Paxsky Tower, 123 Nguyen Dinh Chieu, Ward 6, District 3, Ho Chi MinhPhone: +84907799898Website:https://btnrocket.com/vietnam-digital-seo-summit-en/Video URL:https://www.youtube.com/watch?v=s-aFxetoUOo
SOURCE:BTN Rocket
View source version on accesswire.com:https://www.accesswire.com/549200/BTN-Rocket-Announces-Its-Upcoming-Biggest-Event--Vietnam-Digital-SEO-Summit-2019 |
Introducing Tiong Seng Holdings (SGX:BFI), The Stock That Dropped 37% In The Last Year
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Tiong Seng Holdings Limited(SGX:BFI) shareholders should be happy to see the share price up 14% in the last quarter. But that doesn't change the reality of under-performance over the last twelve months. In fact the stock is down 37% in the last year, well below the market return.
View our latest analysis for Tiong Seng Holdings
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 imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
Unhappily, Tiong Seng Holdings had to report a 86% decline in EPS over the last year. The share price fall of 37% isn't as bad as the reduction in earnings per share. So the market may not be too worried about the EPS figure, at the moment -- or it may have expected earnings to drop faster.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
Thisfreeinteractive report on Tiong Seng Holdings'searnings, revenue and cash flowis a great place to start, if you want to investigate the stock further.
Investors should note that there's a difference between Tiong Seng Holdings's total shareholder return (TSR) and its share price change, which we've covered above. 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. Its history of dividend payouts mean that Tiong Seng Holdings's TSR, which was a 36%dropover the last year, was not as bad as the share price return.
Tiong Seng Holdings shareholders are down 36% for the year (even including dividends), but the market itself is up 1.3%. 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 6.3% 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. Before deciding if you like the current share price, check how Tiong Seng Holdings scores on these3 valuation metrics.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss thisfreelist of companies that have proven they can grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on SG 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. |
Thompson Education Center and Sherry Li Invited to the Opening Ceremony of North America-China Dragon Business Association
NEW YORK, NY / ACCESSWIRE / June 18, 2019 /Harvard Club in New York held the opening ceremony of the North America-China Dragon Business Association. There were many important guests at the event, such as the Chairman and Vice-Chairman from Dragon Business of China, Sherry Li, president ofThompson EducationCenterand many local businesses and individuals. The event was surrounded with vibrant business chemistry and positive energy for the economic development of the global business leaders. After the event, the Dragon Business Association group was invited to the NYGOP Empire Club Reception event featuring Chairman Edward Cox.
That morning, the Dragon Business Association group visitedThompson Education Center‘s project site, located in Upstate New York. The goal is to build a bridge and create a platform between the two parties to share talent, resources, technology, business opportunities and other possibilities to help create a better and healthier international business atmosphere. The Dragon Business Association group also visited the United Nations Headquarters.
ThompsonEducation Centerproject is coming to the Town of Thompson. It will develop a new education community in Sullivan County, New York. The project has entered into agreements and signed letters of interest with high schools, colleges, and education institutions. This combined effort will provide a great number of students to attend the education center.
To date, the professional teams have gone through several meetings with the planning board and zoning board of Town of Thompson. TEC Project has received three well permits, one road permit and currently on its way of obtaining an additional five well permits. The construction road is completed. Each Professional Team is working diligently to keep the project on track and moving forward.
ThompsonEducation Centerhas been working closely with Sullivan County Partnership, Chamber of Commerce, Visitors Association and other local groups to bring more investors and visitors to Sullivan County to strengthen the economy.
Thompson Education Center - A High-End Education Community in Sullivan County, NY:http://thompsoneducationcenternews.com
Thompson Education Center and Sherry Li Offered Scholarships at the Liberty High School Senior Assembly:https://finance.yahoo.com/news/thompson-education-center-sherry-li-220000263.html
Sherry Li of Thompson Education Center Participates in Notte Di Savoia 2019:https://finance.yahoo.com/news/sherry-li-thompson-education-center-013500141.html
Contact Information:
ThompsonEducationCenterNews.com
http://thompsoneducationcenternews.com
contact@thompsoneducationcenternews.com
SOURCE:Thompson Education Center
View source version on accesswire.com:https://www.accesswire.com/549201/Thompson-Education-Center-and-Sherry-Li-Invited-to-the-Opening-Ceremony-of-North-America-China-Dragon-Business-Association |
How Much Of Nagarjuna Oil Refinery Limited (NSE:NAGAROIL) Do Institutions Own?
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If you want to know who really controls Nagarjuna Oil Refinery Limited (NSE:NAGAROIL), then you'll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.
With a market capitalization of ₹116m, Nagarjuna Oil Refinery is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about NAGAROIL.
Check out our latest analysis for Nagarjuna Oil Refinery
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.
Nagarjuna Oil Refinery already has institutions on the share registry. Indeed, they own 9.1% of the company. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Nagarjuna Oil Refinery's historic earnings and revenue, below, but keep in mind there's always more to the story.
Nagarjuna Oil Refinery is not owned by hedge funds. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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 Nagarjuna Oil Refinery Limited insiders own under 1% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It has a market capitalization of just ₹116m, and the board has only ₹407k worth of shares in their own names. Many tend to prefer to see a board with bigger shareholdings. A good next step might be totake a look at this free summary of insider buying and selling.
With a 49% ownership, the general public have some degree of sway over NAGAROIL. 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.
It seems that Private Companies own 19%, of the NAGAROIL stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
It appears to us that public companies own 19% of NAGAROIL. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.
It's always worth thinking about the different groups who own shares in a company. But to understand Nagarjuna Oil Refinery better, we need to consider many other factors.
I always like to check for ahistory of revenue growth. You can too, by accessing this free chart ofhistoric revenue and earnings in thisdetailed graph.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of interesting companies.
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. |
Investors Who Bought Coziron Resources (ASX:CZR) Shares Five Years Ago Are Now Down 52%
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It is a pleasure to report that theCoziron Resources Limited(ASX:CZR) is up 43% in the last quarter. But that doesn't change the fact that the returns over the last half decade have been disappointing. Indeed, the share price is down 52% in the period. So we're hesitant to put much weight behind the short term increase. However, in the best case scenario (far fromfait accompli), this improved performance might be sustained.
Check out our latest analysis for Coziron Resources
Coziron Resources recorded just AU$1,493 in revenue over the last twelve months, which isn't really enough for us to consider it to have a proven product. This state of affairs suggests that venture capitalists won't provide funds on attractive terms. So it seems shareholders are too busy dreaming about the progress to come than dwelling on the current (lack of) revenue. It seems likely some shareholders believe that Coziron Resources will find or develop a valuable new mine before too long.
Companies that lack both meaningful revenue and profits are usually considered high risk. You should be aware that there is always a chance that this sort of company will need to issue more shares to raise money to continue pursuing its business plan. While some such companies go on to make revenue, profits, and generate value, others get hyped up by hopeful naifs before eventually going bankrupt. Some Coziron Resources investors have already had a taste of the bitterness stocks like this can leave in the mouth.
Coziron Resources had liabilities exceeding cash by AU$2,279,135 when it last reported in December 2018, according to our data. That makes it extremely high risk, in our view. But with the share price diving 14% per year, over 5 years, it's probably fair to say that some shareholders no longer believe the company will succeed. You can click on the image below to see (in greater detail) how Coziron Resources's cash levels have changed over time.
Of course, the truth is that it is hard to value companies without much revenue or profit. What if insiders are ditching the stock hand over fist? I would feel more nervous about the company if that were so. It costs nothing but a moment of your time tosee if we are picking up on any insider selling.
While the broader market gained around 11% in the last year, Coziron Resources shareholders lost 44%. 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. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 14% 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. Before spending more time on Coziron Resourcesit might be wise to click here to see if insiders have been buying or selling shares.
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 AU 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. |
GLOBAL MARKETS-Asian shares climb, wager all on dovish Fed, trade hopes revive
* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Nikkei climbs 1.6% on hopes Fed will be open to easing
* Global bonds yields dive after Draghi flags stimulus
* Trump says to meet Xi at G20, trade talks to resume
* Commodities hold gains on reflation trade
By Wayne Cole
SYDNEY, June 19 (Reuters) - Asian shares hit five-week highs on Wednesday as investors hoped the Federal Reserve would follow the lead of the European Central Bank and open the door to future rate cuts at its policy meeting later in the day.
Indeed, ECB President Mario Draghi's shock about-face on easing fuelled talk of a worldwide wave of central bank stimulus, firing up stocks, bonds and commodities.
Adding to the cheer was news U.S. President Donald Trump would meet with Chinese President Xi Jinping at the G20 summit later this month, and that trade talks would restart after a recent lull. But most analysts do not expect a decisive breakthrough.
"We expect no real change following the G20 sideline meeting. (But) the fact that both sides are talking should at least postpone thoughts of a further increase in tariffs, for a while at least...," ING's Greater China economist Iris Pang said in a note.
MSCI's broadest index of Asia-Pacific shares outside Japan climbed 1.5% to a five-week top. Shanghai blue chips firmed 1.7% to a six-week peak.
Japan's Nikkei rose 1.6%, while Australia added 1% to its highest in 11 years. E-Mini futures for the S&P 500 were a fraction firmer after a upbeat Wall Street session.
The Dow ended Tuesday with gains of 1.35%, while the S&P 500 rose 0.97% and the Nasdaq 1.39%. The S&P 500 has surged 6% so far this month to be 1% from the all-time high hit in early May.
All eyes are now upon the Fed which is scheduled to release a statement at 1800 GMT on Wednesday, followed by a press conference by Chairman Jerome Powell shortly after.
Yet the heightened anticipation also creates risks the Fed might fail to meet investors' high expectations.
"Market expectations for a dovish shift are nearly universal, the only question seems to be the degree," said Blake Gwinn, head of front-end rates at NatWest Markets.
Futures are almost fully priced for a quarter-point easing in July and imply more than 60 basis points of cuts by Christmas. "Markets will be looking for validation of this pricing," he added. "We think this represents a fairly high bar for the Fed to deliver a dovish surprise."
SUB-ZERO YIELDS
BofA Merrill Lynch's latest fund manager survey spoke volumes about the sea change in sentiment.
Allocation to global equities dropped 32 points to a net 21% underweight, the lowest since March 2009, while the bond allocation hit the highest since September 2011.
Interest rate expectations collapsed, while concerns about a trade war soared to be the top risk for investors, ahead of monetary policy impotence, U.S. politics and a slower China.
The shift was clear in bond markets where German yields hit record lows deep in negative territory, while Japanese yields sank to the lowest since august 2016 at -0.145%.
Yields on the U.S. 10-year note reached the lowest since September 2017 at 2.016%, a world away from the 3.25% top touched in November last year.
The fallout in currencies was significantly less, in large part because it was hard for one to gain when all the major central banks were under pressure to ease.
The euro did pull back a bit after Draghi's comments, but at $1.1192 was still well within the recent trading range of $1.1106-$1.1347.
The dollar remained sidelined against the yen at 108.49 , and a shade firmer on a basket of currencies at 97.657 . The yuan picked up to 6.905 to the dollar on the trade news.
In commodity markets, the rate-cut buzz kept gold near 14-month highs at $1,344.20 per ounce.
Michael Hsueh, an analyst at Deutsche, noted the decisively dovish shift in central bank expectations was bullish for gold.
"This provides the desired backdrop - one in which investors are less likely to be concerned about the opportunity cost of holding a non-yielding asset, particularly versus the increasing stock of negative-yielding debt," he said.
Reflation trades helped steady oil prices, as did hopes for a thaw in Sino-U.S. tensions.
Brent crude futures were off 6 cents at $62.06, while U.S. crude firmed 3 cents to $53.93 a barrel.
Confidence among Asian companies in the second quarter fell to its lowest since the 2008-09 financial crisis, as the trade war disrupts global supply chains and shows little sign of easing soon, a Thomson Reuters/INSEAD survey found.
(Editing by Sam Holmes & Kim Coghill) |
Could China Everbright Water Limited (SGX:U9E) Have The Makings Of Another Dividend Aristocrat?
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Dividend paying stocks like China Everbright Water Limited (SGX:U9E) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. If you are hoping to live on the income from dividends, it's important to be a lot more stringent with your investments than the average punter.
In this case, China Everbright Water pays a decent-sized 3.1% dividend yield, and has been distributing cash to shareholders for the past three years. It's certainly an attractive yield, but readers are likely curious about its staying power. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. We'll run through some checks below to help with this.
Explore this interactive chart for our latest analysis on China Everbright Water!
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. China Everbright Water paid out 21% of its profit as dividends, over the trailing twelve month period. We'd say its dividends are thoroughly covered by earnings.
In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Unfortunately, while China Everbright Water pays a dividend, it also reported negative free cash flow last year. While there may be a good reason for this, it's not ideal from a dividend perspective. It's positive to see that China Everbright Water's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.
As China Everbright Water has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A quick way to check a company's financial situation uses these two ratios: net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. With net debt of above 3x EBITDA, investors are starting to take on a meaningful amount of risk, should the business enter a downturn.
We calculated its interest cover by measuring its earnings before interest and tax (EBIT), and dividing this by the company's net interest expense. Interest cover of less than 5x its interest expense is starting to become a concern for China Everbright Water, and be aware that lenders may place additional restrictions on the company as well.
Consider gettingour latest analysis on China Everbright Water's financial position here.
Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. This company's dividend has been unstable, and with a relatively short history, we think it's a little soon to draw strong conclusions about its long term dividend potential. During the past three-year period, the first annual payment was HK$0.019 in 2016, compared to HK$0.057 last year. This works out to be a compound annual growth rate (CAGR) of approximately 45% a year over that time. The dividends haven't grown at precisely 45% every year, but this is a useful way to average out the historical rate of growth.
It's not great to see that the payment has been cut in the past. We're generally more wary of companies that have cut their dividend before, as they tend to perform worse in an economic downturn.
Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. It's good to see China Everbright Water has been growing its earnings per share at 14% a year over the past 5 years. Earnings per share are growing at a solid clip, and the payout ratio is low. We think this is an ideal combination in a dividend stock.
Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. China Everbright Water has a low payout ratio, which we like, although it paid out virtually all of its generated cash. We were also glad to see it growing earnings, but it was concerning to see the dividend has been cut at least once in the past. Ultimately, China Everbright Water comes up short on our dividend analysis. It's not that we think it is a bad company - just that there are likely more appealing dividend prospects out there on this analysis.
Earnings growth generally bodes well for the future value of company dividend payments. See if the 4 China Everbright Water analysts we track are forecasting continued growth with ourfreereport on analyst estimates for the company.
Looking for more high-yielding dividend ideas? Try ourcurated list of dividend stocks with a yield above 3%.
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. |
Adam Sandler's 'Murder Mystery' breaks Netflix viewing records
While Netflix was famously reticent about releasing viewing statistics, over the last year or so the company has become more open about it. Itslatestrevelationconfirms the theory that someone out there likes Adam Sandler movies, since his latest star-studded joint,Murder Mystery, has racked up the biggest opening weekend ever for a Netflix movie, with 30,869,863 unique accounts watching it in the first three days.
As Netflix has previously established, it counts a view as someone watching more than 70 percent of a particular title. 13,374,914 of the accounts were in the US and Canada alone, with the remaining 17 million spread elsewhere worldwide. In 2017 Netflix explainedviewers had already streamed over half a billion hours of Adam Sandler, clearing up any doubt about the four-picture deal it signed him to.
Suddenly we know more about Netflix viewers' habits than ever before -- probably not coincidentally at the same time there's more streaming competition joining the party -- including that its heist flickTriple Frontierscored a 52 million account opening weekend, or thatBird Boxracked up 45 million in one week last year. In the UK it evenpublishes Top Ten listsnow. |
Kelly Hyman, Attorney & Speaker, Has Achieved the Highest Possible Rating From Martindale-Hubbell(R)
Kelly Hyman, an attorney and speaker from Denver, CO, has earned the AV Preeminent®rating from Martindale-Hubbell®.
WASHINGTON, DC / ACCESSWIRE / June 18, 2019 /It has officially been confirmed thatKelly Hymanhas once again earned herself the AV Preeminent®Rating from Martindale-Hubbell®, the highest rating possible, further proving her outstanding legal abilities and ethical standards. Kelly first achieved this rating in 2016 and has been able to uphold it ever since through hard work and dedication to her career.
Martindale-Hubbell®has been providing ratings for lawyers for more than 130 years. The AV Preeminent®rating is the highest peer rating standard. The recognition demonstrates that a large number of attorneys in the industry who work alongside Kelly hold her in high regards, specifically in her professional knowledge and capabilities. In order to receive the rating, an attorney’s peers must first review and recommend their fellow attorneys in the industry. By achieving this rating, Kelly has placed herself in thetop ten percentof all attorneys.
This announcement comes right asKellyHymanbegins her journey with a new law firm, Franklin D. Azar & Associates, located in Denver, Colorado. The focus of her practice remains on consumer class action lawsuits and mass tort litigation, having previously represented hundreds of clients in claims filed in both state and federal court systems. Kelly is excited and ready to expand her knowledge and experience on this new journey.
KellyHymanwill be speaking at the Masters of Mass Tort Conference in February 2019 held at The Ritz Carlton in Cancun, Mexico. This is their third annual conference discussing everything mass tort related, delivered straight from the experts.
About Kelly Hyman:KellyHymanis an attorney, legal analyst, and speaker. The reason Kelly began practicing law is due to her passion for helping other people. Through mass tort litigation and class action suits, she has become a voice of reckoning and reason on behalf of others. Kelly Hyman is a member of the American Association for Justice and is a member of the Florida Bar, the Colorado bar, the Washington D.C. Bar, the Colorado Bar Association, the Colorado Trial Lawyers Association, and the Colorado chapter of the Federal Bar Association.
Kelly Hyman has also become an avid speaker in her industry. She has been able to take all her skills developed through law and acting and now uses them to help her peers in the law industry. Kelly attends numerous events and conferences throughout the speaking on topics related to mass tort litigation, consumer rights, water contamination, and more. Due to her talent and experience, she has become a hot commodity for speaking engagements all over the country.
Previously,KellyHymanworked as a successful actress for 25 years in New York and California. She appeared in various television shows, movies, off-Broadway plays, and commercials. Kelly has been able to leverage all the tools and experience she gained from the entertainment industry to advance her career as a lawyer. Kelly is still passionate about the entertainment industry today and has also been invited as a guest on various news programs to share her knowledge.
Kelly Hyman - Colorado-based Top-Rated Attorney and Legal Analyst:http://kellyhymannews.com
Kelly Hyman is Named as a Top 25 Class Action Trial Lawyer:https://finance.yahoo.com/news/kelly-hyman-named-top-25-113000118.html
Kelly Hyman Discusses Support for Social Justice:https://finance.yahoo.com/news/kelly-hyman-discusses-support-social-214500877.html
Contact Information:
KellyHymanNews.com
contact@kellyhymannews.com
http://kellyhymannews.com
SOURCE:Kelly Hyman
View source version on accesswire.com:https://www.accesswire.com/549203/Kelly-Hyman-Attorney-Speaker-Has-Achieved-the-Highest-Possible-Rating-From-Martindale-HubbellR |
Those Who Purchased Superior Lake Resources (ASX:SUP) Shares A Year Ago Have A 25% Loss To Show For It
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It's nice to see theSuperior Lake Resources Limited(ASX:SUP) share price up 20% in a week. But in truth the last year hasn't been good for the share price. After all, the share price is down 25% in the last year, significantly under-performing the market.
See our latest analysis for Superior Lake Resources
With just AU$24,333 worth of revenue in twelve months, we don't think the market considers Superior Lake Resources to have proven its business plan. You have to wonder why venture capitalists aren't funding it. So it seems that the investors focused more on what could be, than paying attention to the current revenues (or lack thereof). It seems likely some shareholders believe that Superior Lake Resources will find or develop a valuable new mine before too long.
We think companies that have neither significant revenues nor profits are pretty high risk. You should be aware that there is always a chance that this sort of company will need to issue more shares to raise money to continue pursuing its business plan. 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.
Superior Lake Resources had cash in excess of all liabilities of just AU$3.0m when it last reported (December 2018). So if it hasn't remedied the situation already, it will almost certainly have to raise more capital soon. That probably explains why the share price is down 25% in the last year. The image below shows how Superior Lake Resources's balance sheet has changed over time; if you want to see the precise values, simply click on the image.
Of course, the truth is that it is hard to value companies without much revenue or profit. Would it bother you if insiders were selling the stock? I'd like that just about as much as I like to drink milk and fruit juice mixed together. It costs nothing but a moment of your time tosee if we are picking up on any insider selling.
Given that the market gained 11% in the last year, Superior Lake Resources shareholders might be miffed that they lost 25%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. The share price decline has continued throughout the most recent three months, down 20%, suggesting an absence of enthusiasm from investors. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. If you want to research this stock further, the data on insider buying is an obvious place to start. You canclick here to see who has been buying shares - and the price they paid.
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.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on AU 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. |
Do Institutions Own Nahar Capital and Financial Services Ltd. (NSE:NAHARCAP) Shares?
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If you want to know who really controls Nahar Capital and Financial Services Ltd. (NSE:NAHARCAP), then you'll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that used to be publicly owned tend to have lower insider ownership.
With a market capitalization of ₹1.4b, Nahar Capital and Financial Services is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about NAHARCAP.
Check out our latest analysis for Nahar Capital and Financial Services
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.
Nahar Capital and Financial Services already has institutions on the share registry. Indeed, they own 6.8% of the company. 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 Nahar Capital and Financial Services's earnings history, below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Nahar Capital and Financial Services. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 Nahar Capital and Financial Services Ltd.. In their own names, insiders own ₹25m worth of stock in the ₹1.4b company. It is good to see some investment by insiders, but I usually like to see higher insider holdings. It might be worth checkingif those insiders have been buying.
The general public, with a 25% stake in the company, will not easily be ignored. 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 21%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
It appears to us that public companies own 44% of NAHARCAP. We can't be certain, but this is quite possible this is a strategic stake. The businesses may be similar, or work together.
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 accessthisinteractive graphof past earnings, revenue and cash flow for free.
Of coursethis may not be the best stock to buy. So take a peek at thisfreefreelist of interesting companies.
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. |
Glassdoor's top 20 UK CEOs, according to staff
Warren East, CEO of Rolls-Royce, makes the list. Photo: Toby Melville/Reuters Colleagues, daily duties, your office space — there are plenty of factors that can mean the difference between enjoying your job and hating it. But something that can make the difference between enjoying it and loving it is an inspirational leader. For millennial staff in particular, working for a company whose values and ideals they agree with is an increasingly important factor when choosing a job. A strong CEO who can communicate this is therefore important. “Today’s job seekers are looking for leaders who share their values and will empower them to bring their full selves to work,” Christian Sutherland-Wong, Glassdoor president and chief operating officer, said in a statement. Glassdoor allows employees to anonymously review the companies they work for and their CEOs, as well as disclosing information like salary. It published its ranking of the best 50 CEOs in the UK as ranked by their staff on Wednesday. The ranking is based on Glassdoor’s proprietary secret calculations but takes into account CEOs who have had at least 35 reviews from their staff in the last 12 months. The average CEO approval rating across the 900,000 companies on the site is 69% but all the top 20 get a rating of above 95%. “More and more, we’re seeing top CEOs make decisions to shape the culture of their organisations to help recruit and retain quality talent, which has a direct correlation to fuelling business success,” Sutherland-Wong said. Financial firms are well represented, with five of the top 10 involved in finance. Crucially, the ratings tend to be about employee satisfaction with their leader — not necessarily their competence. Craig Donaldson, the CEO of Metro Bank, comes in at number three despite a disastrous six months that has seen the bank’s share price collapse over 70% due to a loan misclassification error. Niceness and leadership doesn’t always correlate with performance. Without further ado, here are Glassdoor’s 20 best UK CEOs of 2019, as rated by staff: Peter Simpson, Anglian Water — Approval rating: 99% Andrew Haines, Network Rail — 98% Craig Donaldson, Metro Bank — 98% Michael Bloomberg, Bloomberg — 98% Juergen Maier, Siemens — 97% Larry Fink, BlackRock — 97% James Gorman, Morgan Stanley — 97% Jamie Dimon, JPMorgan — 97% Warren East, Rolls-Royce — 97% Ben van Beurden, Shell — 97% Toby Kelly, Trailfinders — 97% Gene Hall, Gartner — 97% Mark Evans, O2 — 96% David Wadhwani, AppDynamics — 96% David Dyson, Three — 96% Pete Redfern, Taylor Wimpey — 96% Simon Williams, NTT DATA — 96% Bill McDermott, SAP — 96% Phil Loney, Royal London — 96% James Reed, REED — 95% |
INSIGHT-Toyota snub dents Saudi Arabia's manufacturing drive
* Saudi GDP breakdown: https://tmsnrt.rs/2WDjAZb
* Economy by sector in 2018: https://tmsnrt.rs/2IUeZbs
* Saudi Arabia 2018 GDPby economic sectortmsnrt.rs
* Toyota reluctant to build large plant in Saudi Arabia
By Marwa Rashad and Stephen Kalin
RIYADH, June 19 (Reuters) - Saudi Arabia began courting Toyota two years ago to build a large car plant as part of Crown Prince Mohammed bin Salman's grand plan to wean the kingdom off oil revenues and create jobs for young Saudis.
But the Japanese carmaker has rebuffed Riyadh's overtures following talks that dragged on without tangible results because high labour costs, a small domestic market and a lack of local supplies gave Toyota pause for thought, four sources said.
Securing a deal with a major automaker by 2020 for a car plant is a key target in the Gulf state's national industrial strategy, part of a broader agenda to diversify the economy of the world's largest oil exporter.
Failure to do so would be a setback for Prince Mohammed, coming after the listing of oil giant Saudi Aramco was shelved and the killing of journalist Jamal Khashoggi tarnished the kingdom's image.
"Nobody would say 'No, full stop' ... but they politely conveyed they're not interested," said an industry source familiar with the Toyota talks.
Toyota said it could not comment on the current internal discussions and communication with the Saudi government.
Saudi Arabia's ministry of energy, industry and mineral resources and the government media office did not respond to requests for comment.
As part of measures designed to create 1.6 million manufacturing and logistics jobs by 2030, Prince Mohammed wants to localise half the production of imported vehicles and weapons - which are expected to account for up to $100 billion in spending by Saudi government entities and consumers by 2030.
Under the deal Toyota signed in March 2017, the Japanese company agreed to conduct a feasibility study for an industrial project to make vehicles and car parts in the kingdom.
Two sources familiar with the matter said Toyota concluded after the study and negotiations that Saudi Arabia would need to provide huge subsidies for the project to be viable.
"They found that production costs will be similar to other countries only if there is a 50% government incentive. But even then, they aren't sure it will be profitable," said one source with knowledge of the negotiations.
TOUGH SELL
When it comes to establishing manufacturing, Riyadh hopes to replicate its 1980s push into petrochemicals - the cornerstone of an industrial drive that turned Saudi Basic Industries (SABIC) into the world's fourth biggest petrochemicals firm.
Hundreds of thousands of Saudis work in petrochemicals, one of the biggest contributors to the economy outside oil. But it took decades to build up the industry, even with huge government funding and cheap raw materials.
Saudi Arabian Military Industries, owned by the kingdom's sovereign wealth fund, is spearheading the drive to localise military spending. It aims to generate $10 billion in revenue over the next five years and hopes to generate 30% of revenues from export markets by 2030.
For cars, the National Industrial Development and Logistics Program (NIDLP) wants half the roughly 400,000 vehicles bought each year in Saudi Arabia to be made there by 2030, one source said.
But Toyota, which has a 30 percent market share, only proposed a small plant producing up to 10,000 vehicles using imported goods and the Saudis wanted a bigger factory, the industry source and the source familiar with the talks said.
A strategy document posted on NIDLP's website acknowledged that Saudi Arabia had a major competitive disadvantage and state incentives would be needed to create "substantial commercial justifications" to attract carmakers.
It did not provide specifics about the disadvantages, nor the size and kind of state incentives required.
At NIDLP's launch in January, the state approved 45 billion riyals ($12 billion) of incentives to develop an auto sector, including duty rebates, human resources subsidies and tax holidays, but it wasn't enough, the industry source said.
NIDLP did not respond to requests for comment.
Asked if it would consider the project if the economic conditions changed, Toyota said: "We do not comment on assumptions about the current and future situations."
JOBS PUSH
The NIDLP is aiming to create 27,000 jobs in the automotive sector by 2030 by attracting so-called original equipment manufacturers (OEMs).
One obstacle, though, is the absence of a local supply chain for car parts, three automotive industry executives said.
Riyadh would need to build integrated economic districts producing components such as windows, batteries and wheels to lower costs, a senior executive at a Western auto firm said.
"If I have to open a manufacturing process in Saudi and then import every single component from abroad, I do not have any economical plus," he said. "The problem is not really setting up a plant, but having the entire value chain."
The local market is also relatively small. Demand for cars in Saudi Arabia has fallen by some 50% over three years to about 450,000 cars in 2018, as a drop in oil prices and departure of expatriates hit consumption, said Subhash Joshi, director of mobility practice at research firm Frost & Sullivan.
"Saudi Arabia and (Gulf) countries have been persistently disappointing in terms of sales in recent years, so it's not as if OEMs would be entering a booming market," said Justin Cox, director of global production at LMC Automotive.
Cox said countries such as Egypt and Turkey had more advantages for carmakers.
Toyota has a 1.2 billion euro plant with an annual capacity of 150,000 vehicles in Turkey, which is in a customs union with Europe. A plant Nissan set up in Egypt in 2005 with a $200 million investment will produce 28,000 cars this year.
Cars imported into the GCC customs union which includes Saudi Arabia only attract a 5% tariff, offering little protection against cheap imports for countries trying to get domestic car production off the ground.
CARMAKERS WARY
Turkey and Egypt also provide experienced, cheap manpower while Riyadh has been reducing the number of foreign labourers to create jobs for Saudis, who prefer higher-paying public jobs. Some 10 million foreigners have been doing the strenuous, lower-paid jobs largely shunned by the 20 million nationals.
Khalid al-Salem, who oversees the development of industrial cities, said the authorities were working on incentives to lure Saudis to industrial jobs instead of retail, where entry requirements are easier and pay is higher. He did not elaborate.
It's not the first time Saudi Arabia has attempted to lure automakers.
In 2012, Jaguar Land Rover signed a deal to explore producing 50,000 Land Rovers a year in the kingdom at a cost of 4.5 billion riyals ($1.2 billion), but it never moved forward.
The industry source said the British luxury brand, owned by India's Tata Motors, got a better offer from a European country.
"We continually review our global manufacturing footprint. At this time, our focus remains on our manufacturing presence in the UK, China, Brazil and mainland Europe," Jaguar Land Rover said in an emailed response when asked about the Saudi project.
Two of the sources said Riyadh has also approached Nissan Motor Co in recent years.
They said the Japanese firm considered contract manufacturing through a 75% Saudi-owned venture - without the Nissan brand - but the arrest of former chairman Carlos Ghosn last year meant it was off the table for now.
Nissan declined to comment.
MINING AND PHARMACEUTICALS
While Saudi Arabia is struggling to lure carmakers, it does have a truck assembly industry. But analysts say assembling vehicles imported in kit form requires less investment and doesn't create as many jobs as building cars from scratch.
Economists say, however, that Saudi Arabia does have the potential to build competitive industries and create jobs in the mining and pharmaceutical sectors.
The state is looking to triple mining's contribution to gross domestic product by 2030 by focusing on untapped reserves of bauxite, phosphate, gold, copper and uranium.
Saudi authorities estimate the country holds 500 million tonnes of phosphate ore, about 7% of global proven reserves and a new mining law to boost foreign investment is being drafted.
Monica Malik, chief economist at Abu Dhabi Commercial Bank, said investment in mining infrastructure would likely have the most direct impact on developing new manufacturing industries.
Pharmaceuticals is another strategic sector for NIDLP. About 25 local manufacturing plants produce 30% of prescription drugs consumed now and the government wants to double the sector's contribution to non-oil gross domestic product to 1.97% by 2020.
Suhasini Molkuvan, programme manager at Frost & Sullivan, said the target was almost close to reality though a lack of investment in research and development and intellectual property left local firms dependent on multinationals.
"Diversity is easier said than done," said a senior Riyadh banker. "It might be achievable in 15 to 20 years if they continue to make the push." ($1 = 3.7504 riyals)
(Additional reporting by Sylvia Westall, Tuqa Khalid and Saeed Azhar in Dubai, Costas Pitas in London, Naomi Tajitsu in Tokyo and Norihiko Shirouzu in Beijing; editing by Ghaida Ghantous and David Clarke) |
Finnish Food Delivery App Wolt to Hire 1,000 After New Funding
(Bloomberg) -- Wolt Enterprises Oy, a food delivery startup based in Helsinki, Finland, has landed $130 million in new investment to increase its European expansion and fund a hiring spree.
The investment was led by Iconiq Capital, a firm that manages money for well-known Silicon Valley entrepreneurs, including Facebook Inc. founder Mark Zuckerberg. Highland Europe, a London-based venture capital fund, EQT Ventures, the venture capital arm of Swedish private equity group EQT and Helsinki-based Lifeline Ventures also invested, the company said in a statement.
An earlier $30 million investment round led by Israeli venture capital firm 83North closed in January 2018. The valuation terms of the funding rounds were not disclosed.
Wolt will use its new funding to accelerate its growth, adding new cities and countries, Miki Kuusi, Wolt’s 29-year-old co-founder and chief executive officer, said in an interview. He also said the company would invest "heavily" in marketing and new customer acquisitions, and would hire an additional 1,000 individuals in the next 18 months. It currently employs about 450 people.
The startup, which was founded in Helsinki in 2014, delivers food in 50 cities across 15 European countries, primarily in a corridor running south from Helsinki through Tallinn, Estonia to Prague and Athens and then to Tel Aviv.
While larger food delivery services Deliveroo and Uber Technologies Inc.’s Uber Eats have largely concentrated on cities with populations well above 1 million people, Wolt has gone after smaller markets where population density is lower.
With fewer orders per hour and longer distances for couriers to cover, it’s harder to make the unit economics of food delivery work in these less dense areas. Kuusi said that Wolt had used machine learning algorithms that predict order flow and optimize courier’s routes.
Wolt can enter a small city, with 30,000 to 40,000 people, and reach a break even or cash flow positive state within weeks of launching, Kuusi said. "Then when we go to a big city, this is a lot easier because we get so much more volume and our optimization is so much more efficient," he said.
Deliveroo, which has raised $1.5 billion to date including a recent $575 million investment round led by Amazon.com Inc., also announced last week that it plans to expand into the U.K.’s suburbs and smaller towns this year, with the goal serving 50% of the British population, up from just a third of it currently.
So far, Wolt and Deliveroo do not overlap in any market, Kuusi said, adding he was not afraid of better-funded competitors. "If you have the right product and the right technology, it’s not about how much money every player has," he said.
Johan Svanstrom, a partner with EQT Ventures, said Wolt is well-positioned to play a role -- either as an acquirer or a target -- in a wave of consolidation that he predicts will begin to sweep the food delivery sector. "Any time there are consolidation games going on you want to have a seat at the table, and Wolt does," he said.
To contact the reporter on this story: Jeremy Kahn in London at jkahn21@bloomberg.net
To contact the editors responsible for this story: Giles Turner at gturner35@bloomberg.net, Nate Lanxon
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
Such Is Life: How Kidsland International Holdings (HKG:2122) Shareholders Saw Their Shares Drop 53%
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Investing in stocks comes with the risk that the share price will fall. Anyone who heldKidsland International Holdings Limited(HKG:2122) over the last year knows what a loser feels like. To wit the share price is down 53% in that time. Kidsland International Holdings may have better days ahead, of course; we've only looked at a one year period. Furthermore, it's down 43% in about a quarter. That's not much fun for holders.
See our latest analysis for Kidsland International Holdings
Kidsland International Holdings isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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.
Kidsland International Holdings grew its revenue by 5.0% over the last year. That's not a very high growth rate considering it doesn't make profits. Without profits, and with revenue growth sluggish, you get a 53% loss for shareholders, over the year. We'd want to see evidence that future revenue growth will be stronger before getting too interested. Of course, the market can be too impatient at times. Why not take a closer look at this one so you're ready to pounce if growth does accelerate.
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.
Kidsland International Holdings shareholders are down 53% for the year, even worse than the market loss of 10%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. The share price decline has continued throughout the most recent three months, down 43%, suggesting an absence of enthusiasm from investors. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. Shareholders might want to examinethis detailed historical graphof past earnings, revenue and cash flow.
Of courseKidsland International Holdings may not be the best stock to buy. So you may wish to see thisfreecollection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK 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. |
These are the top 10 CEOs in the US, according to their employees
CEOsin the U.S. have faced heavy amounts of criticism so far this year.
They’ve contended with presidential candidates like Sens.Elizabeth WarrenandBernie Sandersbearing down on the massive pay disparity between business leaders and their employees.
And that’s not to mentionDisney heiress Abigail Disneycalling out American companies and their chief executives for perpetuating vast inequality between employees and their CEOs, blasting corporate executives for their “addiction” to money, all while paying their workers less than a living wage.
Not all companies are created equal, however.
On Tuesday, Glassdoor released its annual list of the top 100 CEOs in the U.S., based on anonymous feedback submitted by their employees. Across the approximately 900,000 employers reviewed on Glassdoor, the average CEO approval rating is 69 percent.
Employees were asked to rate several factors tied to their employment experience, including: rate sentiment around their CEO’s leadership and whether they approve, disapprove or have no opinion about their CEO’s performance. To qualify for the list, CEOs needed to receive at least 100 approval ratings and 100 senior management ratings over the course of one year. If there were not enough ratings, that CEO would not be considered.
FOX Business takes a closer look at some of the top executives in the business:
1. VMware’s Pat Gelsinger (99 percent approval)
Gelsinger joined VMware in 2012 as CEO. Under his leadership, the company has expanded from its "core strength in visualization" to become a "recognized global leader in cloud infrastructure, enterprise mobility and cybersecurity," according to hisLinkedIn. Gelsinger previously was president and COO of EMC's Information Infrastructure Products business.
2. H-E-B’s Charles C. Butt (99 percent approval)
A billionaire, Butt inherited the Texas-based H-E-B supermarket chain in 1971. The company now has more than 300 stores and $20 billion in sales, according toForbes.
3. In-N-Out Burger’s Lynsi Snyder (99 percent approval)
One of the few women to top the list, Snyder is the owner and heir of the beloved California burger chain, In-N-Out, which her grandparents founded in 1948. According toForbes, she took on the job of president in 2010. Since then, she has expanded the number of locations by 80.
4. T-Mobile’s John Legere (99 percent approval)
In 2012, Legere became CEO of T-Mobile, although he'd spent about 20 years at AT&T. He's now in the process of a $26 billion merger between T-Mobile and Sprint, the nation's third and fourth largest wireless carriers.
5. Adobe’s Shantanu Narayen (98 percent approval)
Narayen has been CEO of Adobe since 2007, although he became and president and COO in 2005. In his Adobe bio, Narayen said that if he were not at Adobe, he would be a professional golfer.
6. Microsoft’s Satya Nadella (98 percent approval)
In 2014, Nadella replaced Steve Ballmer as the chief executive at Microsoft. Under his tenure, the company has shifted its focus from a mobile strategy to cloud computing and augmented reality. According toForbes, the company's stock has climbed by more than 150 percent since he became CEO.
7. McKinsey & Company’s Kevin Sneader (98 percent approval)
Sneader has worked at McKinsey for more than 29 years, according to hisLinkedIn.
8. LinkedIn’s Jeff Weiner (97 percent approval)
As CEO of LinkedIn, Weiner was instrumental in the company's $26 billion acquisition by Microsoft in 2016. He first started with the company in 2008, as interim president.
9. Intuitive Surgical’s Gary S. Guthart (97 percent approval)
Guthart has worked for Intuitive Surgical since 1996, according to hisLinkedIn. He started as president in 2007 and became CEO in 2010.
10. Best Buy’s Hubert Joly (97 percent approval)
Joly previously served as CEO of Carlson, a global hospital company that's based in Minnesota. He also serves on the board of directors for Ralph Lauren.
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Did Changing Sentiment Drive Nahar Spinning Mills's (NSE:NAHARSPING) Share Price Down A Worrying 56%?
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Generally speaking long term investing is the way to go. But unfortunately, some companies simply don't succeed. For example, after five long years theNahar Spinning Mills Ltd(NSE:NAHARSPING) share price is a whole 56% lower. That's not a lot of fun for true believers. And we doubt long term believers are the only worried holders, since the stock price has declined 21% over the last twelve months. Furthermore, it's down 22% in about a quarter. That's not much fun for holders. This could be related to the recent financial results - you can catch up on the most recent data by readingour company report.
View our latest analysis for Nahar Spinning Mills
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
During five years of share price growth, Nahar Spinning Mills moved from a loss to profitability. Most would consider that to be a good thing, so it's counter-intuitive to see the share price declining. Other metrics may better explain the share price move.
The modest 1.4% dividend yield is unlikely to be guiding the market view of the stock. Revenue is actually up 0.6% over the time period. A more detailed examination of the revenue and earnings may or may not explain why the share price languishes; there could be an opportunity.
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.
Thisfreeinteractive report on Nahar Spinning Mills'sbalance sheet strengthis a great place to start, if you want to investigate the stock further.
When looking at investment returns, it is important to consider the difference betweentotal shareholder return(TSR) andshare price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Nahar Spinning Mills, it has a TSR of -54% for the last 5 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!
Nahar Spinning Mills shareholders are down 20% for the year (even including dividends), but the market itself is up 0.2%. 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 14% over the last half decade. 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. You might want to assessthis data-rich visualizationof its earnings, revenue and cash flow.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on IN 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. |
In shift, economists now split over BOJ's next move: Reuters poll
By Kaori Kaneko
TOKYO (Reuters) - In a shift reflecting growing concerns about Japan's economy, economists are now split over whether the central bank will next unwind - or further loosen - its ultra-easy monetary policy.
For more than two years, a majority of economists in a Reuters poll have said the Bank of Japan's next move would be to tighten the easy money taps with an eye to "normalizing" its policy.
But now, with the U.S.-China trade war hurting global growth, the yen gaining and the U.S. Federal Reserve likely to cut interest rates, half the analysts polled June 5-17 said the BOJ's next step would be to ease even further.
Should the Fed lower rates in coming months, that would likely boost the yen against the dollar, which hurts Japan's export-reliant economy.
"The BOJ is closely watching Fed policy and how that might impact the yen. If the yen jumps, the BOJ will have to take action," said Hiroaki Mutou, chief economist at Tokai Tokyo Research Institute.
Asked what the BOJ's next move would be, 20 of 39 economists polled said it would adopt more stimulus steps, while 19 said it would tighten.
It's the first time analysts have been split on the question since the February 2017 poll.
Among those predicting further easing, three each said it could happen in July, September or December, and four said in October. The rest said it would come in 2020 or beyond.
Asked about the BOJ's likely easing steps - and allowing for multiple answers in the survey - 17 economists said the BOJ would tweak its forward guidance wording, which says it will maintain its current extremely low level of interest rates "at least through around the spring of 2020."
Seven economists predicted the BOJ would increase buying exchange-traded funds, or ETFs, and Japan real estate investment trusts, or J-REITs, and a few said the bank would lower negative interest rates even further.
Currently, the BOJ allows its 10-year bond yield to fluctuate between plus 0.2% and minus 0.2%. That could widen to 0.4% above and below zero as early as September, said Izuru Kato, chief economist at Totan Research.
GROWTH RISKS
At its meeting this week, the BOJ is expected to maintain its stimulus programme and signal its readiness to boost monetary support if growing risks such as the escalating U.S.-China trade war threatens the economy's modest expansion.
The Fed, facing demands by President Donald Trump to cut interest rates, is expected to leave borrowing costs unchanged at its policy meeting this week and possibly lay the groundwork for a rate cut later this year.
Asked what dollar/yen rate would trigger further BOJ easing, 28 of 36 economists selected "beyond 100 yen," four chose "beyond 103 yen," three said "beyond 105 yen".
The dollar stood around 108.60 yen on Wednesday.
"If the yen strengthens to the psychologically important level of 100 (to the dollar), it could trigger the BOJ's additional easing," said Yusuke Kaniwa, an economist at Hamagin Research Institute.
Japan's economy as a whole will grow 0.6% in the current fiscal year to March 2020, although it is expected to shrink an annualised 1.9% in the fourth quarter due to a planned sales tax hike in October, the poll found.
Next fiscal year, the economy is forecast to expand 0.5%.
The nation's core consumer price index, which includes oil products but not fresh foods, will grow 0.7% this fiscal year and next, the poll predicted.
(For other stories from the Reuters global long-term economic outlook polls package see)
(Polling and reporting by Kaori Kaneko; Additional polling by Khushboo Mittal; Editing by Malcolm Foster & Shri Navaratnam) |
Russia, China block UN from saying NKorea violated sanctions
UNITED NATIONS (AP) Russia and China have blocked the U.N. Security Council committee monitoring sanctions against North Korea from declaring that Pyongyang breached the annual limit for importing refined petroleum products which are key for its economy, two U.N. diplomats said Tuesday. The diplomats said the Russians and Chinese notified the committee before Tuesday's deadline for objections. The United States and 25 other countries accused North Korea of violating U.N. sanctions by importing far more than the annual limit of 500,000 barrels of refined petroleum products. A U.S.-led complaint had asked the sanctions committee to rule that Pyongyang breached the cap and demand an immediate halt to deliveries. It said most of the excess petroleum products were obtained from dozens of illegal ship-to-ship transfers. A Security Council diplomat said North Korea is believed to have obtained 3.5 million barrels of refined petroleum in 2018, seven times the limit. This year, North Korea has already imported more than the limit and is "on pace" to obtain about the same amount as last year through illegal ship-to-ship transfers, the diplomat said, speaking on condition of anonymity because he was not authorized to speak publicly. The complaint said the 500,000-barrel annual limit on refined petroleum products "is critical to maintaining pressure" on North Korea to achieve the denuclearization of the country. Last July, Russia and China blocked a similar request from the U.S. to get the U.N. sanctions committee to publicly accuse North Korea of violating the annual quota. The Russians and Chinese are key suppliers of petroleum products to North Korea. The Security Council imposed sanctions on North Korea after its first nuclear test explosion in 2006 and has made them tougher and tougher in response to further such tests and its increasingly sophisticated ballistic missile program. Many diplomats and analysts credit the sanctions, which have sharply cut North Korea's exports and imports, with helping promote the thaw in relations between North Korea and South Korea, and the two summits between President Donald Trump and North Korean leader Kim Jong Un. Negotiations between the U.S. and North Korea have been at a standstill since the Trump-Kim summit in Hanoi in February broke down over what the United States described as excessive North Korean demands for sanctions relief in exchange for only a partial surrender of its nuclear capabilities. The quota on refined petroleum products was one of the tough sanctions imposed by the Security Council in December 2017 in response to North Korea's launch of a ballistic missile that Pyongyang said is capable of reaching anywhere on the U.S. mainland. |
The NRB Industrial Bearings (NSE:NIBL) Share Price Is Down 58% So Some Shareholders Are Wishing They Sold
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If you are building a properly diversified stock portfolio, the chances are some of your picks will perform badly. But long termNRB Industrial Bearings Limited(NSE:NIBL) shareholders have had a particularly rough ride in the last three year. So they might be feeling emotional about the 58% share price collapse, in that time. Shareholders have had an even rougher run lately, with the share price down 12% in the last 90 days. We note that the company has reported results fairly recently; and the market is hardly delighted. You can check out the latest numbers inour company report.
Check out our latest analysis for NRB Industrial Bearings
Given that NRB Industrial Bearings 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. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last three years, NRB Industrial Bearings saw its revenue grow by 13% per year, compound. That's a pretty good rate of top-line growth. So some shareholders would be frustrated with the compound loss of 25% per year. The market must have had really high expectations to be disappointed with this progress. It would be well worth taking a closer look at the company, to determine growth trends (and balance sheet strength).
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.
Balance sheet strength is crucual. It might be well worthwhile taking a look at ourfreereport on how its financial position has changed over time.
Investors in NRB Industrial Bearings had a tough year, with a total loss of 14%, against a market gain of about 0.2%. 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. On the bright side, long term shareholders have made money, with a gain of 2.1% per year over half a decade. 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. Before spending more time on NRB Industrial Bearingsit might be wise to click here to see if insiders have been buying or selling shares.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss thisfreelist of companies that have proven they can grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on IN 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. |
Coast Guard says Seattle will be homeport for America’s next-generation icebreakers
An artist’s conception shows the next-generation Polar Security Cutter. (VT Halter Marine Illustration) When the Coast Guard starts rolling out a new generation of heavy icebreakers on the Gulf Coast, the ships will be heading for a familiar port in the Pacific Northwest. “I am pleased to announce that Seattle, Washington, will be the home of the Coast Guard’s new Polar Security Cutters,” Adm. Karl Schultz, commandant of the Coast Guard, said Monday in a statement . “The Pacific Northwest has been the home of our icebreaking fleet since 1976, and I am confident that the Seattle area will continue to provide the support we need to carry out our critical operations in the polar regions.” Heavy icebreakers come into play for guaranteeing access to Antarctica for supply deliveries, and supporting U.S. maritime security interests at high latitudes in the north as well as the south. But the current state of America’s fleet of heavy icebreakers is a source of concern. That fleet has dwindled to one aging ship, the 43-year-old Polar Star, which has suffered through a string of breakdowns in recent years. During last year’s deployment to Antarctica, the ship experienced two flooding incidents and the loss of a gas turbine . This March, a team of Coast Guard and Navy divers had to patch a breach in the hull. Meanwhile, the Polar Star’s sister ship, the Polar Sea, is out of commission and kept around only for spare parts. And the Coast Guard’s medium icebreaker, the Healy, isn’t capable of taking on Antarctic missions. Fortunately, help is on the way: In April, VT Halter Marine of Pascagoula, Miss., was awarded a $745.9 million contract to take care of the detailed design and construction of the first next-generation Polar Security Cutter. That ship should be delivered by mid-2024, with financial incentives for early delivery. If the Defense Department exercises options for the delivery of two more heavy icebreakers, the total contract value rises to $1.9 billion. The Coast Guard said it conducted a detailed analysis to identify locations that could accommodate the next-generation icebreakers, and based on operational and logistical needs, Seattle was determined to be the appropriate homeport for the first three new ships. Story continues In a statement , Sen. Maria Cantwell, D-Wash., said Seattle’s continued status as the nation’s heavy-icebreaker homeport was “great news.” Cantwell is the ranking Democrat on the Senate Commerce Committee, which has jurisdiction over the Coast Guard. “Homeporting new icebreakers in Puget Sound shows the significant role Washington state has to play in securing our waters and protecting our environment in the Arctic. The Puget Sound region supports a cutting-edge maritime workforce, which is poised to meet the needs of these new world-class vessels,” Cantwell said. “I am excited to welcome new polar icebreakers and their Coast Guard crews to Seattle in the near future.” More from GeekWire: Aging icebreaker Polar Star returns to Seattle after challenging Antarctic voyage Wild winds and waves wow watchers in Pacific Northwest, with more to come University of Washington’s top research ship returns to duty after midlife makeover Compass hiring 100 engineers for West Coast hub in Seattle, invading Zillow and Redfin’s turf |
2019 FIFA Women's World Cup: After rising from non-existence, Argentina could reach knockout stage
NEUILLY-SUR-SEINE, France This time four years ago, the thought of Argentina vying for a spot in the knockout stage of the 2019 Womens World Cup wouldve been downright laughable to American-born goalkeeper Gabriela Garton. The team had failed to qualify for two consecutive tournaments, this after the humiliation of losing 11-0 to Germany at the 2007 event in China, the biggest margin of defeat for any team in World Cup history, mens or womens, until the U.S. trounced Thailand by 13 goals last week. While the Lionel Messi-led mens team was in the middle of a run to three consecutive major tournament finals, the Argentine Football Association had effectively given up on its womens program in 2015 after the squad finished last in its group at the Pan American Games. That is, if the AFA had ever really supported it at all. From 2015 to 2017 the national team didnt exist, Garton told Yahoo Sports in an interview earlier this week just outside of Paris, where the Argentines will meet Scotland Wednesday with that unlikely place in the knockout stage somehow on the line. Argentina has been one of the best stories so far at this World Cup. The Albicelestes Las Pibas tied Japan, FIFAs seventh-ranked side, in their opener and then narrowly lost to No. 3 England in the second match. That means a win against the Scots will be enough to advance. Their stingy defensive performances against two of the title challengers have surprised even themselves. A little bit, yeah, laughed defender Natalie Juncos, the other Argentine-American on the squad. Juncos is a Detroit native who spent three seasons at the University of Houston. We played a bit more defensive the last two games to build the confidence that we can play against the best teams in the world. Now, we want to test it a little bit more offensively. Weve had good results, but we want to take the next step. For Aldana Cometti (left), Estefania Banini and Argentina, drawing Japan was some measure of a victory. (Associated Press) Its astonishing that theyve made it this far. Before the Japan match, Argentina hadnt faced an international opponent since February. While the favored U.S. was preparing for the World Cup with a ballyhooed three-game send-off series, the Argentines scheduled tuneups against collegiate foes. Story continues Still, things are a lot better than they used to be. When the squad reconvened in 2017, the AFA refused to pay for travel for players who lived more than 400 kilometers from Buenos Aires. One head coach was assigned to the under-17, U-20 and senior teams. Twenty-five women were forced to dress in a futsal locker room designed for 12. They wore threadbare practice gear that the mens team had used a dozen years prior. We were being forced to train on the turf field at the [AFA] complex when theres 10 other impeccable grass fields, Garton said. It was pretty much a mess. The players eventually went on strike to demand better treatment. The AFA had already been under intense pressure from the media for the better part of a year; fed up with the federations incompetence, or worse, Messi himself briefly retired from the national team following the loss to Chile in the final of the Copa America Centenario in 2016. The next day, AFA president Luis Segura was ousted on fraud charges by FIFA, which temporarily took over the organization. Meantime, the womens team didnt train at all between the fall of 2017 and early last year. The strike had been a starting point for them, even made it into the newspapers. But the momentum quickly fizzled. Soccer is like religion in Argentina. Passions run so high that when the top mens club teams, Boca Juniors and River Plate, met last year in the South American final, fan violence forced the the decisive contest to be played on another continent . Traditionally, though, soccer in the nation of nearly 45 million has not been welcoming to girls and women. When Juncos visited the country with her parents at age 12, just a few years after she watched the U.S. women hoist the 1999 World Cup, she was met with a shock. Being that it was the most popular mens sport in Argentina, I figured womens soccer was just as high-level, she said. And then when I came down to train people looked at me weirdly. I didnt know better. It was almost frowned upon, she continued. People would ask, Where are your dolls? Id be like, What are you talking about, where are my dolls? If theyre lucky enough to find a team that will take them, girls play against boys until theyre 13 or so. Theyre often out of luck after that. With few opportunities, Its really common to see players just decide to give it up, Garton said. Even national team-level athletes sometimes simply walk away, frustrated by the endless struggle. Only about half of the World Cup squad are professionals, and the ones who are get paid a pittance of 4,000 pesos, or $92, a month. So before a Copa America Feminina match against Colombia last year, the team decided to make another statement. During the traditional team photo before the match, all 20 players cupped their right hands behind their ears. The Argentina women's national team made a statement at the 2018 Copa America Femenina. (via El Faro Deportivo Chile) Basically our message was we wanted to be heard by the association, Garton said. The picture went viral. The results were immediate. Suddenly, people were talking about the womens team. The Copa matches werent televised; now World Cup qualifiers were being blasted across the country on free TV. The match that secured the Argentines ticket to France sold out within 24 hours. Juncos missed most of 2018 because of injuries. When she returned to Buenos Aires from her home in Texas, she noticed a difference right away. When you walk in a park and you see pickup games, it used to be all men, and now theres always a girl there, she said. Its nice to be a part of that change. New AFA president Claudio Tapia has made the women feel valued. Hes been accessible; the players had never so much as seen Segura in the flesh. Before they set off for this World Cup, Tapia hosted a joint luncheon with the mens team that was preparing for the Copa America in Brazil. It has forged a bond between the two sides. That day we had lunch with them was pretty crazy, Juncos said. I couldnt taste my food. The mens team watched the tie versus Japan together at their hotel. Angel Di Maria and other male stars publicly voiced their support of their female counterparts before it, and others after, legitimizing the womens game for many of the remaining holdouts. Various friends have told me that theyve heard men talking about our game at a butcher shop, Garton said. That would never have happened before in Argentina. The ride isnt over yet. Theres still at least one more game to go, more momentum to capitalize on, more hearts and minds to be won. The players are still striving for more, a lot more, but they know theres only one way to get it. We cant just say we want this and that, said Juncos, who is hoping to latch on with a pro club in Europe or Asia when the World Cup is over. We also have to win. American-born Argentina national teamer Natalie Juncos joined Lionel Messi and other men's and women's players at a luncheon before their respective tournaments this summer. (Courtesy Natalie Juncos) More from Yahoo Sports: Goodwill: Relationship between CP3, Harden seems doomed Golfer gets Stanford diploma at Pebble Beach after U.S. Open Bushnell: Mexican fans' homophobic chant wrongfully going strong Brett Favre IG post causes brief hysteria about a comeback |
White Sox plan to extend netting at Guaranteed Rate Field
CHICAGO (AP) — The Chicago White Sox plan to extend the protective netting to the foul poles at Guaranteed Rate Field, becoming the first major league team to take that step since a couple of high-profile injuries this spring increased the focus on fan safety at ballparks. The White Sox and Illinois Sports Facilities Authority, which owns the ballpark, are hoping to complete the project this season. They say they will announce more details at a later date. Now that one team has jumped in front on the move, there likely will be more to come. It's hard to imagine a scenario where one major league team feels comfortable with less protection for fans than at another ballpark. "Obviously that's a positive step in this sport," Chicago Cubs outfielder Albert Almora Jr. said before Tuesday night's 3-1 loss to the White Sox. "I don't think anybody should go home with bumps or bruises or even worse. So whatever they got to do to take care of that, I'm glad they're taking procedures." Following recommendations from Major League Baseball, by the start of the 2018 season all 30 teams had expanded their protective netting to at least the far ends of the dugouts after several fans were injured by foul balls in 2017. But a liner by Almora struck a young girl in Houston in May, and a woman was hit by a foul ball off the bat of White Sox slugger Eloy Jiménez in Chicago on June 10. Each of the incidents occurred in the stands beyond the dugout on the third base side, sparking several players to call for expanded netting. The Chicago Sun-Times was the first to report on the plans for Guaranteed Rate Field. "It's a positive," Cubs ace Jon Lester said. "Obviously when one team does it, then you get kind of the herding effect and the rest of the people usually follow." Almora was visibly shaken after the liner against the Astros. "I am a father and I am a fan of this game," he said. "I just don't want to see things like that ever happen again." Story continues Baseball Commissioner Rob Manfred said June 4 he doesn't expect teams to make changes to the protective netting during the season, but he thought conversations would continue about whether netting should be extended. The netting was expanded before the 2018 season because of a couple of scary plays two years ago. At Yankee Stadium in May 2017, a boy was struck on the head by a portion of Chris Carter's broken bat. A fan sitting beyond the first base dugout was hit by a 105-mph foul ball off the bat of Aaron Judge in July of that year. And in September, a young girl was injured by another 105-mph foul ball off the bat of Todd Frazier and was hospitalized. White Sox ace Lucas Giolito praised his team's decision to take the next step at its ballpark. "For me, I think that in today's day and age you have a lot of young fans and guys are hitting the ball harder," he said. "I see the counter-arguments, like 'Well, don't sit there or just pay attention to the game.' Dude, like no matter how much you're paying attention to the game, if that thing is coming in 115 mph with tail, no matter if you have a glove this big, it could hit you right in the forehead. "So for me being around baseball for so long, I think it's a smart move because it just keeps people safe. I hate seeing young kids get hit and having to go to the hospital. It just leaves a sick feeling in all our stomachs." ___ More AP MLB: https://apnews.com/MLB and https://twitter.com/AP_Sports |
Boasting A 21% Return On Equity, Is Yincheng International Holding Co., Ltd. (HKG:1902) A Top Quality Stock?
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Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). By way of learning-by-doing, we'll look at ROE to gain a better understanding of Yincheng International Holding Co., Ltd. (HKG:1902).
Yincheng International Holding has a ROE of 21%, based on the last twelve months. Another way to think of that is that for every HK$1 worth of equity in the company, it was able to earn HK$0.21.
See our latest analysis for Yincheng International Holding
Theformula for ROEis:
Return on Equity = Net Profit ÷ Shareholders' Equity
Or for Yincheng International Holding:
21% = CN¥442m ÷ CN¥2.4b (Based on the trailing twelve months to December 2018.)
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. You can calculate shareholders' equity by subtracting the company's total liabilities from its total assets.
Return on Equity measures a company's profitability against the profit it has kept for the business (plus any capital injections). The 'return' is the profit over the last twelve months. A higher profit will lead to a higher ROE. So, all else being equal,a high ROE is better than a low one. Clearly, then, one can use ROE to compare 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. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. Pleasingly, Yincheng International Holding has a superior ROE than the average (9.1%) company in the Real Estate industry.
That's what I like to see. In my book, a high ROE almost always warrants a closer look. For example,I often check if insiders have been buying shares.
Companies usually need to invest money to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
It seems that Yincheng International Holding uses a lot of debt to fund the business, since it has a high debt to equity ratio of 4.88. Its ROE is pretty good, but given the impact of the debt, we're less than enthused, overall.
Return on equity is useful for comparing the quality of different businesses. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
But when a business is high quality, the market often bids it up to a price that reflects this. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. You can see how the company has grow in the past by looking at this FREEdetailed graphof past earnings, revenue and cash flow.
But note:Yincheng International Holding may not be the best stock to buy. So take a peek at thisfreelist 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. |
What You Must Know About Alumina Limited's (ASX:AWC) Financial Health
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Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like Alumina Limited (ASX:AWC), with a market cap of AU$6.9b, are often out of the spotlight. However, history shows that overlooked mid-cap companies have performed better on a risk-adjusted manner than the smaller and larger segment of the market. Today we will look at AWC’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. Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysisinto AWC here.
See our latest analysis for Alumina
Over the past year, AWC has maintained its debt levels at around US$107m including long-term debt. At this stable level of debt, AWC currently has US$184m remaining in cash and short-term investments to keep the business going. On top of this, AWC has produced US$641m in operating cash flow over the same time period, resulting in an operating cash to total debt ratio of 599%, signalling that AWC’s operating cash is sufficient to cover its debt.
At the current liabilities level of US$109m, it appears that the company has been able to meet these obligations given the level of current assets of US$185m, with a current ratio of 1.7x. The current ratio is calculated by dividing current assets by current liabilities. For Metals and Mining companies, this ratio is within a sensible range since there's a sufficient cash cushion without leaving too much capital idle or in low-earning investments.
AWC’s level of debt is low relative to its total equity, at 5.0%. This range is considered safe as AWC is not taking on too much debt obligation, which may be constraining for future growth.
AWC has demonstrated its ability to generate sufficient levels of cash flow, while its debt hovers at a safe level. Furthermore, the company exhibits an ability to meet its near term obligations should an adverse event occur. I admit this is a fairly basic analysis for AWC's financial health. Other important fundamentals need to be considered alongside. I suggest you continue to research Alumina to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for AWC’s future growth? Take a look at ourfree research report of analyst consensusfor AWC’s outlook.
2. Valuation: What is AWC 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 AWC 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. |
Asian Stocks Higher on Wall Street’s Lead Ahead of Fed Decisions
Asia-Pacific shares are trading higher on Wednesday on optimistic developments overnight regarding U.S.-China trade relations. This fueled a surge on Wall Street that drove the major stock indexes to within striking distance of their all-time highs. The bullish tone created by the earlier rally has carried over into the Asian trade.
Dovish comments from European Central Bank President Mario Draghi and expectations that the Federal Reserve will open the door to at least three rate hikes later this year are also underpinning the markets today.
At 03:52 GMT, Japan’sNikkei 225 Indexis trading 21315.16, up 342.45 or 1.63%. Hong Kong’s Hang Seng Index is at 28154.85, up 656.08 or +2.39% and South Korea’s KOSPI is trading 2118.50, up 19.79 or +0.98%.
Australia’s S&P/ASX 200 Index is trading 6642.30, up 72.30 or 1.10% and China’s Shanghai Index is at 2933.64, up 43.49 or +1.50%.
A tweet by U.S. President Trump is one of the reasons for the early strength. On Tuesday, Trump tweeted that he “had a very good telephone conversation” with Chinese President Xi Jinping. He added: “We will be having an extended meeting next week at the G-20 in Japan. Our respective teams will begin talks prior to our meeting.” The summit begins on June 28.
“We do not believe that the meeting will deliver a trade deal, even if the meeting does take place. From the Chinese side, the discussion with US President Trump is expected only to exchange views on fundamental issues concerning the development of China-US relations,” Iris Pang, Greater China economist at ING, wrote in a note.
“The news on the talks in Osaka is a short term positive for asset markets, but we believe any talks will change little unless either side makes some meaningful concessions, which we do not view as likely at this time,” Pang added.
A former top trade advisor to President Donald Trump doesn’t think a trade deal will be reached at the G-20 summit.
“There won’t be a deal at the G-20,” Clete Willems said in an interview with CNBC. He further added that a meeting between the two leaders, while not the final step in negotiations, is “a necessary ingredient at this point.” He also cautioned that a G-20 meeting between Trump and Xi would only lay the groundwork for a possible deal.
Since Fed Chair Jerome Powell greenlit the current rally on June 4, stock investors have been pricing in at least three rate cuts in 2019. While there is only a 20% chance of a rate cut in June, traders want to hear the Fed is leaning to its first cut in 10 years in July. If this isn’t stated clearly then the markets could weaken.
Thisarticlewas originally posted on FX Empire
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What Does China Coal Energy Company Limited's (HKG:1898) P/E Ratio Tell You?
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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 look at China Coal Energy Company Limited's (HKG:1898) P/E ratio and reflect on what it tells us about the company's share price.China Coal Energy has a price to earnings ratio of 10.28, based on the last twelve months. That is equivalent to an earnings yield of about 9.7%.
See our latest analysis for China Coal Energy
Theformula for P/Eis:
Price to Earnings Ratio = Price per Share (in the reporting currency) ÷ Earnings per Share (EPS)
Or for China Coal Energy:
P/E of 10.28 = CN¥2.78(Note: this is the share price in the reporting currency, namely, CNY )÷ CN¥0.27 (Based on the year to March 2019.)
A higher P/E ratio means that investors are payinga higher pricefor each HK$1 of company earnings. That isn't necessarily good or bad, but a high P/E implies relatively high expectations of what a company can achieve in the future.
Probably the most important factor in determining what P/E a company trades on is the earnings growth. That's because companies that grow earnings per share quickly will rapidly increase the 'E' in the equation. And in that case, the P/E ratio itself will drop rather quickly. A lower P/E should indicate the stock is cheap relative to others -- and that may attract buyers.
China Coal Energy increased earnings per share by a whopping 42% last year. And its annual EPS growth rate over 5 years is 7.7%. 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, China Coal Energy has a higher P/E than the average company (9.4) in the oil and gas industry.
That means that the market expects China Coal Energy will outperform other companies in its industry. The market is optimistic about the future, but that doesn't guarantee future growth. So further research is always essential. I often monitordirector buying and selling.
It's important to note that the P/E ratio considers the market capitalization, not the enterprise value. Thus, the metric does not reflect cash or debt held by the company. Hypothetically, a company could reduce its future P/E ratio by spending its cash (or taking on debt) to achieve higher earnings.
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.
China Coal Energy's net debt is considerable, at 131% of its market cap. This level of debt justifies a relatively low P/E, so remain cognizant of the debt, if you're comparing it to other stocks.
China Coal Energy's P/E is 10.3 which is about average (10.7) in the HK market. The significant levels of debt do detract somewhat from the strong earnings growth. The P/E suggests that the market is not convinced EPS will continue to improve strongly.
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 thisfreevisual report on analyst forecastscould hold the key to an excellent investment decision.
But note:China Coal Energy may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with strong recent earnings growth (and a P/E ratio 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. |
Thred Limited (ASX:THD) Insiders Increased Their Holdings
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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 shareholders might well want to know whether insiders have been buying or selling shares inThred Limited(ASX:THD).
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. 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 Thred
Jason Peterson made the biggest insider purchase in the last 12 months. That single transaction was for AU$267k worth of shares at a price of AU$0.0051 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.002). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months insiders paid AU$448k for 124.5m shares purchased. In the last twelve months Thred insiders were buying shares, but not selling. Their average price was about AU$0.0036. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Thred 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.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 38% of Thred shares, worth about AU$1.4m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Thred and their transactions don't cause us concern. Along with insider transactions, I recommend checking if Thred is growing revenue. This free chart ofhistoric revenue and earnings should make that easy.
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. |
NBA draft: Ja Morant's historic rise
When Ja Morant strides across the stage toward NBA commissioner Adam Silver Thursday night, he likely will stand alone as an unprecedented draft pick in the 21st century. If the Murray State point guard goes No. 2, as is widely expected, it will be the highest selection for a player from the mid-major college ranks in more than 20 years. Not since Pacific center Michael Olowokandi went No. 1 in 1998 has a player from this far outside the college game’s power structure gone in the top two. Prior to that, you have to dial back to Marist product Rik Smits, the second selection in 1988. It must be noted that Olowokandi and Smits both were 7-footers, and the NBA’s lust for big men traditionally trumped college pedigree. The last guard to be drafted in the top two from an off-radar school is Illinois State’s Doug Collins, the No. 1 pick in 1973 — when Collins was coming off a prominent role on the U.S. Olympic team the previous summer. Prior to Collins, the most comparable top-two guard pick would be Earl “The Pearl” Monroe of Winston-Salem State, in 1967. So, really, you could argue that Temetrius “Ja” Morant is more than just a once-a-generation phenomenon. It’s more like once-a-half-century. Draft stories like this simply don’t happen. Yet it’s happening. Morant and his family will be in the green room alongside the blue-blood guys from Duke, North Carolina, Kentucky and Indiana; alongside the Final Four guys from Virginia and Texas Tech; alongside the five-star guys who have been on everyone’s radar since they were high school sophomores. Murray State has arrived, where it has never been before. “I’ll cross one off the bucket list Thursday night,” said Racers coach Matt McMahon, who is flying his entire staff and their wives to New York for the draft. Murray State’s fortuitous, eureka moment discovering Morant has been covered thoroughly. But the freakish athletic talent that mesmerized former Racers assistant James Kane in an auxiliary gym in South Carolina is only the beginning of what makes the 19-year-old special. It’s the rest of him that completes the every-50-years package. Story continues Murray State Racers guard Ja Morant (12) talks to a teammate during the second half of game against the Florida State Seminoles in the second round of the 2019 NCAA tournament. (Credit: USAT) He’s by no means a finished product — 19 years old, in need of more muscle and about to have his indifferent defense tested in full. But there is so much to like, and it starts with a pure love of the game and hunger to both prove and improve. Some young stars, commoditized at an early age, think they’re entitled to the adulation. Morant has had to earn it every step of the way — and he’s fine with that. “You just can’t keep him out of the gym,” McMahon said, relating a couple of anecdotes. When the Racers were eliminated by West Virginia in the 2018 NCAA tournament, ending Morant’s freshman season, the team had to fly from San Diego to Paducah, Kentucky, then bus back to campus. The next day, Morant drove from Murray to Nashville, flew to Charlotte, drove home to Dalzell, South Carolina, and was playing in a pickup game that night. This past season, McMahon gave his players 48 hours to go home for Christmas. On Christmas Eve, the coach saw video on Twitter of Morant playing another pickup game back home. On campus, Morant spent long hours working on individual skills with assistant coach Shane Nichols. When they weren’t in the gym, they were watching film together. The result has been an overall game development that matches his ridiculous athleticism. You may come to the Ja Show for the dunks, but you’ll stay for the skill. At a time when more college players than ever seem overly reliant on their dominant hand, Morant is virtually ambidextrous as a dribbler, passer and finisher at the rim. In fact, his one-hand passing helped boost his nation-leading assist total, thanks to the quickness with which he can deliver the ball in any direction. “He had multiple games where he had more assists passing with his left hand than his right,” McMahon said. The relentless work to improve extended to his perimeter shooting as well. At times dared to shoot the 3-pointer early last season, Morant made 45 percent of his shots outside the arc in February and March. In the NCAA tournament, against Marquette and Florida State, he was 7-of-8 shooting from 3-point range. The March averages were gaudy: 27.4 points per game, 5.8 rebounds, 8.8 assists (and, yes, 5.2 turnovers). He played 197 out of 200 postseason minutes. When Belmont shut down Morant’s passing lanes in the Ohio Valley Conference tournament final and dared him to finish, he scored 36. When Marquette swarmed him in the NCAA tourney first round and made him a passer, Morant took just nine shots and racked up a triple-double: 17 points, 11 rebounds, 16 assists. “First guy I’ve ever seen completely dominate a game while taking single-digit shot attempts,” McMahon said. By then, of course, Morant had long surpassed mid-major curiosity and bloomed into a full-blown phenomenon. Sleepy OVC gyms were buzzing when Murray State came to town. And perhaps for the first time since Steph Curry was at Davidson, the mid-major star was the high-major curiosity at an NCAA tournament venue. Before the Marquette game in Hartford, Connecticut, the Racers practiced at a local high school. They didn’t time their exit well, wrapping practice and heading to the bus just as school let out. “Kids were chasing him by the hundreds to the bus, trying to get autographs and pictures,” McMahon said. From discovery in an obscure auxiliary gym as an unwanted recruit to that star turn in Hartford, Ja Morant traveled an astounding distance in a short period of time. Now it’s time for the next step, the biggest step, one not seen this century and rarely seen in the last 50 years. More from Yahoo Sports: Goodwill: Relationship between CP3, Harden seems doomed Golfer gets Stanford diploma at Pebble Beach after U.S. Open Bushnell: Mexican fans' homophobic chant wrongfully going strong Brett Favre IG post causes brief hysteria about a comeback |
Japan says G20 summit to debate trade including WTO reform
By Leika Kihara TOKYO (Reuters) - Substantial discussions on trade, including reform of the World Trade Organization, will likely take place at a summit of Group of 20 major economies next week in Osaka, a senior Japanese finance ministry official said on Wednesday. Japan, which chairs this year's G20 gatherings, will take a neutral stance in the U.S.-China trade row and urge countries to resolve tensions with a multilateral framework, said Masatsugu Asakawa, vice finance minister for international affairs. "With regard to differences (on trade) between the United States and China, Japan of course won't take sides. We will also not take any steps that go against WTO rules," said Asakawa, who oversaw the G20 finance leaders' gathering earlier this month. "Japan will continue to take a multilateral approach in promoting free trade," he told a news conference. China and the United States, the world's two largest economies, are in the middle of a costly trade dispute that has pressured financial markets and damaged the world economy. Markets are focused on whether U.S. President Donald Trump and his Chinese counterpart Xi Jinping can narrow their differences when they sit down at the G20 summit. The bitter trade war has forced the International Monetary Fund to cut its global growth forecast and overshadowed the G20 meetings that conclude with the Osaka summit on June 28-29. At the finance leaders' gathering, the G20 issued a communique warning that trade and geopolitical tensions have "intensified" and that policymakers stood ready to take further action against such risks. "The macro-economic impact (of the trade tensions) is an issue of concern," Asakawa said, conceding it took considerable time for G20 finance ministers and central bank heads to agree on their communique's language on trade. More "concrete" discussions on trade policy will take place at the G20 Osaka summit, he added. Story continues The row over trade appeared to spread to currency policy when Trump criticised European Central Bank President Mario Draghi's dovish comments as aimed at weakening the euro to give the region's exports an unfair trade advantage. Asakawa rebuffed the view the Bank of Japan's massive stimulus programme could also provoke the ire of Trump. He also said the G20 shared an understanding that members would accept any exchange-rate moves driven by ultra-easy monetary policies as long as the measures are not directly aimed at manipulating currencies. "The BOJ's ultra-easy policy is aimed at beating deflation, not at manipulating exchange rates. That's understood widely among the G20 economies," he said. Fears of the widening fallout from the trade war have heightened market expectations the U.S. Federal Reserve will start cutting interest rates this year. Draghi said on Tuesday the ECB will ease again if inflation fails to accelerate. The dovish tone of other central banks have piled pressure on the BOJ, though many analysts expect it to keep policy steady at least at this week's rate review. (Additional reporting by Tetsushi Kajimoto; Editing by Chris Gallagher & Shri Navaratnam) |
Blockium kicks off its PTO with BitForex exchange to let traders maximize profits with minimal risk
Blockium, the innovative financial gamification platform created by Fokoya, is launching its IEO on BitForex exchange to upgrade UX for traders while doubling their profits in its improved token economy
TEL AVIV, ISRAEL/ ACCESSWIRE / June 19, 2019 /--Blockium, the leading P2P trading platform and creator of (BOK), is announcing the launch of its IEO viaBitForex, the digital crypto exchange platform. Blockium makes trading against friends, colleagues, and strangers possible at any budget size, using its advanced blockchain and tokenized technology.
Have you ever considered trading stocks or cryptocurrency? What about making a first-time investment just to see if you can make a profit? True, it takes a lot of cash to make an initial investment, and when you're unfamiliar with the practice, there's a lot of risk involved. Most new traders aren't willing to waste away their money due to inexperience or lack of stock knowledge. That's why Blockium launched its trading competitions technology, the platform built for financial markets, that gives users the ability to trade directly against other traders for the first time ever, using its end-to-end solution and advanced integrations.
Blockium's IEO will be administered through Bitforex cryptocurrency exchange to raise funds for the company's newly issued token, aiming to help crypto holders invest their tokens while doubling profits on an accessible blockchain infrastructure. Complete tokenization of Blockium will effectively meet the needs of both novice and senior traders by upgrading the user experience with newly added values and features embedded within platform, including an accepted entrance fee that suits any budget imaginable. Blockium empowers its trading community by allowing users to become investors and unofficial partners when holding its exclusive token, which they can compete with and turn great profit.
"An IEO through BitForex is the perfect approach for Blockium to take as we begin an outreach strategy that penetrates the Asian market through the exchange's branches in the region," said Gilad Raz, CEO of Blockium. "Fundraising via IEO will allow Blockium to consistently develop company activities and technology, as well as the platform's token economy, with an optimized product that acts as a gaming competition resource to anyone the trading world. Tokenization is key, as it will create b2b opportunities for us in the future, while meeting the needs of our crypto community immediately."
The total supply under the token name and symbol Blockium (BOK) is 650,000,000 at an IEO volume of 8% on both Bitforex and Coineal exchange (4% each). The issue price will be offered at USD 0.023, as Blockium pursues a total hard cap of USD 1.2M.
About Blockium:
Founded in 2017, Blockium is a leading P2P technology manufacturer utilizing blockchain and smart peer-to-peer technology to create a unique, online social experience. The technology reimagines the way users interact with each other, while driving new revenue streams with revolutionary features. The result is an unparalleled user experience for the crowd. To date, the company has raised substantial value in equity capital, with its February 2019 funding round closed on the basis of a $10M valuation.
mengyan416@gmail.com
SOURCE:BitForexView source version on accesswire.com:https://www.accesswire.com/549195/Blockium-kicks-off-its-PTO-with-BitForex-exchange-to-let-traders-maximize-profits-with-minimal-risk |
Could Palred Technologies Limited's (NSE:PALRED) Investor Composition Influence The Stock Price?
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A look at the shareholders of Palred Technologies Limited (NSE:PALRED) can tell us which group is most powerful. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. 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.
With a market capitalization of ₹279m, Palred Technologies is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have not yet purchased much of the company. Let's take a closer look to see what the different types of shareholder can tell us about PALRED.
See our latest analysis for Palred Technologies
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.
Less than 5% of Palred Technologies is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. So if the company itself can improve over time, we may well see more institutional buyers in the future. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.
It looks like hedge funds own 7.2% of Palred Technologies shares. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.
It seems that insiders own more than half the Palred Technologies Limited stock. This gives them a lot of power. That means they own ₹152m worth of shares in the ₹279m company. That's quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. You canclick here to see if those insiders have been buying or selling.
The general public, with a 30% stake in the company, will not easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
It seems that Private Companies own 5.8%, of the PALRED stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
Many find it usefulto take an in depth look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow.
Of coursethis may not be the best stock to buy. Therefore, you may wish to see ourfreecollection of interesting prospects boasting favorable financials.
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. |
The Connexion Telematics (ASX:CXZ) Share Price Has Gained 225%, So Why Not Pay It Some Attention?
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When you buy shares in a company, there is always a risk that the price drops to zero. But if you pick the right business to buy shares in, you can make more than you can lose. For example, theConnexion Telematics Ltd(ASX:CXZ) share price has soared 225% return in just a single year. On the other hand, the stock price has retraced 7.1% in the last week. But note that the broader market is down 0.06% since last week, and this may have impacted Connexion Telematics's share price. Unfortunately the longer term returns are not so good, with the stock falling 91% in the last three years.
See our latest analysis for Connexion Telematics
We don't think Connexion Telematics's revenue of AU$651,340 is enough to establish significant demand. As a result, we think it's unlikely shareholders are paying much attention to current revenue, but rather speculating on growth in the years to come. Investors will be hoping that Connexion Telematics can make progress and gain better traction for the business, before it runs low on cash.
We think companies that have neither significant revenues nor profits are pretty high risk. There is usually a significant chance that they will need more money for business development, putting them at the mercy of capital markets. So the share price itself impacts the value of the shares (as it determines the cost of capital). While some such companies go on to make revenue, profits, and generate value, others get hyped up by hopeful naifs before eventually going bankrupt. Some Connexion Telematics investors have already had a taste of the sweet taste stocks like this can leave in the mouth, as they gain popularity and attract speculative capital.
Our data indicates that Connexion Telematics had AU$485,091 more in total liabilities than it had cash, when it last reported in December 2018. That puts it in the highest risk category, according to our analysis. So we're surprised to see the stock up 225% in the last year, but we're happy for holders. Investors must really like its potential. You can click on the image below to see (in greater detail) how Connexion Telematics's cash levels have changed over time.
In reality it's hard to have much certainty when valuing a business that has neither revenue or profit. One thing you can do is check if company insiders are buying shares. It's usually a positive if they have, as it may indicate they see value in the stock. You canclick here to see if there are insiders buying.
Pleasingly, Connexion Telematics's total shareholder return last year was 225%. What is absolutely clear is that is far preferable to the dismal 55% average annuallosssuffered over the last three years. It could well be that the business has turned around -- or else regained the confidence of investors. You might want to assessthis data-rich visualizationof its earnings, revenue and cash flow.
If you are like me, then you willnotwant to miss thisfreelist of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on AU 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. |
Does Associated British Engineering plc (LON:ASBE) Have A Volatile Share Price?
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If you own shares in Associated British Engineering plc (LON:ASBE) then it's worth thinking about how it contributes to the volatility of your portfolio, overall. In finance, Beta is a measure of volatility. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. 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 see their prices move in concert with the market. Others tend towards stronger, gentler or unrelated price movements. Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider. To make good use of it you must first know that the beta of the overall market is 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.
View our latest analysis for Associated British Engineering
Looking at the last five years, Associated British Engineering has a beta of 1.45. The fact that this is well above 1 indicates that its share price movements have shown sensitivity to overall market volatility. If the past is any guide, we would expect that Associated British Engineering 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 Associated British Engineering is growing earnings and revenue. You can take a look for yourself, below.
With a market capitalisation of UK£615k, Associated British Engineering 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 Associated British Engineering 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 Associated British Engineering’s financial health and performance track record. I highly recommend you dive deeper by considering the following:
1. Financial Health: Are ASBE’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 ASBE 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 ASBE'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. |
UK interest rates: Analysts' forecasts for Bank of England
Bank of England governor, Mark Carney. Photo: Daniel Leal-Olivas/Pool via Reuters The Bank of England (BoE) is set to leave interest rates unchanged this week but will likely try to convince investors rate hikes are around the corner. The BoE will on Thursday publish the minutes of the latest Monetary Policy Committee (MPC) meeting and the committee’s decision on interest rates. Analysts think the MPC will vote unanimously to kept the benchmark bank borrowing rate unchanged at 0.75%. “We expect unchanged policy and for the minutes to maintain the current rhetoric of a gradual path of rate hikes,” Barclays’ senior UK economist Sree Kochugovindan said in a note sent to clients last Friday. The Bank of England has repeatedly signalled that it wants to gradually raise the benchmark interest rate, which remains at a historic low. But economists, analysts, and investors think hikes are unlikely as long as Brexit remains unresolved and the UK’s economy remains lukewarm at best. Market prices indicate investors believe a rate cut is more likely than a hike. As a result, Bank of England governor Mark Carney and his colleagues will have to signal in the MPC minutes and Thursday’s press conference that they do actually plan to hike rates if they don’t want markets to get a shock. ‘Risks have turned to the downside’ A general view of the Bank of England with a London bus passing by. Photo: John Keeble/Getty Images “We do not expect the BoE to move interest rates higher unless or until there is some positive resolution to the Brexit saga,” Nomura’s George Buckley wrote in a note to clients last week. As well as Brexit uncertainty, Credit Suisse said economic “risks have turned to the downside” since the MPC’s last meeting. The investment bank cited recent worsening UK manufacturing data, as well as ongoing trade tensions between the US and China, both of which could hit economic growth. Barclays last week cut its forecast for UK GDP growth in 2019 from 1.2% to 1.1% on similar concerns. Against this backdrop, the central bank looks more likely to cut rates than to raise them. Lower interest rates should help boost growth by encouraging borrowing and spending. Story continues However, the Bank of England has consistently said it wants to gradually raise interest rates — not cut them further. Carney has even suggested he could raise rates if there is a no-deal Brexit, counter to conventional logic. In order to keep this path open, the BoE will have to prepare the market for future hikes. It will likely do so by sounding a “hawkish” tone in the public comments of the committee. (In central banking, “doves” favour low interest rate policy, while “hawks” favour higher interest rates.) “The MPC will have to issue fresh, dovish guidance in order to satisfy markets on Thursday, which now think the Committee is more likely to cut than raise Bank Rate within the next six months,” Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said in a note to clients. “But with clearer signs emerging that domestic price pressures are building, we expect the Committee to reiterate its commitment to ‘ongoing’ tightening and to repeat its May warning that markets' expectations are out of line with reality.“ ‘The markets ain’t buying it’ Federal Reserve Chairman Jerome Powell will deliver his latest verdict on interest rates hours before the Bank of England, which could undermine the Bank of England's decision. Photo: Reuters/Yuri Gripas Even if Carney and his colleagues do strike a more “hawkish” tone, investors may remain out of step with the bank. “Markets are pricing out any prospect of a rate hike from the BoE this year (amid a Fed-led collapse in global rate expectations),” Michael Ingram, the chief market analyst at WH Ireland, told Yahoo Finance UK. “So they can try and sound hawkish, but the market ain’t buying it.” The Bank of England’s decision will come a day after the US Federal Reserve makes its latest call on interest rates. Investors believe the Fed will signal rate cuts later this year. This loosening of policy may undermine the BoE’s attempts to threaten future rate rises. Aside from the tone of comments from MPC members, investors will be watching the balance of voting on the nine-member committee closely. If even one member dissents, it could send shockwaves through the market as investors shift bets towards a rate hike later this year. “A couple of hawkish comments from Haldane and Saunders have made that meeting a little more interesting than it might have been,” Allan Monks, JPMorgan’s UK economist, said in a note to clients. “But we expect there will be no dissents at next week’s meeting, with the BoE instead using its communications to push back against current market expectations for cuts.” ———— Oscar Williams-Grut covers banking, fintech, and finance for Yahoo Finance UK. Follow him on Twitter at @OscarWGrut . Read more: Bitcoin hits 13-month high as Facebook prepares to launch cryptocurrency Hong Kong protests may hit luxury brands like Burberry and Hermes Startup bank Monzo heads to US as monthly sign-ups hit 250,000 Watchdog's full investigation into 'highly damaging' RBS SME scandal published UK banking 'unicorn' Revolut expands to Australia Supermarket wars to intensify with Lidl's £500m investment spree |
WRAPUP 1-Fed likely to leave rates steady, despite market outlook and Trump demands
By Howard Schneider
WASHINGTON, June 19 (Reuters) - The U.S. Federal Reserve concludes its latest two-day policy meeting on Wednesday expected to leave interest rates on hold but flag whether it plans to cut rates later this year as investors expect and the U.S. president has demanded.
The central bank may nod to recent weaker-than-expected jobs numbers and softer inflation, and drop from its policy statement a pledge to be "patient" before changing rates - opening the door to a possible rate reduction later.
But the level of concern raised around fresh economic risks, and the language Chairman Jerome Powell uses in his post-meeting press conference, will be read by investors and perhaps even more significantly by President Donald Trump as a sign of whether officials are poised to act soon or are still biding their time.
The policy statement and new economic projections are to be released at 2 p.m. (1800 GMT), followed by a Powell press conference at 2:30 p.m. (1830 GMT).
"If they don't (reduce the interest rate) in June, the words he uses are going to have to be pretty careful that they are open to July," said Mark Stoeckle, CEO of Adams Funds, which caters mostly to individual investors.
Fed policymakers "don't want to make it sound like (they) are beholden to the market or to the president," he said, but even a token single rate cut in July "buys you some time to get more data ... It saves face for everybody."
As Fed officials gathered in Washington on Tuesday, news reports surfaced describing efforts by Trump earlier in the year to determine if he could remove Powell as chairman of the central bank.
Powell, as head of an independent agency, is thought to be insulated from such a move by law. Still it was a reminder to policymakers that as Trump gears up his 2020 reelection effort he remains convinced the Fed is hampering an economy whose performance may prove central to his chances at a second term.
Fighting a trade war on several fronts and with some expectation growth may slow this year, he has singled out central banks globally for his ire. He has noted that China's monetary policy was shaped by politicians in a way he felt left him at a disadvantage in trade negotiations.
On Tuesday he slammed European Central Bank President Mario Draghi for raising the possibility of fresh stimulus to bolster weak European growth, which Trump saw through the lens of a weaker euro, a stronger dollar, and higher prices for U.S. exports.
"Very unfair to the United States!," Trump said on Twitter.
PICKING ON POWELL
But for a year the criticism of Powell has been biting, and on Tuesday Trump sent a thinly veiled threat as Fed officials were in the middle of their two-day deliberation over rates.
Asked by reporters outside the White House if he wanted to demote Powell, Trump said "let's see what he does."
The Fed's short-term overnight interest rate influences a variety of other borrowing costs. That shapes economic activity by determining what consumers pay to buy houses and cars, how investors evaluate assets, and even what happens in a stock market that Trump often cites as a proxy for his performance.
Fed officials feel their four interest rate increases last year, far from crimping the recovery, were an appropriate response to the fact that Trump's tax and spending policies pushed the economy, at least temporarily, to accelerate faster than had been expected. In the Fed's view they helped guard against inflation, possible financial market bubbles and other problems.
But since then other risks have become more central, including the danger that some of Trump's own trade policies may damage a global economic expansion in more profound ways than initially thought, undermining business confidence and slowing investment and hiring.
That narrative has caused investors to bet that the Fed this year will approve two or three reductions of a quarter-percentage-point to the federal funds target rate, set in a range of between 2.25% and 2.5% since December.
New projections for the appropriate year-end policy rate are unlikely to match those expectations. To do so would require the bulk of the 17 policymakers to cut their rate outlook by a half a percentage point or more, a large shift by historic standards.
Not only do Fed officials downplay risk of a serious economic slump in the near future, they also, somewhat ironically, see Trump's very volatility as a reason to remain noncommittal.
Just as unexpected tariff threats sent markets down in early May, the possibility of progress toward a China-U.S. trade deal, which helped markets rally on Tuesday, has led some officials to want to keep their options open. (Reporting by Howard Schneider; Editing by Dan Burns and Andrea Ricci) |
Huawei: Labour looking at delaying 5G over security concerns
Photo Illustration: Omar Marques/SOPA Images/LightRocket via Getty Images Britain’s main opposition party Labour is leaning towards delaying the rollout of 5G due to security concerns over Huawei, sources tell Yahoo Finance UK. While Labour is currently holding off from developing an explicit policy on the matter, due to not benefitting from all the information the Conservative-led government holds, the party is believed to be prioritising national security over short term financial benefit. Mobile networks have warned the party that it would take 18 months for rival companies to catch up with Huawei’s level of technology, but Labour believes that a delay in technology and the associated economic cost is likely to be better than the potential threat to national security. The US, as well as a number of other countries and agencies, have continually pointed out Huawei’s ties to the Chinese government as well as emphasising China’s National Intelligence Law that says organisations must “support, co-operate with and collaborate in national intelligence work.” Since then, the US, Australia and New Zealand, has barred local firms from using Huawei to provide the technology for their 5G networks. While Labour is not opposed to a ban, the party remains keen on ensuring market diversity. “If you ban Huawei, only two companies offering 5G remain” said a source involved in the process to Yahoo Finance UK. “And they are Nokia and Ericsson — both of which have Chinese supply chains.” READ MORE: Huawei expects sales drop to $100bn and smartphone sales to tank 40% This has led Labour to see the situation as a catch-22, where even with a potential Huawei ban, there are potentially unavoidable security issues in the supply chains of the two alternatives. The dilemma speaks to a wider concern within Labour as to the lack of a home-grown tech centre and a need to import from abroad, which Labour has already highlighted as a key reason to invest in the sector. Sources within Labour are keen to outline that the move is not part of an anti-Chinese sentiment, but an issue of national security. “We don’t want to be part of a US/China trade war,” said the source. Story continues Figures within the leaders office believe that the country cannot be kept safe on the cheap, and therefore potential loss of income should not be seen as the priority. “We shouldn’t be dazzled by money” declared a source aware with their thinking. A pedestrian walks past a Huawei store in Beijing, China. Photo by VCG/VCG via Getty Images This has added to divides between the leaders’ office and deputy leader Tom Watson, however. There was consternation when Labour’s shadow minister for Digital and close Watson-ally Liam Byrne put out a statement seeming to criticise the government for not approving Huawei . Sources close to the Shadow Cabinet therefore believe that the splits seen within the current government over the issue would therefore continue in a future Labour government. It is currently not entirely clear what the UK government stance is over Huawei. Last week, a group of UK mobile operators wrote a letter to the government’s cabinet secretary Mark Sedwill to urge Whitehall to clarify its position over the Chinese tech giant. In March this year, the UK’s National Cyber Security Centre, which is part of the UK government’s intelligence and security organisation GCHQ, released a report that severely criticised the Chinese company, by saying there are “significant technical issues in Huawei’s engineering processes” and its approach to software development brings “significantly increased risk to UK operators.” |
‘I feel like a target’: US tech workers of Chinese descent see trade war backlash
Photograph: Damir Šagolj/Reuters Technology workers of Chinese descent say that they are experiencing backlash due to the US-China trade war and fears over Huawei, according to a survey commissioned by the Guardian through Blind, an app allowing anonymous workplace communication. “With the trade war against China and especially the Huawei case I feel like a target more and more every day,” an anonymous Amazon employee wrote in a comment on the app, which is popular among technology employees and verifies employment through work emails. “I can’t even feel comfortable about being Chinese because so many Americans see China as a threat now.” The Guardian asked Blind to commission the survey after the Trump administration escalated tensions in the growing trade dispute by declaring a national economic emergency and placing Huawei on a government blacklist. The move had immediate consequences for Silicon Valley companies that do business with Huawei, which is the second-largest smartphone maker in the world after Samsung and ahead of Apple. Google blocked Huawei’s access to updates of the Android operating system and other US chipmakers cut off supplies to the company. More than 6,000 Blind users responded to the question, “Do you predict that there will be negative consequences for people who are connected to China/perceived to be Chinese due to the growing tensions of the US-China trade war and concerns over Huawei?” Respondents were also asked if they were Chinese citizens, Chinese Americans, or of other East Asian ethnicities. The survey is not a scientific poll, but it does provide some insight into sentiments among tech workers who use the app to discuss workplace issues with anonymity. graph 1 graph 2 Nearly two-thirds of respondents working for hardware or semiconductor firms responded “Yes” or “It’s already happening”. Employees of the chipmaker Qualcomm were the most concerned, with 20% saying individuals of Chinese descent were already facing negative consequences, and 56% predicting problems. Employees of Nvidia and Apple also had especially high rates of concern, followed by Google, Intel and Uber. Story continues Slightly less than half (48.4%) of respondents working for software and internet companies either predicted problems or said they were already happening. Across all industries, Chinese nationals had the highest rates of concern (66.7%), while Chinese Americans and those of other East Asian ethnicities (approximately 48%) were slightly more concerned than those who said they were not Chinese or East Asian (43%). “Asian Americans have always been haunted by the specter of dual loyalty, and it’s not just in our heads,” said Frank Wu, a University of California Hastings law professor and the author of Yellow: Race in America Beyond Black and White. “The best example is the internment of Japanese Americans in world war II. Two-thirds of those interned were native born … Every time there is tension between any Asian country and America, Asian Americans face problems, even if they’re not of that particular ethnicity.” The Trump administration’s action against Huawei came amid increasingly bellicose rhetoric against China by US politicians and foreign policy figures. In November, the Hoover Institution released a report urging “constructive vigilance” against Chinese efforts to influence American society. The report’s authors warned against subjecting Chinese Americans to “the kind of generalized suspicion or stigmatization that could lead to racial profiling or a new era of McCarthyism”, but also argued that “the Chinese American community” was a target of influence efforts. The report has garnered criticism from dissenting experts who say it will lead to racial profiling. In April, a group of former government officials and foreign policy figures revived the coldwar-era Committee on the Present Danger as a new organization with a focus on opposing China. At a launch event for the group, Steve Bannon, the former Trump adviser and far-right figurehead, railed against Huawei, saying: “Huawei is the People’s Liberation Army … 5G turns data into plutonium that can be weaponized and they intend to weaponize.” Andy Li, a Chinese American college student and member of the Silicon Valley Chinese Association, said that he had noticed increased hostility toward Chinese students on campus, and that the climate was also raising concerns about job prospects for Asian Americans. “There’s also this newer fear that for Asian Americans, and especially Chinese Americans, it’s going to be harder to get jobs, especially in tech, cybersecurity, and scientific research,” he said. “There’s this fear that even after you’ve assimilated and become a citizen, it doesn’t matter. You’re a national security threat.” Other individuals who spoke to the Guardian were less concerned about increased hostilities. Patrick Ma, a software engineer with an American-born mother and Hong Kong-born father, said that he was happy to be a “global citizen” and that he hadn’t experienced any discrimination. “The Chinese have so much to be grateful for to Trump,” he said, because actions like the Huawei blacklist would force the company to launch its own operating system and improve China’s economy. Juliet Shen, a Chinese American product manager at Snap, said that she did have concerns about racial profiling, but not for herself. “My concerns are more for my parents, who are scientists, and there’s similar allegations of espionage, suspicion [and] discrimination towards Chinese scientists right now too,” she said. “It’s always been a little bit of a concern but definitely has ramped up in recent months [and] years. The Chinese academic and science community has been very panicked and afraid.” |
What You Must Know About Bank of Greece's (ATH:TELL) Beta Value
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Anyone researching Bank of Greece ( ATH:TELL ) 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. The first category is company specific volatility. This can be dealt with by limiting your exposure to any particular stock. 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. See our latest analysis for Bank of Greece What TELL's beta value tells investors With a beta of 1, (which is quite close to 1) the share price of Bank of Greece has historically been about as voltile as the broader market. Using history as a guide, we might surmise that the share price is likely to be influenced by market voltility going forward but it probably won't be particularly sensitive to it. Many would argue that beta is useful in position sizing, but fundamental metrics such as revenue and earnings are more important overall. You can see Bank of Greece's revenue and earnings in the image below. Story continues ATSE:TELL Income Statement, June 19th 2019 How does TELL's size impact its beta? With a market capitalisation of €264m, Bank of Greece is a very small company by global standards. It is quite likely to be unknown to most investors. Companies this small are usually more volatile than the market, whether or not that volatility is correlated. Therefore, it's a bit surprising to see that this stock has a beta value so close to the overall market. What this means for you: Since Bank of Greece has a beta close to one, it will probably show a positive return when the market is moving up, based on history. If you're trying to generate better returns than the market, it would be worth thinking about other metrics such as cashflows, dividends and revenue growth might be a more useful guide to the future. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as Bank of Greece’s financial health and performance track record. I urge you to continue your research by taking a look at the following: Future Outlook : What are well-informed industry analysts predicting for TELL’s future growth? Take a look at our free research report of analyst consensus for TELL’s outlook. Past Track Record : Has TELL 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 at the free visual representations of TELL's historicals for more clarity. Other Interesting Stocks : It's worth checking to see how TELL measures up against other companies on valuation. You could start with this free list of prospective options . 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. |
Wall Street takes on long-term care payouts as insurers balk at costs
By David French
NEW YORK (Reuters) - Some U.S. insurers are turning to Wall Street's financial wizards for relief from the liabilities of their long-term care (LTC) policies, posing a challenge for regulators worried about how new industry players will tackle the risks involved.
These policies help support the provision of care to those unable to handle everyday tasks, such as bathing and cooking, by funding assisted living or nursing home arrangements. Many have become financially toxic for insurers, because of soaring healthcare costs and rising lifespans.
A few investment firms are willing to take on these LTC contracts, betting they can invest the premiums from the policies to generate strong enough returns to cover the payouts, and even turn a tidy profit.
While these transactions promise financial relief to insurers, they are not without risk. The LTC liabilities can be big enough to weigh on even conglomerates such as General Electric Co. If the premiums from the assumed LTC contracts are invested poorly, there may be insufficient money to cover the payouts, industry experts say.
"Some of those deals include nontraditional actors, which we question with regard to their expertise associated with the management of these liabilities, as well as the very aggressive reserving and cash-flow assumptions," said Anthony Beato, a director at credit ratings agency Fitch Ratings.
Those at the forefront of state insurance regulation paint a picture of the industry's watchdogs attempting to walk a fine line between the need to alleviate financial pressure on insurers and policing risky deals.
"There is a trend toward encouragement to make sure there is a functioning private LTC insurance market to cope with the baby boomers' needs," Fred Andersen, chief life actuary at Minnesota's Department of Commerce, said of the general regulatory attitude toward these deals.
At stake is the viability of the LTC policies on which elderly and disabled people rely. Without private insurance, they would be forced to pay for their own care or rely on already-stretched state and federal programs such as Medicaid.
Around 12 million people in the United States will need such assistance by the end of this decade, according to the U.S. Department of Health and Human Services. This figure is set to skyrocket as the number of retirees increases; Americans over 65 years old are projected to more than double to 98 million by 2060.
The LTC market has already shrunk because of the financial strain facing insurers. Fewer than 70,000 new LTC policies were written in the United States in 2017, down from 372,000 in 2004, according to the most recent data from the National Association of Insurance Commissioners (NAIC). The average annual LTC policy premium rose to $2,772 in 2015 from $1,677 in 2000, based on NAIC data.
(Graphic: How insurers are managing the risks of long-term care plans - https://tmsnrt.rs/2OqeGHL)
POLICIES CHANGE HANDS
Two major LTC transactions took place in the last 12 months, and insurance executives and dealmakers say they expect more to happen this year.
Continental General Insurance Company (CGIC), a subsidiary of hedge fund veteran Philip Falcone's HC2 Holdings Inc, completed the purchase of health insurer Humana Inc's $2.4 billion LTC business last August.
It was the second such deal for CGIC, which also acquired the LTC business of American Financial Group Inc in 2015.
In September, Wilton Re, which is owned by the Canada Pension Plan Investment Board, reinsured the LTC policies of CNO Financial Group Inc. This meant that CNO continued to administer the policies, but Wilton Re took over the investment of the premiums and guaranteed the payouts.
Humana and CNO had to pay the financial firms $203 million and $825 million, respectively, to get the LTC portfolios off their books.
Analysts say such one-off charges are better for insurers than allowing LTC policies to drain their finances. Fitch said in a report last October that many U.S. insurers with LTC portfolios would need to allocate at least 10% more cash to reserves covering these policies in 2019.
Prudential Financial Inc and Unum Group were among the insurance firms that announced in 2018 they needed to commit extra cash to fund future LTC liabilities. One insurer, Penn Treaty, collapsed in 2017 under the weight of its LTC obligations.
General Electric, which said last year it would take a $6.2 billion after-tax charge and set aside a further $15 billion in reserves to help cover its LTC liabilities, is also looking for a buyer for its LTC portfolio, Reuters has reported.
RISKY BETS
CNO's first attempt to seek relief from its LTC portfolio soured in 2016 following a reinsurance deal with Beechwood Re, which was founded by two Wall Street veterans.
Beechwood subsequently collapsed after investing some of the policy premiums in Platinum Partners, a hedge fund that folded due to its risky bets and whose top executives were indicted in a U.S. federal fraud probe in December 2016.
As a result, CNO was forced to reabsorb the $550 million LTC portfolio and take a $53 million after-tax charge.
U.S. state regulators tasked with averting such failed deals are generally more focused on the reserves the investment firms set aside, rather than how they invest the premiums from the LTC policies, said Ann Frohman, founder of Frohman Law Office and a former head of Nebraska's Department of Insurance.
"In addition to current requirements, one area of improvement would be having all states require the stress-testing of investment assumptions on LTC portfolios against financial crisis-type economic conditions," Frohman said.
Some firms taking on the LTC portfolios also invest in junk-rated corporate credit, which is more susceptible to losses during an economic downturn, according to Fitch's Beato.
Wilton Re declined to comment on how it invests LTC policy premiums, while a CGIC spokesman said it focuses on generating higher yields from investment-grade assets.
Even if some insurers do not place risky investment bets, regulators say they also have to watch out for firms seeking to avoid paying out some claims to boost their profitability.
"That is always a concern," said Pennsylvania's insurance commissioner, Jessica Altman.
(Reporting by David French in New York; Editing by Greg Roumeliotis and Matthew Lewis) |
How Much Of Tigers Realm Coal Limited (ASX:TIG) Do Insiders Own?
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A look at the shareholders of Tigers Realm Coal Limited (ASX:TIG) can tell us which group is most powerful. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'
Tigers Realm Coal is not a large company by global standards. It has a market capitalization of AU$99m, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutions don't own many shares in the company. Let's take a closer look to see what the different types of shareholder can tell us about TIG.
Check out our latest analysis for Tigers Realm Coal
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.
Since institutions own under 5% of Tigers Realm Coal, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. So if the company itself can improve over time, we may well see more institutional buyers in the future. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.
We note that hedge funds don't have a meaningful investment in Tigers Realm Coal. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
It seems insiders own a significant proportion of Tigers Realm Coal Limited. Insiders own AU$27m worth of shares in the AU$99m company. It is great to see insiders so invested in the business. It might be worth checkingif those insiders have been buying recently.
The general public holds a 16% stake in TIG. 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.
With an ownership of 46%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.
It seems that Private Companies own 9.3%, of the TIG stock. 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.
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 accessthisinteractive graphof past earnings, revenue and cash flow for free.
Of coursethis may not be the best stock to buy. Therefore, you may wish to see ourfreecollection of interesting prospects boasting favorable financials.
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. |
Dust (WSE:THD) Shareholders Booked A 57% Gain In The Last Year
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It might be of some concern to shareholders to see theThe Dust S.A.(WSE:THD) share price down 10% in the last month. While that might be a setback, it doesn't negate the nice returns received over the last twelve months. Looking at the full year, the company has easily bested an index fund by gaining 57%.
View our latest analysis for Dust
Dust recorded just zł860,776 in revenue over the last twelve months, which isn't really enough for us to consider it to have a proven product. As a result, we think it's unlikely shareholders are paying much attention to current revenue, but rather speculating on growth in the years to come. It seems likely some shareholders believe that Dust will significantly advance the business plan before too long.
As a general rule, if a company doesn't have much revenue, and it loses money, then it is a high risk investment. 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 such companies go on to make revenue, profits, and generate value, others get hyped up by hopeful naifs before eventually going bankrupt. Of course, if you time it right, high risk investments like this can really pay off, as Dust investors might know.
Dust had cash in excess of all liabilities of just zł744k when it last reported (March 2019). So if it has not already moved to replenish reserves, we think the near-term chances of a capital raising event are pretty high. It's a testament to the popularity of the business plan that the share price gained 57% in the last year, despite the weak balance sheet. The image below shows how Dust's balance sheet has changed over time; if you want to see the precise values, simply click on the image.
In reality it's hard to have much certainty when valuing a business that has neither revenue or profit. However you can take a look at whether insiders have been buying up shares. It's often positive if so, assuming the buying is sustained and meaningful. You canclick here to see if there are insiders buying.
It's nice to see that Dust shareholders have gained 57% over the last year. We regret to report that the share price is down 0.7% over ninety days. Shorter term share price moves often don't signify much about the business itself. You could get a better understanding of Dust's growth by checking outthis more detailed historical graphof earnings, revenue and cash flow.
We will like Dust 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 PL 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. |
Nifty ends little changed; auto companies drag
BENGALURU (Reuters) - Indian shares pared early gains and were nearly flat at the closing bell on Wednesday, as expectations of the U.S. Federal Reserve holding interest rates after its meeting concludes later in the day subdued investors' sentiments.
The broader NSE Nifty ended unchanged at 11,691.45, while the benchmark BSE Sensex closed up 0.17% at 39,112.74.
U.S. central bankers are expected to leave interest rates steady but potentially lay the groundwork for a rate cut later this year.
Meanwhile, automobile stocks were among the top drags on local indexes, after reports of banks reducing exposure to the sector due to slowing sales and production cuts. The Nifty auto index ended 1.11% in the red.
Yes Bank extended its bear run, ending 5.58% lower, after credit agency Moody's put the company's under review for a downgrade.
Jet Airways ended 18.27% down, ahead of its tribunal hearing related to the airline's bankruptcy on Thursday.
Among gainers, Tata Steel topped the NSE gainers list after iron ore prices touched a record high on Friday.
(Reporting by Derek Francis in Bengaluru; Editing by Rashmi Aich) |
Could TIE Kinetix N.V.'s (AMS:TIE) Investor Composition Influence The Stock Price?
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If you want to know who really controls TIE Kinetix N.V. (AMS:TIE), then you'll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. 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.
With a market capitalization of €12m, TIE Kinetix is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutions don't own shares in the company. Let's delve deeper into each type of owner, to discover more about TIE.
See our latest analysis for TIE Kinetix
Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.
There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of TIE Kinetix, for yourself, below.
Hedge funds don't have many shares in TIE Kinetix. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.
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.
It seems insiders own a significant proportion of TIE Kinetix N.V.. Insiders own €1.6m worth of shares in the €12m company. It is great to see insiders so invested in the business. It might be worth checkingif those insiders have been buying recently.
The general public, with a 32% stake in the company, will not easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
It seems that Private Companies own 55%, of the TIE stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
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 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. |
Congressman Sean Duffy dodges questions about Trump
Wisconsin congressman Sean Duffy appeared on All In with Chris Hayes to discuss the growing calls for the impeachment of President Trump in light of the Mueller report findings. However, the interview quickly spiralled out of control when Duffy refused to answer Hayes’s questions. Hayes pointed out the Mueller findings that Trump asked White House counsel Don McGahn to lie and fabricate a story. Hayes asked Duffy, “Is that acceptable behavior from the president, I'm not asking you is it impeachable, I want to know, is it acceptable to ask the White House counsel to fabricate a document to further a duplicitous story in the face of investigators?” Duffy responded by discrediting the Mueller investigation and Democratic party. Hayes asked Duffy the question again and Duffy responded by defending the president’s actions because he believes Wisconsin’s economy is thriving. Duffy said “We're killing it in Wisconsin. You want to impeach that guy?” Duffy repeatedly referred to the Mueller report as “fake,” so he refused to speak on the findings. Hayes said he was ending the interview because Duffy was being non-compliant. But despite the heated exchange, they both ended the interview cordially. Many viewers took to Twitter to voice their disappointment in Duffy. In fact, many asked the show’s producers to avoid having Duffy on ever again. Sean Duffy is just #inners pic.twitter.com/DawS3erfvL — Darrell Bear (@MrChillBro) June 19, 2019 @chrislhayes please never have this tool Sean Duffy on Again! He can’t answer a simple question and he’s obnoxious. Please leave him off in the future — James C. Cox Jr. (@jamesccoxjr) June 19, 2019 All In with Chris Hayes airs weeknights at 8 p.m. on MSNBC. Story continues Watch as Chants of ‘CNN sucks’ cause network to cut away from Trump rally: Read more from Yahoo Entertainment: Dwayne Johnson shares message of inclusion and kindness during MTV acceptance speech Cystic fibrosis survivor auditions for ‘SYTYCD’: ‘I want to live now, because I may not be able to do it later’ John Oliver equates conservative news to O.J. Simpson’s Twitter account Tell us what you think! Hit us up on Twitter , Facebook or Instagram , or leave your comments below. And check out our host, Kylie Mar, on Twitter , Facebook or Instagram . Want daily pop culture news delivered to your inbox? Sign up here for Yahoo Entertainment & Lifestyle's newsletter. |
The AroCell (STO:AROC) Share Price Is Down 62% So Some Shareholders Are Wishing They Sold
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Generally speaking long term investing is the way to go. But unfortunately, some companies simply don't succeed. For example, after five long years theAroCell AB (publ)(STO:AROC) share price is a whole 62% lower. We certainly feel for shareholders who bought near the top. We also note that the stock has performed poorly over the last year, with the share price down 55%. It's down 6.3% in the last seven days.
View our latest analysis for AroCell
AroCell recorded just kr857,841 in revenue over the last twelve months, which isn't really enough for us to consider it to have a proven product. This state of affairs suggests that venture capitalists won't provide funds on attractive terms. So it seems that the investors focused more on what could be, than paying attention to the current revenues (or lack thereof). It seems likely some shareholders believe that AroCell will significantly advance the business plan before too long.
Companies that lack both meaningful revenue and profits are usually considered high risk. There is usually a significant chance that they will need more money for business development, putting them at the mercy of capital markets. So the share price itself impacts the value of the shares (as it determines the cost of capital). While some such companies go on to make revenue, profits, and generate value, others get hyped up by hopeful naifs before eventually going bankrupt. Some AroCell investors have already had a taste of the bitterness stocks like this can leave in the mouth.
When it last reported its balance sheet in March 2019, AroCell had cash in excess of all liabilities of kr23m. While that's nothing to panic about, there is some possibility the company will raise more capital, especially if profits are not imminent. With the share price down 18% per year, over 5 years, it seems likely that the need for cash is weighing on investors' minds. You can see in the image below, how AroCell's cash levels have changed over time (click to see the values).
Of course, the truth is that it is hard to value companies without much revenue or profit. Given that situation, would you be concerned if it turned out insiders were relentlessly selling stock? I'd like that just about as much as I like to drink milk and fruit juice mixed together. It costs nothing but a moment of your time tosee if we are picking up on any insider selling.
While the broader market gained around 9.8% in the last year, AroCell shareholders lost 55%. 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 17% 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. Most investors take the time to check the data on insider transactions. You canclick here to see if insiders have been buying or selling.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on SE 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. |
Gold steadies on the face of awaited FOMC statement
By Karthika Suresh Namboothiri and Diptendu Lahiri
(Reuters) - Gold prices steadied on Wednesday as investors awaited the U.S. Federal Reserve's statement later in the session for cues on its interest rate outlook.
Spot gold was little changed at $1,346.03 per ounce at 12:57 p.m. EDT (1657 GMT). U.S. gold futures fell 0.1% to $1,349.70 per ounce.
"The market might become a little cautious just ahead of the meeting and gold investors might take a neutral position then," said Suki Cooper, precious metals analyst at Standard Chartered Bank.
The Fed monetary policy statement scheduled for release at 2 p.m. EDT (1800 GMT) will be followed by a news conference by Chairman Jerome Powell. Futures markets have almost fully priced in a quarter-point easing in July and imply more than 60 basis points of cuts by Christmas.
"People are optimistic about Fed cutting rates twice, once in July and once in December," Cooper said.
Gold touched a 14-month peak of $1,358.04 an ounce on Friday, and has gained more than 6% since touching a 2019 low of $1,265.85 in early May.
"A major driver of the gold price rally since 4Q18 has been the Fed's pivot from expecting rate hikes to expecting cuts. ... We expect market participants to be disappointed by the Fed's press conference on Wednesday. This would pressure gold prices," Societe Generale said in a note.
The U.S. central bank is not alone in contemplating rate cuts. European Central Bank President Mario Draghi hinted on Tuesday that if inflation failed to pick up, more policy easing could be on its way.
Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
Also weighing on prices was fresh optimism on the U.S.-China trade war front. China said earlier in the session that positive outcomes were possible in trade negotiations with Washington, after the presidents of the world's two largest economies agreed to revive their troubled talks at a G20 meeting later this month.
The drawn-out trade tussle between the world's two biggest economies has toppled global markets since its inception and raised concerns of an economic recession.
"We think the recent rally in gold rally has been as a result of combination of two things, the trade issues and central banks cutting rates. I don’t think these two have factored in completely yet," Cooper added.
Amongst other precious metals, silver was down 0.2% to $14.97, while platinum was unchanged at $806.93.
Palladium gained 1.3% to $1,499.35 per ounce, having hit its highest since March 27 at $1,502.02 earlier in the session.
(Reporting by Karthika Suresh Namboothiri and Diptendu Lahiri in Bengaluru; editing by Jonathan Oatis) |
UPDATE - Upper Street Marketing and Partners Complete First 1,200-Acre Hemp Cultivation, $200 Million Harvest Projected
San Diego, California--(Newsfile Corp. - June 19, 2019) - This is a CLARIFICATION and EXPANSION of the press release dated June 18, 2019. Upper Street Marketing Inc. (OTC Markets: symbolUPPR) and its agricultural partners have fully planted their first hemp crop on 1,200 acres of Colorado farmland and are now less than 16 weeks from being able to start processing the biomass into high-grade cannabidiol (CBD) isolates and distillates.
Pictures of the 330 acres UPPR has cultivated in Center, Colorado are available at our website:www.upperstreetmarketing.com. The company has also sourced the crop from roughly 900 additional acres owned and operated by Fox Organic Forms, which will be ready for extraction in late September or early October.
"As we ramp up to solve the global CBD deficit, the weather and an expert cultivation team were on our side," said UPPR Chief Executive Officer, Joseph Earle. "Now all we need to do is let Nature translate that effort into a CBD-rich harvest ready for our extraction facilities."
Hemp plants generally require 16 weeks before the flowers are ripe enough to develop oil-bearing seeds. At that point, the mature biomass is ready for harvest, separation and processing.
Getting the crop in the ground now puts UPPR on track to meet its extraction start date in early 4Q2019. Since the company owns a 100,000 square-foot facility in Center, Colorado as well as leases a 12,000 square-foot laboratory in San Diego, California, management anticipates that converting the biomass into high-grade CBD isolates and distillates will be a relatively straightforward process.
The company has also retained FDA-licensed contract pharmaceutical manufacturer, PrimaPharma Inc., (http://www.primapharma.net) to ensure that all products meet regulatory and commercial FDA cGMP standards. Most recently, UPPR has partnered with ICC Inc. (http://icc-inc.net) to build out the manufacturing systems that will turn industrial quantities of raw hemp into high-grade CBD products to meet parabolically increasing commercial demand.
Previously disclosed yield projections suggest that this season's overall 1,200-acre production profile translates to 45,000 kilograms of high-quality CBD. As demand for the newly legalized, non-psychoactive chemical compounds formerly locked within the hemp plant expands, UPPR is ready to help fill the gap.
Fortune magazine and other publications have contemplated a 100X surge in CBD consumption between now and 2023, at which point UPPR and other producers will need to ramp up output from a currently minimal 55,000 kg of isolate to as much as 3.5 million kg.
UPPR research indicates that approximately 55,000 acres of hemp were harvested in 2018 across North America, enough to satisfy only 2 million kg of retail demand. On that basis, cultivation will need to expand to over 250,000 acres simply to meet projected 2020 consumption.
In the meantime, recent wholesale pricing on CBD isolates is running above $3,000 per pound ($7,000 per kilogram) and many organic hemp farmers target yields of 15% CBD or higher. As such, the acreage UPPR and its partners have planted can conservatively produce a crop worth the equivalent of $200,000 per acre, or a revenue event topping $200 million.
Fox Organic Farms will receive 50% of the ultimate proceeds from biomass harvested from its land (roughly $150 million in total) while the rest goes to UPPR in exchange for its processing services. In addition, all revenue ($50 million) from UPPR's 330-acre planting will pass to the company to validate its seed-to-consumer business plan.
As such, while not all of the $200 million in total commercial value in this initial cultivation season will end up with UPPR, the company's share of the ultimate harvest is tracking well above previously disclosed targets.
"Even though we have partnered with third parties to supply at least 2 million pounds of hemp biomass this season, it will be especially satisfying to process our own crop as well," CEO Earle said.
"While we're executing parts of our strategic plan up to a year ahead of schedule, our initial cultivation and extraction framework remains in place to exceed our revenue target for 2019. So far, so good."
About Upper Street Marketing and CBD
An estimated 7% of Americans are currently consuming CBD products, with that population conservatively expanding 30% (to 25 million adults) by 2025. Now fully legal as a non-psychoactive product of industrial hemp, CBD has been promoted as an effective treatment for everything from arthritis to insomnia. To date, the only FDA-approved uses are for two rare forms of childhood epilepsy. With one of the only integrated "seed to consumer" platforms for participating in all phases of the industry from crop to value-added commercial and clinical product development, UPPR intends to be a leader in FDA cGMP (Current Good Manufacturing Practice) capabilities in the hemp and CBD marketplace.
Cautionary Language Concerning Forward-Looking Statements
Statements in this press release may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "anticipate", "believe", "estimate", "expect", "intend", and similar expressions, as they relate to the Company or its management, identify forward-looking statements. These statements are based on current expectations, estimates, and projections about the Company's business, based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors. Such statements could be affected by risks and uncertainties related to: (i) our ability to execute the Company's business plans with the uncertainty of agricultural crops (ii) product demand, market, and customer acceptance of the Company's products, (iii) the Company's ability to obtain financing to expand our operations, (iv) the Company's ability to attract qualified sales representatives, (v) competition, pricing and development difficulties, (vi) the Company's ability to conduct the business if there are changes in laws, regulations, or government policies related to the Company's products, (vii) the Company's ability to conduct operations if it faces product recalls, and (viii) general industry and market conditions and growth rates and general economic conditions. Any forward-looking statements speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.
For Further Information Contact:
Upper Street Marketing Inc.: .Phone: (844) 535-UPPR (8777)Emailinvestorrelations@upperstreetmarketing.com
To view the source version of this press release, please visithttps://www.newsfilecorp.com/release/45734 |
Estimating The Intrinsic Value Of Public Joint Stock Company ARMADA (MCX:ARMD)
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Does the June share price for Public Joint Stock Company ARMADA (MCX:ARMD) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the foreast future cash flows of the company and discounting them back to today's value. I will be 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.
Check out our latest analysis for ARMADA
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. Seeing as no analyst estimates of free cash flow are available to us, we have extrapolate the previous free cash flow (FCF) from the company's last 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 need to discount the sum of these future cash flows to arrive at a present value estimate:
[{"": "Levered FCF (RUB, Millions)", "2019": "RUB14.23", "2020": "RUB15.69", "2021": "RUB17.22", "2022": "RUB18.82", "2023": "RUB20.53", "2024": "RUB22.35", "2025": "RUB24.31", "2026": "RUB26.41", "2027": "RUB28.68", "2028": "RUB31.13"}, {"": "Growth Rate Estimate Source", "2019": "Est @ 11.05%", "2020": "Est @ 10.26%", "2021": "Est @ 9.72%", "2022": "Est @ 9.33%", "2023": "Est @ 9.07%", "2024": "Est @ 8.88%", "2025": "Est @ 8.75%", "2026": "Est @ 8.65%", "2027": "Est @ 8.59%", "2028": "Est @ 8.55%"}, {"": "Present Value (RUB, Millions) Discounted @ 23.08%", "2019": "RUB11.56", "2020": "RUB10.36", "2021": "RUB9.23", "2022": "RUB8.20", "2023": "RUB7.27", "2024": "RUB6.43", "2025": "RUB5.68", "2026": "RUB5.02", "2027": "RUB4.42", "2028": "RUB3.90"}]
Present Value of 10-year Cash Flow (PVCF)= RUB72.08m
"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. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 10-year government bond rate (8.4%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 23.1%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = RUруб31m × (1 + 8.4%) ÷ (23.1% – 8.4%) = RUруб231m
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= RUBRUруб231m ÷ ( 1 + 23.1%)10= RUB28.90m
The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is RUB100.98m. 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 RUB7.01. Compared to the current share price of RUB7.84, the company appears around fair value at the time of writing. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out.
Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual 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 ARMADA 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 23.1%, which is based on a levered beta of 1.552. 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.
Whilst important, DCF calculation 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. For ARMADA, There are three essential aspects you should further research:
1. Financial Health: Does ARMD have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Other High Quality Alternatives: Are there other high quality stocks you could be holding instead of ARMD? 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 MCX 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. |
Bitcoin Price Will ‘Easily’ Blast Beyond All-Time High Soon: Wall Street Analyst
ByCCN Markets: Speaking to CNBC’s Futures Now, Fundstrat co-founder and head of research Thomas Lee said that considering themomentumof bitcoin, the dominant crypto asset is likely to take out its all-time high very soon.
“Well, you know I think bitcoin ultimately becomes a reserve currency in crypto, bitcoin at $9,000 has only been at this level in four percent of its history. We’re deep into a bull market and people are pretty silent about it. I think bitcoin is easily going to take out its all-time high,” said Lee.
Lee’s optimistic projection of bitcoin comes after the asset recorded a 113 percent increase in value since April within a two-month span from $4,310 to $9,200.
Historically, as a highly volatile asset, bitcoin has tended to record most of its gains in a year within a 10-day time frame, as Lee previously explained.
Read the full story on CCN.com. |
Estimating The Intrinsic Value Of thyssenkrupp AG (ETR:TKA)
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Does the June share price for thyssenkrupp AG (ETR:TKA) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to their present 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.
Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. 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.
Check out our latest analysis for thyssenkrupp
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.
Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate:
[{"": "Levered FCF (\u20ac, Millions)", "2019": "\u20ac-690.76", "2020": "\u20ac523.78", "2021": "\u20ac677.27", "2022": "\u20ac798.99", "2023": "\u20ac900.05", "2024": "\u20ac980.36", "2025": "\u20ac1.04k", "2026": "\u20ac1.09k", "2027": "\u20ac1.12k", "2028": "\u20ac1.15k"}, {"": "Growth Rate Estimate Source", "2019": "Analyst x5", "2020": "Analyst x4", "2021": "Analyst x4", "2022": "Est @ 17.97%", "2023": "Est @ 12.65%", "2024": "Est @ 8.92%", "2025": "Est @ 6.31%", "2026": "Est @ 4.49%", "2027": "Est @ 3.21%", "2028": "Est @ 2.32%"}, {"": "Present Value (\u20ac, Millions) Discounted @ 9.13%", "2019": "\u20ac-632.98", "2020": "\u20ac439.82", "2021": "\u20ac521.14", "2022": "\u20ac563.38", "2023": "\u20ac581.56", "2024": "\u20ac580.47", "2025": "\u20ac565.51", "2026": "\u20ac541.47", "2027": "\u20ac512.11", "2028": "\u20ac480.14"}]
Present Value of 10-year Cash Flow (PVCF)= €4.15b
"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 0.2%. We discount the terminal cash flows to today's value at a cost of equity of 9.1%.
Terminal Value (TV)= FCF2029× (1 + g) ÷ (r – g) = €1.2b × (1 + 0.2%) ÷ (9.1% – 0.2%) = €13b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= €€13b ÷ ( 1 + 9.1%)10= €5.41b
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is €9.56b. The last step is to then divide the equity value by the number of shares outstanding.This results in an intrinsic value estimate of €15.36. Relative to the current share price of €12.38, the company appears about fair value at a 19% 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 thyssenkrupp 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 9.1%, which is based on a levered beta of 1.493. 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. For thyssenkrupp, I've put together three essential aspects you should further research:
1. Financial Health: Does TKA 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 TKA'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 TKA? 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 ETR 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. |
Locust Wood Capital Advisers’ Return, AUM, and Holdings (Part II)
Read the beginning of thisarticle here.
The most valuable position in Locust Wood Capital Adviser’s 13F portfolio at the end of March 2019, was inLinde plc (NYSE:LIN). This is one of the biggest industrial gas companies by market share and revenue in the world. For 2018 it reported pro forma sales of $28 billion. With around 80,000 employees, the company is providing its professional services across 100 countries around the world. It was formed by the merger of German’s Linde AG and the US’ Praxair. In its last financial report for the first quarter of 2019, Linde disclosed sales of $6.94 billion and diluted earnings per share from continuing operations of $0.79, compared to sales of $2.98 billion and diluted earnings per share from continuing operations of $1.59 in the same quarter of 2018. Year-to-date, its stock gained 29.78%, and on June 18thit had a closing price of $204.02. On June 7th, JPMorgan Chase & Co. boosted its price target on it to $206.00 from $189.00 with ‘Overweight’ rating. During Q1 209, Locust Wood actually lowered its stake in the company by 15% to 597,647 shares, with a value of 89.31 million amassing 6.97% of its portfolio.
The second largest stake the fund held at the end of the quarter was inComcast Corporation (NASDAQ:CMCSA), a Philadelphia-based telecommunications conglomerate, which is also the largest high-speed internet, video, and phone provider in the US. Its three largest businesses are Comcast Cable, NBC Universal, and Sky. Over the last 12 months, the company’s stock gained 27.92%, having a closing price on June 18thof $43.25. Its market cap is of $196.30 billion, and the company is trading at a price-to-earnings ratio of 16.39. For Q1 2019, Comcast Corporation disclosed revenue of $26.9 billion versus $22.79 billion one quarter earlier, and earnings per share of $0.77, compared to EPS of $0.66 for the last quarter of 2018. On June 14th, Raymond James downgraded its rating on the stock to ‘Outperform’ from ‘Strong-Buy’ and lowered its price target on it to $21.00 from $25.00, while Rosenblatt Securities initiated coverage and placed ‘Buy’ rating with a price target of $50.00 on it. Locust Wood had 1.94 million Comcast’s shares with a value of $77.36 million at the end of March 2019.
Microsoft Corporation (NASDAQ:MSFT),represented the fund’s third most valuable holding at the end of the first quarter, with 575,511 shares outstanding that were worth $67.88 million. This position accounted for 5.3% of its 13F portfolio. Since the beginning of the year, Microsoft’s stock gained 33.66% and on June 18thit closed with a price of $135.16.
Out of six new additions to the fund’s portfolio, the biggest one wasElement Solutions Inc (NYSE:ESI), a chemical company with a market cap of $2.68 billion that offers various original solutions covering many markets. It has a market cap of $2.68 billion.Locust Wood initiated a position that was worth $28.73 million, on the account of 2.84 million shares, comprising 2.24% of its portfolio. Over the past 12 months, Element’s stock lost 11.34%, closing on June 18th, with a price of $10.40. As per its financial report for the first quarter of 2019, the company had net sales of $459.8 million and diluted EPS of $0.09, compared to net sales of $492.5 million and diluted EPS of $0.13 in the same period of 2018.
The second in line of valuable new positions wasThe Boeing Company (NYSE:BA),a world-famous airplane manufacturer that also makes satellites, rockets, missiles, and other aircraft-related products. Its stock gained 15.49% since the beginning of the year, and on June 18thit had a closing price of $373.96. Locust Wood purchased 68,305 Boeing’s shares valued $26.05 million creating a stake that accounted for 2.03% of its equity portfolio. The Boeing Company has a market cap of $210.20 billion, and it is trading at a P/E ratio of 21.41. For Q1 2019, the company reported revenues of $22.92 billion and GAAP EPS of $3.75, compared to revenues of $23.38 billion and GAAP EPS of $4.15 in the same period of 2018. On June 14th, Goldman Sachs Group restated its ‘Neutral’ rating on the stock with a price target of $396.00, while one day earlier Berenberg Bank repeated its ‘Buy’ rating on it, with a price target of $415.00.
InBaxter International Inc. (NYSE:BAX),a Fortune 500 health care company Locust Wood established $16.96 million worth a position by acquiring 208,625 shares. YTD, its stock is up 23.37% and on June 18thit closed with $80.56 per share.
Disclosure:None
This article was originally published atInsider Monkey. |
Is China Isotope Radiation Corporation's (HKG:1763) P/E Ratio Really That Good?
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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 apply a basic P/E ratio analysis to China Isotope & Radiation Corporation's (HKG:1763), to help you decide if the stock is worth further research. Based on the last twelve months,China Isotope & Radiation's P/E ratio is 14.14. That is equivalent to an earnings yield of about 7.1%.
View our latest analysis for China Isotope & Radiation
Theformula for P/Eis:
Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS)
Or for China Isotope & Radiation:
P/E of 14.14 = CN¥16.36(Note: this is the share price in the reporting currency, namely, CNY )÷ CN¥1.16 (Based on the year to December 2018.)
A higher P/E ratio implies that investors paya higher pricefor the earning power of the business. That isn't a good or a bad thing on its own, but a high P/E means that buyers have a higher opinion of the business's prospects, relative to stocks with a lower P/E.
When earnings fall, the 'E' decreases, over time. Therefore, even if you pay a low multiple of earnings now, that multiple will become higher in the future. Then, a higher P/E might scare off shareholders, pushing the share price down.
China Isotope & Radiation shrunk earnings per share by 1.1% last year. And it has shrunk its earnings per share by 1.9% per year over the last five years. So it would be surprising to see a high P/E.
The P/E ratio essentially measures market expectations of a company. We can see in the image below that the average P/E (16.1) for companies in the medical equipment industry is higher than China Isotope & Radiation's P/E.
China Isotope & Radiation's P/E tells us that market participants think it will not fare as well as its peers in the same industry. Many investors like to buy stocks when the market is pessimistic about their prospects. You should delve deeper. I like to checkif company insiders have been buying or selling.
One drawback of using a P/E ratio is that it considers market capitalization, but not the balance sheet. In other words, it does not consider any debt or cash that the company may have on the balance sheet. In theory, a company can lower its future P/E ratio by using cash or debt to invest in growth.
Spending on growth might be good or bad a few years later, but the point is that the P/E ratio does not account for the option (or lack thereof).
China Isotope & Radiation has net cash of CN¥2.5b. This is fairly high at 47% of its market capitalization. That might mean balance sheet strength is important to the business, but should also help push the P/E a bit higher than it would otherwise be.
China Isotope & Radiation's P/E is 14.1 which is above average (10.7) in the HK market. The recent drop in earnings per share would make some investors cautious, but the net cash position means the company has time to improve: and the high P/E suggests the market thinks it will.
Investors should be looking to buy stocks that the market is wrong about. People often underestimate remarkable growth -- so investors can make money when fast growth is not fully appreciated. So thisfreereport on the analyst consensus forecastscould help you make amaster moveon this stock.
You might be able to find a better buy than China Isotope & Radiation. 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. |
Can We See Significant Institutional Ownership On The Árima Real Estate SOCIMI, S.A. (BME:ARM) Share Register?
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If you want to know who really controls Árima Real Estate SOCIMI, S.A. (BME:ARM), then you'll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Companies that have been privatized tend to have low insider ownership.
With a market capitalization of €139m, Árima Real Estate SOCIMI 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. We can zoom in on the different ownership groups, to learn more about ARM.
Check out our latest analysis for Árima Real Estate SOCIMI
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 33% of Árima Real Estate SOCIMI. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Árima Real Estate SOCIMI's historic earnings and revenue, below, but keep in mind there's always more to the story.
We note that hedge funds don't have a meaningful investment in Árima Real Estate SOCIMI. There is some analyst coverage of the stock, but it could still become more well known, with time.
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
I can report that insiders do own shares in Árima Real Estate SOCIMI, S.A.. In their own names, insiders own €5.0m worth of stock in the €139m company. It is good to see some investment by insiders, but I usually like to see higher insider holdings. It might be worth checkingif those insiders have been buying.
With a 48% ownership, the general public have some degree of sway over ARM. 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 15%, 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.
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 are like me, you may want to think about whether this company will grow or shrink. Luckily, you can checkthis free report showing analyst forecasts for its 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. |
If You Had Bought Prakash Steelage (NSE:PRAKASHSTL) Stock A Year Ago, You Could Pocket A 400% Gain Today
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Prakash Steelage Limited(NSE:PRAKASHSTL) shareholders might be concerned after seeing the share price drop 17% in the last quarter. But over the last year the share price has taken off like one of Elon Musk's rockets. In fact, it is up 400% in that time. So the recent fall isn't enough to negate the good performance. The real question is whether the fundamental business performance can justify the strong increase over the long term.
See our latest analysis for Prakash Steelage
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
During the last year Prakash Steelage grew its earnings per share, moving from a loss to a profit. We think the growth looks very prospective, so we're not surprised the market liked it too. Generally speaking the profitability inflection point is a great time to research a company closely, lest you miss an opportunity to profit.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
Before buying or selling a stock, we always recommend a close examination ofhistoric growth trends, available here..
It's good to see that Prakash Steelage has rewarded shareholders with a total shareholder return of 400% in the last twelve months. That certainly beats the loss of about 54% per year over the last half decade. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. You might want to assessthis data-rich visualizationof its earnings, revenue and cash flow.
But note:Prakash Steelage may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on IN 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. |
GLOBAL MARKETS-Asia shares pin all on dovish Fed, risk disappointment
* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Asia shares ex-Japan enjoy best day since Jan
* Much riding on Fed being open to easing, and soon
* Global bonds rally after Draghi flags stimulus
* Trump says to meet Xi at G20, trade talks to resume
By Wayne Cole
SYDNEY, June 19 (Reuters) - Asian shares hit five-week highs on Wednesday as investors wagered the Federal Reserve would follow the lead of the European Central Bank and open the door to future rate cuts at its policy meeting later in the day.
Indeed, ECB President Mario Draghi's shock about-face on easing fuelled talk of a worldwide wave of central bank stimulus, firing up stocks, bonds and commodities.
Adding to the cheer was news U.S. President Donald Trump would meet with Chinese President Xi Jinping at the G20 summit later this month, even though most analysts doubt there would be a decisive breakthrough to end their countries' damaging trade dispute.
"We expect no real change following the G20 sideline meeting. (But) the fact that both sides are talking should at least postpone thoughts of a further increase in tariffs," ING's Greater China economist Iris Pang said in a note.
MSCI's broadest index of Asia-Pacific shares outside Japan climbed 1.8% in its biggest daily rally since January. Shanghai blue chips rose 1.9% to a six-week peak.
Japan's Nikkei gained 1.8%, while Australia added 1.1% to its highest in 11 years. E-Mini futures for the S&P 500 were a fraction firmer, as were those for the EUROSTOXX 50.
All eyes are now upon the Fed which is scheduled to release a statement at 1800 GMT, followed by a press conference by Chairman Jerome Powell shortly after.
Yet all the clamour for easing creates risks the Fed will disappoint.
"Market expectations for a dovish shift are nearly universal, the only question seems to be the degree," said Blake Gwinn, head of front-end rates at NatWest Markets.
Futures are almost fully priced for a quarter-point easing in July and imply more than 60 basis points of cuts by Christmas. "Markets will be looking for validation of this pricing," he added. "We think this represents a fairly high bar for the Fed to deliver a dovish surprise."
SUB-ZERO YIELDS
BofA Merrill Lynch's latest fund manager survey spoke volumes about the sea change in sentiment.
Allocation to global equities dropped 32 points to a net 21% underweight, the lowest since March 2009, while the bond allocation hit the highest since September 2011.
Interest rate expectations collapsed, while concerns about a trade war soared to be the top risk for investors, ahead of monetary policy impotence, U.S. politics and a slower China.
A Thomson Reuters/INSEAD survey found confidence among Asian companies at its lowest since the 2008-09 financial crisis as the trade war disrupts global supply chains.
The mood shift was clear in bond markets where German yields hit record lows deep in negative territory, while Japanese yields sank to the lowest since August 2016 at -0.145%.
Yields on the U.S. 10-year note reached the lowest since September 2017 at 2.016%, a world away from the 3.25% top touched in November last year.
The fallout in currencies was significantly less, in large part because it was hard for one to gain when all the major central banks were under pressure to ease.
The euro did pull back a bit after Draghi's comments, but at $1.1192 was still comfortably within the recent trading range of $1.1106-$1.1347.
The dollar eased slightly on the yen to 108.34, but was a shade firmer on a basket of currencies at 97.651. The yuan picked up to 6.9039 to the dollar on the trade news.
In commodity markets, the rate-cut buzz kept gold near 14-month highs at $1,345.16 per ounce.
Michael Hsueh, an analyst at Deutsche, noted the decisively dovish shift in central bank expectations was bullish for gold.
"This provides the desired backdrop - one in which investors are less likely to be concerned about the opportunity cost of holding a non-yielding asset, particularly versus the increasing stock of negative-yielding debt," he said.
Reflation trades helped support oil prices, as did hopes for a thaw in Sino-U.S. tensions.
Brent crude futures were up 15 cents at $62.29, while U.S. crude firmed 20 cents to $54.10 a barrel.
(Editing by Sam Holmes & Kim Coghill) |
UPDATE 1-Dutch economic growth weakened by U.S. trade policies - govt adviser
(Adds more detail and quotes)
AMSTERDAM, June 19 (Reuters) - Economic growth in the Netherlands will slow to 1.5% in 2020, as exports and investments are hit by U.S. trade policies, national forecasting agency CPB said on Wednesday.
Expansion of the euro zone's fifth-largest economy is set to drop to 1.7% this year, the government's main adviser said, down from 2.7% in 2018.
"Cold winds from abroad are weakening Dutch economic growth", the CPB said.
"Headwinds are mainly caused by the uncertainty over U.S. trade policy, which erodes confidence among companies and consumers."
The ongoing trade dispute between the United States and China has significantly slowed international trade, while the threat of higher U.S. import tariffs on European cars is dampening growth on the continent.
But tariff threats are not the only worry for the Dutch, the CPB said, as the risk of a no-deal Brexit has increased since the resignation of Prime Minister Theresa May, while the Italian economy and political landscape remain unstable.
Meanwhile, unemployment in the Netherlands is expected to remain at historically low levels throughout 2020, while inflation is set to drop from 2.6% in 2019 to 1.4% next year.
(Reporting by Bart Meijer; Editing by Jacqueline Wong) |
Airbus seals deals with big buyers, following Boeing's MAX sale
By Alistair Smout and Tim Hepher
LE BOURGET, France (Reuters) - Airbus sealed deals with big buyers for its latest passenger jet at the Paris Airshow on Wednesday, battling back a day after a surprise order by British Airways' owner for rival Boeing's grounded 737 MAX jet.
Indigo Partners, the private equity firm of veteran low-cost airline investor Bill Franke, and American Airlines each signed up for 50 of Airbus's new long-range A321neo jet, although some orders were converted from deals on other models.
Airbus, which has not given a list price for the A321XLR, launched the new plane on Monday, aiming to carve out new routes for airlines with smaller planes and steal a march on Boeing's plans for a potential all new jet for the middle of the market.
The deals are a big vote of confidence in the European planemaker, a day after major customer British Airways owner IAG signed a letter of intent to buy 200 of Boeing Co's 737 MAX jets, a model that has been grounded since March after two deadly crashes.
Asked about the IAG deal, Franke, who struck the largest-ever plane deal by number of aircraft with Airbus in 2017, called the A321neo the most efficient single-aisle jet.
Franke's Indigo Partners signed a memorandum of understanding to buy 32 of A321XLR aircraft and to convert 18 existing A320 family jet orders to the larger model.
The jets will be allocated to Hungary's Wizz Air, U.S. carrier Frontier Airlines and Chile's JetSMART, in which Indigo Partners owns stakes. Industry experts estimate the deal for the 32 aircraft could be valued at around $4.5 billion, based on a slight premium to the A321neo's list price of $129.5 million, although most airlines get significant discounts.
American Airlines, the world's largest airline by passenger traffic, said 30 of its A321XLR order were conversions of existing A321neo orders to the new version.
"It costs a little bit more for these aircraft ... (but they offer)... greater utility for us in the long run," American Airlines President Robert Isom said on a podcast, highlighting opportunities for new routes, higher efficiency and less complexity among its fleet.
Airbus also said it had reached a preliminary deal to sell 11 A321neos to Taiwan's China Airlines, snatching the renewal of the airline's medium-haul fleet from Boeing.
The deal signals intensified competition in Asia where Boeing this week predicted 40 percent of jets would be delivered over the next 20 years.
Airlines are rarely persuaded to switch to rival suppliers because of the costs of training and parts, but this week's Paris Airshow has witnessed two such announcements as sold-out planemakers mount incursions to continue their growth.
In a further competitive twist, Boeing said on Monday it would take over the supply of spare parts for the remaining Airbus A320 fleet at IAG's British Airways.
'COMMUNICATIONS COUP'
Boeing's surprise deal with IAG on Tuesday enlivened a previously subdued air show, where the talk had been of the possible end of the aerospace cycle, given slowing economies and geopolitical tensions around the world - as well as Boeing's 737 MAX crisis and a long-running corruption scandal at Airbus.
It was not immediately clear how many of the 200 aircraft eyed by IAG would wind up as firm orders and how many would be options, nor how it would affect Airbus's presence at IAG, which placed an order for 14 A321XLR hours before the announcement.
"It's a great coup, but for now it's a communications coup as it's a letter of intent. We will see what kind of deal lies behind it," a European industry source said.
Even so, Boeing was expected to try to capitalise quickly on the move and seek further support for the embattled MAX as it offers airlines other big packages at attractive prices.
Australia's Qantas Airways said on Wednesday it would order 10 Airbus A321XLR jets and convert a further 26 from existing orders already on the planemaker's books.
Airbus is also in talks with leasing company GECAS and U.S. airline JetBlue about potential A321XLR deals, sources familiar with the matter have said.
Airbus sales chief Christian Scherer said there was some softness in the market but did not see an increase in cancellations. He told investors he expected to win more orders for the smaller A220, formerly known as CSeries.
Both Airbus and Boeing are cushioned by thousands of orders for the single-aisle jets.
Airbus Chief Executive Guillaume Faury predicted a pickup in orders after a slow start to 2019. He voiced concerns about trade tensions and the growing risk of a no-deal Brexit.
(Additional reporting by Eric M. Johnson, Andrea Shalal, Jamie Freed, Tracy Rucinski, Alistair Smout; Editing by Mark Potter and Alexander Smith) |
Why Hong Kong Protesters Aren't Calling It Quits After the Suspension of a Controversial Extradition Bill
Twice in as many weeks protesters have thronged to Hong Kong’s streets in unprecedented numbers to demand the government withdraw a proposal that would allow extraditions to mainland China. Both times, Hong Kong’s top official refused to scrap the widely unpopular legislation. The protests, sit-ins and marches convulsing Asia’s financial capital over the past week have forced Chief Executive Carrie Lam to backpedal, but her apology and decision to indefinitely suspend the bill have done little to mollify detractors. The protesters want nothing short of her resignation and a full cancellation of the proposed legislation. One week after an estimated 1.03 million people joined a June 9 march, defiant protesters crammed back into the streets in even larger numbers for another repudiation of Lam, as well as to decry the police’s use of tear gas and rubber bullets just days prior. Organizers said nearly two million of the city’s seven million residents took part in the march, even after Lam had announced the bill’s suspension the previous day. The government insists the extradition measure will prevent Hong Kong from becoming a haven for criminals. But critics fear Beijing will use the provision to apprehend its many political opponents in this freewheeling and semi-autonomous enclave. The snowballing crisis has exposed a deep-seated rift between the former British colony and its sovereign power China. For the second time in five years, young, angry protesters are out on the streets pushing back against perceived meddling from Beijing, and fighting to sustain the freedoms that distinguish this territory from the mainland. As they see it, the autonomy of China’s freest city is at stake. Here’s why they are unwilling to backdown without a full cancellation of the extradition proposal. What is the extradition bill? The proposed bill would amend two existing laws and allow Hong Kong to transfer suspects to countries that it currently lacks a formal extradition agreement with. Crucially, one of those jurisdictions would be mainland China. Story continues The update to the Fugitive Offenders Ordinance and the Mutual Legal Assistance in Criminal Matters Ordinance was proposed in February ostensibly to prosecute a Hong Konger for the murder of his pregnant girlfriend in Taiwan. But Taiwan has sharply criticized the bill, and says it won’t sign any deal that would entangle Hong Kong with China’s opaque legal system. Under the proposal, 37 crimes would be eligible for extradition on a case-by-case basis. Each arrest warrant would need a green light from Hong Kong’s Chief Executive, who is elected by a small college of predominantly pro-Beijing voters from a list of candidates preapproved by Beijing. Why are people concerned? Opponents worry that if the bill passes, anyone who irks Beijing could be targeted and potentially sent to the mainland, including dissidents. Though the bill excludes political crimes, critics point out that China frequently charges dissidents, including religious leaders and human rights activists, with criminal offenses like “running an illegal business” and “picking quarrels.” If the bill becomes law, foreign residents and even visitors transiting through the regional hub could also be detained and sent to the mainland, a move that will potentially spook investors and send tycoons packing. Amid concern over the Communist Party’s creeping encroachment on Hong Kong, the extradition bill is seen as a final blow to the former city’s autonomy, which was guaranteed for 50 years at the 1997 handover to China. If the law passes, critics warn it will end the city’s independent judiciary, and open the floodgates to China’s restrictive political system. The proposal comes amid a broader tightening of controls across China under President Xi Jinping , who came to power in 2012 and whose tenure has been marked by rising nationalism and intolerance of dissent. Its failure to pass in Hong Kong marks a rare defeat for the China’s strongman. Read More: Hong Kong Is on the Frontlines of a Global Battle For Freedom Who opposes it? Opposition to the law spans socioeconomic and ideological divides, unifying even groups and organizations that do not typically participate in the city’s political sparring. While the large-scale street occupations this week have recalled the the 2014 pro-democracy demonstrations, hostility toward the extradition proposal has galvanized an even wider segment of Hong Kong society. Business associations, housewives, lawyers, church leaders, trade unions and even horse racing columnists have all vocally opposed the bill. Many city residents, even if not protesting themselves, have demonstrated support by restocking supply stations dotting the city and handing out “democracy hot dogs.” As the mostly young demonstrators were pushed back by charging columns of riot police Wednesday, dozens of motorists came to their aid, parking cars, buses and delivery vans in the middle of central boulevards to halt traffic and help prolong the street occupation. More than 100 businesses even declared a rare strike last week “to defend freedom.” How has the government responded? Facing mounting pressure and heated street protests, Hong Kong leader Carrie Lam said Saturday she was halting work on the extradition bill with no timeline for resurrecting it. Rather than appeasing protesters, her sudden backtracking and refusal to fully withdraw the bill drove the largest demonstration in the city’s history—indeed one of the largest demonstrations seen anywhere in modern times. After pro-democracy lawmakers led a march on her office Monday calling for her to “talk to the people instead of [Chinese President] Xi Jinping,” Lam offered a rare public apology. Protesters derided her contrition as insincere, and vowed to fight on. Lam has steadfastly denied receiving “any instruction or mandate from Beijing” on the bill, but Chinese officials have spoken out in support of the legislation, and the foreign minister even offered a full-throated endorsement of the embattled Hong Kong leader Monday. Beijing’s flag-waving state media has blamed “foreign forces” for stoking the uprising to undermine China. The bill is suspended, so why aren’t the protests over? As long as the bill is suspended and not canceled, protesters fear the approval process could resume. If the bill were put to a vote, it would almost certainly pass as the legislature is controlled by pro-Beijing lawmakers. What does the international community say? The protesters were “obviously having a big impact,” President Donald Trump told TIME, adding “I think that they’ve been very effective in their dealings with China.” Last week, U.S. lawmakers reintroduced a bill that would require an annual assessment of Hong Kong’s political autonomy to determine if it is sufficiently independent from China to retain its special trading status. Nancy Pelosi, Ted Cruz, Ilhan Omar and Elizabeth Warren are all among the growing number of U.S. politicians speaking out in support of the protests. Australia, the E.U., Taiwan the U.K., and Germany have also expressed concern over the extradition law and its potential impact on foreign citizens living in Hong Kong. The police have been widely condemned for using what Amnesty International described as “excessive force.” What happens next? The protesters have shown no sign of backing down, and have given Lam a deadline of 5 p.m. Thursday to meet their demands, or face further demonstrations. “The whole of Hong Kong is angry at them—the government and the police,” said a young called Kanas, in a crowd of demonstrators outside the legislature late Tuesday. “Now there is seething public discontent, so she wants to slightly calm everyone down [and make us think] ‘At least she is willing to say sorry, shall we be less radical?’” The 20-year-old added: “We must not be cheated by these superficial apologies.” |
Climate change could threaten dogs with diseases pushing into new parts of the USA
SAN FRANCISCO – As if this year's storms , floods and heat waves weren't enough to worry you, some experts fear climate change is expanding the distribution of diseases that can sicken or even kill dogs, putting more pets at risk for diseases their owners have never had to deal with before. Though diseases in dogs are not tracked as intensively as those in humans, veterinary epidemiologists and biologists said Rocky Mountain spotted fever, a bacterial disease that can cause fever, joint pain and vomiting, is moving into California and Texas. Heartworm disease, which can damage the cardiovascular system and clog the heart, is spreading beyond its traditional home in the South and Southeast. Lyme disease, which can cause joint swelling and lameness, affects dogs as far north as Canada. “The veterinarians need to know what’s local. But what’s out there is changing so fast, how are you going to keep up?” said Janet Foley, a professor of epidemiology at the School of Veterinary Medicine of University of California, Davis. Many of these diseases also affect humans. But dogs are especially at risk because they spend a lot of time outdoors and in vegetation. Warren Hess, assistant director of the American Veterinary Medical Association, said the spread of heartworm disease is increasing because of the changes in how frequently dogs are moved across the country. “With the increased social pressure to restrict the sale of dogs in pet stores, this has resulted in a dramatic increase in the movement of dogs from pet shelters to fill the demand," he said. Natural disasters also play a part. "The biggest spread in heartworm disease in the United States certainly followed the 2005 national distribution of dogs due to Hurricane Katrina,” said Hess, whose responsibilities include disaster preparedness. He said that although climate change is happening, and will continue to happen, "it is important that we properly frame the discussions and use all available science as we further the discussion.” Story continues Linking the expansion or shift of ticks that carry diseases, infection rates and dog populations is not an easy task. There are no mandated reporting requirements as there are for some human diseases. Data on tick and mosquito distribution is piecemeal in many areas. Tests for some of the diseases that appear to be on the move didn’t exist 10 years ago, so it’s difficult to judge their historic range. Even so, many scientists see patterns and links that point them toward climate change. “There’s no smoking gun, and there will never be a smoking gun. We’re trying to connect two things that operate at very different scales both in time and space,” said Ram Raghavan, a professor of spatial epidemiology at the College of Veterinary Medicine at Kansas State University in Manhattan, Kansas. He’s documented significant changes to the tick populations in the Midwest – in infestation intensity, the areas and when ticks are active. His team’s surveillance in western parts of Kansas and Oklahoma found Lone Star ticks that didn’t use to live there. These ticks can carry ehrlichiosis, a disease that in dogs can cause bruising of the gums, bleeding from the nose and lameness. “There is this belief that these ticks do not exist in these areas, but increasingly over the last five years, we’re constantly finding them. So I’m pretty sure they’ve expanded” their habitat, he said. “Tick-borne diseases have really gone up. We go out into the field, and we see and find ticks more easily than we used to do in the past.” To get to the bottom of it will require data that doesn’t exist. Raghavan has written several grant proposals to the U.S. National Institutes of Health for funding to do long-term studies, broad testing and analysis. “Regardless of who caused climate change, climate has changed. Let’s take the emotion out of the debate and get some answers,” he said. Temperatures in the contiguous USA are on average 1.5 degrees warmer than they were the century before, according to the U.S. National Oceanic and Atmospheric Administration. Rainfall and humidity levels have changed in some areas. All of these factors affect where insects that can carry disease thrive. Veterinarians and biologists who study diseases spread by insects observed that it’s not just where but when the diseases strike that’s changing. The times of year when dogs are at risk are changing in some areas where summers are becoming too hot to support the insects or the diseases they carry. That doesn’t stop the spread. “Diseases like Lyme disease that used to be transmitted in the peak summer months could now be peaking in the spring and fall because it’s too hot in the summer. So you get a longer transmission window,” said Andrew Dobson, a professor of ecology and evolutionary biology at Princeton University in New Jersey. Rocky Mountain spotted fever is spreading That means more dog owners have to pay attention to illnesses such as Rocky Mountain spotted fever, a disease carried by ticks that can sicken and even kill humans and their canine companions. The bacteria initially invades the bloodstream, then settles into the cells that line blood vessels. Blood can seep out of the vessels and pool under the skin or even in the brain. The disease can be treated with antibiotics if caught in time. At UC Davis, Foley studies its spread. Historically, most cases were spread by the American dog tick and occurred in the southern Atlantic states and the south-central states. North Carolina and Oklahoma accounted for the largest proportion. Foley has tracked a new tick strain making its way north. This tropical strain of the brown dog tick has been found in many parts of the world and is known in the USA in Florida, Texas, Arizona and Southern California, where it may have been introduced from Brazil and Mexico. It can carry Rocky Mountain spotted fever. Cases are appearing along the U.S.-Mexican border in areas that have never had to deal with the disease before. The new tick has gotten as far north as Los Angeles. Foley expects it to make its way up through California’s Central Valley as far north as Sacramento. It’s much more aggressive than tick species Americans are used to. “It bites more, the hotter it gets. So the hotter it is, the more infections there are,” Foley said. Heartworm cases on the rise Dog owners have to do more to keep their dogs protected against heartworms. The parasitic worms called Dirofilaria immitis are spread through the bite of a mosquito that carries them in a larval state. It is an especially grisly disease. Once a dog is infected with the larva, it can grow into a foot-long parasitic worm that invades the dog’s cardiovascular system, damages the arteries that carry blood from the heart to the lungs and blocks blood flow to the lungs by their presence and the clots they can cause. To spread from one dog to another, the larvae have to develop to a specific infective stage inside the mosquito. The hotter it gets, the more quickly the larvae mature into a form that can transfer from the mosquitoes to the dogs. When it’s 71 degrees out, that process can take 16 to 20 days. If it’s 82 degrees, it takes 11 to 12 days, said Bruce Kornreich, a cardiologist and professor of veterinary medicine at the Cornell University College of Veterinary Medicine in New York. Heartworm disease has historically been a problem in the South and Southeast. Environments farther north are now able to support the mosquitoes that transmit it and the larvae that cause it. Infections are rising. From 2013 to 2016, there was a 21.7% increase in heartworm infections in the number of dogs per veterinary clinic testing positive for heartworm, said Christopher Rehm, a veterinarian who practices in Mobile, Alabama, and is president of the American Heartworm Society. There are no solid figures on how many dogs heartworm disease kills each year, but untreated infections shorten a dog's lifespan. "Based on my own anecdotal experience, I would conservatively estimate that heartworm-infected dogs lose one-third of their lifespan if not treated properly and in a timely manner," Rehm said. As the parasite moves into new areas, owners may not always be aware they need to be on the lookout for it. It’s also a problem for more months of the year, Foley said. “A hot winter means the mosquitoes don’t die back, so they’re raring to go as early as January and start spreading heartworm,” she said. Pet owners across a wider swath of the USA need to give their dogs preventive medicine to keep them from getting heartworms. People in areas where heartworm infections were a problem only in the summer now must treat their dogs for more months out of the year. Since 2010, the American Heartworm Society and the federal Food and Drug Administration have recommended year-round preventive treatment, because the disease is more prevalent and it’s so devastating to dogs who get it, Kornreich said. Even if heartworm disease is caught and treated in time, it takes its toll on dogs. “Once they’ve ever had a heart infection, they’re never the same,” Rehm said. Lyme disease moving north On top of being an enormous health hazard to humans, Lyme disease can harm dogs, causing lameness, fever and lethargy. It’s carried primarily by the blacklegged tick, or deer tick, in the Northeast and the western blacklegged tick in the South. Both are on the move. “With Ixodes (blacklegged ticks) moving northward from the United States into Canada, it’s a clear example of how things are changing,” said Michael Yabsley, a professor in the College of Veterinary Medicine at the University of Georgia in Athens. Even as Lyme disease moves northward, it’s not decreasing in its historic area. In fact, infection rates in dogs are getting worse, said Yabsley, who studies wildlife diseases. In 2018 in Columbia County, New York, 30% of dogs tested were positive for Lyme disease. In Worcester County, Massachusetts, it was 21%, and in Ulster County, New York, it was 20%, according to data collected by the Companion Animal Parasite Council. 'Fast' and 'ugly' changes Some fear that the changing climate might bring diseases never before seen in canine companions. When ticks expand into new areas, they come into contact with new hosts, and those hosts may carry new diseases – which they could spread to the animals they bite. This may have happened with two human diseases. The Heartland virus was discovered in 2009 and has infected about 20 people in the Midwest. It can cause fever, fatigue, nausea and diarrhea. Almost all patients have been hospitalized and some have died, according to the Centers for Disease Control and Prevention. The Bourbon virus was first identified in 2014 and has infected a limited number of people in the Midwest and the South, some of whom have died, according to the CDC. It can cause fever, rash, tiredness, body aches and vomiting. The shifting climate is going to affect people and their pets in ways they may not be prepared for, Dobson said. “There’s no debate about whether it’s happening or not,” he said. “It’s happening fast, and it’s ugly.” This article originally appeared on USA TODAY: Climate change could threaten dogs with diseases pushing into new parts of the USA |
UPDATE 1-Turkish lira weakens on report detailing possible U.S. sanctions
(Adds trader comment, details, background)
ISTANBUL, June 19 (Reuters) - The Turkish lira weakened on Wednesday after Bloomberg said the United States is considering sanctions that could target Turkish defence companies, cutting them off from the U.S. financial system over Ankara's purchase of a Russian defence system.
Ankara and Washington have sparred publicly for months over the S-400 missile systems, expected to be delivered to Turkey as early as next month. Washington has said that would trigger U.S. sanctions under CATSAA, a law calling for sanctions against countries procuring military equipment from Russia.
The lira stood at 5.8750 against the dollar at 0633 GMT, weakening from Tuesday's close of 5.8265. Earlier, it weakened as far as 5.9250.
The most severe package under discussion would all but cripple the already troubled Turkish economy, Bloomberg reported three people familiar with the matter as saying.
It said the idea with the most support for now is to target several companies in Turkey’s defence sector with sanctions that would effectively sever them from the U.S. financial system, making it almost impossible for them to buy American components or sell their products in the United States.
"We see negative newsflow this morning. News that new sanctions are being assessed created selling pressure on the lira," said a treasury desk trader at one bank.
"We can't say the impact is that great because no concrete step is expected before the Trump-Erdogan talks. But in the period ahead, relations with the U.S. will remain the main topic on the market's agenda," he said.
The dispute between the NATO allies has set investors on edge, sending the lira down nearly 10% against U.S. dollar so far this year. A currency crisis last year tipped economy into recession.
The S-400s are not compatible with NATO's defence systems and Washington says they would compromise its F-35 fighter jets.
Ankara has repeatedly said that it will not back down from its Russian order adding that it will "take reciprocal steps" if the United States imposes sanctions. (Reporting by Nevzat Devranoglu; Writing by Ezgi Erkoyun and Daren Butler; Editing by Jonathan Spicer) |
Nikkei ends near 6-week highs on hopes for trade talks, Fed rate cut
* Nomura Holdings jumps on share buyback announcement
* Japan Display soars on report Apple may help
By Ayai Tomisawa
TOKYO, June 19 (Reuters) - Japan's Nikkei rallied hard to end near six-week highs on Wednesday on news that the United States and China will revive talks on trade, while expectations the U.S. Federal Reserve will cut rates this year supported sentiment.
The Nikkei share average jumped 1.7% to close at 21,333.87, the highest closing level since May 10.
U.S. 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.
"Investors are taking heart from the new development. The two countries will at least be talking (after a lull), so the market thinks there is little chance that talks get broken off soon after they meet," Shoji Hirakawa, chief global strategist at Tokai Tokyo Research Institute.
Hirakawa also said support for risk appetite came from hopes and expectations of monetary easing in both the United States and Europe.
The Fed concludes its two-day policy meeting later Wednesday, with analysts expecting rates to be left unchanged but also setting the stage for possible easing later this year.
On Tuesday, European Central Bank President Mario Draghi hinted at more stimulus if regional inflation fails to pick up toward its target, sending global yields lower.
The broader Topix gained 1.7% to 1,555.27, with all of its subsectors in positive territory.
Companies with large exposure in China such as tech shares and electric component makers outperformed, with Advantest Corp surging 5.4%, Taiyo Yuden up 5.6% and TDK Corp up 4.6%.
Machinery shares joined the rally, with Fanuc Corp rising 2.3%, Yaskawa Electric Corp adding 2.8% and Keyence Corp jumping 4%.
Nomura Holdings soared 10.5% after it said it would buy back up to 8.6% or its shares outstanding, or up to 150 billion yen.
Elsewhere, Japan Display Inc rocketed 10.9% after the Wall Street Journal reported that Apple Inc may consider helping the company. Reuters has not verified the report. (Editing by Simon Cameron-Moore & Shri Navaratnam) |
SoftBank’s Founder Has Some Very Eye-Popping Predictions
(Bloomberg) -- SoftBank Group Corp. founder Masayoshi Son is trying harder than ever to convince investors of the potential for his many technology investments.
At a general shareholders’ meeting in Tokyo on Wednesday, Son shared some predictions that were eye-popping even by the standards of the outspoken Japanese billionaire. The value of SoftBank’s investment portfolio could grow 33-fold to 200 trillion yen ($1.8 trillion) in 20 years, he said. That’s an annual growth rate of 19%. The numbers were so outlandish that Son had to add a caveat.
“Let me be clear that this is not a business plan,” he said. “It’s a tall tale.”
The gathering was SoftBank’s 39th shareholders meeting, with about 2,000 investors present. Son’s remarks drew laughs and even feigned outrage from directors. Fast Retailing Co. CEO Tadashi Yanai, who sits on SoftBank’s board and is Japan’s richest man, urged shareholders to look out for Son “or he will go out of control.”
The billionaire’s projections include investments by the Vision Fund. But even bullish analysts have much more modest projections for that portfolio. Chris Lane of Sanford C. Bernstein recently estimated the net present value of the current and future funds at $50 billion to $85 billion.
Son then reminded shareholders how 15 years ago at the very same auditorium he presented another seemingly improbable target -- SoftBank with 1 to 2 trillion yen in profit. At the time, the company booked over 100 billion yen in losses. Annual net income has exceeded 1 trillion yen for the past three years.
Over that period of time, Son has expanded into wireless operations with the acquisition of Vodafone Group Plc’s Japan unit, acquired Sprint Corp. in the U.S. and launched the $100 billion Vision Fund to transform SoftBank into a technology investment juggernaut. Still, the company trades at a deep discount to the worth of its holdings. The total value of the conglomerate’s publicly traded shareholdings is around 21 trillion yen, while SoftBank’s market cap is roughly 10.7 trillion yen. By the company’s own estimation, there is a discount of about 50%.
Son’s message to investors is that when it comes to technology, he is ahead of the curve. He was early to recognize the value of e-commerce and invest in Alibaba Group Holding Ltd. SoftBank was also first to introduce Apple Inc.’s iPhone in Japan. Now Son believes the world is on the verge of another technological shift, driven by artificial intelligence that will transform every industry. He argues that the company’s portfolio of unicorns from Uber Technologies Inc. to WeWork Cos. positions SoftBank to reap the most benefits from that disruption.
“I wish I had the money to make tons of investments at the start of the internet revolution. I could see it coming,” Son said. “We started the Vision Fund at the very beginning of the AI revolution.”
At least a few of the investors present took him at his word.
“Son may talk big, but just look at what he has actually accomplished,” said Yasuhiro Suzuki, a SoftBank shareholder of about 20 years. “I have been to many of these meetings, but today Son seemed especially in high spirits.”
Key Insights:
The Vision Fund is nearing the end of its investment cycle and SoftBank is in the process of raising a second one of equal size, Son said. The two funds will be successive. SoftBank is in talks with limited partners in the first fund to renew their investments.The company is increasing staff at the fund to 1,000 people, from 415 now.
To contact the reporters on this story: Pavel Alpeyev in Tokyo at palpeyev@bloomberg.net;Takahiko Hyuga in Tokyo at thyuga@bloomberg.net
To contact the editors responsible for this story: Peter Elstrom at pelstrom@bloomberg.net, Edwin Chan
For more articles like this, please visit us atbloomberg.com
©2019 Bloomberg L.P. |
What Can We Make Of Consilium AB (publ)’s (STO:CONS B) High Return On Capital?
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Today we'll evaluate Consilium AB (publ) (STO:CONS B) to determine whether it could have potential as an investment idea. Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires.
First of all, we'll work out how to calculate ROCE. Second, we'll look at its ROCE compared to similar companies. Last but not least, we'll look at what impact its current liabilities have on its ROCE.
ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. All else being equal, a better business will have a higher ROCE. In brief, it is a useful tool, but it is not without drawbacks. Renowned investment researcher Michael Mauboussinhas suggestedthat a high ROCE can indicate that 'one dollar invested in the company generates value of more than one dollar'.
Analysts use this formula to calculate return on capital employed:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
Or for Consilium:
0.20 = kr127m ÷ (kr2.0b - kr1.4b) (Based on the trailing twelve months to March 2019.)
Therefore,Consilium has an ROCE of 20%.
View our latest analysis for Consilium
ROCE can be useful when making comparisons, such as between similar companies. Consilium's ROCE appears to be substantially greater than the 14% average in the Electronic industry. We would consider this a positive, as it suggests it is using capital more effectively than other similar companies. Setting aside the comparison to its industry for a moment, Consilium's ROCE in absolute terms currently looks quite high.
In our analysis, Consilium's ROCE appears to be 20%, compared to 3 years ago, when its ROCE was 13%. This makes us think about whether the company has been reinvesting shrewdly.
When considering ROCE, bear in mind that it reflects the past and does not necessarily predict the future. ROCE can be deceptive for cyclical businesses, as returns can look incredible in boom times, and terribly low in downturns. ROCE is only a point-in-time measure. Future performance is what matters, and you can see analyst predictions in ourfreereport on analyst forecasts for the company.
Short term (or current) liabilities, are things like supplier invoices, overdrafts, or tax bills that need to be paid within 12 months. The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. To check the impact of this, we calculate if a company has high current liabilities relative to its total assets.
Consilium has total assets of kr2.0b and current liabilities of kr1.4b. As a result, its current liabilities are equal to approximately 68% of its total assets. Consilium boasts an attractive ROCE, even after considering the boost from high current liabilities.
So to us, the company is potentially worth investigating further. There might be better investments than Consilium out there,but you will have to work hard to find them. These promising businesses withrapidly growing earningsmight be right up your alley.
I will like Consilium better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
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. |
Facebook’s Crypto Libra & Corporate Blockchains: Existential Threats to Bitcoin?
ByCCN Markets: When we think ofFacebook entering the crypto spacewith Libra, we need to consider it holistically. There’s a lot more going on here than some social networking giant splashing around in the crypto space. There’s something much more significant we should think about: the litigation that comes along with major companies.
To date, we’ve largely ignored this reality, but the truth is thatFacebookand others entering the space brings its own set of challenges. For starters, there will be lawsuits. Somehow, someway, these companies will find themselves in court – with each other and more.
Secondly, there will be intellectual property. Will Craig Wright’sclaimsplay a role in the development of the crypto space, as a result of the many patents he and his companies claim to be filing?
All we can know for sure is that companies don’t operate on an open source model as much as we’d love them to. Facebook may be using open source for itsLibra project, but the company can likely concoct several blockchain patents, just as severalbanks and others have done.
Read the full story on CCN.com. |
Jeremy Corbyn 'to back second Brexit referendum'
Jeremy Corbyn is set to fully back a second Brexit referendum (AP) Jeremy Corbyn is reportedly ready to commit Labour supporting a second Brexit referendum under any circumstances. The Labour leader will today back a move to change the partys Brexit policy to one of supporting another vote on any deal negotiated, according to The Times . Mr Corbyn, who has so far resisted the move, is set to discuss the paper recommending the policy by his head of policy, Andrew Fisher, with members of the shadow cabinet. Mr Corbyn has previously been hesitant to full back a second referendum under any circumstances (AP) Labour members have been piling pressure on the leadership to commit to another referendum (Getty) A senior Labour source told the Times that the shift in policy was a moment. The move would pit Labour against Tory leadership candidates including Boris Johnson, Jeremy Hunt and Michael Gove , who have all vowed to deliver Brexit. Fellow hopeful Rory Stewart insists he would successfully get Theresa Mays deal through parliament. Labour, which along with the Conservatives saw its support slump at the European elections as voters expressed their frustration over Brexit deadlock, is divided over whether to unequivocally support holding a second referendum. Mr Corbyn has so far only said the option of another Brexit vote should be kept on the table if changed to Theresa Mays deal were not made, with a general election the next option. ************* THE RACE FOR NUMBER 10: MORE FROM YAHOO UK Jeremy Hunt: Can true blue Tory see off rivals to land top job? Who is Michael Gove? Can Brexiteer heal Tory rifts and become PM? Boris Johnson profile: Hes the bookies favourite... but can he deliver? ************* A shadow cabinet minister said that the results of the European elections have forced Labour to change tack. They said: It is a question of getting on the front foot now or having it forced upon us at conference. Ive previously been sceptical but I dont think there is a choice any more. Labour's deputy leader Tom Watson urged the party to support another vote (Getty) Labour were trounced in the European elections by the Brexit Party (Getty) Labours deputy leader Tom Watson said the party should throw its eight behind a second referendum as the least worst option, and that they should campaign for Remain. Other senior figures, including shadow Brexit secretary Sir Keir Starmer and shadow foreign secretary Emily Thornberry, have also urged the party to back the policy. Story continues However, the move is likely to face resistance from many Labour MPs who represent areas that voted to leave the EU. Boris Johnson says Brexit must happen by October 31 (Getty) Another Labour source said that Mr Corbyns previous hesitance to hold a second vote may also make it difficult to persuade Remainers he is genuinely for what some have dubbed a Peoples Vote. Mr Corbyn himself said after the European elections that his preference was still a general election over another referendum. The move to back a second vote would put the party directly at odds with potential Prime Minister Boris Johnson, who has committed to leaving the EU by October 31 - with or without a deal. Mr Johnson, the favourite to win the Tory leadership contest , said last week that he would rather leave with a deal, but was prepared to exit without one. |
Tory leadership debate: Carmella eye-roll speaks for us all
Carmella from Southampton was unconvinced by the answers from the candidates While none of the Tory leadership contenders covered themselves in glory at the televised hustings on the BBC last night , it was a member of the public who emerged as one of the true stars of the night. A woman called Carmella from Southampton asked the five leadership candidates for reassurance about what would happen in the event of no deal, an outcome wanted by most Tory party members , and when she failed to receive an adequate answer she rolled her eyes and became a social media star. "As a mother of three with a husband in the property industry," she asked, "if we have a no deal my husband could lose his job and my children face an uncertain future - why are you even contemplating a no deal Brexit ?" Welcome along Carmella. #OurNextPrimeMinister pic.twitter.com/LbwOHf8Zun — Dino Sofos (@dinosofos) June 18, 2019 None of the candidates did much to make her feel better. Michael Gove, who picked up 41 votes in the second round of the leadership election yesterday to come in third place agreed that no deal could cause some "economic turbulence" but argued that "we've got to leave the European Union" "We need to make sure that we're ready for whatever comes," Gove said. "Of course there are challenges with no deal but we're a great country we can get through it." RACE FOR NUMBER 10: MORE FROM YAHOO UK *********** Michael Gove: The Brexiteer aiming to heal Tory rifts and land the top job? Jeremy Hunt: Can the ‘true blue Tory’ see off his rivals and land keys to No.10? Boris Johnson: He’s the bookies favourite… But can he deliver? Sajid Javid: Will the ‘outsider’s’ rise to success help him become PM? *********** Frontrunner Boris Johnson said: "I think it's very important for Carmella to understand that none of us want a no deal Brexit" but that it was only "responsible" for people to prepare for the alternative. Story continues Sajid Javid, who scraped into the next round of voting with just 33 MPs plumping for him, said that "we could prepare more", while second-placed Jeremy Hunt told Carmella "the reason we need to keep no deal on the table is to get a deal but it should only be a last resort". Boris Johnson put himself up for a rare opportunity if public scrutiny Wildcard Rory Stewart, who doubled his tally of MPs to 37, was the only candidate to rule out no deal. "In the end, we're in a room with a door and the door is called Parliament, and I am the only person here trying to find the key to the door," he told Carmella. From left: Boris Johnson, Jeremy Hunt, Michael Gove, Sajid Javid and Rory Stewart "Everybody else is staring at the wall shouting 'believe in Britain'." However despite his being the only dissenting voice, it was during Stewart's answer that Carmella had had enough and sighed heavily and rolled her eyes. Labour MP Jess Phillips was one of many to back her, tweeting "Carmella for PM" and saying to Johnson that she was "not prepared and you are playing chicken with her life". And Alastair Campbell, Tony Blair's former press supremo, said: "Carmella in Southampton - your headshake is winning the debate hands down." A YouGov poll carried out just after the debate found that Rory Stewart was seen to have performed best in the debate by the general public. Conservative voters on the other hand thought Boris Johnson was the winner. Rory Stewart emerges as the clear winner of last night's TV debate with 35% of viewers saying he did best, compared to second-placed Boris Johnson's 21%. However, among Conservative-voting viewers Johnson wins on 34% with Stewart in third at 18% https://t.co/6T32eThRPZ pic.twitter.com/RppXt706wM — YouGov (@YouGov) June 19, 2019 Mr Stewart this morning addressed the odd moment during the debate when he removed his tie, telling the BBC he was ‘trying to restore normality’ after ‘drifting off into an alternative reality. Watch the latest videos from Yahoo UK |
CC Group plc (ISE:GCC): What Does The Future Look Like?
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C&C Group plc's (ISE:GCC) latest earnings announcement in June 2019 revealed that the business endured a minor headwind with earnings declining from €80m to €72m, a change of -9.2%. Today I want to provide a brief commentary on how market analysts perceive C&C Group's earnings growth outlook over the next couple of years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
Check out our latest analysis for C&C Group
Analysts' expectations for the upcoming year seems buoyant, with earnings rising by a robust 24%. This growth seems to continue into the following year with rates arriving at double digit 30% compared to today’s earnings, and finally hitting €101m by 2022.
Although it’s helpful to be aware of the rate of growth year by year relative to today’s value, it may be more insightful evaluating the rate at which the earnings are growing on average every year. The advantage of this method is that we can get a bigger picture of the direction of C&C Group's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I've inserted a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 10%. This means, we can presume C&C Group will grow its earnings by 10% every year for the next few years.
For C&C Group, I've compiled three essential aspects you should further examine:
1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk.
2. Valuation: What is GCC 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 GCC is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of GCC? Exploreour interactive list of stocks with large growth potentialto get an idea of what else is out there you may be missing!
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. |
Imagine Owning Defenx (LON:DFX) And Taking A 96% Loss Square On The Chin
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Every investor on earth makes bad calls sometimes. But really big losses can really drag down an overall portfolio. So spare a thought for the long term shareholders ofDefenx Plc(LON:DFX); the share price is down a whopping 96% in the last three years. That would certainly shake our confidence in the decision to own the stock. The more recent news is of little comfort, with the share price down 72% in a year. Unfortunately the share price momentum is still quite negative, with prices down 20% in thirty days.
We really hope anyone holding through that price crash has a diversified portfolio. Even when you lose money, you don't have to lose the lesson.
See our latest analysis for Defenx
With just €495,000 worth of revenue in twelve months, we don't think the market considers Defenx to have proven its business plan. This state of affairs suggests that venture capitalists won't provide funds on attractive terms. As a result, we think it's unlikely shareholders are paying much attention to current revenue, but rather speculating on growth in the years to come. It seems likely some shareholders believe that Defenx will significantly advance the business plan before too long.
Companies that lack both meaningful revenue and profits are usually considered high risk. There is usually a significant chance that they will need more money for business development, putting them at the mercy of capital markets. So the share price itself impacts the value of the shares (as it determines the cost of capital). 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. It certainly is a dangerous place to invest, as Defenx investors might realise.
Defenx had liabilities exceeding cash by €3,719,000 when it last reported in June 2018, according to our data. That makes it extremely high risk, in our view. But with the share price diving 67% per year, over 3 years, it's probably fair to say that some shareholders no longer believe the company will succeed. The image below shows how Defenx's balance sheet has changed over time; if you want to see the precise values, simply click on the image.
Of course, the truth is that it is hard to value companies without much revenue or profit. Given that situation, would you be concerned if it turned out insiders were relentlessly selling stock? I'd like that just about as much as I like to drink milk and fruit juice mixed together. You canclick here to see if there are insiders selling.
The last twelve months weren't great for Defenx shares, which cost holders 72%, while the market wasupabout 2.2%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. Shareholders have lost 67% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges. We would be wary of buying into a company with unsolved problems, although some investors will buy into struggling stocks if they believe the price is sufficiently attractive. Shareholders might want to examinethis detailed historical graphof past earnings, revenue and cash flow.
We will like Defenx 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 GB 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. |
Here's What Diaceutics PLC's (LON:DXRX) P/E Ratio Is Telling Us
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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 look at Diaceutics PLC's (LON:DXRX) P/E ratio and reflect on what it tells us about the company's share price. Looking at earnings over the last twelve months,Diaceutics has a P/E ratio of 0.027. That means that at current prices, buyers pay £0.027 for every £1 in trailing yearly profits.
See our latest analysis for Diaceutics
Theformula for P/Eis:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for Diaceutics:
P/E of 0.027 = £0.85 ÷ £31.87 (Based on the year to December 2018.)
A higher P/E ratio means that investors are payinga higher pricefor each £1 of company earnings. That isn't necessarily good or bad, but a high P/E implies relatively high expectations of what a company can achieve in the future.
Probably the most important factor in determining what P/E a company trades on is the earnings growth. That's because companies that grow earnings per share quickly will rapidly increase the 'E' in the equation. That means unless the share price increases, the P/E will reduce in a few years. Then, a lower P/E should attract more buyers, pushing the share price up.
Diaceutics's earnings per share fell by 6.5% in the last twelve months.
The P/E ratio indicates whether the market has higher or lower expectations of a company. If you look at the image below, you can see Diaceutics has a lower P/E than the average (38) in the life sciences industry classification.
This suggests that market participants think Diaceutics will underperform other companies in its industry. While current expectations are low, the stock could be undervalued if the situation is better than the market assumes. You should delve deeper. I like to checkif company insiders have been buying or selling.
The 'Price' in P/E reflects the market capitalization of the company. In other words, it does not consider any debt or cash that the company may have on the balance sheet. In theory, a company can lower its future P/E ratio by using cash or debt to invest in growth.
Spending on growth might be good or bad a few years later, but the point is that the P/E ratio does not account for the option (or lack thereof).
Diaceutics's net debt is 2.8% of its market cap. The market might award it a higher P/E ratio if it had net cash, but its unlikely this low level of net borrowing is having a big impact on the P/E multiple.
Diaceutics trades on a P/E ratio of 0.03, which is below the GB market average of 16.2. With only modest debt, it's likely the lack of EPS growth at least partially explains the pessimism implied by the P/E ratio.
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 thisfreereport on the analyst consensus forecastscould help you make amaster moveon this stock.
But note:Diaceutics may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with strong recent earnings growth (and a P/E ratio 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. |
MGC TOKEN Asia-Pacific Gratitude Gala & Group Star Concert 10-day Countdown!
NEW YORK, NY / ACCESSWIRE /June19, 2019 /Today we officially started the 10-day countdown to the MGC TOKEN Asia-Pacific Gratitude Gala & Group Star Concert on June 28. MGC TOKEN partners certainly already can't wait to meet the key figures of MGC TOKEN and the investment company BG-MF.
MGC TOKEN Asia-Pacific Gratitude Gala & Group Star Concert is also MGC TOKEN's first large event since its world premiere media conference. The future development trend of MGC TOKEN has also attracted constant attention from its members. The theme of this MGC TOKEN concert is "MGC TOKEN Asia-Pacific Gratitude Gala & Group Star Concert". The concert is held in Bangkok, Thailand, not only for the convening of the MGC TOKEN conference, but also for rewarding members with a joyful trip to Thailand. Unlike the world premiere media conference, the main purpose of this conference is to rewarding users. We`ve invite well-known artists to perform, and mysterious guests to support.
The MGC TOKEN Asia-Pacific Gratitude Gala & Group Star Concert was co-sponsored by MGC TOKEN and BG-MF Investment Co., Ltd. The schedule of the conference is as follows:
I. June 213:40, check in14:10, Entry14:45, Official start of the meeting15:15, Speech by the Prince of Thailand15:20, VIP Guest Speech16:50, Speech by team leaders from all countries17:50. End of the meeting, start of the gala
The dinner process is as follows:
II. June 2818:00, Start of the gala18:02, Hot opening dance by Korean 4X girls18:06, Songs by star Xiao Quan
The first round of lottery18:30 Thai shemale dance
The second round of lottery18:45, Thai local dance
The third round of lottery18:55, Dance by Korean 4X girls
The fourth round of lottery19:05, Thai local dance19:10, Thai shemale catwalk show19:20, Songs by star Yang Pei'an
The fifth round of lottery19:38, Thai local dance19:43, Songs by star Zhong Xintong
The sixth round of lottery19:25, Songs by star Zhang Weijian
The seventh round of lottery20:16, The end of gala
The 2019 MGC TOKEN Asia-Pacific Gratitude Gala & Group Star Concert will be held in Bangkok, Thailand, on June 28. Looking forward to meeting you! June 28, Bangkok, Thailand, let's witness it together!
mgctoken@gmail.com
SOURCE:MGC TOKEN
View source version on accesswire.com:https://www.accesswire.com/549213/MGC-TOKEN-Asia-Pacific-Gratitude-Gala-Group-Star-Concert-10-day-Countdown |
Japanese Manufacturers Enter Blockchain-Backed Data Sharing Arrangement
Mitsubishi Electric and Yaskawa Electric are among 100 major Japanese manufacturers to enter into a data sharing arrangement underpinned by blockchain, according to a report by Nikkei . The project aims to boost efficiency, lower the risk of data leaks, and reduce operating costs. It will be overseen by the Industrial Value Chain Initiative, a manufacturers group that launched in 2015 to promote the “internet of things” in Japan. Similar to the strategic Renault–Nissan–Mitsubishi alliance, the information sharing arrangement will include product design data, the status of production equipment and quality inspection information, thereby improving productivity and competitiveness. Related: G20 Reaffirms It Will Apply Expected Tough New FATF Rules on Crypto But unlike managing and sharing information on servers, the blockchain offers the business consortium security, flexibility, and assurance of the deals stability. The project lets participants decide how much data to share, whether to share it with one or more companies, as well as whether to charge a fee for the information. Nikkei reports that the blockchain initiative will lift Japan’s manufacturing sector as a whole by attracting not just big corporations with advanced production technologies but also smaller players that are unable to invest large sums. The project will launch next spring. Image via Shutterstock. Related Stories Japan’s Crypto Traders May Face Closer Scrutiny Over Tax Avoidance Former Mt Gox CEO Says He Wants to Restore Japan as Tech Leader Japan Hardens Rules for Cryptocurrency Storage and Trading |
Market Sentiment Around Loss-Making Mynaric AG (FRA:M0Y)
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Mynaric AG's (FRA:M0Y): Mynaric AG provides laser communication solutions for high data rate and long-distance wireless data transmission between moving objects in Germany. On 31 December 2018, the €110m market-cap posted a loss of -€6.7m for its most recent financial year. Many investors are wondering the rate at which M0Y will turn a profit, with the big question being “when will the company breakeven?” Below I will provide a high-level summary of the industry analysts’ expectations for M0Y.
See our latest analysis for Mynaric
M0Y is bordering on breakeven, according to the 2 Aerospace & Defense analysts. They anticipate the company to incur a final loss in 2020, before generating positive profits of €19m in 2021. M0Y is therefore projected to breakeven around 2 years from today. What rate will M0Y have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 95%, which signals high confidence from analysts. If this rate turns out to be too aggressive, M0Y may become profitable much later than analysts predict.
I’m not going to go through company-specific developments for M0Y given that this is a high-level summary, though, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before I wrap up, there’s one aspect worth mentioning. M0Y currently has no debt on its balance sheet, which is quite unusual for a cash-burning loss-making, growth company, which typically has high debt relative to its equity. M0Y currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
There are key fundamentals of M0Y which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at M0Y, take a look atM0Y’s company page on Simply Wall St. I’ve also compiled a list of relevant factors you should look at:
1. Valuation: What is M0Y worth today? Has the future growth potential already been factored into the price? Theintrinsic value infographic in our free research reporthelps visualize whether M0Y is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look atwho sits on Mynaric’s board and the CEO’s back ground.
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. |
How Many Games Workshop Group PLC (LON:GAW) Shares Have Insiders Sold, In The Last 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 inGames Workshop Group PLC(LON:GAW).
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. 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 Games Workshop Group
In the last twelve months, the biggest single sale by an insider was when the CEO & Executive Director, Kevin Rountree, sold UK£511k worth of shares at a price of UK£28.95 per share. That means that even when the share price was below the current price of UK£49.86, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was 54.8% of Kevin Rountree's holding. The only individual insider seller over the last year was Kevin Rountree. Notably Kevin Rountree was also the biggest buyer, having purchased UK£182k worth of shares.
In the last twelve months insiders purchased 4672 shares for UK£182k. But insiders sold 17659 shares worth UK£511k. 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!
I will like Games Workshop Group better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
We saw some Games Workshop Group insider buying shares in the last three months. CEO & Executive Director Kevin Rountree purchased UK£5.1k worth of shares in that period. It's great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
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. We usually like to see fairly high levels of insider ownership. Games Workshop Group insiders own 5.2% of the company, currently worth about UK£84m 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.
We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. We don't take much encouragement from the transactions by Games Workshop Group insiders. But we do like the fact that insiders own a fair chunk of the company. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check thisfreereport showing analyst forecasts for its future.
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. |
Have Insiders Been Selling Godrej Industries Limited (NSE:GODREJIND) 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 we'll take a look at whether insiders have been buying or selling shares inGodrej Industries Limited(NSE:GODREJIND).
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
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 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 Godrej Industries
Over the last year, we can see that the biggest insider sale was by the President of Chemicals Division & Executive Director, Nitin Nabar, for ₹4.2m worth of shares, at about ₹499 per share. So we know that an insider sold shares at around the present share price of ₹457. While insider selling is a negative, to us, it is more negative if the shares are sold 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.
We note that in the last year insiders divested 26319 shares for a total of ₹14m. In the last year Godrej Industries insiders didn't buy any company stock. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Godrej Industries better if I see some big insider buys. While we wait, check out thisfreelist of growing companies with considerable, recent, insider buying.
The last quarter saw substantial insider selling of Godrej Industries shares. In total, insiders sold ₹11m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Godrej Industries insiders own about ₹23b worth of shares (which is 15% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
Insiders sold Godrej Industries shares recently, but they didn't buy any. And even if we look to the last year, we didn't see any purchases. But it is good to see that Godrej Industries is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. Therefore, you should should definitely take a look at thisFREEreport showing analyst forecasts for Godrej Industries.
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. |
How Much Are Husqvarna AB (publ) (STO:HUSQ B) Insiders Spending On Buying Shares?
Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! 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 before you buy or sell Husqvarna AB (publ) ( STO:HUSQ B ), you may well want to know whether insiders have been buying or selling. What Is Insider Selling? 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. We don't think shareholders should simply follow insider transactions. 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 Husqvarna Husqvarna Insider Transactions Over The Last Year In the last twelve months, the biggest single purchase by an insider was when Independent Director Bertrand Neuschwander bought kr593k worth of shares at a price of kr79.06 per share. So it's clear an insider wanted to buy, at around the current price, which is kr84.86. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider bought shares at close to current prices. The only individual insider to buy over the last year was Bertrand Neuschwander. 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! Story continues OM:HUSQ B Recent Insider Trading, June 19th 2019 Husqvarna is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket. Husqvarna Insiders Bought Stock Recently Over the last three months, we've seen significantly more insider buying, than insider selling, at Husqvarna. In total, Bertrand Neuschwander bought kr593k worth of shares in that time. On the other hand, Anders Köhler netted kr2.7k by selling. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic. Does Husqvarna Boast High Insider Ownership? 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. Husqvarna insiders own about kr132m worth of shares. That equates to 0.3% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders. So What Does This Data Suggest About Husqvarna Insiders? It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Husqvarna. That's what I like to see! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Husqvarna . Of course Husqvarna may not be the best stock to buy . So you may wish to see this free collection 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 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. |
Zooming in on LON:PRSR's 5.4% Dividend Yield
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Today we'll take a closer look at The PRS REIT plc (LON:PRSR) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. Unfortunately, it's common for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments.
PRS REIT has only been paying a dividend for a year or so, so investors might be curious about its 5.4% yield. When buying stocks for their dividends, you should always run through the checks below, to see if the dividend looks sustainable.
Explore this interactive chart for our latest analysis on PRS REIT!
Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. PRS REIT paid out -578% of its profit as dividends, over the trailing twelve month period. When a company recently reported a loss, we should investigate if its cash flows covered the dividend.
We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. Unfortunately, while PRS REIT pays a dividend, it also reported negative free cash flow last year. While there may be a good reason for this, it's not ideal from a dividend perspective. It's positive to see that PRS REIT's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.
With a strong net cash balance, PRS REIT investors may not have much to worry about in the near term from a dividend perspective.
Remember, you can always get a snapshot of PRS REIT's latest financial position,by checking our visualisation of its financial health.
One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. With a payment history of less than 2 years, we think it's a bit too soon to think about living on the income from its dividend. Its most recent annual dividend was UK£0.05 per share, effectively flat on its first payment one years ago.
Modest dividend growth is good to see, especially with the payments being relatively stable. However, the payment history is relatively short and we wouldn't want to rely on this dividend too much.
Examining whether the dividend is affordable and stable is important. However, it's also important to assess if earnings per share (EPS) are growing. Over the long term, dividends need to grow at or above the rate of inflation, in order to maintain the recipient's purchasing power. A company paying out less than a quarter of its earnings as dividends, and growing earnings at more than 10% per annum, looks to be right in the cusp of its growth phase. At the right price, we might be interested.
We'd also point out that PRS REIT issued a meaningful number of new shares in the past year. Regularly issuing new shares can be detrimental - it's hard to grow dividends per share when new shares are regularly being created.
When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. It's a concern to see that the company paid out such a high percentage of its earnings and cashflow as dividends. Next, earnings growth has been good, but unfortunately the company has not been paying dividends as long as we'd like. In summary, PRS REIT has a number of shortcomings that we'd find it hard to get past. Things could change, but we think there are likely more attractive alternatives out there.
Now, if you want to look closer, it would be worth checking out ourfreeresearch on PRS REITmanagement tenure, salary, and performance.
If you are a dividend investor, you might also want to look at ourcurated list of dividend stocks yielding above 3%.
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. |
Airbus CEO says chances of no-deal Brexit increasing
PARIS (Reuters) - Airbus Chief Executive Guillaume Faury said on Wednesday there was a growing risk Britain would leave the European Union without a withdrawal deal in a way that could damage the aerospace firm's performance next year.
"We have been very clear on the potential negative consequences of a hard Brexit or no-deal Brexit. We see that the likelihood of a no-deal Brexit is high and maybe growing," Faury said at an investor meeting coinciding with the Paris Airshow, adding it was important Britain and the EU managed such a scenario smoothly.
"If we have an inappropriate and poorly-managed no-deal Brexit by the end of October ... this could impact the start of 2020."
(Reporting by Alistair Smout; Editing by Mark Potter) |
Is The Navigator Company, S.A. (ELI:NVG) A Financially Sound Company?
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Stocks with market capitalization between $2B and $10B, such as The Navigator Company, S.A. (ELI:NVG) with a size of €2.3b, do not attract as much attention from the investing community as do the small-caps and large-caps. However, history shows that overlooked mid-cap companies have performed better on a risk-adjusted manner than the smaller and larger segment of the market. Today we will look at NVG’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. Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysisinto NVG here.
See our latest analysis for Navigator Company
Over the past year, NVG has ramped up its debt from €771m to €908m – this includes long-term debt. With this rise in debt, NVG currently has €176m remaining in cash and short-term investments to keep the business going. Additionally, NVG has generated cash from operations of €239m during the same period of time, leading to an operating cash to total debt ratio of 26%, signalling that NVG’s current level of operating cash is high enough to cover debt.
Looking at NVG’s €439m in current liabilities, the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.78x. The current ratio is the number you get when you divide current assets by current liabilities. Usually, for Forestry companies, this is a suitable ratio as there's enough of a cash buffer without holding too much capital in low return investments.
With a debt-to-equity ratio of 74%, NVG can be considered as an above-average leveraged company. This is not uncommon for a mid-cap company given that debt tends to be lower-cost and at times, more accessible. We can check to see whether NVG is able to meet its debt obligations by looking at the net interest coverage ratio. A company generating earnings before interest and tax (EBIT) at least three times its net interest payments is considered financially sound. In NVG's, case, the ratio of 34.46x suggests that interest is comfortably covered, which means that debtors may be willing to loan the company more money, giving NVG ample headroom to grow its debt facilities.
Although NVG’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 NVG has company-specific issues impacting its capital structure decisions. I recommend you continue to research Navigator Company to get a better picture of the mid-cap by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for NVG’s future growth? Take a look at ourfree research report of analyst consensusfor NVG’s outlook.
2. Valuation: What is NVG 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 NVG 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. |
What Kind Of Shareholders Own publity AG (ETR:PBY)?
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A look at the shareholders of publity AG (ETR:PBY) can tell us which group is most powerful. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'
publity is not a large company by global standards. It has a market capitalization of €348m, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are not really that prevalent on the share registry. We can zoom in on the different ownership groups, to learn more about PBY.
Check out our latest analysis for publity
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.
Less than 5% of publity is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.
publity is not owned by hedge funds. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
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.
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 information suggests that insiders own more than half of publity AG. This gives them effective control of the company. So they have a €216m stake in this €348m business. Most would be pleased to see the board is investing alongside them. You may wish todiscover(for free)if they have been buying or selling.
The general public holds a 33% stake in PBY. 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.
Many find it usefulto take an in depth look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss thisfreereport on analyst forecasts.
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. |
Did You Manage To Avoid Cogelec's (EPA:COGEC) 31% Share Price Drop?
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Cogelec SA(EPA:COGEC) shareholders will doubtless be very grateful to see the share price up 36% in the last quarter. But that doesn't change the reality of under-performance over the last twelve months. In fact the stock is down 31% in the last year, well below the market return.
Check out our latest analysis for Cogelec
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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.
Cogelec fell to a loss making position during the year. Some investors no doubt dumped the stock as a result. We hope for shareholders' sake that the company becomes profitable again soon.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
Thisfreeinteractive report on Cogelec'searnings, revenue and cash flowis a great place to start, if you want to investigate the stock further.
While Cogelec shareholders are down 31% for the year (even including dividends), the market itself is up 5.2%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. It's great to see a nice little 36% rebound in the last three months. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). Importantly, we haven't analysed Cogelec's dividend history. Thisfreevisual report on its dividendsis a must-read if you're thinking of buying.
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 FR 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. |
Bank of England Governor Says Facebook’s Libra Crypto Will Be Scrutinized
Facebook’s Libra cryptocurrency payments initiative could be subject to the “highest standards” in global regulation, said Mark Carney, the governor of the Bank of England.
According to a Financial Timesreporton Tuesday, Carney noted during a central bank meeting in Portugal that he remains “open minded” on the utility of Facebook’s Libra cryptocurrency, admitting that worldwide payments systems are largely unequal at the moment.
However, he stated that it would be inevitable for Facebook to meet the highest standards of regulation should it succeeded in signing up users.
Related:Watch Facebook’s Libra Videos: An Inside Look At the Calibra Wallet
Carney added the U.K. central bank would scrutinize Facebook’s crypto payments plan “very closely” and will collaborate with global forces including G7 countries, the Bank of International Settlements, the International Monetary Fund as well as the Financial Stability Board, for which Carney served as a former chair.
Based on the report, Carney also raised questions on how Facebook would be able to ensure anti-money laundering measures while protecting users’ data privacy.
Carney’s comment came after Facebook revealed its long-anticipated cryptocurrency initiative in an effort to build a global peer-to-peer payments network.
Such move had drawn criticism from both home and abroad for the social media giant. Hours following its announcement on Tuesday, financial regulators in Europe alreadyvoicedconcerns over the possibility of Facebook’s Libra becoming a shadow bank and asked for closer scrutiny over the project.
Related:Halt Libra? US Lawmakers Call for Hearings on Facebook’s Crypto
A lawmaker that heads the U.S. House of Representatives Financial Services Committee had evenaskedFacebook to halt the development of Libra for the time being until hearings could be held.
Carneyimage via Shutterstock
• Facebook’s Cryptocurrency Is a Nail in the Coffin for ‘Blockchain Not Bitcoin’
• Facebook Has Yet to Answer US Lawmakers’ Questions About Libra Crypto |
Investors Who Bought Cinevista (NSE:CINEVISTA) Shares Three Years Ago Are Now Up 51%
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By buying an index fund, investors can approximate the average market return. But if you pick the right individual stocks, you could make more than that. Just take a look atCinevista Limited(NSE:CINEVISTA), which is up 51%, over three years, soundly beating the market return of 30% (not including dividends).
Check out our latest analysis for Cinevista
Because Cinevista is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
In the last 3 years Cinevista saw its revenue shrink by 0.3% per year. Despite the lack of revenue growth, the stock has returned 15%, compound, over three years. If the company is cutting costs profitability could be on the horizon, but the revenue decline is aprima facieconcern.
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.
If you are thinking of buying or selling Cinevista stock, you should check out thisFREEdetailed report on its balance sheet.
While the broader market gained around 0.2% in the last year, Cinevista shareholders lost 17%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 8.1% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. You might want to assessthis data-rich visualizationof its earnings, revenue and cash flow.
Of course,you might find a fantastic investment by looking elsewhere.So take a peek at thisfreelist of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on IN 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. |
French photo startup Meero joins unicorn club after $230 million fundraising
PARIS (Reuters) - French startup Meero, which offers online editing and production tools for photographers, has raised $230 million in a boost for the country's technology and start-up scene that President Emmanuel Macron hopes will boost the overall economy. Meero's fundraising is the biggest on record in France so far this year, beating Doctolib's 150 million-euro fundraising. Investment company Eurazeo, which took part in Meero's fundraising, announced the total of $230 million that had been raised, via a statement on Wednesday. Eurazeo invested $56 million out of that sum, which brings Meero's valuation above the $1 billion threshold used by the tech industry to identify so-called "unicorns" -- the most valuable and promising startups. Investment companies Prime Ventures, Avenir Growth, Global Founders Capital, Aglaé Ventures, Alven, White Star Capital and Idinvest Partners also participated in the fundraising, whose financial details were not disclosed. Meero was founded three years ago and is headquartered in Paris. Meero hopes to double its staff to 1,200 by the end of the year, according to French newspaper Les Echos, which interviewed the company's founder Thomas Rebaud. Rebaud said in the interview that Meero's revenues stem from commissions taken from photographers' assignments. He did not provide any figure on the company's financial results. (This story corrects second paragraph to show Meero raised more than Doctolib.) (Reporting by Mathieu Rosemain; Editing by Sudip Kar-Gupta) |
How Continental Aktiengesellschaft (FRA:CON) Could Add Value To Your Portfolio
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Continental Aktiengesellschaft (FRA:CON) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of CON, it is a company that has been able to sustain great financial health, trading at an attractive share price. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at thereport on Continental here.
CON is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that CON has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. CON seems to have put its debt to good use, generating operating cash levels of 0.69x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows. CON's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts' consensus forecast growth be correct. Also, relative to the rest of its peers with similar levels of earnings, CON's share price is trading below the group's average. This supports the theory that CON is potentially underpriced.
For Continental, there are three relevant factors you should further examine:
1. Future Outlook: What are well-informed industry analysts predicting for CON’s future growth? Take a look at ourfree research report of analyst consensusfor CON’s outlook.
2. Historical Performance: What has CON's returns been like over the past? Go into more detail in the past track record analysis and take a look atthe free visual representations of our analysisfor more clarity.
3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of CON? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing!
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 Kind Of Shareholder Appears On The City of London Group plc's (LON:CIN) Shareholder Register?
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Every investor in City of London Group plc (LON:CIN) should be aware of the most powerful shareholder groups. 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.
City of London Group is a smaller company with a market capitalization of UK£58m, so it may still be flying under the radar of many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about CIN.
See our latest analysis for City of London Group
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 52% of City of London Group. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 City of London Group's earnings history, below. Of course, the future is what really matters.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in City of London Group. 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.
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 data suggests that insiders own under 1% of City of London Group plc in their own names. However, it's possible that insiders might have an indirect interest through a more complex structure. It seems the board members have no more than UK£235k worth of shares in the UK£58m company. Many tend to prefer to see a board with bigger shareholdings. A good next step might be totake a look at this free summary of insider buying and selling.
With a 19% ownership, the general public have some degree of sway over CIN. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
It seems that Private Companies own 29%, of the CIN stock. 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.
Many find it usefulto take an in depth look at how a company has performed in the past. You can accessthisdetailed graphof past earnings, revenue and cash flow.
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. |
Bitcoin Logic: The Tactics Of Faketoshi Exposed by Craig Wright Himself
ByCCN Markets: Self-professed Bitcoin creator and ‘Faketoshi’, Craig Wright, continued to give himself away in a blog post where he details the logic of false argumentation. Specifically, Wright takes aim at those who would seek to hide behind ad hominem attacks, and use misdirection to avoid the question at hand.
That question, according to Wright, is the scaling of Bitcoin, which he states in between bouts of launching ad hominem attacks on everyone fromJulian Assange, toBinance, toJohn McAfee.
Here we have the manifestation of Wright’s logic in action. The real question is why he persists in the ruse that he is Bitcoin’s inventor, Satoshi Nakamoto. Everything else, as Craig Wright says himself, is misdirection.
Titled “The Genetic Fallacy”, Wright’s latest blog post suggests (in meme form) that the reason people don’t believe his Satoshi claims is because he’s Australian. I resent this implication – as a Scotsman I’m proud of the genetic heritage that links mycriminal great-great-great-grandfatherto the founding members of the land down under. Wright states:
Read the full story on CCN.com. |
The Hot IPO You Might Have Overlooked: Term Sheet
1. CONSUMERIZE THE ENTERPRISEWhile we all gave our undivided attention to flashy IPOs like Uber and Lyft, many overlooked the public market debut of cloud-based cybersecurity company CrowdStrike. You’ve probably heard of it without realizing — CrowdStrike was the company thatdiscovered the Democratic National Committee breachby Russia amid the U.S. presidential election.My colleague Robert Hackett and I met with CrowdStrike CEO George Kurtz the day after his company’s IPO. It had been a big day for Kurtz and his team after the stock surged and made it the second most valuable U.S.-based cybersecurity company on the public markets today (only $19.5 billion Palo Alto Networks tops it.)Hackett notes that the most interesting thing about Kurtz is his doggedness. “Here was a man dead-set: Cloud at all costs. Platform or nothing. IPO or bust. Kurtz has been describing his business as ‘the Salesforce of cybersecurity’ since I first met him in 2015, and that’s precisely how he described it when I caught up with him after his company’s ravenously received initial public offering in the middle of the week.”And there’s a reason Kurtz uses the Salesforce comparison. When we met with him, he said something that resonated: “The companies that bring a consumerized experience to the enterprise will win.”Read more.‘IRR GOALS:’This chartwas making the rounds on Twitter this weekend showing aggregated fund performance sorted by fund manager. Union Square Ventures showed nearly 60% internal rate of return (IRR) across eight funds.The tweets were endless. Alexis Ohanianwith: “Respect. @fredwilson and team with IRR goals.” Paul Grahamwith“Union Square Ventures proves that in the venture business, nice guys don’t finish last. In fact rather the opposite.” And Paul Kedroskywith: “Incredible venture performance numbers as of 12/31/18 from Union Square, not that it should come as a surprise.”Wilson commented to say he has never seen his firm’s fund performance aggregated into a single number. “We don’t look at it that way at USV,” he said. Andadded, “To be clear, we look at each fund separately. Not as an aggregated entity. I can see why LPs would look at performance aggregated by manager, but we don’t.”Regardless, it’s interesting to see fund performance in this format. Looks like Summit Partners has also fared well.GOLDMAN SACHS STRATEGY SHAKE-UP:Goldman Sachs is upping its private equity ante by building a mini-Blackstone Group internally, according toThe WSJ. The firm is reportedly pulling together four separate units that invest in private companies, creating new unit and planning a fundraising blitz. Why? Under the leadership of CEO David Solomon, Goldman is trying to grow the kind of steady, income-generating business that investors like. The unit is likely to have approximately $140 billion in assets, according to the WSJ.Read more.THIS JUST IN:Sotheby’s auction house is being taken private for $57 per share in a cash deal valued at $3.7 billion. The buyer is BidFair USA, an entity wholly owned by media and telecom entrepreneur as well as art collector, Patrick Drahi. Sotheby’s will return to private ownership after 31 years as a public company traded on the New York Stock Exchange.
2. VENTURE DEALS•Collective Health, a San Francisco-based employer health benefits company, raised $205 million in Series E funding.SoftBankled the round, and was joined by investors includingDFJ Growth, PSP Investments, Founders Fund, GV, Maverick Ventures, NEA,andSun Life.•PayFit,a France-basedHR solution, will raise $79 million (€70 million) in funding, according to TechCrunch. Investors includeEurazeoandBpifrance.Read more.•Edge Case Research,a Pittsburgh, Penn.-based AI safety startup, raised $7 million in funding.Chris UrmsonandANSYSled the round, and were joined by investors includingLockheed Martin Ventures, Liberty Mutual Strategic Ventures, Trucks VCandBlue Tree Allied Angels.•Drive Motors, a San Francisco-based provider of digital commerce for auto retailers and brands, raised $5 million in funding. Investors includePeter Thiel, IDOM IncandAlly Ventures. Also, Drive Motors has changed its name toModal.•Novi Money,a San Francisco-based company focused on improving financial literacy, raised $3 million in seed funding. Investors includeRuna Capital, Lightspeed, Doberman Forward, Freedom Financial Network, M ventures, SGH Capital, Republic.coandVectr.•NeedsList, a Philadelphia-based online platform that matches products and services to communities in need, raised $1 million in funding. Investors includeAmplio Ventures and Marigold Capital join the Omidyar Network, Next Wave Impact, Silicon Valley Social Venturesandthe Kuo Sharper Fund.
3. HEALTH AND LIFE SCIENCES DEALS•Saga Diagnostics AB,a Sweden-based precision oncology genomics testing company, raised $4.2 million in funding.Hadean Venturesled the round.
4. PRIVATE EQUITY DEALS•Parker Building Supplies, a portfolio company ofCairngorm Capital Partners, acquiredSussex Turnery and Moulding Co Ltd, a U.K.-based builders’ merchant and wholesale timber processing and distribution business. Financial terms weren’t disclosed.•Unifrax, backed byClearlake Capital Group, acquiredStellar Materials LLC, a maker of specialty chemistries and materials. Financial terms weren’t disclosed.•Morgan Stanley Capital PartnersacquiredOvation Fertility, a Los Angeles-based provider of in-vitro fertilization laboratory services, fromWindRose Health Investors. Financial terms weren’t disclosed.•Nordic Capitalagreed to acquire a majority stake ofArisGlobal, a Coral Gables, Fla.-based life sciences software company, in a deal that values the company at $700 million including debt, according toThe Wall Street Journal.Read more.
5. OTHER DEALS•Pfizer Inc.(NYSE: PFE) agreed to acquireArray BioPharma Inc.(NASDAQ: ARRY) for approximately $11.4 billion.
6. IPOs•BridgeBio Pharma,a company that identifies and advances transformative medicines to treat patients who suffer from Mendelian diseases, plans to raise $225 million in an IPO of 15 million shares priced between $14 to $16. It has yet to post a revenue and posted losses of $144 million in 2018.KKRandVikingback the firm. J.P. Morgan, Goldman Sachs, Jefferies, SVB Leerink, KKR, Piper Jaffray, Mizuho Securities, BMO Capital Markets, and Raymond James are underwriters. It plans to list on the Nasdaq as “BBIO.”Read more.•Global Fashion Group, an emerging markets online fashion retailer, plans to raise as much as 395 million euros ($444 million) in a Frankfurt IPO, per Reuters.Rocket InternetandKinnevikback the firm.Read more.•The RealReal, a U.S.-based luxury reseller, plans to raise $270 million in an IPO of 15 million shares priced between $17 to $19. The firm posted revenue of $207.4 million and loss of $75.8 million. The firm is is backed byPerella Weinberg Partners (11% pre-offering), Canaan Partners (13%)andGreat Hill Partners (14.7%). It plans to list on the Nasdaq as “REAL.”Read more.•Adaptive Biotechnologies, a Seattle-based maker of an immunosequencing platform for diagnosing diseases, plans to raise $200 million in an IPO of 12.5 million shares priced between $15 to $17. It posted revenue of $55.7 million and loss of $46.4 million in 2018.Viking Global(36% pre-offering) andMatrix Capital(16.4%) back the firm. Goldman Sachs, J.P. Morgan, BofA Merrill Lynch, Cowen, Guggenheim Securities, William Blair, and BTIG are underwriters. It plans to list on the Nasdaq as “ADPT.”Read more.•Uniphar, an Irish wholesale pharmaceutical firm, plans to raise 150 million euros ($167 million) in an IPO in London and Dublin, Reuters reports.Read more.
7. EXITS•Ares Management CorpandOMERS Private Equityagreed to sellNational Veterinary Associates,an Agoura Hills, Calif.-based veterinary and pet care services organization, toJAB Investors.Financial terms weren’t disclosed.•OpenGate CapitalsoldOmniplast,a provider of piping systems, to a group of investors includingReedcapital, Luigi M. ChiaraviglioandSwiss Merchant Corporation. Financial terms weren’t disclosed.
8. SHARE TODAY’S TERM SHEETView this email in your browser.Polina Marinovaproduces Term Sheet, andLucinda Shencompiles the IPO news. Send deal announcements to Polinahereand IPO news to Lucindahere. |
Euroclear, EIB, Santander and EY to Pursue Blockchain Pilot for ECP Settlement
Euroclear, one of the world’s largest securities depositories, says it will push forward with building a pilotblockchain-based platform for the issuance and settlement ofEuropeancommercial paper (ECP). The news was reported byEuroClearon June 19.
Euroclear settled €791 trillion ($885.48 trillion) in securities transactions and held an average of €28.8 trillion ($32.24 trillion) in client assets in 2018, according to resultspublishedthis March.
The financial services titan has today revealed that it successfully completed a proof-of-value study for an ECP-focused blockchain platform together with the European Investment Bank,Spain’sSantanderand “Big Four” auditor EY.
The blockchain platform will reportedly serve end-to-end for issuing and settling ECPs — unsecured short-term debt instruments issued by banks or corporations, which represent a $1.2 trillion market.
The press release notes that “based on the initiative’s success, Euroclear intends to move on to pilot phase soon.”
A disintermediated blockchain platform would provide time efficiencies by replacing cumbersome bilateral processing between market participants with a consolidated system, according to the press release. Euroclear has reportedly further outlined that:
“Other key benefits of this blockchain solution would be full transparency and traceability of ECP issuance related activities [...] making ECP same day issuance a new market standard.”
Asreported,Germanfinancial services company Commerzbank,Frenchcorporate and investment bank Natixis, andDutchfinancial services firm Rabobank jointly completed a live commercial paper transaction using the Euro Debt Solution application developed by enterprise blockchain consortium R3’s for itsCordaplatform.
Back in 2017, Eurcolear and blockchain trust company Paxos abruptlyendedtheir joint cooperation on developing a settlementserviceutilizing blockchain technology for the London bullion market — despite havingcompleteda series of successful tests.
Paxos has sincereleasedits own Ethereum (ETH) blockchain-based stablecoin, dubbed Paxos Standard Token (PAX).
• Royal Bank of Scotland Onboards Former Circle Exec to Head Fintech Project
• Visa Set to Join the Expanding Field of Blockchain-Based International Payment Providers
• Italy’s Banks to Use Blockchain to Boost Settlements and Improve Transparency
• Global Banking Giant HSBC Launches Tokenization-Based Receivables System for India |
Canada approves contentious oil pipeline expansion, expects legal challenges
By David Ljunggren and Nia Williams
OTTAWA/CALGARY, Alberta (Reuters) - Canada on Tuesday approved as expected a hotly contested proposal to expand the western Canadian crude oil pipeline it bought last year, providing hope for a depressed energy industry but angering environmental groups.
Construction on the expansion of the Trans Mountain pipeline is scheduled to resume this year, Prime Minister Justin Trudeau told a news conference. A senior government official, speaking on condition of anonymity, said earlier that Ottawa expected legal challenges to the approval.
The project would triple Trans Mountain's capacity to carry 890,000 barrels per day from Alberta's oil sands to British Columbia's Pacific coast, alleviate congestion on existing pipelines and diversify exports away from the United States.
Trudeau, who faces a tough fight in a national election scheduled for October, has been under pressure both from western Canadian politicians who accuse him of doing too little for the oil industry, and from environmental groups, which see the oil sands as a highly polluting source of crude production.
"This isn't an either/or proposition. It is in Canada's national interest to protect our environment and invest in tomorrow, while making sure people can feed their families today," he said, adding he knew some people would be disappointed.
The Liberal government previously approved the expansion in 2016 but that decision was overturned last year after a court ruled the government had not adequately consulted indigenous groups.
The approval was widely expected as the government spent C$4.5 billion ($3.4 billion) to buy the 66-year-old pipeline from Kinder Morgan Canada Ltd last year to ensure that the expansion proceeded. Western Canada's oil production has expanded faster than pipeline capacity, causing a glut of crude to build up.
Trudeau said the government would make a series of accommodations to indigenous concerns about the pipeline, including on protections of killer whale and fish habitats in British Columbia.
One group of indigenous activists in British Columbia, called Tiny House Warriors, vowed in a statement that the expansion would not be built on their territory.
"The Trudeau government does not have the right to put a pipeline through unceded Secwepemc land," spokeswoman Kanahus Manuel said.
FURTHER OBSTACLES AHEAD
The government's latest approval can be appealed through the courts. Trans Mountain also requires various permits and route approvals in British Columbia, where that province's left-leaning New Democratic Party government opposes the project.
The B.C. government also plans to appeal a recent British Columbia Appeal Court ruling that the provincial government cannot restrict the flow of oil on pipelines that cross provincial boundaries.
British Columbia Premier John Horgan said his government was "disappointed" with the federal government's decision but would not unduly withhold construction permits.
Mike Hurley, mayor of Burnaby, where the pipeline terminates in a tank farm near the Westridge Marine Terminal on Burrard Inlet, said his city was “absolutely against” the pipeline expansion.
“It brings too much extra risk into our community and we don’t believe the risk is worth the rewards. There’s risk of fire, explosion, chemical releases, a natural disaster for our First Nations people who use the inlet so much, and for business.”
Construction is expected to take 2-1/2 years, investment bank Tudor Pickering Holt & Co said. Assuming work on the expansion resumes this year, the expanded pipeline could be in service in early 2022.
"We will measure success not by today's decision but by the beginning of actual construction and more importantly by the completion of the pipeline," said Alberta Premier Jason Kenney, a frequent critic of Trudeau. "This is now a test for Canada to demonstrate to the rest of the world we are a safe place in which to invest."
The decision will help create billions in economic benefits across Canada as it allows Canadian oil to reach higher-paying international markets, the Canadian Energy Pipeline Association said in a statement.
Eighty percent of the expanded pipeline's total capacity has been contracted to companies including Suncor Energy Inc, Canadian Natural Resources Ltd and Exxon-owned Imperial Oil Ltd, according to a National Energy Board filing.
The Canadian government has long said it planned to sell the pipeline once most of the obstacles to its construction have been cleared. Numerous indigenous groups have said they are interested in investing in it.
($1 = 1.3376 Canadian dollars)
(Reporting by David Ljunggren in Ottawa and Nia Williams in Calgary; Additional reporting by Kelsey Johnson in Ottawa and Rod Nickel in Winnipeg; Editing by Jonathan Oatis and Peter Cooney) |
Are Compagnie d'Entreprises CFE SA's (EBR:CFEB) Interest Costs Too High?
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Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as Compagnie d'Entreprises CFE SA (EBR:CFEB), with a market cap of €2.1b, often get neglected by retail investors. Despite this, commonly overlooked mid-caps have historically produced better risk-adjusted returns than their small and large-cap counterparts. Today we will look at CFEB’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 commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourselfinto CFEB here.
View our latest analysis for Compagnie d'Entreprises CFE
Over the past year, CFEB has ramped up its debt from €890m to €1.1b , which includes long-term debt. With this growth in debt, the current cash and short-term investment levels stands at €388m , ready to be used for running the business. Additionally, CFEB has produced cash from operations of €224m during the same period of time, leading to an operating cash to total debt ratio of 21%, signalling that CFEB’s current level of operating cash is high enough to cover debt.
Looking at CFEB’s €2.3b in current liabilities, it appears that the company arguably has a rather low level of current assets relative its obligations, with the current ratio last standing at 0.81x. The current ratio is calculated by dividing current assets by current liabilities.
CFEB is a relatively highly levered company with a debt-to-equity of 61%. 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 CFEB’s 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 CFEB, the ratio of 24.26x suggests that interest is comfortably covered, which means that debtors may be willing to loan the company more money, giving CFEB ample headroom to grow its debt facilities.
Although CFEB’s 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. Though 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 CFEB's financial health. Other important fundamentals need to be considered alongside. I recommend you continue to research Compagnie d'Entreprises CFE to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for CFEB’s future growth? Take a look at ourfree research report of analyst consensusfor CFEB’s outlook.
2. Valuation: What is CFEB 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 CFEB 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. |
Block.one paid $30 million to purchase a domain name for its social media platform
Block.one, the startup behind the EOS blockchain, paid $30 million in cash to purchase a domain name for its social media platform Voice.
The news wasannouncedTuesday by enterprise analytics and mobility software provider MicroStrategy, saying that it sold the domain name voice.com in a transaction facilitated by Internet domain registrar GoDaddy and that it has subsequently been used by Block.one.
“An ultra-premium domain name like Voice.com can help a company achieve instant brand recognition, ignite a business, and massively accelerate value creation,” said MicroStrategy’s senior executive vice president and chief marketing officer, Marge Breya, in the announcement.
Block.onelaunchedits blockchain-based social media app Voice earlier this month. The firm claimed at the time that real users, instead of bots, will be using the platform, possibly referring to the prevalent problems of fake accounts on traditional social media platforms such as Twitter and Facebook.
Block.one CEO Brendan Blumer recentlytoldThe Block that the firm spent $150 million to build Voice, which is currently available in Beta version for users to sign up.
Hong Kong-headquartered Block.one isbackedby notable investors, including PayPal co-founder Peter Thiel, Bitmain and Galaxy Digital’s Mike Novogratz, among others. |
Barnet stabbing: Man dies following fight
A man has died following a triple stabbing in north London (PX Here/stock photo) London has suffered another night of violence after a man died following a triple stabbing - the fifth killing in the capital in six days. Officers were called to Welbeck Road, Barnet, at 10.50pm on Tuesday following reports of a fight. Scotland Yard said three men who had been stabbed were taken to hospital, one of whom later died. The two other injured men - one in his 20s and another in his 30s - were not in a life-threatening condition, the force said. A crime scene remained in place on Wednesday morning as murder detectives opened an investigation. Any witnesses or anyone with information about the killing was urged to contact police. Officers were called to Welbeck Road in Barnet on Tuesday night following reports of a fight (Google) The suspected murder comes after a man in his 40s was stabbed to death in Whalebone Lane, Stratford, in the early hours of Monday. That killing followed three homicides in the space of 24 hours, including two teenagers who were fatally attacked at teatime on Friday. Cheyon Evans, 18, was found stabbed on Deeside Road in Wandsworth, south-west London, at 4.42pm, and died at the scene. Read more from Yahoo News UK: Jeremy Corbyn to 'back second Brexit referendum’ Tory leadership candidates clash over Brexit in televised debate Tourists are paying £5 for a can of fresh air from the Isle of Man In the second killing, Eniola Aluko, 19, from Thamesmead, south-east London, was shot dead in Hartville Road, Plumstead, shortly before 5pm. On Saturday, a man in his 30s was stabbed to death in a field next to a nursery and a mosque in Alton Street, in Tower Hamlets, east London, just before 2pm. As well as the violent deaths, another victim, 45, was left in a critical condition when he was stabbed in Enfield at about 3.30pm on Saturday. Murder investigation underway Police were called at approximately 22:50hrs on Tuesday, 18 June to reports of a fight in Welbeck Road, #barnet Officers and London Ambulance Service attended and found three men suffering stab injuries. pic.twitter.com/Cyh5tpqo61 — London Knife Crime LDN (@CrimeLdn) June 19, 2019 A 17-year-old boy was also left fighting for his life after he was shot on the Tulse Hill Estate, south west London, at around 9.40pm on Sunday. Story continues Another man, aged 28, was also shot shortly after 11.30am on Monday in Leytonstone, east London, but his injuries were non-life threatening or changing. The Metropolitan Police said it had boosted activity by its Violent Crime Taskforce in certain hotspots. Mohamed Nadir Dafallah, 18, from Wandsworth, and a 17-year-old, who cannot be named for legal reasons, have been charged with Cheyon's murder and are due to appear at the Old Bailey on Wednesday. |
Exclusive: Spain's Repsol cuts 30% of Canadian staff in global restructuring
By Devika Krishna Kumar and Nia Williams
NEW YORK/CALGARY (Reuters) - Spanish energy company Repsol SA is cutting about 30% of its Canadian workforce as part of global restructuring, the company said in an emailed statement on Tuesday.
Repsol joins a string of large international energy companies that have either reduced exposure to Canada or exited the country's oil sands sector to focus investment elsewhere.
Delays in building new export pipelines has slowed Canadian oil and gas development and capped growth in output in the world's fourth-largest crude producer.
Repsol said it had cut staff in its Calgary, Chauvin and Edson offices.
The company declined to detail the exact number of cuts from its Canadian workforce, which numbered about 700 at the end of 2018, according to the company website.
Employees in the Canadian exploration and production and corporate units affected by the reorganization will be informed this week, according to company sources and an internal memo seen by Reuters.
"Unfortunately, as I already mentioned, there is not a role for everyone," Paul Ferneyhough, Repsol's executive director of North America, said in the memo this week.
Repsol has liquids and gas assets and conventional heavy oil operations in western Canada, primarily in the province of Alberta.
Also this month, local media reported that Nexen, a subsidiary of Chinese state-owned oil giant China National Offshore Oil Corporation Ltd, laid off 100 people in Calgary.
(Reporting by Devika Krishna Kumar in New York and Nia Williams in Calgary, Alberta; editing by Leslie Adler and Grant McCool) |
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